Gyeongnam Province Extends Corporate Local Income Tax Payment Deadline to 'End of July'!

Separate Application Possible for Companies Affected by COVID-19

Corporate Tax Filing Must Be Completed by the End of April

Gyeongnam Provincial Government Office.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do Province is extending the corporate local income tax payment deadline for 2022 from the end of April to the end of July by three months ex officio.

The province extended the deadline to ease the burden of corporate income tax payments for small and medium-sized enterprises (SMEs) struggling with management difficulties due to the prolonged COVID-19 pandemic.

The extension applies to SMEs in industries with operating hour restrictions and SMEs located in employment crisis areas such as Geoje-si, Tongyeong-si, Goseong-gun, Jinhae-gu in Changwon-si, and special industrial crisis response areas.

Corporations not included in the ex officio extension but experiencing significant business losses due to the resurgence of COVID-19 or other reasons can apply to the city, county, or district office where their business is located by April 27 to extend the payment deadline for up to six months.

Corporations eligible for the ex officio extension will have their deadlines extended without a separate application, but corporate tax filing must be completed by the end of April. Both ex officio and separately applying corporations may receive additional extensions of up to six months if the reasons for extension persist.

This corporate local income tax is for corporations with fiscal year-end in 2021 to report and pay taxes on their 2021 income to local governments.

Corporations with no income or with losses must still file a report, which can be done via the local tax portal site WETAX or by mail or in person at the city, county, or district office where the business is located.

After filing, taxes can be paid via credit card, simple payment methods, etc., on the WETAX website or the mobile Smart WETAX app without visiting the office.

Payments can also be made by depositing the declared amount into a virtual account using internet banking, ATMs, or automatic teller machines at banks nationwide.

If a business has locations in more than one city, county, or district, it must file separately with each respective local office based on the business location.

To file an amended corporate tax return, the corporate local income tax must also be amended and paid separately at the relevant city, county, or district office.

The province has temporarily expanded the carryback deduction period for losses incurred by SMEs in 2021 from 2020 to 2019 to support SME cash flow management.

Corporations wishing to receive a refund of corporate local income tax through the loss carryback deduction should complete the carryback deduction refund application and submit it to the city, county, or district office where their business is located.

Kang Seong-geun, head of the Taxation Division, said, “We hope the extension of the payment deadline will alleviate difficulties for SMEs,” and added, “Active measures by cities and counties are necessary to provide practical support that directly benefits local residents.”

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