Tax deduction for the corporationexpanded young people employment

(Sepcial taxation law 29-5)

                                                                                                                                                                           28^th Feb 2018

                                                                                                                                                                            Written by Yu Jung, Choi

                                                                                                                                                                            Translated by Eun Kyung, Park

<1> Condition

 1)Domestic company (excluded company which runs consumptive service business)

  -Consumptive service business : Business for hotel, accommodation (but touristaccommodation business is excluded according to the tourism promotion act), barmanagement, adult entertainment.

2) Business yearincluding 31/Dec/2017.

3) Increasedyoungman employment number in relevant business year compare to previous yearof young man employment number.

4) Smaller numberis taken between total increased regular worker and full time laborer.

<2> Increasing status for the fulltime laborer

*Short term laborer 1 who works more than60 hours is calculated as 0.5

*Total salary includes taxation salaryexcept non taxation salary.

*Monthly employment: resigner is regardedas full time laborer until previous month of resigned month.

*Full time laborer is included on indomestic laborer (foreign laborer is excluded).

-Executive etc: It will be deducted asfollowing turns when it is overlapped.

(1) Foreign laborer (2) executive (3)resigner(resigned month's salary) (4) the largest shareholder and spouse

*Young man laborer

-Man: born after 1/1/1986 (standard 2017).

-Woman: born after 1/1/1988 (standard2017).

<3> Tax deduction

-tax deduction for increased young manemployment:

Small business: 10 million, Enterprise ofmiddle standing : 7 million, Major company: 3 million.