Sancheong-gun, Local Tax Law Amendment ... Integration of Property and Equalized Tax into One

Temporary 50% Reduction on Business Subdivision Fees, Benefits for 1,700 Workplaces

Sancheong County Office Exterior View

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Sancheong-gun, Gyeongnam announced on the 9th that, according to the revision of the Local Tax Act, residents' tax must be reported and paid in August starting this year.

According to the county, the existing residents' tax was paid twice: the property portion was reported and paid in July, and the equalization portions for individual business owners and corporations were imposed and notified in August.

However, from this year, due to the revision of the Local Tax Act, the residents' tax business subdivision has been integrated, so it only needs to be paid once in August.

The county plans to send payment slips to those obligated to report in August to prevent confusion among taxpayers caused by this revision of the Local Tax Act.

If the tax amount on the received payment slip differs from the actual amount, taxpayers can re-report through Wetax or submit a written report via mail, fax, or visit in person.

The changed residents' tax business subdivision imposes a tax of 55,000 KRW, including local education tax, on individual business owners who have a business office in the Sancheong area as of the tax base date (July 1) and whose previous year's VAT taxable standard is 48 million KRW or more.

For corporate businesses, a basic tax amount ranging from 55,000 KRW to 220,000 KRW is applied depending on the capital. Businesses with a total area exceeding 330㎡ must report and pay by adding 250 KRW per 1㎡.

However, the county will temporarily reduce the residents' tax business subdivision by 50% to ease the tax burden on small and medium-sized enterprises and small business owners struggling due to the prolonged COVID-19 pandemic this year.

According to this measure, individual business owners and corporate businesses (only corporations with capital of 3 billion KRW or less) will pay a basic tax amount of 27,500 KRW, which is a 50% reduction from the existing 55,000 KRW.

This reduction is expected to provide tax benefits of about 47 million KRW to approximately 1,700 business sites in the region.

Meanwhile, unlike the residents' tax business subdivision, the individual portion is imposed on individuals (household heads) who have an address in Sancheong-gun as of the tax base date (July 1). Sancheong-gun imposed and notified about 17,000 cases of residents' tax individual portions amounting to approximately 190 million KRW this year.

A county official said, "We will continue to provide convenience to taxpayers to minimize confusion caused by system changes and carry out tax administration that helps small business owners and SMEs."

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