Supporting up to 3 million won for small businesses affected by Corona … Promoting the expansion of the tax credit for ‘good owners’

Entry 2020.12.27 09:14 | Revision 2020.12.27 09:18

The government is preparing measures to support up to 3 million won, including rent, to small business owners and the self-employed who have been damaged by the third spread of the new coronavirus infection (Corona 19). He’s also pushing a plan to expand the tax credit for “good landlords” who voluntarily cut rents to 70%.

According to government ministries such as the Ministry of Strategy and Finance on the 27th, Corona 19 custom damage measures containing such details will be confirmed and announced within this month. It is reported to be confirmed through a discussion by the party’s senior administration on the day, a state council meeting on the 29th, and a countermeasures for the emergency economy headquarters meeting.

The government and ruling party are reportedly finally considering a plan to pay up to 3 million won in subsidies to small business owners and freelancers that have been banned and restricted from business due to increased social distancing. This is the sum of about 1 million won on behalf of direct rental support to the management stabilization fund (1 million to 2 million won) for small business owners who have ▲ suddenly declined in sales or ▲ restricted in prohibitions of commercial operations.

Rental subsidies are eligible for payments to small business owners that have been restricted or prohibited due to increased distance. It is a method of adding a certain amount to the management stabilization fund without setting standards such as the person who owns or rents the store, the size of the sales, the region and the rent. The nominal money for rental support is a cash method. A plan to announce a tax law amendment bill that increases the tax credit limit for “good owners” who voluntarily lowers rents from 50% to 70% is known to be promising.

Plans to include the disadvantaged, such as special-type workers (special advisers), in the third job security emergency grant are reportedly also being definitively coordinated. Special high school and freelancers are seen as unavoidable as they are in the face-to-face service industry suffering damage from social distancing.

With the addition of direct rental support for small business owners and support for the disadvantaged, such as special notices, the scale of the third disaster grant is expected to increase from 3 trillion won to 5 trillion won. The government plans to raise funds for the third disaster relief fund by raising a share of 3 trillion won in the nominal grant fund reflected in next year’s budget, 500 billion won in the budget transferred from the management stabilization fund for small businesses this year and 9 trillion won in reserve for next year.