Park Seongjun Proposes Bill to Extend 'Good Landlord' System for 2 More Years

Park Seong-jun Proposes Amendment to the Restriction of Special Taxation Act

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] On the 27th, Park Sung-jun, a member of the Democratic Party of Korea, proposed a partial amendment to the Restriction of Special Taxation Act to extend the tax credit period for 'Good Landlords,' which is scheduled to end at the end of this year, by two years and to increase the credit rate.

The current law stipulates that if a landlord reduces the rent of commercial buildings for small business owners, 70% of the reduced amount can be deducted from income tax or corporate tax. This system was scheduled to operate until December 31, 2022, but there have been calls for an extension due to the resurgence of COVID-19.

The amendment extends the tax credit period for 'Good Landlords' from December 31, 2022, to December 31, 2024, a two-year extension. The tax credit rate is also increased from 70% to 80% of the rent reduction amount.

Rep. Park said, "Many small business owners are struggling due to COVID-19, and now they face triple hardships of high inflation, high interest rates, and high exchange rates," adding, "The purpose is to expand coexistence between landlords and small business owners through the expansion and extension of the Good Landlord tax credit."

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