Corporate Tax Filing Due by End of March... Gyms and PC Bangs Allowed 3-Month Extension

Approximately 920,000 Corporations with December Fiscal Year-End Subject to Reporting and Payment

[Sejong=Asia Economy Reporter Kim Hyunjung] On the 25th, the National Tax Service announced that it will unilaterally extend the corporate tax payment deadline by three months until the end of June for small and medium-sized enterprises (SMEs) in COVID-19 restricted or prohibited business sectors such as gyms and PC rooms, as well as SMEs located in employment crisis areas and special industrial crisis response areas.

The prohibited business sectors include entertainment bars, karaoke bars, emotional bars, hunting pubs, colatecs, holdem pubs, singing practice rooms, indoor standing performance venues, and indoor sports facilities. Restricted business sectors include PC rooms, movie theaters, amusement parks and water parks, reading rooms and study cafes, restaurants and cafes, beauty salons, bathhouses, and lodging facilities.

In addition, the government extended the payment deadlines for employment crisis areas and special industrial crisis response areas to the same level. These areas include Geoje-si, Tongyeong-si, Goseong-gun, Jinhae-gu in Changwon, Dong-gu in Ulsan in Gyeongnam Province; Gunsan-si in Jeonbuk Province; and Yeongam-gun, Mokpo-si, Haenam-gun in Jeonnam Province.

If corporations in tourism, travel, performance-related industries, passenger transportation, and other sectors suffering from management difficulties due to COVID-19 apply for deadline extensions, the tax office will verify the damage and grant the extension. Even for corporations with extended deadlines, filing must be completed by the end of March.

The National Tax Service plans to provide early refunds of loss carryback deductions to SMEs experiencing management difficulties due to deficits.

To receive tax administration support such as deadline extensions, applications can be submitted by mail or in person to the competent tax office or through the National Tax Service’s taxpayer service Hometax.

The target for this corporate tax filing and payment is 921,000 corporations with December fiscal year-end. The filing and payment deadline is the end of next month. However, small-scale corporations mainly engaged in real estate rental businesses, corporations required to submit a sincere report confirmation, and corporations applying consolidated tax payment methods must file and pay by the end of April.

The National Tax Service provides data useful for taxpayers’ filing, such as credit card usage status and receipt of expenditure evidence, through the Hometax 'Filing Assistance Service.'

Public interest corporations whose business year ended in December last year must submit reports on contributed assets, external expert tax confirmation letters, and settlement documents submitted to the competent authorities to the competent tax office by the end of next month. Also, from the last fiscal year, all public interest corporations except religious corporations must disclose settlement documents on Hometax by the end of April.