Article 29-6 (Income Tax Reduction for Corporate Pension Fund Receipts for Young Workers and Key Personnel of Small and Medium-sized Enterprises)

For workers (excluding persons who are the largest shareholder of the company or otherwise designated by Presidential Decree; hereinafter referred to as "key personnel" in this Article) of small and medium-sized enterprises or mid-sized enterprises who join a corporate pension program designated by Presidential Decree as a "corporate pension program for young workers and key personnel of small and medium-sized enterprises and a corporate pension fund for performance compensation" (hereinafter referred to as "corporate pension fund" in this Article) under Article 35-2 of the 「Special Act on Support for Small and Medium Enterprise Human Resources」 by December 31, 2027, if they pay corporate pension contributions for three years or more and receive pension benefits from the corporate pension fund, income tax shall be imposed on the portion of the pension benefits corresponding to the contributions borne by the company under Article 35-3, Item 1 of the same Act (hereinafter referred to as "contributions" in this Article), considering it as earned income under Article 20 of the 「Income Tax Act」, but a tax reduction shall be granted for an amount equivalent to the tax calculated by multiplying the income tax by the rates according to the following classifications. Provided, that if the key personnel receive pension benefits without paying corporate pension contributions for three years or more due to unavoidable reasons designated by Presidential Decree, such as the company closing its business or dissolving the corporation, the tax reduction shall also be granted. 1. For young individuals designated by Presidential Decree: Rates according to the following classifications a. For workers of small and medium-sized enterprises: 90/100 b. For workers of mid-sized enterprises: 50/100 2. In cases other than Item 1: Rates according to the following classifications a. For workers of small and medium-sized enterprises: 50/100 b. For workers of mid-sized enterprises: 30/100

Matters other than those prescribed in paragraphs ① and ②, such as the calculation method of income tax reduction, application procedures, and other necessary matters, shall be prescribed by Presidential Decree.