Act for Development of Small and Medium Enterprises Article 36-2

If a small and medium enterprise additionally hires certain number of domestic junior employees under the age of 24 or over the age of 65 and increases its aggregate gross salary payments, the small and medium enterprise can deduct up to 200% of the annual gross salary payments to such additional employees from its current year profit-seeking enterprise income.If a small and medium enterprise raises the average salary paid to the domestic junior employees, the small and medium enterprise can deduct up to 175% of the incremental annual gross salary payments, excluding statutory minimum wage adjustment, to the junior employees from its current year profit-seeking enterprise income. However, the additional salary paid to the new hires shall not be deducted here as it has been used for tax benefit applied to the provisions in the preceding paragraph.As referred to in the preceding two paragraphs, matters regarding type and number of additional employees hired, aggregate gross salary payments, the range of junior employees, calculation of the average salary paid, approving authority, the prerequisites for application, application deadline, application procedure, and measures of other related matters, shall be prescribed by the central competent authority in consultation with the Ministry of Finance.