Busan City Reduces Local Tax Burden for Citizens Affected by COVID-19

Support for Local Tax Deadline Extensions, Collection Deferrals, and Tax Audit Deferrals

Panoramic view of Busan City Hall. (Photo by Busan City Hall)

[Asia Economy Yeongnam Reporting Headquarters, Reporter Yoon Yoseop] Busan City will reduce the local tax burden for citizens affected by the novel coronavirus infection (COVID-19).

On the 18th, Busan City announced that it will promote local tax support measures such as deadline extensions, collection deferrals, and tax audit postponements for taxpayers experiencing difficulties due to COVID-19.

This plan targets businesses struggling due to confirmed COVID-19 cases, quarantined individuals, business closures caused by visits from confirmed cases, and citizens who have suffered direct or indirect damage.

For reporting tax items such as acquisition tax, local income tax, and employee resident tax, the reporting and payment deadlines can be extended without tax payment guarantees within a 6-month period (one extension, up to a maximum of 1 year).

For local taxes already notified and those to be imposed in the future, if payment is difficult, collection deferral without tax payment guarantees is possible within 6 months (one extension, up to a maximum of 1 year).

Except for unavoidable cases such as the expiration of the statute of limitations for assessment, Busan City plans to actively support by postponing tax audits for confirmed cases, quarantined individuals, and affected businesses, and suspending or delaying ongoing tax audits.

Ko Hyun-jung, Busan City Tax Administration Officer, said, “We will strive to provide administrative and financial support as well as practical local tax assistance to citizens facing difficulties due to the COVID-19 crisis.”