Tax Deductions for 4 Major Insurance Premium in a Newly Established Start-ups

Newly established startups do not have a previous fiscal year, so if they hired workers, they can apply for employment increase tax credits. In particular, if the number of full-time workers in the relevant tax year increases compared to the number of full-time workers in the previous tax year, the social insurance premiums paid by the company can be deducted from business income tax (individual businesses) and corporate tax (corporations).

At this time, if the deduction cannot be made due to a current deficit or minimum tax application, the deduction amount can be carried forward for up to 10 years.

Therefore, if a loss occurs as a newly started corporation or a sole-proprietors, it is essential to apply for a tax credit so that it can be carried forward.