Choo Kyung-ho Proposes Expanding 'Good Landlord' Tax Credit to 100% for Businesses Under Gathering Ban

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] 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 has introduced a bill to amend the Restriction of Special Taxation Act to expand the 'Good Landlord' tax credit from 50% to 100% exclusively for businesses subject to gathering bans.

Under the current 'Good Landlord' tax credit, landlords who reduce rent for small and micro businesses can deduct 50% of the reduced rent from their income tax or corporate tax. If Choo's bill passes, landlords of businesses subject to gathering bans will be able to deduct 100% of the reduced rent.

Additionally, if there is no tax payable in the relevant tax year or if the deductible amount exceeds the payable tax, the deduction can be carried forward for up to five years.

Choo explained the background of the bill, saying, "Despite the implementation of social distancing level 2.5 on the 8th, the number of confirmed cases has exceeded 1,000 daily, and the spread is worsening. When social distancing levels are raised, small and micro businesses are expected to reach the limit of accumulated damage, increasing the need for additional support."

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