Hampyeong-gun Operates Corporate Local Income Tax Filing and Payment Period

Over 1,000 Corporations Subject to Reporting in the District to Report and Pay by the End of This Month

[Hampyeong=Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] Hampyeong-gun, Jeollanam-do announced on the 5th that it is operating the corporate local income tax filing and payment period until the 30th for corporations that closed their accounts at the end of December last year.

Corporate local income tax is a local tax calculated by applying the tax rate stipulated in the Local Tax Act to the tax base of the national corporate tax. All corporations (business sites) within the jurisdiction must file with the local government where the business site is located for corporate income generated in 2020.

In particular, corporations with no income or with losses are also obligated to file, so taxpayers need to exercise special caution.

When filing, the "Tax Base and Tax Amount Report" and the relevant attached documents must be submitted without fail.

From this year, corporations eligible for foreign tax credit can deduct foreign paid taxes from the tax base as the Local Tax Act has been amended, so the relevant business sites must submit the filing form along with the statement of foreign tax credit deduction.

Also, if there are business sites in two or more local governments, the tax amount must be apportioned and filed and paid separately for each jurisdiction.

If the tax is not apportioned and filed only with one local government such as the head office location, a non-filing penalty tax (20% of the non-filed tax amount) will be imposed on the other business sites.

The deadline for filing and paying corporate local income tax this year is until the 30th, and it can be done using the local tax online filing system, WETAX, or by visiting or mailing to the Finance Department of Hampyeong County Office.

However, for small and medium enterprises in industries subject to gathering bans or business restrictions due to COVID-19 quarantine measures, whose national corporate tax payment deadline has been extended ex officio, the corporate local income tax payment deadline is also automatically extended by three months until the end of July.

A county official said, "In addition to corporations whose payment deadlines have been extended ex officio, we plan to extend the payment deadline within six months upon application for corporations struggling with management due to COVID-19. However, only corporations that file within the deadline can have the payment deadline extended, so we ask that they file early and receive tax benefits as much as possible."

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