Introduction of Three Local Preference Tax Policies... Expanding Income Tax Reductions for Employees of Small and Medium Enterprises
Three-package local preference tax policy, expanding tax reductions and investment support for local SMEs Strengthening benefits through relocation and employment outside the metropolitan area, check the core of the local growth strategy
The government has decided to introduce a 'threepart local preferential tax package' that will increase income tax reductions for employees at small and mediumsized enterprises in the regions and support companies' local investment and employment.
The Ministry of Finance and Economy announced its economic growth strategy for the second half of the year at the Cabinet meeting on the 14th, saying it would expand local preferential policies beyond simply addressing regional imbalances to make them a growth strategy. This measure is intended to strengthen the growth base of the regions and help drive a rebound in the potential growth rate.
The government plans to apply tax support for research and development, investment, and employment at regional companies in a differentiated manner according to local conditions, and to expand local preferential treatment in support of startup businesses for small and mediumsized enterprises. It will also grant tax exemption benefits to relocation subsidies paid by companies moving out of the Seoul metropolitan area to their workers, and review preferential measures for companies in populationdeclining areas and local small and mediumsized enterprises in public procurement as well.