Interim Comprehensive Income Tax Prepayment Due by the 30th... Taxpayers with Poor First Half Business Performance Can File Estimated Returns

The National Tax Service sent interim comprehensive income tax payment notices to 1.52 million individual business owners on the 6th. Taxpayers who receive the notice must make the payment by the 30th.

The interim payment amount paid this year will be credited as a pre-paid tax amount when filing the final comprehensive income tax return next year (May 2024, or June for those subject to the faithful reporting confirmation).

However, those whose interim payment amount is less than 500,000 KRW or those who only have separately taxed housing rental income among business income are not subject to interim payment and will not receive a notice.

The interim payment can be transferred to the national tax account or virtual account listed on the payment notice, or paid electronically via Hometax or Sontax. It is also possible to visit a financial institution and pay directly using the payment notice.

If the interim payment amount exceeds 10 million KRW, taxpayers can pay in installments by January 31 of the following year without a separate application. If payment is made excluding the amount to be paid in installments, it will be automatically processed as an installment payment.

If business performance in the first half of this year (January 1 to June 30, 2023) has decreased compared to last year and paying the interim payment is burdensome, an estimated interim payment declaration is also possible. If the estimated interim payment amount for 2023, calculated based on the first half business performance, is less than 30% of the 2022 comprehensive income tax amount (interim payment standard), an estimated declaration can be filed by the 30th. If the estimated interim payment amount is less than 500,000 KRW, payment is not required, but the estimated declaration must still be filed.

Taxpayers experiencing economic difficulties due to disasters such as typhoons or heavy rains, economic downturns such as export slumps, or significant business crises can apply for an extension of the payment deadline. Taxpayers wishing to extend the payment deadline must submit a 'Payment Deadline Extension Application' via Hometax or at the tax office.

Upon application, the payment deadline can be extended for up to 3 months (maximum 9 months), and if a small or medium-sized enterprise located in an employment crisis area reapplies for an extension, it can be extended up to 2 years (including the original extension period).

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