Acquisition Tax Exemptions for Replacement of Damaged Houses and Livestock Barns
On the 27th, the Ministry of the Interior and Safety provided guidance on special cases within the local finance system and government measures that local governments and affected residents in the Ulsan, Gyeongbuk, and Gyeongnam regions, struggling with the spread of large-scale wildfires, can utilize, and requested cooperation from local governments.
First, the Ministry of the Interior and Safety guided and requested cooperation so that local governments can prioritize damage recovery and resident support in managing local finances. It also introduced special case systems such as allowing private contracts for emergency disaster recovery, exemption from contract review for rapid bidding, and emergency bidding that can shorten the bidding announcement period to 5 days, to prevent delays in disaster relief activities like renting emergency recovery equipment or installing temporary shelters due to contract procedures.
Furthermore, to prevent residents affected by the wildfires from suffering double hardships, the ministry informed each local government about local tax-related matters such as local tax reductions and extensions of various payment deadlines. When acquiring replacements for damaged houses, livestock barns, agricultural machinery, and equipment due to the wildfire, acquisition tax and registration license tax are exempted, and automobile tax is also exempted if vehicles are destroyed or damaged.
Extensions of payment deadlines for local taxes that taxpayers must report and pay, such as acquisition tax and local income tax, and deferment of collection imposed and notified by local governments can be implemented within a range of 6 months (up to 1 year). In particular, for corporate local income tax that must be reported and paid by next month, the Ministry of the Interior and Safety extended the payment deadline by 3 months for small and medium-sized enterprises located in special disaster areas, changing it to July 31.
In addition, the ministry provided guidance on measures to restore facilities in affected local governments and stabilize residents' livelihoods, and plans to promptly take necessary actions in cooperation with related organizations such as Saemaeul Geumgo and local public enterprises. When a special disaster area is declared, local governments can reduce local public utility charges such as city gas fees and water and sewage fees.
Moreover, in cooperation with Saemaeul Geumgo, financial support will also be provided targeting affected households and small business owners, including loan maturity extensions (within 1 year), principal and interest repayment deferrals (within 6 months), and emergency loans up to 30 million KRW.
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