- South Korea plans to ease VAT criteria to reduce tax burden on self-employed and small businesses
- Small businesses currently have a lower tax rate of 1.5 to 4 percent, while general businesses have a 10 percent tax rate
- The government is considering raising the annual sales threshold for simplified taxpayers from 80 million won to 100 million won
- This would potentially increase the number of beneficiaries among the 2 million simplified taxpayers
- The government plans to raise the threshold in the first quarter of 2024, taking into account the recent inflation rate
- The government may prepare a revised VAT enforcement decree in mid-January 2024
- Academic studies suggest that expanding the scope of simplified taxpayers has had an income support effect on small business owners
- However, there is a possibility that the sales threshold may be adjusted due to the decline in tax revenues.
Source: pulsenews.co.kr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
