27 Million Increase YoY... Various Conveniences Provided on 'Hometax'
Tax Support Including Payment Reduction, Deadline Extension... Early Refund Payment
[Asia Economy Reporter Kwangho Lee] The National Tax Service announced on the 9th that the final VAT filing and payment for the first period of 2020 must be completed by the 27th of this month.
The subjects include 4.58 million individual general taxpayers and 1.01 million corporate businesses, totaling 5.59 million people. This is an increase of 270,000 compared to the scale of final filings in the same period last year.
Simplified taxpayers only need to pay the estimated tax amount equivalent to half of the tax paid in the previous tax period (January 1 to December 31, 2019).
However, in cases of business suspension or poor business performance, if the taxpayer chooses to report based on actual results from January to June 2020, the previously notified estimated tax amount will be canceled.
Filing and payment can be done through the National Tax Service Hometax website. Various conveniences such as electronic filing tutorial videos, filing manuals, booklets, card news, and chatbot services are provided.
Using the pre-filled service (28 items), which allows immediate lookup and completion of key items in the electronic tax invoice and credit card reports, makes the process more convenient.
If it is difficult to pay online, taxpayers can visit the tax office. However, the National Tax Service requests that direct visits be avoided to prevent the spread of the novel coronavirus infection (COVID-19).
Active tax support measures such as tax payment reductions and extensions of payment deadlines will be provided to businesses facing difficulties due to COVID-19.
Individual general taxpayers with a supply value of 40 million KRW or less from January to June this year (estimated 1.36 million people) will have their tax payments reduced to the level of simplified taxpayers (5-30%), and simplified taxpayers expected to be exempt from payment obligations when filing in January next year (annual sales under 48 million KRW, estimated 6,000 people) will be excluded from estimated tax assessments.
For special disaster areas, the payment deadline will be extended by one month to August 27 (estimated 255,000 people), and other affected businesses will also be actively supported upon extension requests.
Furthermore, to improve corporate cash flow and support exports and investments, refunds will be paid early. Among the support targets, small and medium enterprises and exemplary taxpayers who apply for early refunds will have their cases promptly reviewed and paid by the 31st, except in cases requiring verification of improper refund suspicions. This is 11 days earlier than last year.
Kim Jin-hyun, Director of the Individual Taxpayer Bureau at the National Tax Service, stated, "After filing, we plan to conduct thorough verification such as confirming the reflection of filing assistance data and checking for insincere filers through content verification." He added, "For businesses with significant evasion suspicions, we will strengthen linkage between tax source management and investigations to ensure they are selected for audits and thoroughly verified."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
