Expansion of Tax Deduction for Donations Exceeding 100,000 Won to Special Disaster Areas

[Financial News]  


When donating to local governments declared as special disaster areas, the tax deduction benefit is expanded, and a tax deduction rate of 33% is applied to amounts exceeding 100,000 won, which is double the previous rate (16.5%).
This year, in the situation where many casualties and property damages occurred due to record-breaking torrential rains nationwide, warm hearts for the residents of the affected areas are starting to gather through the Hometown Love Donation System.
The Ministry of the Interior and Safety (Minister Yoon Ho-jung) announced on the 23rd that major local governments affected by torrential rains, such as Gwangju Metropolitan City, Gyeonggi-do, Chungcheongnam-do, and Gyeongsangnam-do, are rapidly launching general donation and designated donation projects through 'Hometown Love e-eum' and private platforms.
'General donation' is a method of donating without specifying a particular purpose, only designating the local government, while 'designated donation' is a method of donating by specifying a particular project of the local government (such as flood damage recovery).
The Ministry of the Interior and Safety views donations concentrated in disaster-affected areas as a citizen participation-type disaster recovery campaign to help the rapid recovery of the affected areas and the return of residents to their daily lives.
The collected hometown love donations will be used for the restoration of damaged public facilities and the creation of preventive facilities.
As of the 23rd, a total of 28 casualties (19 deaths, 9 missing) have occurred due to this heavy rain, and damage to public and private facilities amounts to over 8,200 cases, with many local residents losing their livelihoods and experiencing inconvenience due to road flooding, river collapses, and house flooding.
Accordingly, the local governments of the affected areas are appealing for donation participation through the hometown love donation platform 'Hometown Love e-eum' and private platforms*.
The Ministry of the Interior and Safety has relaxed the requirements to allow designated donation fundraising to begin without prior approval from local councils so that the affected areas can quickly collect donations.
Major private platforms are also conducting various activities to promote donations, such as exclusive banners and pop-up windows for the affected areas, SNS donation campaigns, and donation certification relay events.
Donors can select the local government they wish to donate to online (Hometown Love e-eum, private platforms) and offline (Nonghyup Bank and agricultural cooperative branches) and receive a return gift, or they can choose to donate the entire amount without receiving a return gift.




ktitk@fnnews.com Kim Tae-kyung Reporter