National Tax Service to Revise Simplified Tax System Criteria After 26 Years

The Dong-A Ilbo reports on a significant policy shift by the National Tax Service (NTS) concerning the simplified tax system for small businesses. For 26 years, the criteria for excluding certain business areas from this simplified system have remained unchanged, leading to what many perceive as an unfair burden on small, independent merchants.

The NTS's decision to re-evaluate these criteria comes after considerable pressure and recognition of the system's flaws. A prime example highlighted is the disparity faced by a traditional market in Gimhae, Gyeongsangnam-do. Despite being located just across the street from a large supermarket, the market was designated as an exclusion zone, forcing its businesses to adhere to the standard, higher tax rates. Meanwhile, the supermarket, just a road away, benefited from the simplified tax system.

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The National Tax Service will review the criteria for the simplified tax exclusion areas from scratch after 26 years.

This revision is expected to bring much-needed relief to around 40,000 small business owners. By removing 544 out of 1176 previously designated exclusion zones, the NTS is directly addressing the concerns raised by organizations like the Small Business Association of Korea. The move signifies a commitment to supporting the backbone of the Korean economy – its small and medium-sized enterprises – by ensuring a fairer tax system that reflects actual business scale rather than arbitrary geographical designations.

From a Korean perspective, this is a crucial step towards economic fairness. While international news might focus on larger economic trends, stories like these highlight the government's responsiveness to the everyday struggles of its citizens and small business owners. The Dong-A Ilbo, reflecting a common sentiment among Korean publications, emphasizes the importance of such domestic policy adjustments that directly impact the livelihoods of ordinary people.

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The traditional market is designated as an exclusion area, and general taxation is applied, while the large supermarket across the street is classified as a simplified taxpayer.