KCCI to Hold Meeting with Kim Chang-gi, Commissioner of National Tax Service, on 31st
Discussion on National Tax Administration Operation Plans... Economic Sector Proposals on Taxation
[Asia Economy Reporter Choi Seoyoon] The Korea Chamber of Commerce and Industry (KCCI) held a meeting on the 31st at the Chamber of Commerce building in Jung-gu, Seoul, inviting Kim Chang-gi, Commissioner of the National Tax Service (NTS), to discuss and propose ten major tax administration and tax system improvement tasks aimed at responding to complex crises and revitalizing corporate activities with the chairpersons of the Korea and Seoul Chambers of Commerce.
Attending the meeting were 15 chairpersons from the Korea and Seoul Chambers of Commerce, including Choi Tae-won, Chairman of KCCI; Park Hak-gyu, President of Samsung Electronics; Lee Hyung-hee, Chairman of SK SV Committee; Han Yong-bin, Vice President of Hyundai Motor Company; Ha Beom-jong, President of LG; Lee Dong-woo, Vice Chairman of Lotte Holdings; Kwon Hyuk-woong, President of Hanwha; Lee Yoon-chul, Chairman of Ulsan Chamber of Commerce; Lee Doo-young, Chairman of Cheongju Chamber of Commerce; and Kim Poong-ho, Chairman of Gwangju Hanam Chamber of Commerce.
Kim Chang-gi, Commissioner of the NTS, stated, "In the severe and urgent situation our economy is facing, we will reduce the overall scale of tax audits and increase the proportion of regular audits to enhance predictability, so that companies can focus solely on their business activities." He added, "We will introduce a system allowing small taxpayers to choose the timing of simplified audits."
He also said, "To help our economy regain dynamism and achieve a new leap forward, we plan to expand tax administration support, including establishing a dedicated consultation system for semiconductor and other ultra-gap strategic technology industries and prioritizing the review of R&D tax credits." He continued, "We will expand and reorganize the 'tax consulting' system to proactively resolve tax issues related to tax credits, exemptions, and business succession that small and medium-sized enterprises find difficult."
He emphasized, "We will provide comprehensive tax administration support for small and medium-sized enterprises affected by COVID-19 and heavy rain damage, including extensions of payment deadlines, early payment of refunds, and exemption from verification of reported contents."
Furthermore, he stated, "To become a National Tax Service truly owned by the people, we will directly visit the field to listen to the public’s opinions and prepare substantial support measures from the public’s perspective, thereby realizing a 'National Tax Service of the People, Trusted Tax Administration.'"
At the meeting, the chairpersons proposed ten tasks to the NTS, including ▲extension of the installment payment period for gift tax on business succession ▲preferential tax treatment for job-creating companies ▲extension of prior notice period and shortening of audit period for regular tax audits ▲adjustment of corporate tax installment deadlines ▲expansion of early payment targets for value-added tax refunds.
Kim Poong-ho, Chairman of Gwangju Hanam Chamber of Commerce, said, "The government extended the installment payment period for inheritance tax on business succession from 5 to 10 years last year to foster long-lived companies." He added, "Considering the increasing average lifespan, it is necessary to extend the installment payment period for gift tax on business succession from 5 to 10 years, similar to inheritance tax."
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