Muan-gun, Nationwide First to Exempt Resident Tax for 'All Residents'

A Total Tax Reduction of Over 1.013 Billion Won... 40,000 Households and 5,500 Businesses in the County Targeted

Exterior view of Muan-gun Office (Photo by Muan-gun)

[Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo] Muan County, Jeonnam (Governor Kim San) announced on the 20th that it will significantly reduce the 2021 resident tax and extend the property tax reduction for benevolent landlords until this year to support residents struggling due to the prolonged COVID-19 pandemic.

Last year, Muan County took the lead in overcoming the crisis by providing disaster relief funds of 100,000 won per resident. As the local economy stagnated and damages continued due to the prolonged COVID-19 situation, the county prepared tax support measures from the beginning of this year.

After going through preliminary procedures such as legal feasibility review for the reduction, the ordinance amendment was promulgated on the 19th through the resolution of the county council. Accordingly, Muan County became the first in the nation to promote a reduction targeting all 2021 resident taxes, including individual, business place, and employee portions.

The reduction targets 35,034 individuals for the individual portion, 5,529 business places, and 382 employee cases based on 2020. This year, with population growth due to the settlement in the Oryong district, the local education tax for over 40,000 households and about 5,500 business establishments will also be included, with approximately 1.013 billion won expected to be reduced.

The reduction rate is a full exemption of 11,000 won for the individual portion for all households, and a 50% reduction for the business place and employee portions. All residents, business owners, and corporations who receive the reduction will be issued a reduction notice.

Governor Kim San said, “We decided to reduce the resident tax to overcome the crisis together with residents who are experiencing difficulties due to COVID-19,” and added, “We will continue to implement various support policies that residents, including small business owners and micro-entrepreneurs, can practically feel.”