Daegu City Council Chairman Lee Mangyu Proposes Changing VAT Filing and Payment Deadline from 25th to End of Month... Requests Tax Law Revision

Delayed Data Provision Tightens Deadline
Income and Corporate Tax Due at Month-End

The Daegu Metropolitan Council announced that the proposal to amend the “Value-Added Tax Act” for improving the deadline for VAT filing and payment, submitted by Speaker Lee Mangyu (People Power Party, Jung-gu 2) at the 5th extraordinary meeting of the Council of Chairpersons of Provincial and Metropolitan Councils of Korea held in Busan on the 30th of last month, was unanimously adopted as originally proposed.

This proposal aims to change the current filing and payment deadline under the “Value-Added Tax Act” from the 25th of the relevant month to the last day of the month. The purpose is to alleviate the reporting burden on various taxpayers, including self-employed individuals and small business owners, and to improve the overall tax administration order.

Mankyu Lee, Chairman of Daegu City Council

Lee Mangyu, Speaker of the Daegu Metropolitan Council, stated, “With the introduction of electronic tax invoices and the widespread use of digital systems, taxpayers are receiving tax data from the National Tax Service’s Hometax system later than before, making the current deadline excessively tight. Unlike most other taxes such as income tax and corporate tax, which have their filing deadlines set at the end of the month, the VAT filing deadline is set on the 25th, causing unnecessary confusion for taxpayers.”

Speaker Lee particularly pointed out, “For self-employed restaurant owners who manage their sales through delivery platforms and payment agencies, the timing of receiving sales data is even later, further increasing their burden.”

He added, “Rationally improving the tax system to reflect the changing business environment and the needs of taxpayers is important for revitalizing the economy. This proposal will significantly reduce unnecessary burdens on taxpayers and enhance the efficiency of tax administration.”

Meanwhile, the proposal, which was unanimously passed at the extraordinary meeting, will soon be submitted as an official recommendation of the Council of Chairpersons of Provincial and Metropolitan Councils of Korea to the relevant authority (National Tax Service).