Employment Tax Credit: Who Qualifies and What You Get
Learn how businesses in South Korea can reduce their tax burden by hiring full-time staff through this government credit.
This scheme allows businesses to lower their tax obligations by adding new full-time staff to their team.
Who it's for
This credit is specifically designed for businesses that hire full-time employees. To qualify, your business must be hiring individuals to work on a full-time basis rather than part-time or temporary roles.
What you get
If you qualify, you can receive a significant reduction in your corporate or income tax. This benefit is intended to help businesses offset the costs associated with growing a workforce, providing a way to lower the total tax burden required for your business operations.
What it costs you
While there is no direct fee to apply, the benefit comes with a commitment regarding your staffing levels. You must maintain your employee count for a period of 2 years to remain in compliance with the requirements of the credit.
The catch to know
The most important thing to remember is that this credit is tied to the continuity of your staff. If you fire an employee early, you will be required to pay back the tax credit you previously received. It is vital to plan your hiring and staffing changes carefully to avoid these unexpected repayment obligations.
How to apply
- Verify that your new hires meet the full-time criteria set by the National Tax Service.
- Keep detailed records of your employee headcount and hiring dates to prove compliance.
- Monitor your staff turnover closely to ensure you do not inadvertently trigger a repayment requirement.
- Check the official tax portal for the specific filing procedures and current documentation needed for your tax return.