Kim Hyun-joon, Commissioner of the National Tax Service (first from the left), is speaking at a tax support meeting with representatives of automobile parts manufacturing companies in Asan and Dangjin, Chungnam, on the 20th.
[Asia Economy Reporter Kwangho Lee] On the 20th, Kim Hyun-jun, Commissioner of the National Tax Service, stated, "To alleviate the financial burden of automobile parts companies that have recently faced operational disruptions, we will actively support extensions of filing and payment deadlines, early payment of value-added tax refunds, and other measures."
Commissioner Kim made these remarks during a tax support meeting with representatives of automobile parts manufacturing companies in Asan and Dangjin, Chungnam Province. He responded to concerns raised by a representative of an automobile parts company in Asan, who mentioned, "We are very worried about a lack of funds ahead of the upcoming corporate tax filing and payment deadline in March."
The meeting was organized to hear opinions from automobile parts companies that experienced operational disruptions due to the spread of the novel coronavirus infection (COVID-19) and to find effective tax support measures to minimize damage.
Regarding the alleviation of financial burdens caused by decreased sales due to the COVID-19 situation, Commissioner Kim said, "For affected companies, we will extend the filing and payment deadlines for various taxes such as corporate tax in March and value-added tax in April, and provide early payment of value-added tax refunds."
The businesspeople attending the meeting requested, "Please set the period for investment-related tax benefits to be long-term, in line with the characteristics of manufacturing that require long-term investment."
In response, Commissioner Kim said, "This year, the government is reforming and implementing investment-related tax support systems, such as raising the tax credit rate for productivity improvement facility investments. We will forward the proposed mid- to long-term investment promotion support content to the Ministry of Economy and Finance."
Regarding the request to extend the temporarily implemented reduction of the individual consumption tax on automobiles, he said, "There are concerns about a decrease in automobile sales due to operational stoppages and weakened consumer sentiment. We will actively consult with the Ministry of Economy and Finance on extending the individual consumption tax reduction and strengthen promotion of the old car replacement exemption system to revitalize the automobile industry."
Regarding requests for support for investments in future innovative industries such as electric and hydrogen vehicles, he explained, "This year, the government is expanding and implementing tax support systems for research and development (R&D) and investment activation to secure new growth and core technologies. We will actively guide the newly expanded systems through the corporate tax filing assistance service."
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