The National Tax Service said on the 15th that businesses located in Starfield Hanam, Costco Pyeongtaek, and Busan International Market will also be able to receive simplified taxation benefits. Simplified taxation is a system in which the National Tax Service applies a lower value-added taxes rate (1.5–4%) than that for general taxpayers (10%) to small and midsize business operators with sales under 104 million won.
The National Tax Service has excluded certain regions, industries, and commercial districts from simplified taxation even if they met the sales threshold. To prevent businesses from intentionally omitting sales to pay less tax, it pinpointed well-performing commercial districts or regions and blocked them from receiving simplified taxation benefits. However, considering the recent economic downturn, it said it will revise the "notice on criteria for regions excluded from simplified taxation" to significantly expand eligibility.
That day, the National Tax Service said, "We will exclude 46.3% (544) of the 1,176 traditional markets, shopping centers, discount stores, hotels, and department stores currently included in the regions excluded from simplified taxation." It means nearly half of businesses will newly become eligible for simplified taxation benefits. An official at the National Tax Service said, "We decided which businesses to newly include in simplified taxation after a comprehensive analysis of foot traffic, commercial district size and industry conditions, and equity with neighboring areas."
Among traditional markets, 98 locations were newly included, such as ▲ Daemyeong Yeoulbit Street Market in Jongno, Seoul ▲ Samik Fashion Town in Jung District, Seoul ▲ Busan International Market ▲ Gangwon Jayu Market ▲ Ulsan Jungang Traditional Market. For shopping centers and discount stores, 317 locations were added, including ▲ Songpa Garden Five ▲ Eunpyeong 2001 Outlet ▲ Busan Jeonpo-dong Hardware Shopping Center ▲ Yuseong District, Daejeon MODA Outlet ▲ Gwangju U Square ▲ Costco Pyeongtaek.
For hotels and department stores, 129 locations were included, such as ▲ Busan Lotte Hotel ▲ Daejeon Hotel Onoma ▲ Yeosu, South Jeolla UTOP Marina Hotel ▲ Pyeongtaek New Songtan Hotel ▲ Gwacheon Grace Hotel ▲ Shinsegae Department Store Uijeongbu, Changwon, Daejeon, Gwangju Seo District ▲ Lotte Department Store Bundang; Busanjin, Busan; Seo District, Daejeon; Dong District, Gwangju; Jeonju, North Jeolla; Daegu Station ▲ Hyundai Department Store Busanjin, Busan; Nam District, Ulsan; Daegu ▲ Hanwha Galleria Jinju, South Gyeongsang; Cheonan, South Chungcheong.
The National Tax Service plans to finalize the detailed adjustments this month after an administrative notice. Newly eligible businesses are expected to be subject to simplified taxation starting in July. An official at the National Tax Service said, "With this measure, up to 40,000 small business operators will come under simplified taxation, easing their tax burden."