Tax Credit for 'Good Landlords' Increased from 50% to 100% During Assembly Ban Orders

Rep. Choo Kyung-ho of the People Power Party, Main Sponsor of the 'Restriction of Special Taxation Act'

Rep. Choo Kyung-ho of the People Power Party. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The scope of rent tax credits for landlords who reduce rent for small and micro business owners whose operations were banned due to COVID-19 quarantine measures is expected to increase from 50% to 100%.

On the 22nd, Choo Kyung-ho, a member of the National Assembly's Planning and Finance Committee from the People Power Party, announced that he had introduced a bill on the "Restriction of Special Taxation Act" with this content as the main proposer.

Under the current "Good Landlord" tax credit system, if a landlord reduces the rent for small and micro business tenants, 50% of the reduced rent is deducted from income tax or corporate tax. If the law passes, landlords affected by the assembly ban order will be able to receive a 100% deduction.

If the landlord has no tax liability for the relevant tax year or the deductible amount exceeds the tax payable, the unused credit can be carried forward and deducted for up to five years.

Representative Choo said, "Rather than forcibly limiting landlords' rental income, we aim to expand tax credits to encourage landlords to voluntarily reduce rents and alleviate the rent burden on small and micro business owners, so that we can overcome the COVID-19 crisis together."

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