National Tax Service introduces tax cuts and loan deferrals for youth

The National Tax Service has unveiled support policies for young people, including a 90% income tax reduction for SME employees aged 15 to 34 for up to five years. The measures, which also include a student loan deferral system and startup tax care for novice entrepreneurs, aim to assist youth in achieving economic independence.

When asked what the first expense is after receiving a salary, one young person answered, "monthly rent." This individual's story—paying 350,000 won in rent out of a 700,000 won salary and saving the remaining 350,000 won—serves as a stark illustration of the realistic economic burdens faced by youth today.

The YouTube content 'All Things in the World,' released by the National Tax Service, captures the vivid voices of young people met on the streets of Hongdae regarding the hardships of employment, entrepreneurship, and professional life. The video features various youths, from employees at a barbershop aiming to open their own shops to a college student couple preparing interview attire for graduate school. Simultaneously, the video introduces major support policies operated by the National Tax Service for those struggling with insufficient bank balances.

Reducing student loan burdens and providing 90% income tax cuts for SME employees

For young people preparing for economic independence while balancing employment preparation and studies, easing the burden of student loans is a primary necessity. The National Tax Service operates a 'Student Loan Deferral System' that allows for the postponement of loan repayments for a certain period if repayment is difficult due to economic circumstances.

There are also systems that directly lower the income tax burden after employment. Young people who are employed at or planning to work for small and medium-sized enterprises (SMEs) should take note of the 'Income Tax Reduction for SME Employees.' This policy provides an income tax reduction of up to 90% for up to five years for youths aged 15 to 34 at the time of employment who work for an SME.

Employees of the comedy label Meta Comedy appearing in the content expressed the reality that a significant portion of their salaries is spent on housing. Lee Jun-hee, a business manager at Meta Comedy, stated, "Since I live alone, monthly rent is the first thing to go out," noting that out of a 700,000 won salary, 350,000 won is paid for rent and the remaining 350,000 won is saved. Participants in the video suggested that these tax benefits could provide practical help in building an economic foundation for young people.

Operating 'Startup Tax Care' for novice entrepreneurs

As the number of young people dreaming of starting businesses has recently increased, support measures have been prepared to alleviate the difficulties of tax administration encountered during early business operations. The National Tax Service provides the 'Startup Tax Care' program specifically for novice entrepreneurs.

This program is characterized by supporting the overall tax administration required in the early stages of entrepreneurship—including verifying income tax filing details, providing tax consulting, and managing filing schedules—rather than simply providing tax guidance. It serves to manage tax risks so that entrepreneurs can focus on their main business.

National Tax Service policies to aid youth economic independence: "Check the website"

The video emphasized that young people should not miss out on these benefits. Participants advised actively utilizing the various support programs of the National Tax Service, stating, "Since you will be earning income, it is good to prepare in advance." In particular, Kim Young-jun, a creative manager at Meta Comedy, mentioned the usefulness of 'Startup Tax Care' for those dreaming of entrepreneurship.

The National Tax Service announced that specific eligibility, application conditions, and detailed usage methods for these policies can be found on the National Tax Service website. The intent is that young people applying for the benefits they are eligible for can take the first step toward economic independence.

Source: original video (YouTube)