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Tax deduction for the corporationexpanded young people employment
(Sepcial taxation law 29-5)
28th Feb 2018
Written by Yu Jung, Choi
Translated by Eun Kyung, Park
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.
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