Record High Number of Corporate Local Income Tax Filings in Songpa-gu, Decline in Reported Amounts

Economic Recession, COVID-19 Impact... 5.1% Increase in Reports, 15.1% Decrease in Reported Amounts... Tax Burden Support Measures Including Payment Deadline Extensions and Tax Collateral Exemptions

[Asia Economy Reporter Jong-il Park] Songpa-gu (Mayor Park Seong-su) announced on the 29th that although the number of corporate local income tax filings reached a record high last year, the reported amount decreased due to the economic downturn.

Corporate local income tax is a tax paid by corporations subject to income tax, based on the previous year's corporate income as the tax base, to the local government in charge. It is a tax item reported and paid by the end of April the following year and accounts for a significant portion of local tax revenue.

As a result of operating the 2019 corporate local income tax filing period throughout April, 17,090 corporations filed their final returns. This is an increase of 5.1% (832 cases) compared to the previous year, marking an all-time high.

The district explained that this was thanks to strengthened promotion efforts, such as sending individual notices to corporations and tax agents and actively encouraging electronic filing to prepare for a decrease in tax revenue.

On the other hand, the reported amount was recorded at 95.267 billion KRW, down 15.1% (16.91 billion KRW) from the previous year due to the prolonged economic downturn.

In response to the worsening economic crisis caused by the recent COVID-19 pandemic, the district is implementing various tax burden support measures for corporations facing difficulties. For 22 corporations affected by COVID-19, payment deadlines have been extended until July 31 for a total of 2.188 billion KRW, and corporations with corporate local income tax amounts under 10 million KRW are exempted from providing tax payment guarantees.

Starting in June, additional penalties will be imposed on unpaid corporations, excluding those affected by COVID-19, based on tax data notified by the National Tax Service.

Mayor Park Seong-su of Songpa-gu said, “We express our gratitude to the corporations that have faithfully filed and paid despite the difficult circumstances such as the economic downturn and COVID-19,” and added, “We will continue to monitor the economic situation and promote various support measures to reduce the tax burden, ensuring that the taxes paid serve as a foundation for Songpa’s development and the improvement of residents’ quality of life.”

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