Classification

Cases Applied

Tax Credit Amount

1. Tax Credits for Small or Medium Enterprises Having Reinstated Graduates of High Schools Tailored to Industrial Demand, etc. after Performing Their Military Service (Article 29-2 of Restriction of Special Taxation Act)

Where a small or medium enterprise has employed a person from among graduates of high schools tailored to industrial demand, etc. and such employee is reinstated by no later than Dec. 31, 2017 after the performing the military service (only applicable to where reinstatement is made within one year after completing the military service)

Labor cost paid within 2 years from the date of the reinstatement * 10%

2. Tax Credits for Small and Medium Enterprises Re-Employing Career-Interrupted Women (Article 29-3 of Restriction of Special Taxation Act)

Where a small or medium enterprise  enters into an employment agreement for at least one year with a career-interrupted woman by not later than December 31, 2017 and paid to the career-interrupted woman for the months that end on the second anniversary of the date of re-employment

10% of the wages

3-1. Tax Credits for Enterprises Increasing Earned Income of full-time employees (Article 29-4-➀ in Restriction of Special Taxation Act)

Where the following conditions are fully satisfied until the taxable year in which December 31, 2017 falls.

➀ The rate of increase of the average wage of full-time employees for the relevant taxable year > The average of the rates of increase of the average wage for three immediately preceding taxable years

➁ The number of full-time employees in the relevant taxable ≥ The number of full-time employees in the immediately preceding taxable year

5% of an increase in wages in excess of the average wages for three years immediately preceding the taxable year

(10% in cases of a small and medium enterprise and a middle-standing enterprise)

3-2. Additional Tax Credits for Increased wages of employees whose status has been changed to regular employees (Article 29-4-➂ in Restriction of Special Taxation Act)

Where the following conditions are fully satisfied until the taxable year in which December 31, 2017 falls.

➀ The national has changed the statue of any of his/her employees to a regular employee in the relevant taxable year

➁ The number of full-time employees in the relevant taxable year ≥ The number of full-time employees in the immediately preceding taxable year

10% of the aggregate of the increased wages of employees whose status has been changed to regular employees (20% in cases of a small and medium enterprise and 10%, a middle-standing enterprise)

4. Tax Credits for Enterprises Increasing Jobs for Youths (Article 29-5 in Restriction of Special Taxation Act)

Where the number of regular youth employees for the relevant taxable year during the period between the taxable year in which December 31, 2015 falls and the taxable year in which December 31, 2017 falls among the regular youth employees hired by a domestic corporation (excluding domestic corporation that engage in the types of business such as consumer service business) exceeds the number of regular youth employees for the immediately taxable year

The increased number of regular youth employees

x two million won

(five million won in cases of a small and medium enterprise and a middle-standing enterprise)

5. Tax Credits for Change of Status to Regular Employees (Article 30-2 in Restriction of Special Taxation Act)

Where a small or medium enterprise changes the status of any fixed-term worker or part-time worker or temporary agency worker who is employed as at June 30, 2015, or any fixed-term worker or part-time worker employed by any of its subcontractors to regular employee by not later than December 31, 2016.

Two million won per employee who has changed the status to regular employees

6. Tax Credits of Social Insurance Premiums for Increased Number of Employees in Small or Medium Enterprises (Article 30-4 in Restriction of Special Taxation Act)

Where the number of full-time employees of a small or medium enterprise for the relevant taxable year increases as compared with the number of full-time employees for the immediately preceding taxable year during the period until the taxable year in which December 31, 2018 falls

The amount equivalent to social insurance premiums paid by the user for the increased number of full-time employees X 50% (100% for the amount equivalent to social insurance premium paid by the user for the full-time youth employees.