Mapo-gu, Full Effort to Promote Tax Support for Local Businesses

Exemption Benefits for Resident Tax (Employee Portion) Calculation Under Revised Local Tax Act... Taxable Scope Reduced, Businesses Over 150 Million Won Instead of 135 Million Won... Active Investigation of Unregistered Construction Sites and Workplaces to Prevent Tax Evasion

[Asia Economy Reporter Jongil Park] Mapo-gu (Mayor Yudonggyun) will actively promote the revised Local Tax Act, which has been amended and enforced from this year, to ensure that local businesses can enjoy tax benefits.

First, due to the revision of the Local Tax Act, the salary of employees on parental leave is excluded from the total salary range used as the basis for calculating the resident tax (employee portion), thereby slightly reducing the burden on the relevant businesses.

Along with this, the revised Local Tax Act changes the taxable target for resident tax (employee portion), which must be paid monthly, from businesses with an average monthly salary of 1.35 billion KRW or more to those with 1.5 billion KRW or more, thereby narrowing the scope of businesses subject to reporting and payment.

The district office explained that the resident tax (employee portion) is a local tax that taxpayers calculate and report by themselves, and there are difficulties in collection due to taxpayers' lack of tax awareness.

Accordingly, by utilizing National Tax Service report data and National Health Insurance Corporation report data, the district will inform businesses subject to payment that failure to report and pay will result in penalties such as additional taxes, and will actively promote related tax benefits such as non-taxable salaries to encourage voluntary reporting and payment of resident tax (employee portion).

Last year, the district collected over 8400 cases, totaling more than 21.6 billion KRW in resident tax employee portions.

Regarding the resident tax (corporate equalization portion), which is regularly taxed every August for corporate businesses, the district has considered cases where it is not imposed on unregistered business sites such as construction sites, and since March, has been striving to prevent tax evasion by securing labor income report (special collection) data and conducting thorough investigations.

Furthermore, as the COVID-19 pandemic prolonged, the district has continuously strengthened support such as local tax collection deferrals, deadline extensions, and tax audit postponements for businesses and other direct and indirect victims experiencing difficulties.

The district plans to widely inform small businesses in the area about these matters through sending notices and other means.

For other inquiries related to the payment of resident tax (employee portion), please contact the Tax Division 2 of Mapo-gu for guidance.

Mayor Yudonggyun of Mapo-gu said, “We will actively promote the revised tax support measures for resident tax (employee portion) to ensure that eligible businesses do not miss out on benefits, and will thoroughly investigate unreported businesses to prevent any omitted tax sources. We expect these efforts to contribute to the realization of fair taxation and greatly help increase the district’s revenue.”

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