National Tax Service Extends Payment Deadlines and Postpones Tax Audits for 'Sanbul Damage Taxpayers'

On the 26th, the National Tax Service announced that it will provide tax support measures such as extension of payment deadlines, suspension of seizure and sale, and postponement of tax audits for Sancheong and Hadong counties in Gyeongnam, Uiseong county in Gyeongbuk, and Ulju county in Ulsan, which have been declared special disaster areas due to large-scale wildfires.

First, taxpayers in the special disaster areas can apply for an extension of the payment deadline for corporate tax, value-added tax, comprehensive income tax, etc., when filing their returns, with extensions possible for up to two years. For national taxes that have already been assessed, payment deadlines can also be extended up to two years upon application.

In particular, for about 7,000 small and medium-sized enterprises located in the four areas declared as special disaster zones, the corporate tax payment deadline will be extended ex officio by three months from the original March 31 to June 30, and individual notifications will be sent to corporations whose payment deadlines have been extended. However, since only the payment deadline is extended, corporate tax returns must still be filed by March 31. If it is difficult to file by the deadline due to the disaster, taxpayers can apply for an extension of the filing deadline.

Additionally, taxpayers in the special disaster areas will not receive the first installment value-added tax preliminary notice this year, and if they have already filed the preliminary return, the payment deadline will be extended ex officio by two months. The payment deadline for the 2024 comprehensive income tax will be extended ex officio by three months (two months for those subject to accurate reporting confirmation).

If a business operator in the special disaster area currently has outstanding tax arrears and applies for suspension of seizure and sale of seized property, the suspension can be granted for up to two years.

Refunds will also be paid early. If a tax refund occurs for corporate tax to a tax support recipient located in the special disaster area, the usual payment within 30 days from the end of the filing deadline will be expedited to within 10 days (by April 10). If early refund is requested when filing the first installment value-added tax preliminary return this year, and there is no suspicion of improper refund, payment will be made by May 2, eight days earlier than the statutory payment deadline.

Furthermore, when selecting targets for verification of value-added tax, comprehensive income tax, and corporate tax filings to be conducted in 2025, taxpayers affected in the special disaster areas will, in principle, be excluded unless there is clear suspicion of tax evasion. If a taxpayer has received a tax audit notice or is currently under investigation, the National Tax Service will actively consider postponing or suspending the audit upon the taxpayer’s request.

A National Tax Service official stated, "The National Tax Service is actively providing tax support to taxpayers facing difficulties due to natural disasters and business downturns," and added, "We will continue to provide the maximum tax support within the scope permitted by law."