National Tax Service: "1.57 Million Individual Entrepreneurs Must Pay Interim Income Tax Prepayment"

870,000 Small Business Owners Granted 3-Month Extension on Payment Deadline

[Asia Economy Reporter Kwangho Lee] The National Tax Service announced on the 5th that 1.57 million individual business owners with comprehensive income must pay the interim comprehensive income tax by the 30th of this month.

If the interim prepayment amount exceeds 10 million won, the amount subject to installment payment can be paid by February 1st of next year without a separate application.

The interim prepayment amount is half of the comprehensive income tax amount for the 2019 taxable period, and it will be deducted from the amount to be paid when filing the final income tax return next year.

Those who started a new business this year or only have income subject to withholding tax such as interest, dividends, or earned income are not subject to interim prepayment.

Also, if the income tax on comprehensive income for the first half of this year is less than 30% of the interim prepayment standard amount, it can be reported and paid by the 30th.

The National Tax Service will unilaterally extend the payment deadline by three months for small self-employed business owners (870,000 people) who are struggling due to COVID-19 and other reasons.

Those with real estate rental income, entertainment bars, karaoke bars, professionals, or financial income exceeding 20 million won are excluded from the unilateral extension.

Taxpayers whose payment deadline has been extended can pay the interim prepayment amount by March 2, 2021, using the notice sent by the tax office in early February next year.

Also, taxpayers who are not subject to the unilateral extension can apply for a payment deadline extension if they are experiencing business difficulties due to decreased sales, etc.

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