Daily Workers and Special Employment Types Receive 0.25% Reduced Additional Tax Even Without Submitting Statements

Ministry of Economy and Finance "Legislative Notice Until the 25th, Enforcement Decree Revision in April"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will shorten the submission cycle of income payment statements for daily workers and special-type workers (teukgo) to realize 'nationwide employment insurance' starting this July. As a result, penalties will be reduced for those who fail to submit or submit the statements late.

The Ministry of Economy and Finance announced on the 11th that it will announce a draft revision of the enforcement decree to lower the penalty rates when income payers (withholding agents) fail to submit or delay the submission of payment statements.

On the 26th of last month, amendments to the Income Tax Act and Corporate Tax Act were passed, shortening the submission cycle of income payment statements for daily workers from quarterly to monthly, and the submission cycle of simplified business income statements for teukgo from semi-annually to monthly, starting from the application of nationwide employment insurance in July. Changing to monthly submissions may increase the penalty burden for businesses.

Accordingly, the Ministry of Economy and Finance decided to reduce the penalty rate for non-submission of income payment statements for daily workers from 1% to 0.25%, and for late submission from 0.5% to 0.125%. For small businesses with 20 or fewer regular employees, if the monthly payment statements are submitted by the current deadline, penalties will be exempted temporarily for one year from July to June of next year.

Additionally, if unclear amounts on the payment statements (such as errors in personal information of the income earner or payment amounts) are within 5% of the total payment amount, penalties will be waived.

A Ministry of Economy and Finance official said, "Through the legislative period until the 25th, we will collect opinions from the public and related agencies, and after review by the Office for Government Policy Coordination, vice ministers, and the Cabinet meeting, we plan to revise the enforcement decree next month."

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