Passed the above list of’good landlord tax credit increase 50 → 70%’ (total)

Expansion of credit card deduction… One year postponement for post management of employment increase tax

(Seoul = Yonhap News) Reporter Kim Dong-ho, Lee Bo-bae = Small business tenants suffering from the novel coronavirus infection (Corona 19).

The National Assembly’s Planning and Finance Committee decided on amendments to the Restriction of Special Taxation Act at a plenary meeting on the 19th.

The amendment is to increase the income and corporate tax credit rate applied to the reduction from 50% to 70% when the lessor voluntarily lowers the rent to small business tenants.

The deadline for applying the deduction was extended by six months from June 30 to December 31 this year.

However, landlords who exceed 100 million won in total income are subject to a 50% deduction rate according to the current standard.

Considering the Corona 19 situation, it was decided to postpone the post management of the employment increase tax system (additional tax deduction + non-deduction for remaining periods) for companies that reduced their employment last year.

The government provides income and corporate tax credits of 4 million to 12 million won per year per employee with increased employment compared to the previous year. Even if companies receiving such benefits in 2019 reduced their employment last year, follow-up management such as tax collection is applied. It doesn’t.

However, the company must maintain the 2019 employment level in 2021-2022 to continue to receive tax benefits.

If the amount of credit card usage is increased by more than 5% this year, the list also passed the description of giving an additional income deduction of 10% (up to 1 million won) for the increase in excess of 5%.

If a resident transfers the land for the construction of the housing to a publicly purchased rental housing construction company by December 31 next year, the capital gains tax on the income generated will be reduced by 10%.

In order to introduce the’national employment insurance’ system, the committee also handled amendments to the income tax law and corporate tax law that shorten the monthly period of daily wage income payment statements that were submitted every quarter and simplified business income payment statements that were submitted every half year.

The additional tax rates paid in the case of not submitting or delaying the payment statement for daily wage income were lowered to 0.25% and 0.125%, respectively, reducing the burden of employers.

Small businesses with less than 20 full-time employees will be exempt from penalties temporarily for one year from July to next June if they submit the payment statement that must be submitted each month by the current submission deadline.

Penalty tax is also exempted when the amount of the unclear amount in the payment statement is less than a certain percentage, such as when the income statement is incorrectly written in the personal information and payment amount, etc.

However, the issue of shortening the period of submission of taxation data for service providers, etc., from annual to quarterly, was decided to be discussed later at the extraordinary National Assembly.

In order to limit investment by the Korea Investment Corporation (KIC) to war criminals and unethical companies, the Korea Investment Corporation Act, which regulates the principle of’socially responsible investment’ as a law, has also passed the committee on listing.

The bills handled on this day are expected to be presented to the plenary session on the 26th after passing through the judiciary committee.

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2021/02/19 14:46 sent