By Kim Jae-kyoung
Staff Reporter
Local businesses will be able to spend more on entertainment, as the government decided to ease taxation rules on firms' entertainment expenses from next year in a bid to prop up domestic demand.
According to the tax law revision introduced by the Ministry of Strategy and Finance, companies won't be obliged to record clients' details regarding entertainment expenses, even on amounts exceeding 500,000 won. Currently, they are required to keep such information.
As for expenses incurred in acts of congratulations or condolences, companies, in the case of amounts not exceeding 200,000 won, are not required to collect documentary evidence to account for the expenses.
Advertising expenses on small articles, such as pens and notebooks, will be fully deductible if the amount is less than 5,000 won per article.
In order to promote the cash receipt system, the reward for reporting those refusing to issue cash receipts will be increased to a maximum of 500,000 won per case from the current 50,000 won.
Deductions for medical and health expenses, including plastic surgery costs, will be extended for one more year to next year.
Rules on comprehensive real estate holding taxes will also be eased.
If those owning and residing in single homes become multiple homeowners due to marriage and support from parents, they will be taxed as single homeowners over the subsequent five years, as opposed to the current two years. In such cases, the tax exemption for selling first homes will also be extended to five years from the current two years.