Good Landlord Tax Credit Reduced Rent by 473.4 Billion Won... 180,000 Tenants Benefited

Last Year Comprehensive Income Tax 201.1 Billion KRW, Corporate Tax 35.6 Billion KRW Tax Credit

[Sejong=Asia Economy Reporter Kim Hyunjung] It has been revealed that the "Good Landlord" tax credit, introduced to help small business owners facing economic difficulties due to COVID-19, resulted in a rent reduction effect worth 473.4 billion KRW last year.

According to data submitted by the National Tax Service to Representative Yang Kyungsuk of the National Assembly's Planning and Finance Committee on the 4th, as a result of the comprehensive income tax filing for the year 2020, 99,372 good landlords (individual business owners) reduced rent by a total of 402.2 billion KRW for 158,326 tenants, receiving a total tax credit of 201.1 billion KRW.

Regarding corporate tax, based on filings from 2020 to 2021, 4,584 corporations reduced rent by a total of 71.2 billion KRW for 22,584 tenants, receiving a total tax credit of 35.6 billion KRW.

When classified by corporate revenue size, 2,596 corporations with revenue under 1 billion KRW received a total benefit of 12 billion KRW; 1,253 corporations with revenue between 1 billion and 10 billion KRW received 11 billion KRW; 422 corporations with revenue between 10 billion and 50 billion KRW received 3.8 billion KRW; and 313 corporations with revenue over 50 billion KRW received 8.8 billion KRW. This indicates that businesses with revenue under 1 billion KRW actively participated in rent reductions.

Examining the regional status based on tenants, among the total 180,910 tenants who received rent benefits, 60,137 were in Seoul, 47,514 in Gyeonggi, 12,230 in Busan, and 11,592 in Daegu, showing that rent reductions mainly occurred in densely populated metropolitan areas.