South Korea

Information provided by the IBA Taxes Committee members.

Value Added Tax

  • VAT reductions (from 10% to a varying range of lower rates) for SMEs.

Corporate Income Tax

  • Corporate and individual income tax reductions for SMEs in designated areas affected most serious by Corona.

Social Security Contributions or Payroll Tax

  • N/A

Other relief measures

  • Reduction in corporate/individual income tax for landlords offering a reduction on rent payments to SME lessees, in the amount proportional to the reduced rent.
  • In order to boost the spending, (i) a 70% reduction of the special consumption tax for automobile purchase, (ii) doubling the deduction rate for credit card spendings and (iii) an increase of the deduction cap for business entertainment expenses.
  • local governments are also offering/considering a form of local tax reductions (e.g., property tax, etc.).

Additional comments

  • N/A