Changwon City Imposes 6.9 Billion KRW in Regular Resident Tax Equal Shares

Temporary 50% Tax Reduction Applied to Individual Entrepreneurs and Small Corporations

Changwon City Hall Panorama

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] Changwon City in Gyeongnam announced on the 12th that it has revised the city tax reduction ordinance to ease the burden on taxpayers struggling due to the impact of the novel coronavirus infection (COVID-19) and imposed a 50% reduction on the resident tax equalization portion (equal for individual businesses and corporations), amounting to 6.92 billion KRW.

The resident tax equalization portion is a local tax with a membership fee-like nature that is levied equally regardless of income size. It is imposed annually on July 1, the tax base date, on individuals and household heads residing in Changwon City, as well as individual business owners and corporations with business establishments there.

The tax amount is differentiated as follows: 10,000 KRW for individual household heads, 50,000 KRW for individual business owners, and for corporations, it ranges from 50,000 KRW to 500,000 KRW depending on capital and number of employees. A local education tax of 25% of the payable tax amount is calculated and added, so the total of resident tax and local education tax becomes the final payable tax amount.

Gu Jin-ho, head of the Taxation Division, said, “Although the resident tax reduction temporarily applied this year may feel somewhat insufficient to taxpayers, we hope it will be a small help. We will actively promote the resident tax payment guidance to ensure that taxpayers do not suffer disadvantages such as additional charges.”

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