Model Taxpayers Receive 0.2%p Discount on Credit Guarantee Fee Rate... Maximum Guarantee Ratio Up to 90%

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service (NTS) will provide exemplary taxpayers with a 0.2%p discount on credit guarantee fees and preferential guarantee ratio benefits.

On the 5th, the NTS announced that it signed a business agreement (MOU) with the Korea Credit Guarantee Fund (KODIT) regarding this matter. According to this agreement, KODIT will offer exemplary taxpayers discounts on credit guarantee fees and preferential guarantee ratio benefits, while the NTS will provide KODIT with information on whether taxpayers qualify as exemplary taxpayers for insurance screening and other purposes.

When exemplary taxpayers use credit guarantees from KODIT, they can receive a 0.2%p discount on the guarantee fee rate, which is generally between 0.5% and 3.0% for regular companies (3.5% for large corporations) starting from this date. However, the minimum rate is 0.5%. The guarantee ratio (the proportion of responsibility for guaranteed loans borne by KODIT), which is usually between 70% and 85%, can be increased up to 90%.

An NTS official stated, "With this agreement, the discount on guarantee fees will reduce the interest cost burden for companies using credit guarantees, and the expanded guarantee ratio, for which KODIT is responsible in financial institution loans, will facilitate smoother capital circulation for companies that have recently experienced declines due to COVID-19 and other factors, contributing to balanced economic development."

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