The Ministry of Strategy and Finance announced on October 10 that it would revise the “Tax Reduction and Exemption Control Act.” to expand support for employment and investment. The revision of the tax Reduction law will be submitted to national assembly after vice-minister council and cabinet council in the beginning of February.

1. If calculating additional deductions for deduction of employment investment tax amount until July 31, 2017, Deductions rate will increase 1% for major company and 2% for small and medium sized company

2. If numbers of full time youth employee is increased than previous year, deductions amount per employee will increase KRW 5,000,000 to KRW 7,000,000 for small and medium sized company and KRW 2,000,000 to KRW 3,000,000 for major company

3. The amount of tax deduction for small and medium sized firms, which convert non-regular workers to regular full-time workers, deductions amount per employee will increase KRW 2,000,000 to KRW 3,000,000.

4. Employees who has their marriage until Dec 31, 2019 with total income below KRW 70,000,000 and composite income below KRW 55,000,000. For comprehensive income earner, a deduction of KRW 500,000 (working couple KRW 1,000,000) is given in the following year.

5. Under the current law, for a company incorporated out of capital area, the income taxes or corporate taxes is reduced 50% for 5 years. This law will be revised in Tax Reduction and Exemption Control Act amendment. The income taxes or corporate taxes is reduced 75% on start-up year that starting to generate income and over the next two years. And, there will be reduction of 50% income taxes or corporate taxes next two years. However, this only applies to small company incorporated by person aged 15 to 29.