[Breaking] Expansion of Tax Credit for Good Landlords Passed in Plenary Session

Among 256 participants, 248 in favor, 0 against, 8 abstentions

On the 23rd, as social distancing measures were strengthened due to the spread of COVID-19, a temporary closure notice was posted at a store located on Samcheong-dong street in Jongno-gu, Seoul, reflecting the deepening worries of self-employed business owners. This area used to be bustling with foreign tourists even on weekdays, but with global COVID-19 spread shutting down air routes, the number of foreign tourists has sharply declined. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Koo Chae-eun] The tax credit rate for 'good landlords' who reduced rent for small business owners struggling due to COVID-19 will be increased from the existing 50% to 70%.

The National Assembly held a plenary session on the 26th and passed the amendment to the Restriction of Special Taxation Act with this content. Out of 256 members present, 248 voted in favor, 0 against, and 8 abstained.

The amendment raised the income and corporate tax credit rate applied to the reduced rent for small business tenants affected by the COVID-19 pandemic from 50% to 70%.

The application period for the credit was extended by six months, from June 30 to December 31 of this year. However, landlords with a total income exceeding 100 million won will continue to receive the credit rate of 50% under the current standards.

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