Daejeon City, Local Tax Reduction for Good Landlords and COVID-19 Confirmed and Quarantined Cases

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City is promoting local tax reductions for participants in the Good Landlord Movement as well as for confirmed COVID-19 patients and those in quarantine.

According to the city on the 8th, the city and five autonomous districts have decided to reduce property tax based on the rent reduction rate for landlords who lowered rent for commercial tenants after the COVID-19 outbreak, and to reduce the individual uniform resident tax for patients confirmed with COVID-19 or those quarantined.

The property tax reduction targets landlords who owned commercial properties as of the tax base date, June 1, and who lowered rent for small business owners in the first half of this year. The reduction amount is determined based on the three months with the highest rent reduction amounts from January to June. A rate is calculated according to the reduction amount, allowing up to a 50% exemption from building property tax, land property tax, local resource facility tax, and local education tax.

However, landlords who are investment or contribution institutions or whose small business tenants operate in industries classified as high-end entertainment establishments under the Local Tax Special Cases Restriction Act are excluded.

The city will also reduce the individual uniform resident tax levied in August for COVID-19 confirmed patients and quarantined individuals who experienced inconvenience due to self-quarantine. The local tax reductions will be implemented after approval by the city and district councils and will apply to property taxes levied in July and September this year, as well as the resident tax levied in August.

Bok Jin-hoo, head of the city’s tax administration division, said, “To support local small business owners facing a crisis, we have collaborated with autonomous districts to implement property tax reductions. Along with this, we will continue to promote local tax payment extensions, collection deferrals, and postponements of tax audits, which are already in effect, to assist citizens struggling with local tax payments due to COVID-19.”