Support for the re-employment of women whose career has been interrupted
Tax credit for companies that re-employ women whose career has been interrupted
Where a small or medium enterprise or a middle-standing enterprise enters into an employment agreement for at least one year with a woman whose career has been interrupted by not later than December 31, 2022, such small or medium enterprise shall be entitled to deduct the equivalent to 30/100 (or 15/100 in the case of a middle-standing enterprise) of the labor cost paid to the woman whose career has been interrupted from the date of re-employment until the month falling on the second anniversary therefrom, from income tax or corporate tax payable for the relevant taxable year. (Article 29-3(1), 「The Restriction Of Special Taxation Act」)
※ In order to receive a tax credit for the re-employment of a woman whose career has been interrupted, the female employee must meet all of the following conditions.
- Retired due to marriage, pregnancy, childbirth, child rearing, or child education after working for the company or another company of the same business type based on the divisions under the industrial classifications for at least one year (limited to cases where it is confirmed that the wage and salary income tax of a woman whose career has been interrupted has been withheld as prescribed by the Enforcement Decree of the Act on Restriction of Special Taxation).
- A period of not less than 2 years and not more than 15 years must have elapsed from the date of retirement due to the above reasons.
- Such provision shall not apply to a person who is related to the largest shareholder or largest investor (or representative in the case of sole proprietorship) of the relevant company under Article 1-2(1) of the 「Enforcement Decree of the Framework Act on National Taxes」.
Support for returning to work for employees returning from parental leave
Tax credit for companies employing returnees from parental leave
Where a small or medium enterprise or middle-standing enterprise reinstates an employee returning from childcare leave by not later than December 31, 2020, the enterprise is entitled to deduct the equivalent to 10/100 (or 5/100 in the case of a middle-standing enterprise) of the labor cost paid to the employee returning from childcare leave from the date of reinstatement to the month falling on the first anniversary therefrom, from income tax or corporate tax payable for the relevant taxable year: Provided, however, that such amount shall not be deducted where the number of full-time employees of the relevant small or medium enterprise or middle-standing enterprise in the relevant taxable year is smaller than the number of full-time employees during the immediately preceding taxable year. (Article 29-3(2), 「The Restriction Of Special Taxation Act」)
It applies only once per child of the employee returning from childcare leave. (Article 29-3(4), 「The Restriction Of Special Taxation Act」)
※ In order for a company that employs a returnee from parental leave to receive a tax credit, the returned female worker must meet all of the following conditions.
- She must have worked at the company for at least 1 year.
- In the case of taking parental leave to raise children under the age of 8 or under the second grade of elementary school (including adopted children), the period of parental leave must be at least 6 months in a row.
- Such provision shall not apply to a person who is related to the largest shareholder or largest investor (or representative in the case of sole proprietorship) of the relevant company under Article 1-2(1) of the 「Enforcement Decree of the Framework Act on National Taxes」.
Application for tax credit
Submission of application
Any small or medium enterprise or middle-standing enterprise that intends to be granted a tax credit shall submit a report of its tax base and an application to obtain a tax credit in the form prescribed by Attachment 10-2(1), 「Enforcement Rule of the Restriction of Special Taxation Act」 to the head of the district tax office in the place of tax payment. (Article 29-3(5), 「Restriction Of Special Taxation Act」 and Article 26-3(5), 「Enforcement Decree of the Restriction Of Special Taxation Act」 )
※ For more information on the tax credit for a company that employs a returnee from parental leave, please visit this site (http://easylaw.go.kr) 『Work and Family Life』.