Jinju City Promotes Reduction of Increased Property Tax on COVID-19 Entertainment Establishments

Proactive Measures in Response to COVID-19 Business Restrictions

Reduction of Increased Property Tax for Entertainment Bars Proposed [Image Source=Jinju-si]

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Jinju City, Gyeongnam Province, has decided to apply the general tax rate instead of the heavy tax rate when imposing property tax on entertainment bars struggling due to the impact of the novel coronavirus infection (COVID-19).

Despite the economic damage caused by business suspension and restriction measures due to COVID-19, local governments were unable to provide tax relief for entertainment bars and other high-end amusement establishments because the Local Tax Special Cases Restriction Act designated them as subjects excluded from tax reduction.

Accordingly, on the 21st, the partial amendment bill of the Local Tax Special Cases Restriction Act, which includes business suspension due to infectious disease outbreaks as an exception to the prohibition of local tax reductions, passed the National Assembly plenary session, enabling tax relief on the heavy tax amount for entertainment bars. Therefore, it was decided to apply the general tax rate instead of the heavy tax rate when imposing property tax on buildings and land.

The property tax rate for general commercial buildings is 0.25%, and the rate for the associated land is 0.2~0.4%, whereas the property tax rate for high-end amusement establishments such as entertainment bars has been applied at 4%, causing difficulties.

A city official stated, “With the exclusion of the heavy property tax application for entertainment bars this year, it is expected that entertainment bar operators will receive tax benefits of about 340 million KRW, which was the heavy tax amount from the previous year.”

Meanwhile, the city is accepting applications for property tax reductions due to rent reductions as support for small business owners suffering from COVID-19 until June 18 next month. It is also promoting various tax support measures such as penalty interest reductions for small business owners in arrears and property tax reductions for COVID-19 screening clinics.

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