Im Kwang-hyun Introduces Startup Tax Care to Ease Tax Burden for Young Entrepreneurs

Im Kwang-hyun, Commissioner of the National Tax Service, speaks at a youth entrepreneurship meeting at the Seoul Food Startup Center on June 18. [Photo=National Tax Service]

The National Tax Service (NTS) is launching a tailored support program called 'Startup Tax Care' to alleviate the tax burden on young entrepreneurs. The initiative aims to reduce additional tax liabilities by pre-checking for missed deductions and exemptions, while also expanding deferrals for tax investigations and support for business recovery to foster stable growth for startups in their early stages.

On June 18, Im Kwang-hyun, the Commissioner of the NTS, visited the Seoul Food Startup Center to announce these tax support measures during a meeting with young entrepreneurs in the food tech sector.

The 'Startup Tax Care' program will be available to young business owners aged 15 to 34 who are within two years of starting their businesses. The NTS plans to proactively check for eligibility for various tax reductions and exemptions during the comprehensive income tax filing process, and will guide applicants on how to correct any missed claims to minimize unnecessary additional tax burdens.

Seventeen one-stop startup support centers across the country will offer tax workshops and on-site consultations. At the business registration stage, QR codes containing key reporting schedules and educational information will be provided. Starting this year, novice entrepreneurs will also receive text message reminders for reporting deadlines for withholding tax and value-added tax, which are often overlooked.

For young startups facing financial difficulties, measures such as extensions on payment deadlines and deferrals for seizure and sale will be implemented. Additionally, early refunds for value-added tax will be provided to small and medium-sized enterprises engaged in exports, and the timing for the distribution of earned income and child tax credits will be expedited to ease financial burdens.

Small businesses that have reopened after closing will be eligible for exemptions from late payment penalties. A new system will also be established to eliminate the obligation to pay overdue amounts for economically vulnerable individuals seeking to recover financially.

The NTS will also ease the burden of tax investigations. Regular tax audits for young startups, small businesses contributing to price stability, and small exporters will be deferred for up to two years. The period for deferring investigations for startups will be extended from five years to ten years after the business begins.

Im stated, "We will strengthen tax support so that young startups can focus on innovation and growth without being hindered by tax issues, and we will create a tax environment that supports entrepreneurship and re-challenges."

* This article has been translated by AI.

Park ki rock kirock@ajunews.com

Im Kwang-hyun Introduces 'Startup Tax Care' to Ease Tax Burden for Young Entrepreneurs