National Tax Service Provides Tax Support for Taxpayers Affected by Heavy Rain... Up to 9-Month Extension for Income and VAT Filings

[Asia Economy Reporter Kwangho Lee] The tax filing and payment deadlines for taxpayers affected by heavy rainfall will be extended by up to 9 months. Tax audits will also be suspended.

On the 3rd, the National Tax Service announced that it will provide tax administration support such as deadline extensions, collection deferrals, suspension of delinquent tax enforcement, and postponement of tax audits for taxpayers affected by the heavy rain damage.

First, the filing and payment deadlines for comprehensive income tax, corporate tax, value-added tax, etc., as well as collection deferrals, will be extended by up to 9 months.

For the 2019 comprehensive income tax, whose payment deadline was extended to the 31st of this month due to the novel coronavirus disease (COVID-19), the payment deadline will be extended by up to 9 months including a 3-month extension period. The filing and payment deadlines for the corporate tax interim payment at the end of December will also be extended by up to 9 months to provide support.

In addition, collection of national taxes already notified or the first term value-added tax for this year, which was not paid by the 27th of last month, will also be deferred for up to 9 months.

Even if there are delinquent amounts, enforcement of delinquent tax collection, such as the sale of seized real estate, will be postponed for up to one year.

To receive tax administration support such as deadline extensions, taxpayers can apply by mail or visit the local tax office, or apply online using the National Tax Service Hometax system.

Furthermore, for taxpayers experiencing serious business difficulties due to the heavy rainfall, tax audits will, in principle, be suspended until the end of the year. For cases where tax audits have already been pre-notified or are in progress, support will be actively provided by postponing or suspending the audits upon the taxpayer’s request. However, unavoidable cases such as imminent statute of limitations for assessment are excluded.

If a national tax refund occurs, it will be paid as early as possible. If business assets have been lost by 20% or more due to the heavy rainfall damage, the tax amount will be deducted proportionally from the unpaid or future income tax or corporate tax. Taxpayers can receive the tax deduction by submitting a disaster loss tax credit application to the tax office within one month from the date of the disaster.

A National Tax Service official said, "The National Tax Service is actively providing tax administration support to taxpayers facing difficulties due to natural disasters and economic downturns," and added, "We will continue to strengthen communication with taxpayers and provide the maximum tax administration support within the scope of the law to those experiencing business difficulties."