The National Tax Service said on the 25th that, starting on the 2nd of next month, the fee rate for paying national taxes by credit card will be cut to 0.7% from 0.8%. The debit card fee rate will drop to 0.4% from 0.5%.
It is the first time in nine years since 2016 that the National Tax Service has lowered the credit card fee rate. The cut in the debit card fee rate is the first in seven years since 2018. The National Tax Service said the move is intended to support small merchants and microbusiness owners who are facing management difficulties due to the sluggish economy. It also said it is an example of reflecting taxpayer opinions as part of the Lee Jae-myung administration's policy to reinvigorate the livelihood economy.
The National Tax Service decided to sharply lower the fee rates for simplified taxpayers—who pay less value-added taxes and have annual sales under 1.04 billion won—when they pay value-added taxes: the credit card fee rate will go to 0.4% from 0.8%, and the debit card rate to 0.15% from 0.5%. The National Tax Service said the fee cuts are expected to reduce fees by about 16 billion won based on credit card payments.