Tax

SME Special Tax Reduction (Small Enterprises 5-30%, 중소기업 특별세액감면): How to Apply, Amount & Eligibility (2026)

10-30% income tax reduction for small enterprises (wholesale/retail and medical 10%, Seoul metropolitan area 20%, non-Seoul metropolitan area 30%) · up to KRW 100,000,000 per year

This page is a translation of the Korean original and is for reference only. The official Korean guidance is the authoritative source for amounts and conditions, so be sure to confirm on the official website before applying. View Korean original (한국어)

Benefit: Small enterprises in reduction-eligible industries: wholesale/retail and medical 10%; others 20% in the Seoul metropolitan area and 30% outside it. For medium-sized enterprises, 5% for wholesale/retail and 15% for others outside the Seoul metropolitan area. Limit KRW 100,000,000 per year (KRW 5,000,000 deducted per employee decrease). If in business for 10 or more years, a faithful business owner, and with comprehensive income of KRW 100,000,000 or below, the reduction rate is 110%.
Who is eligible: SMEs in reduction-eligible industries (small enterprises must meet the sales criteria by industry)
When to apply: Apply for the reduction when filing comprehensive income tax (May) or corporate tax
How to apply: Apply for the tax reduction under Restriction of Special Taxation Act Article 7 when filing on Hometax (홈택스) · National Tax Service 126
Important notes: For taxable years ending before 2028.12.31 (sunset).
Note: Through taxable years ending before 2028.12.31. The limit is reduced if employment decreases. Some industries (real estate rental, etc.) are excluded; clinics and Korean medicine clinics must meet conditions such as 80% or more from medical care benefits.

Go to the official guide →

Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.

Frequently asked questions

SME Special Tax Reduction (Small Enterprises 5-30%, 중소기업 특별세액감면): who can receive it?

SMEs in reduction-eligible industries (small enterprises must meet the sales criteria by industry)

SME Special Tax Reduction (Small Enterprises 5-30%, 중소기업 특별세액감면): how do I apply?

Apply for the tax reduction under Restriction of Special Taxation Act Article 7 when filing on Hometax (홈택스) · National Tax Service 126

SME Special Tax Reduction (Small Enterprises 5-30%, 중소기업 특별세액감면): how much will I receive?

Small enterprises in reduction-eligible industries: wholesale/retail and medical 10%; others 20% in the Seoul metropolitan area and 30% outside it. For medium-sized enterprises, 5% for wholesale/retail and 15% for others outside the Seoul metropolitan area. Limit KRW 100,000,000 per year (KRW 5,000,000 deducted per employee decrease). If in business for 10 or more years, a faithful business owner, and with comprehensive income of KRW 100,000,000 or below, the reduction rate is 110%.

SME Special Tax Reduction (Small Enterprises 5-30%, 중소기업 특별세액감면): when can I apply?

Apply for the reduction when filing comprehensive income tax (May) or corporate tax