Building Owners Encouraged to Cooperate... Incheon City Offers Up to 50% Property Tax Reduction for 'Good Landlords'

Rent Reduction of Over 10% for 3 Months Applies
Local Tax Collection and Delinquency Measures Deferred for Affected Small Business Owners

Building owners and the Commercial Prosperity Association of Incheon International Airport New Town are taking a commemorative photo after signing the 'Good Rent Win-Win Agreement' to overcome the COVID-19 crisis and revitalize the local commercial district. 2020.3.25
[Photo by Incheon City]

[Asia Economy Reporter Park Hyesook] Incheon City has decided to provide local tax reductions to 'Good Landlords' who voluntarily participate in rent reductions to support small business owners struggling with management difficulties due to the novel coronavirus disease (COVID-19) crisis.

The city and each district will reduce property tax and other taxes by up to 50% according to the rent reduction rate for building owners who have reduced rent by 10% or more for at least three months or have signed an agreement to do so before June 1, the property tax assessment date.

Even if the rent reduction period is less than three months, if the reduction rate converted to a three-month basis is 10% or more, the landlord can receive the tax reduction benefit. For landlords who reduce rent for a long period, the city plans to implement substantial tax support by adding a certain rate to the reduction rate based on the length of the rent reduction period.

However, property tax reductions will not apply to buildings classified as high-end entertainment venues such as nightclubs. This local tax reduction measure will be applied starting from the property tax and local resource facility tax levied in July after approval by the city and district councils in May.

The city has formed a public-private consultative body to promote the spread of the 'Good Rent' campaign to support small business owners and self-employed individuals suffering from economic hardships such as sharp sales declines.

As of this date, 1,064 stores in 52 areas, including 327 stores in 18 traditional markets and 737 stores in 34 shopping districts, are participating. Building owners have agreed to reduce rents by 20-30% until the COVID-19 situation ends.

Separately, the city plans to continue multifaceted tax support measures such as extending local tax deadlines, deferring collection, and postponing delinquency actions for small business owners economically affected by COVID-19.

Additionally, the city will reduce water and sewage charges by 50% for 78,000 small business operators for four months and provide 300,000 KRW each to 20,000 businesses subject to social distancing administrative orders, including PC rooms, karaoke rooms, academies, and indoor sports facilities.

An Incheon city official said, "We expect that local tax reductions and various tax support measures will empower small business owners and self-employed individuals and help revitalize the local economy," adding, "We hope landlords and small business owners actively participate in the Good Rent campaign to overcome the crisis through mutual coexistence."

This content was produced with the assistance of AI translation services.