8000 Small and Medium Enterprises in Pohang and Gyeongju Affected by Typhoon Granted 3-Month Corporate Tax Payment Extension

Daegu National Tax Service, Authority Extension

The Daegu Regional Tax Office announced on the 24th that it will extend the corporate tax payment deadline until June for small and medium-sized enterprises (SMEs) in the Pohang and Gyeongju areas that suffered significant damage from Typhoon Hin Nam No.

Corporations whose fiscal year ended in December 2022 are required to file and pay corporate tax by the 31st of this month. However, for about 8,000 SMEs with certain sales thresholds located within the special disaster zones such as Pohang and Gyeongju, the Daegu Regional Tax Office will unilaterally extend the payment deadline by three months until the end of June, even if taxpayers do not apply for the extension.

Daegu Government Complex housing the Daegu Regional Tax Office.

SMEs eligible for the payment extension must not exceed the following annual sales amounts: 150 billion KRW for electrical equipment and manufacturing industries, 80 billion KRW for transportation, 100 billion KRW for construction and wholesale/retail, 60 billion KRW for technical services, and 40 billion KRW for food, lodging, and rental businesses.

If the tax amount to be paid exceeds 10 million KRW, partial installment payments are allowed, and the deadline for these installment payments will also be unilaterally extended until the end of August.

Additionally, corporate taxes due by May 2nd for SMEs subject to the accurate reporting confirmation will be extended by three months until August 2nd.

Last year, to assist taxpayers in the Pohang and Gyeongju areas affected by Typhoon Hin Nam No, the Daegu Regional Tax Office provided tax support worth about 1 trillion KRW across approximately 54,000 cases, including exemption from preliminary VAT notices, deferral of comprehensive income tax prepayments, and suspension of forced collection for small delinquent taxpayers.

The Daegu Regional Tax Office stated, “We will continue to provide proactive and preemptive tax support to help taxpayers affected by natural disasters recover quickly.”