Seo-gu, Gwangju Metropolitan City (District Mayor Kim Ikang) announced on the 1st that it will accept concentrated reporting and payment of corporate local income tax for corporations with fiscal year-end in December of last year until the end of this month.
The reporting targets are domestic corporations and foreign corporations with domestic business establishments, and they must report within four months from the last day of the month in which the business closure date falls for corporate income attributable to last year.
However, consolidated corporations must report and pay within five months from the last day of the month in which the fiscal year-end falls (by May 31).
Reports can be submitted electronically via Hometax at the head office or main office location according to the corporate registry (or at each business establishment location if there are multiple), or by visiting or mailing the tax base and tax amount report forms along with attachments to the district office with jurisdiction over the business establishment location.
In particular, caution is required as failure to report within the deadline, failure to submit the report and attachments, or when an apportionment-target corporation does not apportion and reports only to one local government, a non-reporting penalty tax will be imposed. Corporations with no income must also report without fail.
Meanwhile, this year, due to the complex economic crisis, active tax administration support will extend the payment deadline for corporate local income tax by three months until July 31 for construction, manufacturing, and export small and medium-sized enterprises experiencing management difficulties.
However, since only the payment deadline is extended, reporting must be done by the 30th of this month.
Even if not subject to the automatic extension, corporations that have suffered significant business losses can submit an application for payment deadline extension along with documents proving damages such as sales decline to the local government with jurisdiction over the business establishment by the 25th, three days before the reporting deadline. After review, the payment deadline can be extended up to six months.
Also, a new corporate local income tax installment payment system has been introduced this year, allowing installment payments over one month (two months for small and medium-sized enterprises) if the tax amount exceeds 1 million KRW.
Jung In-guk, Head of Taxation Division 1, said, “We will support taxpayer convenience so that about 8,000 corporations in the jurisdiction can report and pay the corporate local income tax for 2023 on time without inconvenience.”
Reporter Shin Dongho, Honam Coverage Headquarters, Asia Economy baekok@asiae.co.kr
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
