Local Tax Burden Eased for Small Business Owners and Kind Landlords... Deadline Extension and Tax Audit Deferral

Ministry of the Interior and Safety Notifies Local Governments on the 15th About Key Targets and Support Measures for Local Tax Items Guidelines

On the 1st, as the prolonged COVID-19 pandemic increases difficulties for small business owners and self-employed individuals, signs of nearby shops are attached to a rest area cordoned off with COVID-19 access restriction tape in the Euljiro underground shopping mall in Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Lim Cheol-young] The Ministry of the Interior and Safety announced on the 14th that it will ease local tax burdens for small business owners and benevolent landlords to support citizens affected by COVID-19 and revitalize the stagnant local economy.

The Ministry of the Interior and Safety has been providing local tax support measures such as deadline extensions, collection deferrals, and tax audit postponements since February last year to assist taxpayers facing difficulties due to COVID-19. Last year, a total of 15.34 million cases and 1.863 trillion won were supported.

This year's local tax support for COVID-19 will focus on individuals experiencing economic hardship due to confirmed cases and self-quarantine, businesses and small business owners affected by gathering bans and business restrictions, and benevolent landlords. In response to requests from local governments for more detailed guidelines, the Ministry plans to notify all local governments nationwide on the 15th with guidelines that include major targets and support measures by local tax categories, as well as best practices.

First, for local income tax and resident tax business place categories, which are declaration-based taxes, deadline extensions of up to six months (one extension, maximum one year) can be granted either ex officio or upon application, focusing on small business owners facing economic difficulties. For assessed and notified taxes such as property tax and automobile tax, collection deferrals, installment notifications, and notification postponements will be implemented, with more active support for benevolent landlords, owners of facilities treating confirmed patients, and owners of commercial vehicles.

Tax audit postponements and local tax reductions will also be pursued. The Ministry plans to recommend local governments to postpone tax audits as much as possible in the first half of this year and to replace them with document-based audits in the second half. Additionally, best practices will be continuously discovered and shared to enable local tax reductions through local ordinances or resolutions of local councils, focusing on benevolent landlords, small business owners, and small and medium enterprises.

In the area of local non-tax revenue, guidelines will provide information on relevant legal provisions and application procedures to allow for deferral of delinquent disposition and extension of payment deadlines when necessary.

Park Jae-min, Director of the Local Finance and Economy Office, said, “We hope this local tax support will protect citizens affected by COVID-19 and serve as a catalyst for local economic recovery in preparation for the post-COVID era,” and added, “We ask for active participation and support from each local government.”

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