Extension of Income Tax and Corporate Tax Payments and Postponement of Tax Audits for Taxpayers Affected by Heavy Rainfall
[Asia Economy Sejong=Reporter Kim Hyewon] The National Tax Service announced on the 10th that it will provide tax support such as extension of filing and payment deadlines, suspension of seizure and sale, and postponement of tax audits for taxpayers affected by the recent heavy rains.
Taxpayers experiencing difficulties due to the heavy rain damage can apply for extensions of up to 9 months for filing and payment deadlines for comprehensive income tax, corporate tax, value-added tax, and others.
For the 2021 comprehensive income tax, whose payment deadline was extended to the 31st of this month due to COVID-19, the deadline can be extended up to 9 months including a 3-month extension period. For the interim corporate tax prepayment of December fiscal year-end corporations, the filing and payment deadlines can also be extended up to 9 months.
Value-added tax for the first term of this year, which was not paid by the 25th of last month and is subject to notification, will have collection deferred for up to 9 months. In cases of existing arrears, enforcement of compulsory collection such as the sale of seized real estate will be suspended for up to one year.
For taxpayers suffering serious business difficulties due to the heavy rain damage, tax audits will, in principle, be suspended until the end of the year. If a tax audit has already been pre-notified or is in progress, it will be postponed or stopped upon the taxpayer's request.
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If a tax refund is due, it will be paid as soon as possible. If business assets have been lost by 20% or more due to the heavy rain damage, the tax amount will be deducted proportionally from the unpaid or future income tax or corporate tax. Taxpayers can receive this tax credit by submitting a disaster loss tax credit application to the tax office within 3 months from the date of the disaster.
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