Article 99-11 (Reduction of Corporate Tax, etc. for Small and Medium-sized Enterprises in Specially Designated Disaster Areas due to Communicable Disease Damage)

For small and medium-sized enterprises that have a business site (hereinafter referred to as "eligible business site" in this Article) in a specially designated disaster area declared pursuant to Article 60 of the Framework Act on Disaster and Safety Management, due to damage caused by the spread of a communicable disease pursuant to the 「Act on the Prevention and Management of Communicable Diseases」, the amount of income tax or corporate tax on income generated from business conducted at the eligible business site (excluding businesses such as real estate rental and supply, as prescribed by Presidential Decree) for the tax year that includes June 30, 2020, shall be reduced by the tax amount calculated by multiplying the reduction ratio under item 1 by the tax amount (limited to the amount calculated under item 2). 1. Reduction ratio: The ratio according to the classification of the following sub-items. a. Eligible business site managed by a small enterprise (hereinafter referred to as "small enterprise" in this Article) prescribed by Presidential Decree: 60 percent. b. Eligible business site managed by a small and medium-sized enterprise excluding a small enterprise: 30 percent. 2. Reduction limit: The amount according to the classification of the following sub-items. a. In the case where the number of regular employees in the current tax year has decreased compared to the number of regular employees in the immediately preceding tax year: 200 million won minus 5 million won per person for the decrease in the number of regular employees (if the amount is negative, it shall be zero). b. In other cases: 200 million won.

Small and medium-sized enterprises intending to receive a reduction of income tax or corporate tax pursuant to paragraph 1 shall apply for the reduction in accordance with Presidential Decree.