50% Reduction for Business Office and Employees
[Muan＝Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo] Muan County, Jeollanam-do (County Governor Kim San) announced on the 5th that it will significantly reduce the 2021 resident tax nationwide for the first time to support residents facing severe difficulties due to the prolonged COVID-19 pandemic, including the spread of the Delta variant.
Last year, Muan County took the lead ahead of other local governments by providing disaster relief funds of 100,000 KRW per person to all residents to overcome the crisis. As the COVID-19 situation prolonged, the county prepared a tax support measure this year to revive the local economy by reducing the resident tax as a special measure.
After completing preliminary procedures such as legal review and adding reduction clauses to the ordinance, the county implemented a nationwide first reduction measure covering all categories of resident tax: individual, business place, and employee portions.
Resident tax is levied on individuals with an address and business owners with workplaces as of the tax base date (July 1). In 2021, all household heads residing in Muan County will be fully exempted from the 11,000 KRW individual portion, and all business owners will receive a 50% reduction in their tax amount.
With population growth due to the move-in to the Oryong district this year, the total resident tax reduction is expected to amount to approximately 1.03 billion KRW, including about 459 million KRW for the individual portion, about 284 million KRW for the business place portion, and about 287 million KRW for the employee portion. Reduction notices will be individually sent to all residents, business owners, and corporations who receive the reduction.
A local resident who heard the news of the resident tax reduction expressed hope, saying, "In these difficult times due to COVID-19, the county’s tax reduction will help revive the local economy and contribute to overcoming the crisis."
Governor Kim San stated, "In this national disaster situation caused by COVID-19, we have prepared tax support measures to share the residents’ pain and overcome the crisis. Going forward, we will continue to discover and implement policies that provide practical help to residents, not just collect taxes."
Muan＝Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo ohj1358@asiae.co.kr
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