Reduction of Resident Tax Subdivision for Businesses to Overcome COVID-19 Impact in Jinju City

January to May Gathering Ban and Restrictions for Business Operators in Industries Facing Management Crisis

Jinju City Hall Exterior View

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Jinju City, Gyeongnam Province, has decided to reduce the local resident tax for business establishments imposed in August this year, with the consent of the council, to ease the burden on businesses struggling due to the novel coronavirus infection (COVID-19) and to support damage recovery.

From January to May this year, the city will provide a 100% exemption on the basic local resident tax for business establishments to businesses experiencing difficulties in management due to business restrictions under quarantine policies to prevent the spread of COVID-19.

The exemption targets small and medium-sized enterprises (individuals and corporations with capital or investment of 3 billion KRW or less) in industries designated as crisis management sectors by the Ministry of SMEs and Startups, including restaurants, cafes, karaoke rooms, bathhouses subject to gathering bans, travel businesses, chartered bus transportation, and performance groups eligible for the Small Business Support Fund Plus.

As of the tax base date on July 1, the basic local resident tax amount of 50,000 KRW imposed on business establishments will be exempted, and the exemption will be processed ex officio at the time of imposition without requiring separate applications or submission of documents.

Those who miss the exemption decision period will still be able to apply later and receive the exemption.

A city official stated, “This exemption decision is expected to provide direct tax support of 250 million KRW to about 5,000 business establishments suffering direct or indirect damage due to COVID-19.”

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