Starting from the beginning of the new year, a way to receive a benefit of 130,000 won has been opened for those who donate 100,000 won. It is through the ‘Hometown Love Donation System’ implemented by the government in anticipation of revitalizing the local economy.
The Ministry of Public Administration and Security implements the hometown love donation system in accordance with the Hometown Love Donation Act, the Enforcement Decree of the same Act, and local government ordinances. The hometown love donation system is a system in which individuals donate to local governments other than their address, and the local government collects the money and uses it to promote residents’ welfare.
It was introduced for the first time in Korea. It is expected that the donation will contribute to balanced development through the expansion of local finances and revitalization of the local economy. The donation limit is 5 million won per person per year, and donations can be made to all local governments except for the address on the resident registration.
Donations of less than KRW 100,000 can receive a full tax deduction, and donations exceeding KRW 100,000 receive a 16.5% tax deduction. In addition, it is expected to play a significant role in revitalizing the local economy by providing donors with gifts equivalent to less than 30% of the donation amount. This means that if a donor donates 100,000 won, he or she can get a benefit of 130,000 won back.
Local governments can raise funds by using government media such as newspapers, periodicals, broadcasting, outdoor advertisements, news and telecommunications, and the Internet. However, there are some things to keep in mind as there are cases where it is prohibited by law.
For example, individual phone calls or letters, door-to-door visits, forced, solicitation, and encouragement to raise funds through private gatherings such as hometown associations or alumni associations, and actively soliciting or encouraging by attending or visiting events hosted, supervised, or sponsored by local governments. to ban
Local governments also need to be careful when raising donations through media. In order to provide donors with accurate information, information on the name of the local government, use of the fund project, donation process and method, and gifts in return must be provided.
In addition, when local governments receive donations, they are asked to confirm the address and identity of the donor, whether or not the annual total amount of donations exceeds 5 million won, and whether or not they wish to receive a gift in return. If a local government violates the relevant laws and regulations, the collection of donations is restricted for a certain period of time depending on the type of violation.
In addition, if you force others to donate or raise funds by using your relationship with work or employment, or if a public official forces an employee to donate or raise money, you cannot raise money for a period of at least 2 months to a maximum of 8 months.
Donors can be given gifts in return, such as local specialties produced in the region. Return gifts were set within 30% of the total amount of individual donations to prevent excessive competition among local governments. Japan’s hometown tax payment system, which was implemented earlier than Korea, sets a return gift within 30% of the donation.
Local governments have selected 2,000 kinds of return gifts, including agricultural and livestock products, processed food, daily necessities, tourism services, and local gift certificates, and will continue to discover and register various return gifts in the system. Some local governments are developing visit-type return gifts, such as city tours or admission tickets, to encourage donors to visit the region.
The Ministry of Public Administration and Security has established ‘Hometown Love e-Eum’, an integrated one-stop information system that allows donors to donate easily and conveniently, and provides year-round services along with the implementation of the system. Donors can conveniently donate to 243 local governments nationwide through Hometown Love e-Music, and can search for return gifts and check the delivery status in real time.
In addition, in connection with the resident registration system, it is possible to automatically inquire whether the donation limit of the address stipulated by the law and whether or not the maximum amount of donation exceeds 5 million won is exceeded. In conjunction with the National Tax Service’s year-end tax settlement system, tax credits can be automatically granted without donors applying for tax credits.
A point system is operated to conveniently provide gifts to donors. If a donor donates 100,000 won, a point of 30,000 won is created, and the donor can choose a return gift at any time he wants. Those who want to donate again can use it by adding it to the points they have already created.
In addition, return gifts for hometown love e-eum were divided into agricultural and livestock products, processed foods, daily necessities, and regional gift certificates so that donors could conveniently select them.
For those who have difficulty using the hometown love e-eum system, donations can be made by directly visiting some 5,900 Nonghyup counters nationwide. If you use the window, you can donate on the spot by visiting the Nonghyup with your ID such as your resident registration card or driver’s license.
Choi Hoon, head of the Department of Local Autonomy and Balanced Development at the Ministry of Public Administration and Security, said, “As the first implementation of the Hometown Love Donation Program, successful settlement is more important than anything else.” We will actively work to improve vitality and contribute to balanced development.”