Jeonnam Province Extends Corporate Local Income Tax Payment Deadline

Promoting Management Safety for Small and Medium Enterprises

[Muan=Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Jeonnam Province announced on the 19th that it will unilaterally extend the payment deadline for corporate local income tax in 2021 by three months to stabilize the management of small and medium-sized enterprises (SMEs) affected by COVID-19.

The extension targets SMEs in industries subject to gathering bans and business restrictions due to COVID-19 quarantine measures, as well as SMEs located in employment crisis areas such as Mokpo, Yeongam, and Haenam.

The filing deadline remains the same, until the end of April, while the payment deadline is extended until the end of July.

SMEs eligible for the unilateral extension who have received an extension for the payment deadline of corporate tax, a national tax, can automatically receive the benefit of the extended payment deadline without a separate application.

Accordingly, companies requiring an extension of the payment deadline must apply for the extension to the relevant city or county office by the 27th of next month, which is three days before the expiration of the corporate local income tax filing and payment deadline, according to the Local Tax Basic Act.

It is estimated that a total of 4,098 companies, including those in gathering ban and business restriction industries as well as SMEs in employment crisis areas, will receive payment deadline extension benefits amounting to approximately 7 billion KRW (based on 2020 estimates).

Wi Hunryang, head of the Taxation Division of Jeonnam Province, said, “We hope this extension of the corporate local income tax deadline will alleviate some of the difficulties faced by SMEs,” and added, “We will continue to prepare various local tax support measures for residents struggling due to COVID-19.”

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