Over 7 Million Income Taxpayers' Payment Deadline Extended by 3 Months Until August... 'Good Consumption Campaign' Launched

[Asia Economy Reporter Kwangho Lee] The government will launch a nationwide campaign including tax support to stimulate early domestic demand through advance payments and pre-purchases.

On the 8th, the government announced at the 4th Emergency Economic Meeting chaired by President Moon Jae-in that it had prepared a "Supplementary Plan for Domestic Demand through Advance Payments and Pre-purchases."

First, to support the activation of household advance payments and pre-purchases, the income deduction rate for credit and debit cards used in affected industries will be expanded to 80% until June.

Additionally, tax incentives favorable to advance payments will be provided to encourage corporate participation. A legal interpretation will be issued to allow advance payments for goods and services purchased with corporate cards. When goods or services are pre-paid or pre-purchased from small business owners, a 1% tax credit will be applied to income tax and corporate tax.

Furthermore, in collaboration with the three major telecommunications companies and economic organizations, a "Good Consumption Campaign" will be promoted, and publicity will be conducted through various media such as broadcasting, telecommunications, and social network services (SNS).

The tax burden on small and medium-sized enterprises and individual business owners will also be further eased. Early allowance of retroactive deduction for losses in the first half of the year for SMEs will be implemented, and the payment deadline will be extended by three months ex officio by the National Tax Service and all local governments for about 7 million individual business owners subject to this year's comprehensive income tax and individual local income tax filings.

Moreover, COVID-19 victims will be added to the credit recovery support targets of the Credit Recovery Committee, with preferential support for debt adjustment conditions such as principal repayment deferral and debt reduction.

In addition, the Korea Asset Management Corporation (KAMCO) will purchase delinquent claims of small business owners affected by COVID-19 up to a scale of 2 trillion won to support debt adjustment through repayment deferral and long-term installment repayment.

This content was produced with the assistance of AI translation services.