Gangnam-gu, Refund of Foreign Tax Credit for Corporate Local Income Tax

For Corporations Previously Filing Correction Claims... Promotional Letters Sent to Other Refund Recipients, In-Person and Online Claims Available

[Asia Economy Reporter Jongil Park] Gangnam-gu (District Mayor Jeong Soon-gyun) has decided to refund 19.5 billion KRW in corporate local income tax to local corporations that did not receive foreign tax credit deductions this month.

In the case of corporate tax (national tax), since the 2014 revision of the Local Tax Act, taxes paid abroad have not been considered income and were treated as deductions. However, corporate local income tax (local tax) has been taxed using the same tax base as corporate tax without considering the amount of tax paid abroad.

Based on the Supreme Court ruling that corporations should not include taxes paid abroad in the corporate local income tax base and the Seoul City refund guidelines, the district has decided to refund the corporate local income tax overpaid by corporations that previously filed correction claims.

To alleviate the economic burden on local businesses struggling due to COVID-19, the district will actively inform and process refunds for eligible corporations that have not yet filed correction claims by sending promotional notices and guidance.

To claim a refund, prepare a correction claim form and supporting documents and submit them directly to the Taxation Division 2 at the district office or file the correction claim online through the Hometax system.

For more details, please contact Taxation Division 2.

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