[Asia Economy (Yongin) = Reporter Lee Young-gyu] Yongin City, Gyeonggi Province, has laid the groundwork for the 'Hometown Love Donation System' scheduled to be implemented in January next year.
On the 9th, Yongin City announced that the 'Ordinance on the Collection and Operation of Hometown Love Donations in Yongin City' has been promulgated.
This ordinance includes matters such as ▲ the formation and operation of the Thank-you Gift Selection Committee ▲ the establishment and operation of the Hometown Love Fund ▲ the formation and operation of the Fund Operation Deliberation Committee.
Based on the ordinance, the city will form the Yongin City Thank-you Gift Selection Committee within this month to select the items and suppliers of thank-you gifts.
The Hometown Love Donation System is a system where individuals who donate to local governments receive a tax credit at a certain rate according to the amount donated, to promote a sound donation culture, balanced national development, and financial expansion of local governments.
The tax credit benefits according to the donation amount are a full deduction for amounts up to 100,000 KRW, and a 16.5% tax credit benefit for the amount exceeding 100,000 KRW.
In addition to the tax credit benefits, local governments receiving donations provide local specialty products as thank-you gifts within 30% of the donation amount to revitalize the local economy.
Only individuals can donate; corporations or organizations cannot donate.
Donations can be made to places excluding the metropolitan and basic local governments where the donor currently resides. For example, a resident of Yongin City, Gyeonggi Province, can donate to all local governments except Gyeonggi Province and Yongin City.
Donations are used by the recipient local governments to enhance resident welfare, such as supporting vulnerable groups, protecting youth, and promoting culture and the arts.
However, the annual donation limit for the Hometown Love Donation System is 5 million KRW combined across all local governments. For example, if Mr. A, a Seoul citizen whose hometown is Yongin, donates 3 million KRW to Yongin and 2 million KRW to Suwon, no further donations are possible.
A city official said, "We are preparing related procedures without delay to support the newly implemented Hometown Love Donation System starting January next year," and added, "We will spare no support to ensure the system is well established."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
