7 out of 10 Noryanwoosan Subscribers Say "Income Deduction Limit Should Be Expanded"

Survey of 2,225 Subscribers from the 14th to 19th
Related Tax Law Amendment Bill Under Review at the National Assembly Tax Subcommittee

Seven out of ten subscribers to the Yellow Umbrella Fund expressed a desire to expand the income deduction limit.

The Korea Federation of SMEs announced on the 24th the results of a "Yellow Umbrella System Improvement Survey" conducted from the 14th to the 19th among 2,225 Yellow Umbrella Fund subscribers.

It was found that 68.5% of subscribers to the Yellow Umbrella Fund, a retirement fund system for small businesses and small merchants, believe that the income deduction limit should be increased. The most common appropriate income deduction limit was "over 9 million won" (39.8%). Additionally, 79.3% responded that they would increase their monthly contributions if the deduction limit were raised. Under current law, business income of 40 million won or less allows income deductions up to 5 million won of contributions.

The National Assembly's Tax Subcommittee is reviewing related tax law amendments. The government proposal aims to raise the current deduction limit for business income of 40 million won or less from 5 million won to 6 million won, while the proposal by Park Soo-young, a member of the People Power Party, seeks to allow income deductions up to 9 million won for business income up to 60 million won.

Lee Chang-ho, head of the Korea Federation of SMEs' Fund Division, stated, "The more small businesses and small merchants accumulate Yellow Umbrella contributions while they have income, the more stable their lives can be during crises such as business closure." He added, "With bold tax support from the government, increasing the contribution amounts of small merchants can reduce the national burden and create a lever effect that strengthens the social safety net."

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