"Gift Tax on Ilgam-molajugi and Ilgam-tteojugi Must Be Reported and Paid by the 30th"

[Asia Economy Sejong=Reporter Kim Hyewon] Controlling shareholders of December fiscal year-end corporations who benefited from special related parties funneling or diverting work must file and pay gift tax by the end of this month.

The National Tax Service announced on the 8th that it has sent filing guidance letters to 2,140 donees and 1,739 beneficiary corporations expected to file and pay gift tax for funneling or diverting work, based on big data analysis.

Gift tax on funneling or diverting work refers to the tax imposed on profits arising when a special related party funnels work or business opportunities to a corporation controlled by themselves or their children, treating the profits as a gift.

Controlling shareholders of beneficiary corporations who benefited from funneling or diverting work during the 2021 fiscal year must prepare and submit the filing form by the 30th, either by mail or directly to the tax office. If filed within the deadline, a filing tax credit equivalent to 3% of the calculated tax amount can be received; however, non-filers or those who file inaccurately will be subject to tax audits.

The National Tax Service has decided to extend the payment deadline for businesses affected by the COVID-19 pandemic and the East Coast wildfires upon application. The payment deadline extension is up to 3 months, but if the relevant circumstances persist, an additional extension of up to 9 months is possible.

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