National Tax Service Provides Tax Relief and Postpones Audits for Taxpayers Affected by Typhoon Damage

[Asia Economy Reporter Kwangho Lee] The National Tax Service announced on the 8th that it will provide tax administration support such as deadline extensions, collection deferrals, delinquency disposition deferrals, and tax audit postponements for taxpayers affected by Typhoon No. 9 "Maysak" and Typhoon No. 10 "Haishen".

For taxpayers experiencing difficulties due to typhoon damage, the payment deadlines for value-added tax and comprehensive income tax will be extended up to 9 months, and collection of already notified national taxes will be deferred for up to 9 months.

In addition, if there are current arrears, the execution of delinquency dispositions such as the sale of seized real estate will be deferred for up to one year.

To receive tax administration support such as deadline extensions, applications can be submitted by mail or visit to the relevant tax office, or online via the National Tax Service Hometax system.

Furthermore, for taxpayers facing serious business difficulties due to the typhoon, tax audits will, in principle, be suspended until the end of the year, and if tax audits have already been pre-notified or are in progress, they will be postponed or stopped upon the taxpayer's request to actively support them. However, cases where the statute of limitations for assessment is imminent or unavoidable exceptions apply are excluded.

If a national tax refund occurs, it will be paid as early as possible, and if business assets have been lost by 20% or more due to typhoon damage, the tax amount will be deducted proportionally from the income tax or corporate tax currently unpaid or to be taxed in the future according to the lost ratio.

Taxpayers can receive tax credits by submitting a disaster loss tax credit application to the tax office within one month from the date of the disaster occurrence.

A National Tax Service official said, "We will continue to proactively identify taxpayers facing management difficulties due to COVID-19, typhoons, and other damages through the Tax Administration Support Promotion Team and provide the maximum tax administration support within the scope permitted by law."

Meanwhile, as of the end of August, the National Tax Service has provided tax administration support amounting to 5,996,000 cases and 25.8 trillion won in scale for taxpayers facing management difficulties due to COVID-19, typhoons, and other damages.

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