2021 Tax Year Corporate Local Income Tax Filing and Payment

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[Asia Economy Reporter Jong-il Park] Gwangjin-gu is operating the reporting and payment period for the 2021 corporate local income tax until May 2, in celebration of April as the month for corporate local income tax reporting and payment.

The reporting target is corporations with a fiscal year ending in December 2021, who must pay the corporate income for 2021 to the local government having jurisdiction over the business location as of the business year-end date according to the corporation’s registration.

Reporting and payment can be done electronically via Wetax or Etax, and reporting by fax or mail to the Local Income Tax Team of the Tax Division 2 at Gwangjin-gu Office is also possible.

In particular, corporations with business locations in multiple local governments must report and pay separately to each local government having jurisdiction over each business location. If a corporation with business locations in two or more local governments fails to file apportioned reports, a 20% non-filing penalty tax will be imposed by the local government where the report was not filed.

Additionally, corporations with no income or with losses are also subject to reporting.

Meanwhile, for small and medium-sized enterprises (SMEs) subject to operating hour restrictions due to COVID-19 quarantine measures, whose corporate tax (national tax) payment deadline has been extended by three months, the corporate local income tax (local tax) payment deadline is also extended by three months, allowing payment until August 1.

However, even if the payment deadline is extended, the final report must be completed by May 2 to avoid an additional 20% non-filing penalty tax.

Also, when reporting this year’s corporate local income tax, the retroactive deduction period for SMEs is expanded from the previous one year to two years. Therefore, SMEs that did not pay taxes last year are also given an opportunity for a refund.

For other inquiries regarding corporate local income tax, please contact the Local Income Tax Team of Tax Division 2 at Gwangjin-gu Office.

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