Pohang City Provides Emergency Support for Typhoon-Affected Businesses and Citizens with Unsecured Local Tax Collection Deferral!

Decision to Support Collection Deferral for Up to One Year Without Tax Payment Guarantee

Pohang City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Pohang City, Gyeongbuk Province, has simplified the submission documents so that companies and citizens who suffered property damage due to Typhoon ‘Hinnamnor’ can apply for ‘collection deferral’ on local taxes such as property tax imposed in September and occasional local income tax without submitting collateral such as tax payment guarantee insurance bonds or mortgage collateral, by only submitting a ‘Typhoon Damage Confirmation Certificate.’

The ‘Collection Deferral System’ is a system that defers collection by setting a new payment deadline when a taxpayer is recognized as unable to pay the notified local taxes by the payment deadline due to reasons such as severe damage to property caused by natural disasters like typhoons, floods, fires, or theft. The deferral period is basically six months from the day after the decision to defer collection, but since Pohang City has been declared a ‘Special Disaster Area,’ the deferral period will be extended up to one year.

Pohang City requires taxpayers to provide tax payment collateral equivalent to the tax amount when applying for collection deferral. However, in order to support steel companies severely damaged by this typhoon and to quickly recover the local economy, the city has decided to eliminate the requirement for tax payment collateral and only accept the ‘Typhoon Damage Confirmation Certificate’ to promptly process collection deferral applications.

To apply for collection deferral, applicants must fill out the application form along with the ‘Typhoon Damage Confirmation Certificate’ issued by the relevant eup/myeon/dong administrative welfare center and submit it by visiting the Taxpayer Protection Team of the Budget and Legal Affairs Division at City Hall or the Property Tax Team of the Tax Division at the District Office, or by email or fax. The application period is until three days before the payment deadline.

Mayor Kang-deok Lee said, “The city is making every effort to normalize the daily lives of companies and citizens suffering greatly from this typhoon as soon as possible,” and added, “Deferring the payment deadline without requiring tax payment collateral in this local tax collection deferral is part of these efforts. We will continue to seek various support measures for affected companies and citizens to provide practical assistance.”