Yellow Umbrella Deduction: Who Qualifies and What You Get
Small business owners in South Korea can access tax deductions and business failure protection through the Yellow Umbrella Deduction.
The Yellow Umbrella Deduction is a financial scheme designed to provide tax relief and a safety net for those running small businesses.
Who it's for
This scheme is intended for small business owners and sole proprietors. It is specifically designed to support those who operate their own businesses independently.
What you get
Participants can receive an annual tax deduction of up to ₩5 million. In addition to this tax benefit, the scheme provides a form of protection intended to help shield business owners from the consequences of business failure.
What it costs you
The cost of participating in this scheme involves paying monthly premiums. The amount you pay each month depends on the level you select, with options ranging from ₩50,000 to ₩1 million.
The catch to know
It is important to understand the long-term nature of this scheme. If you decide to make an early withdrawal from your funds, you may be subject to tax penalties.
How to apply
- Verify that you qualify as a small business owner or sole proprietor.
- Decide on a monthly premium amount that fits your budget, between ₩50,000 and ₩1 million.
- Visit the official portal to begin the registration process.