Booyoung Group, which supports a company childbirth incentive of 100 million KRW in cash per child, expressed gratitude on the 5th for the government's decision to apply full tax exemption on corporate childbirth incentives.
In an official statement on the day, Booyoung Group said, "We appreciate the government’s decision to fully exempt from taxation the childbirth incentives provided by companies to their employees and to apply this retroactively to childbirth incentives paid since January 1."
The Ministry of Economy and Finance stated that childbirth support funds paid by companies to employees or their families are considered earned income, and decided to fully exempt from taxation childbirth support funds paid within two years after childbirth up to two times. Currently, only up to 200,000 KRW per month is tax-exempt, but for childbirth support funds, the limit will be removed. The Ministry plans to promote an amendment to the Income Tax Act reflecting this.
Booyoung Group said, "A bright dawn has shone on the future of the Republic of Korea," and added, "From the President to every citizen, let us actively participate in encouraging childbirth to solve the population decline problem."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
