Ministry of the Interior and Safety Supports Local Tax Payments for Victims Related to Novel Coronavirus

Extension of Deadlines and Collection Deferrals: Implementation of Local Tax Support

[Asia Economy Reporter Hyunju Lee] The Ministry of the Interior and Safety announced on the 5th that it will provide local tax support such as deadline extensions, collection deferrals, and tax audit postponements to assist taxpayers facing difficulties due to the novel coronavirus infection (Wuhan pneumonia).

With this measure, the reporting and payment deadlines for taxable items such as acquisition tax, local income tax, and resident tax on employees can be extended without tax payment guarantees within a 6-month period (one extension, up to a maximum of one year).

In addition, for local taxes already notified as well as those to be taxed in the future, if payment is difficult, collection deferral without tax payment guarantees is possible within a 6-month period.

If the damage continues, the head of the local government may, with the approval of the local council, also reduce local taxes if deemed necessary.

Furthermore, except in unavoidable cases such as the imminent expiration of the imposition statute of limitations, tax audits for confirmed patients, quarantined individuals, and affected businesses may be postponed for a period determined by the head of the local government.

Minister Jin Young said, "We will do our best to ensure that practical local tax support is provided to affected residents."

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