Exporting SMEs "Tax administration support such as automatic extension of corporate tax payment deadline greatly helps management"

National Tax Service Visits Exporting SMEs for On-site Inspection of Government Tasks
Kim Chang-gi: "We Will Strive to Let Exporting SMEs Focus Solely on Management Without Worrying About Taxes"

Export-oriented small and medium-sized enterprises (SMEs) have expressed that the tax administration support provided by the National Tax Service (NTS), such as the prior review of research and development (R&D) tax credits and the discretionary extension of corporate tax payment deadlines, has been a great help to their business management, and they urged the government to continue its support.

On the 3rd, the NTS visited the Incheon Regional Headquarters of the Korea Industrial Complex Corporation (Namdong Industrial Complex) and held an on-site meeting with representatives of export SMEs.

This on-site meeting was organized to check whether the tax administration support operated by the NTS, including the R&D tax credit prior review system and the discretionary extension of corporate tax payment deadlines, is practically helpful to SMEs in the field, in support of the national agenda to "establish a foundation for job creation through the advancement of key industries such as manufacturing," and to discover additional support measures to enhance the competitiveness and financial liquidity of export SMEs.

The R&D tax credit prior review system is a program that provides advance confirmation on whether a company’s R&D expenses qualify for R&D tax credits under tax law and the amount eligible for deduction. The number of prior reviews increased from 1,547 cases in 2020 to 2,439 cases in 2022. Additionally, the NTS extended the corporate tax payment deadline by three months, from March 31 to June 30, for 22,000 SMEs whose export amount accounts for 50% or more of their sales.

Representatives of SMEs attending the meeting said, "The R&D tax credit prior review system eliminates uncertainties regarding R&D investments and helps us invest actively," and "especially, the extension of the corporate tax payment deadline has been a great help to SMEs facing financial difficulties."

At the meeting, SME representatives proposed expanding the application of discretionary extensions for corporate tax payment deadlines, activating the Hometax chatbot system, easing the investigation burden on traditional manufacturing industries, and relaxing post-management requirements for business succession tax credits. In response, Kim Chang-gi, Commissioner of the NTS, stated, "We will actively review opinions from the field, propose legislative amendments, and reflect them in tax administration by improving Hometax."

Following the meeting, Commissioner Kim visited a production plant of an SME manufacturing wafer polishing tools, a core material for semiconductor integrated circuits. This company, engaged in R&D in the semiconductor wafer polishing tool sector, utilized the R&D tax credit prior review system and applied the tax credit when filing corporate tax in March. They also received tax administration support allowing them to pay the corporate tax due in March by June.

Commissioner Kim said, "We will operate the Future Growth Tax Support Center for export SMEs more effectively so that they can focus solely on business activities without worrying about tax issues, and we will make every effort to support them."

Kim Chang-ki, Commissioner of the National Tax Service (sixth from the left), visited Namdong Industrial Complex on the 3rd to hold a meeting with representatives of export small and medium-sized enterprises and took a commemorative photo.

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