National Tax Service Provides Tax Support to Small and Micro Businesses Affected by Wemakeprice and Tmon... Early Payment of 70 Billion KRW in VAT Refunds

The National Tax Service (NTS) announced on the 8th that it is providing tax administration support, including the early payment of 70 billion KRW in value-added tax (VAT) refunds to small and medium-sized enterprises (SMEs) and micro-businesses affected by Wemakeprice (WEMAKEPRICE) and TMON.

First, the NTS has early paid 17.8 billion KRW in refunds to 908 businesses that filed for early VAT refunds for the first term of this year, targeting SMEs, micro-businesses, and registered small PG operators experiencing management difficulties due to damages from WEMAKEPRICE and TMON, as of the 2nd of this month. Additionally, it plans to support liquidity by early paying 53.1 billion KRW in refunds to 6,676 businesses that filed for general refunds by the 14th.

To alleviate the financial burden on affected SMEs, the NTS will actively extend the payment deadline for the interim corporate tax prepayment for December fiscal year-end corporations, which is due by the 2nd of next month, for up to nine months upon application. For taxpayers who filed their 2023 comprehensive income tax and the first term 2024 VAT but have not paid their taxes, the NTS will also support payment deadline extensions of up to nine months if they apply.

Tax audits will also be deferred. To allow businesses to focus on overcoming management difficulties, when selecting subjects for verification of VAT, comprehensive income tax, and corporate tax filings conducted in the second half of 2024, affected businesses will be excluded. Furthermore, if taxpayers currently under audit or investigation request postponement or suspension of tax audits, the NTS will actively consider such requests.

Moreover, if affected businesses with overdue national taxes apply for a deferral of seizure and sale of seized property, the NTS plans to grant deferrals for up to one year.

An NTS official stated, "Going forward, the NTS will proactively provide tax administration support such as payment deadline extensions and deferrals of seizure and sale to help SMEs and micro-businesses experiencing management difficulties normalize their operations."