Corporate Tax Filing and Payment Due by April 1... Construction, Manufacturing, and Export SMEs Get 3-Month Extension

1,109,000 Corporations Subject to Corporate Tax Filing
Filing and Payment for Diligent Reporting Confirmation Due by April 30
Installment Payment Available if Tax Amount Exceeds 10 Million Won

Corporations with fiscal year-end in December, totaling 1.1 million, must file and pay corporate tax by April 1. However, the payment deadline is extended by three months for small and medium-sized enterprises (SMEs) in construction, manufacturing, and export sectors.

The National Tax Service (NTS) announced on the 28th that approximately 1,109,000 corporations with December fiscal year-end are required to file this time, an increase of 44,000 from 1,065,000 last year.

Among these, for profit corporations, non-profit corporations engaged in income-generating businesses, and foreign corporations with domestic business establishments, corporate tax must be filed and paid by April 1. If the tax payable exceeds 10 million KRW, payment can be made in installments.

However, small corporations primarily engaged in real estate rental businesses, corporations subject to the sincere reporting confirmation system such as those converted from individual businesses, or corporations applying the consolidated tax payment method that treats parent and subsidiary companies as a single tax unit, may file and pay by the 30th of the same month. In this case, corporations subject to the sincere reporting confirmation system must submit a 'Sincere Reporting Confirmation Certificate' from their tax agent along with the corporate tax return.

Additionally, the NTS is providing tax administration support such as extending the payment deadline ex officio to ease the financial burden on SMEs in construction, manufacturing, and export sectors, as well as SMEs located in employment crisis areas, which are facing difficulties due to the complex economic crisis.

The tax support targets a total of 65,000 corporations, including 52,000 construction and manufacturing SMEs and 11,000 export SMEs. The NTS will extend the payment deadline ex officio from the original April 1 to July 1 for eligible taxpayers without requiring an application, and in cases where a tax refund is due, it will expedite payment by April 11, 20 days earlier than the statutory refund deadline of May 1, to support cash flow.

The NTS provides as much assistance as possible through filing aid materials on tax benefits that companies may easily miss and items prone to incorrect reporting, and has improved electronic filing to allow partnerships to file electronically. Furthermore, starting from this filing, the NTS has strengthened guidance on vulnerable areas by individually notifying taxpayers of precautions during filing, analyzing suspicions of private use of corporate-owned houses, yachts, and expensive health club memberships.