‘Noran Usan Gongje’ Subscription and Claim Procedures Simplified

[Asia Economy Reporter Moon Hyewon] The Ministry of SMEs and Startups announced that the amendment to the "Enforcement Decree of the Small and Medium Enterprise Cooperatives Act," which excludes the submission of six types of National Tax Service-linked information when subscribing to the Small Business and Self-Employed Mutual Aid (hereinafter Yellow Umbrella Mutual Aid) and claiming mutual aid payments, was approved at the Cabinet meeting on the 4th.

The Yellow Umbrella Mutual Aid is a system introduced to provide livelihood stability and a foundation for business recovery in preparation for threats to livelihood such as business closure or old age. Currently, it is a representative social safety net for more than 1.3 million small business owners who have subscribed.

This amendment to the enforcement decree was promoted to reduce the inconvenience for small business owners who have difficulty using computers (PCs) and must visit tax offices in person to issue documents, as well as to lessen the administrative burden on tax offices that issue up to 800,000 documents annually.

The tax information documents to be reduced include ▲ Business Registration Certificate for verifying mutual aid subscription eligibility ▲ Value-Added Tax Standard Certificate, Value-Added Tax Exempt Business Income Certificate, Standard Financial Statements for confirming eligibility for small business and local government support ▲ Business Closure Certificate for verifying mutual aid reasons (business closure) ▲ Income and tax deduction certificates such as pension insurance premiums for confirming income deduction amounts when paying mutual aid benefits.

The Korea Federation of SMEs, which operates the Yellow Umbrella Mutual Aid, will be able to receive and utilize small business owners' tax information from the National Tax Service once joint use of administrative information is approved through consultation with the National Tax Service and the Ministry of the Interior and Safety based on the amended enforcement decree.

Mutual aid subscribers are expected to benefit from reduced application documents as early as next month.

Kwon Daesu, Director of Small Business Policy at the Ministry of SMEs and Startups, said, "With this amendment to the enforcement decree, the inconvenience of mutual aid subscription and claims for small businesses and small business owners has been reduced, and unnecessary administrative waste has been prevented."

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