Law and regulation of Covid-19 tax relief in South Korea

Information provided by the IBA Taxes Committee members.

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

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

• N/A

• 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.).

• N/A