"580,000 Corporate Businesses to File and Pay VAT Preliminary Returns by the 25th"

Exclusion of Advance Notice for Businesses Affected by COVID-19 and Typhoons

[Asia Economy Sejong=Reporter Kim Hyewon] The National Tax Service announced on the 7th that 580,000 corporate taxpayers subject to value-added tax must file and pay the "2022 2nd Term Preliminary Value-Added Tax" by the 25th. This number is about 20,000 more than the 560,000 who filed the 2nd term preliminary report last year.

A total of 2.01 million taxpayers, including 1.86 million individual general taxpayers and 150,000 small-scale corporate taxpayers, must pay the tax amount corresponding to half of the tax paid in the previous tax period (January to June), excluding amounts under 500,000 KRW, according to the preliminary tax notice sent by the National Tax Service.

The National Tax Service decided to provide tax support by exempting 170,000 taxpayers who are experiencing business difficulties due to COVID-19 and typhoons from the preliminary tax notice. The beneficiaries include 140,000 individual business owners whose sales decreased due to COVID-19 quarantine measures, and 30,000 business owners located in special disaster areas affected by typhoons (Pohang-si, Gyeongju-si, Onsan-eup and Duseo-myeon in Ulju-gun, Ulsan, Yokji-myeon and Hansan-myeon in Tongyeong-si, and Ilun-myeon and Nambu-myeon in Geoje-si). These taxpayers will file and pay the finalized report for the second half of this year in January next year.

Additionally, the National Tax Service plans to pay early refunds by October 31st, ahead of the statutory payment deadline (November 9th), if small and medium-sized enterprises with sales under 150 billion KRW and exemplary taxpayers apply for early refunds by the 21st.

Taxes to be voluntarily paid can be paid via account transfer, credit card, or simple payment through Hometax or mobile, and can also be paid directly at unmanned tax office payment counters (credit card) or financial institutions.