Extension of Corporate Local Income Tax Payment by 3 Months for SMEs under Business Restrictions and Gathering Bans

Ministry of the Interior and Safety Extends Payment Deadline from Late April to Late July by Official Order

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[Asia Economy Reporter Han Jinju] The payment deadline for corporate local income tax will be extended by three months for small and medium-sized enterprises (SMEs) affected by COVID-19, including restaurants, cafes, PC rooms, karaoke rooms, indoor sports facilities, and academies.

On the 8th, the Ministry of the Interior and Safety announced that the payment deadline for the 2021 corporate local income tax will be extended by three months from the end of April to the end of July across all local governments to support SMEs suffering economic damage due to COVID-19.

The extension applies to SMEs in industries subject to gathering bans or business restrictions under COVID-19 quarantine measures, as well as SMEs located in employment crisis areas and special industrial crisis response areas. It is expected that about 34,900 companies will benefit from this automatic extension.

Industries subject to gathering bans include entertainment bars, karaoke bars, emotional pubs, hunting pubs, colatecs, holdem pubs, karaoke rooms, indoor standing performance halls, direct sales promotion centers, indoor sports facilities, academies, and private tutoring centers.

Industries subject to business restrictions include PC rooms, arcades and multi-rooms, party rooms, amusement parks and water parks, ski resorts and sledding hills (outdoor winter sports facilities), screen golf courses, reading rooms and study cafes, vocational training institutions, restaurants, cafes, beauty salons, bathhouses, lodging facilities, department stores, large supermarkets, movie theaters, wedding halls, and funeral halls.

The employment crisis and special industrial crisis response areas are ▲ Geoje City, Tongyeong City, Goseong County, Jinhae District of Changwon, Dong District of Ulsan in Gyeongnam Province ▲ Gunsan City in Jeonbuk Province ▲ Yeongam County, Mokpo City, and Haenam County in Jeonnam Province.

Companies that have received an automatic extension of the corporate tax payment deadline, which is a national tax, will automatically receive the extension benefit for the corporate local income tax payment deadline without needing to apply separately to local governments.

Companies requiring an extension of more than three months should apply for an extension to the relevant local government by April 27, three days before the expiration of the corporate local income tax filing and payment deadline, in accordance with the Local Tax Basic Act.

Jeon Hae-cheol, Minister of the Ministry of the Interior and Safety, said, “We hope this extension of the corporate local income tax payment deadline will help ease the burden on struggling SMEs even a little,” and added, “We will continue to actively prepare support measures for COVID-19 damage in cooperation with local governments and related ministries.”

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