Rent reduction rates range from 10% to 50%... up to a maximum of 1 million won
[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 1st that it will reduce property tax for buildings where landlords have lowered rent to support small business owners struggling due to COVID-19.
This reduction follows Mayor Lee Yong-seop's promise on March 19th during the 2nd Regional Economy Protection and Livelihood Stabilization Measures to overcome the COVID-19 crisis, to reduce property tax for "Good Landlords" who voluntarily lower rent to share the difficulties of the local economy.
Prior to this, Gwangju established a "Local Tax Support Plan for COVID-19 Victims," prepared a standard plan for tax reduction, and the five district offices completed the district council approval process in May.
The reduction applies to buildings owned as of the property tax assessment date, June 1st, where the owner has reduced or agreed to reduce the 2020 rent by at least 10% for more than three months to small business tenants.
The property tax reduction ranges from 10% to 50% corresponding to the rent reduction rate, with an additional 5% per month for periods exceeding three months, up to a maximum reduction of 1 million KRW.
Applications for the reduction can be submitted from today until the 30th by visiting the tax department of each district office or sending via fax or mail, attaching the reduction application form, lease contract, proof of reduced rent payment, or bank transaction statements.
For detailed information about the Good Landlord property tax reduction, inquiries can be made to the tax department of the district office where the building is located.
Kim Kwang-hwi, Director of the City Planning and Coordination Office, stated, "We will continue to actively implement tax administration to help citizens overcome difficulties caused by COVID-19 through local tax support and contribute to the recovery of the local economy."
Meanwhile, apart from the Good Landlord property tax reduction, Gwangju has extended the payment and reporting deadlines for acquisition tax and corporate local income tax amounting to 3.1 billion KRW.
Additionally, the payment deadline for all comprehensive income taxpayers’ personal local income tax has been extended by official decree from June 1st to August 31st, and a local tax support policy worth 43.2 billion KRW will be implemented.
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