Tax Credit for 'Good Landlords' Applies to Small Business Owners Closing with Remaining Lease Contracts

[Sejong=Asia Economy Reporter Kim Hyunjung] Small business owners who have closed their businesses but still have remaining lease contract periods will also be added to the 'Good Landlord' tax credit 대상. Platform operators that mediate service businesses such as quick services or designated driver services must submit monthly income payment data.

On the 13th, the Ministry of Economy and Finance announced that it will give public notice of partial amendments to the Enforcement Decree and Enforcement Rules of the Restriction of Special Taxation Act and the Income Tax Act reflecting these contents.

First, through the amendment of the Enforcement Decree of the Restriction of Special Taxation Act, the 대상 for the Good Landlord tax credit will be expanded. Small business owners who meet the tax credit requirements before closure and have remaining lease contracts after January 1 of this year but have closed their businesses are 대상. Tax credits will also apply to lease contracts newly signed between February last year and June 30 this year, a period during which businesses were hit by COVID-19.

The delegation of tax data submission related to service providers is also stipulated through amendments to the relevant Enforcement Decree. For each service provider listed in the tax data submitted by service brokerage or mediation operators, a tax credit of 300 KRW per person, up to a maximum of 2 million KRW annually, will be granted. If a person required to submit tax data violates the order, a fine of 200,000 KRW per case will be imposed for non-submission, and 100,000 KRW per case for negligent submission. Cases where the number of persons omitted or incorrectly recorded in the tax data is 5% or less of the total number of persons are considered minor errors and will not be fined.

Platform operators will also be obligated to submit tax data. When quick service or designated driver services are brokered or mediated through a platform, the platform operator must submit tax data to the National Tax Service. Forms related to tax data submission will also be organized through the Special Taxation Rules and Income Rules.

The Ministry of Economy and Finance plans to amend the Enforcement Decree and Enforcement Rules after a 40-day public notice period from the 13th to the 23rd of next month, followed by procedures such as vice ministerial and Cabinet meetings.

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