April is the Month to Pay Corporate Local Income Tax...

As of December 31, 2019, Corporations with Headquarters or Main Offices in Jung-gu... Must Report and Pay by May 4, Penalties Apply for Missing Attachments

[Asia Economy Reporter Park Jong-il] Jung-gu (District Mayor Seo Yang-ho) has begun providing filing and payment guidance to corporations and tax agents within the district in anticipation of the April corporate local income tax final filing and payment month.

The payment targets are corporations whose headquarters or main offices were located in Jung-gu as of the end of December 2019, and these corporations must complete their filing and payment by May 4.

The payment amount is calculated based on the Corporate Tax Act and is subject to a differential tax rate of 1 to 2.5%. Corporations with no income or operating losses for the fiscal year are also required to file.

Filings can be made through the Ministry of the Interior and Safety’s WETAX system or the Seoul ETAX system online. For those who prefer to file in person or by mail, they can complete the filing form posted on the district website and submit it to the Tax Division 2 at the district office. Given the high-level social distancing measures due to COVID-19, online filing is strongly recommended over in-person or mail submissions.

Required attachments for filing include the tax base and tax amount report, tax adjustment calculation sheet, balance sheet, comprehensive income statement, statement of retained earnings appropriation, and cash flow statement. Corporations with business sites in more than one local government must also attach an allocation statement reflecting the number of employees and the ratio of buildings used.

Penalties will be imposed if the filing deadline is missed or if required attachments are not submitted, so caution is necessary. However, consolidated corporations may file and pay within five months from the end of the month in which the fiscal year ends (deadline June 1).

The district has decided to extend the payment deadline for corporations that have suffered significant losses or are in serious crisis due to COVID-19. The extension period is up to three months for the first extension and up to six months for the second extension. The district will review extension requests submitted by the corporations and decide whether to grant the extension.

Last year, Jung-gu’s local tax revenue amounted to 1.7079 trillion KRW (90.3% city tax, 9.7% district tax), of which corporate local income tax accounted for 23.4%, or 400 billion KRW. This represents 21.2% of the total corporate local income tax collection of 1.8916 trillion KRW in Seoul, playing a central role in the city’s tax revenue.

Seo Yang-ho, Mayor of Jung-gu, stated, "We will promptly reflect any necessary system improvements to enhance taxpayer convenience and ensure there are no disruptions in tax collection."

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