Geochang-gun Promotes Geochang-style Local Tax Reduction to Overcome COVID-19

Tax Reductions on Resident Tax and Automobile Tax for Individual and Corporate Businesses in the Military Area

Geochang County Office building exterior view

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Geochang-gun, Gyeongnam announced on the 21st that it will promote local tax reductions for individual and corporate business operators in the county to ease the tax burden as the local economy continues to suffer from the novel coronavirus infection (COVID-19).

The local tax reduction to be promoted this time will be operated temporarily this year after approval by the Geochang County Council. The main contents include a 50% reduction of the business subdivision resident tax imposed on individuals and corporate business operators with capital of 3 billion KRW or less, and an additional 50% reduction of the tax rate on the total area for business operators engaged in industries subject to assembly bans or business restrictions among workplaces exceeding a total area of 330㎡.

In addition, automobile tax will be fully exempted for passenger automobile transport business vehicles such as local rural buses, intercity buses, chartered buses, and individual and corporate taxis within the region, and property tax will also be fully exempted for screening clinics established by medical institutions to respond to the spread of COVID-19.

The county expects that about 3,500 local individual business operators who are suffering from COVID-19 will receive tax benefits of about 100 million KRW through this local tax reduction.

Furthermore, to alleviate taxpayer inconvenience, the county plans to identify eligible recipients without a separate application and reduce taxes ex officio, and will also refund taxes if the eligible recipients have already paid local taxes.

Gu In-mo, the head of Geochang-gun, said, “Although it may feel somewhat insufficient for the residents, we have promoted local tax reductions to overcome the crisis together with local residents,” and added, “We will continue to prepare various local tax support measures for regional economic recovery and overcoming the COVID-19 crisis.”