National Tax Service to Advance Year-End Tax Refund Payments... Applications Accepted from Bankrupt or Closed Business Workers Too

Advance by more than ten days from the original schedule
Increase in refund account opening report threshold from 20 million to 50 million won

[Asia Economy Reporter Kim Hyunjung] On the 8th, the National Tax Service announced that it will advance the payment schedule for the 2020 year-end tax refund by more than ten days to support taxpayers facing economic difficulties due to the prolonged COVID-19 pandemic. In particular, for workers belonging to companies that are bankrupt, closed, or have unpaid wages, it is practically impossible to receive refunds through the withholding agent company, so workers can apply directly.

The original schedule was a bulk refund on March 31 and an individual refund on April 10, but the National Tax Service has moved these up to March 19 and March 31, respectively.

Bulk refunds will be paid by the 19th if the withholding tax return and payment statement are submitted by the 10th of this month. Individual refunds, which include cases where the withholding tax return and payment statement are submitted after the deadline (March 11?25), or where workers belonging to bankrupt, closed, or wage-unpaid companies must apply for refunds directly, will be paid by March 31 after reviewing the refund payment conditions. Refunds may not be paid if there is no prepaid tax amount or if the payment statement is not submitted.

However, the early payment of this year-end tax refund applies only to companies that apply for the refund payment at the time of withholding tax filing. If a company does not apply for the year-end tax refund and adjusts the refund (refund < additional payment) from the tax amount payable for February 2021, or pays with its own funds, the payment schedule will vary depending on the individual company's circumstances.

The threshold amount for reporting the opening of a refund account has also been raised from the existing 20 million won to 50 million won. If the refund amount is 50 million won or more, a separate account opening report must be submitted along with the withholding tax refund application form.

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