Differentiated Support for Small Business National Tax Payment Fees... National Tax Service to Pursue System Improvements

Gwangju, Jeonnam, and Jeju Small Business Owners Hold On-site Meeting
National Tax Service: "We Will Pursue Lower Payment Agency Fee Rates"
Calls for Support Measures for Childbirth and Childcare for Small Business Owners

There has been a suggestion that it is necessary to provide differentiated support for payment agency fees for small business owners who pay national taxes using credit cards.

On the 22nd, a restaurant owner in downtown Seoul is updating the menu with increased prices as self-employed business owners struggle due to soaring inflation.

Choi Seungjae, the Small and Medium Business Ombudsman, announced on the 27th that he held the '2025 Gwangju, Jeonnam, and Jeju Region Small Business Owners On-site Meeting' at the Jeju Advanced Science and Technology Complex, where he listened to regulatory and grievance proposals from local small business owners on this issue.

The meeting was attended by Ombudsman Choi, five representatives of small business owners from the Jeju region, Park Jinhui, head of the Gwangju-Jeonnam-Jeju Regional Headquarters of the Small Enterprise and Market Service, and Choi Hansik, head of the Export Support Center at the Gwangju-Jeonnam Regional Office of SMEs and Startups.

During the meeting, issues were raised regarding the current national tax payment agency fee, which imposes a flat rate of 0.8% regardless of the sales structure of small businesses. Representative A, who works in the distribution industry, said, "Currently, small business owners who pay national taxes by credit card or similar means are required to pay a payment agency fee of 0.8%," and added, "This serves as an additional cost on top of taxes, placing a burden on small business owners." He further explained, "While card processing fees usually provide preferential rates for small business owners, national tax payments are excluded from such benefits, which is unreasonable."

In response, the National Tax Service, the responsible agency, stated that it would actively pursue institutional improvements. The National Tax Service replied to the ombudsman's suggestion, saying, "We sympathize with the difficulties faced by small business owners due to the economic downturn, and we will do our best to lower the national tax credit card payment agency fee rate for small enterprises." Going forward, the National Tax Service plans to promote a revamp of the national tax collection IT system in cooperation with the National Tax Service, the Fiscal Information Service, and the Korea Financial Telecommunications and Clearings Institute to enable differentiated reductions in the fee rate.

There was also a request to prepare support measures to alleviate the burden of childbirth and childcare for small business owners. Representative B, who is self-employed, said, "Employees receive allowances from the government during maternity and parental leave, and small and medium-sized enterprises receive support for substitute personnel," and continued, "However, individual small business owners are excluded from such support, so they face the dual hardship of business operation difficulties and income interruption after childbirth."

In response, the Ministry of SMEs and Startups said, "We recognize the need to establish a social safety net for small business owners and self-employed individuals who must temporarily suspend business due to childbirth or childcare," and added, "We will work with relevant ministries to review institutional measures so that practical support for childbirth and childcare can be provided to small business owners." In fact, a partial amendment to the "Act on the Protection and Support of Small Business Owners," led by lawmaker Kim Donga, has already been submitted to the National Assembly. The bill focuses on providing support for childbirth and childcare to small business owners and self-employed individuals.

In addition, participants suggested the introduction of public MyData for the Hope Return Package (business recovery support) project, support for the installation of 'IoT fire detectors' under the Smart Store Technology Supply Project, improvement of age criteria to enhance youth access to local gift certificates, and updating the list of stores in traditional markets eligible for income tax deductions.

Ombudsman Choi stated, "This was a meaningful event to understand the difficulties of small business owners and seek policy improvements that reflect voices from the field," and added, "We will continue to do our best to create an environment where small business owners can focus solely on running their businesses."