Business start-ups that hire more than 10 employees will enjoy tax exemptions of up to 100 per cent over the next five years.
Finance-Economy Minister Lee Hun-jai yesterday unveiled the measures to promote job creation in a meeting with economic ministers held at the Banker’s Club in Seoul.
With the soaring youth jobless rate surpassing 9 per cent, the government has decided to offer start-ups that meet the minimum hiring requirement a 50 per cent deduction in corporate taxes.
When the number of employees at a start-up firm that hired 10 individuals in its first business year climbs to 20 the next year, a 100 per cent increase, it will enjoy the maximum tax break of 100 per cent.
If the growth rate in the number of employees stays at 50 per cent, the next year’s tax deduction rate for the company will be set at 75 per cent.
