The National Tax Service has decided to reduce the card fee rate imposed when paying taxes with credit cards to alleviate the burden on small business owners. The National Tax Service aims to complete the necessary computer work by the end of the year so that the reduced fee rate will apply during the filing of value-added taxes in January and comprehensive income taxes in May of next year.
Kwang-Hyun Im, the Administrator of the National Tax Service, held a meeting titled "Tax support for small businesses" on the 18th at the conference room of the Korea Federation of Micro Enterprise (KFME) in Yeouido, Seoul. At the meeting, Im briefed on the tax support programs currently being implemented by the National Tax Service for small businesses and new initiatives for the second half of the year. He also listened to the difficulties small businesses face regarding tax matters.
Song Chi-Young, President of the Korea Federation of Micro Enterprise (KFME), noted, "Last year, 1,008,282 businesses closed, and as of the first quarter of this year, the amount of loans for self-employed individuals stood at 1,067 trillion won, with an arrears rate of 1.88%, marking an unprecedented crisis for small businesses," and added, "It is crucial to alleviate the burden of expenses for survival."
In relation to this, the Korea Federation of Micro Enterprise (KFME) proposed ▲ a reduction in credit card payment fees for national taxes ▲ an increase in the threshold for providing credit information on delinquent taxpayers (5 million won), among other suggestions.
In response, Im stated, "I will actively promote discussions with credit card companies and related institutions to lower the payment fees that have become a significant burden for taxpayers," adding, "Overall, I will reduce the fee rate by 0.1 percentage points (from 0.8% to 0.7%)."
Im further stated, "I will negotiate to provide greater benefits (reducing the value-added tax payment fee from 0.8% to 0.4%, a 50% reduction) when small business owners pay value-added taxes and comprehensive income taxes," adding that he would improve the computer system to implement this promptly.
Regarding the increase in the threshold for providing credit information on delinquent taxpayers, he replied, "I deeply empathize with the necessity for recovering the livelihood economy. I will actively consult with the Ministry of Economy and Finance to amend the regulations."
Im expressed gratitude, saying, "I appreciate the efforts of small business owners who diligently pay taxes despite facing difficulties due to prolonged economic sluggishness," and asserted, "To enhance economic vitality, I will promptly push forward tax support efforts and actively propose necessary amendments to regulations to reflect them in national tax administration."