Quick Service and Substitute Driver Tax Data Submission Changed from Annual to Monthly...Fines Imposed for Violations

Tax Data Submission Businesses Receive Income Tax and Corporate Tax Deductions Until 2023

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] From next year, businesses employing quick service and designated driver workers subject to employment insurance will face fines of up to 20 million KRW if they fail to submit tax data.

The Ministry of Economy and Finance announced on the 25th that the National Assembly's Planning and Finance Committee approved the "Income Tax Act and Restriction of Special Taxation Act Amendment Bill" containing this provision. The purpose is to clarify income reporting to support the nationwide employment insurance roadmap.

According to the amendment, businesses employing quick service and designated driver workers must submit tax data related to service providers monthly, instead of the previous annual submission. If tax data is not submitted, the National Tax Service will issue a correction order to the non-compliant business, and if the order is violated, a fine of up to 20 million KRW may be imposed.

Additionally, businesses submitting tax data on service providers will be granted income tax and corporate tax deduction benefits until the end of 2023. The deduction amounts and limits will be specified in the Enforcement Decree of the Restriction of Special Taxation Act.

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