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

For small and medium-sized enterprises that have their business premises (hereinafter referred to as "eligible business premises" in this Article) in a special disaster area declared pursuant to Article 60 of the Framework Act on Disaster and Safety Management, due to the spread of infectious diseases under the 「Act on the Prevention and Management of Infectious Diseases」, the amount equivalent to the tax calculated by multiplying the tax rate in item 1 by the income tax or corporate tax on income generated from the business operated at the eligible business premises (excluding businesses such as real estate leasing and supply, as prescribed by Presidential Decree) in the tax year that includes June 30, 2020 (limited to the amount calculated according to item 2) shall be reduced. 1. Reduction rate: The rate according to the following classification. a. Eligible business premises operated by small businesses (hereinafter referred to as "small businesses" in this Article) as prescribed by Presidential Decree: 60 percent. b. Eligible business premises operated by small and medium-sized enterprises excluding small businesses: 30 percent. 2. Reduction limit: The amount according to the following classification. 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 preceding tax year: An amount obtained by subtracting 5 million won per person for each decrease in the number of regular employees from 200 million won (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 in income tax or corporate tax pursuant to Paragraph ① shall apply for the reduction in accordance with Presidential Decree.