The National Tax Service will provide tax relief for taxpayers in areas affected by wildfires. The National Tax Service announced on the 26th that it will implement tax relief measures such as extending payment deadlines and deferring seizures and sales for the areas designated as special disaster zones, including Sangcheongun and Hadonggun in Gyeongsangnam-do, Uiseonggun in Gyeongsangbuk-do, and Ulju-gun in Ulsan.
If a taxpayer in a special disaster zone applies for an extension of the payment deadline while reporting corporate tax, value-added taxes, and comprehensive income tax, the deadline can be extended for up to two years. The national tax that has been notified can also have its payment deadline extended for up to two years upon application.
The National Tax Service will automatically extend the payment deadline for over 7,000 small and medium-sized enterprises located in the four designated special disaster zone areas from March 31 to June 30 without requiring a separate application. Corporations with extended payment deadlines will be individually notified.
However, while only the payment deadline is extended, corporate tax reports must still be submitted by the end of this month. If it is difficult to report due to the disaster, a separate extension of the reporting deadline can be arranged.
In addition, taxpayers within the special disaster zone will not receive the scheduled notice for the first period of value-added taxes this year, and if they have reported in advance, their payment deadline will be automatically extended by two months.
The payment deadline for comprehensive income tax for the year 2024 will be extended by three months (two months for those subject to honest reporting verification) automatically.
According to the amended law from last month, not only taxpayers within the special disaster zone but also individual businesses in other regions that suffered physical damages due to the disaster can apply for an extension of the payment deadlines for comprehensive income tax and value-added taxes for up to two years, as well as deferrals of seizures and sales.
Refunds will also be paid early. In cases where corporate tax refunds arise for taxpayers located in special disaster zones, instead of being paid within 30 days from the commencement of the normal reporting deadline, they are expected to be paid within 10 days (by April 10).
Tax audits will also be deferred. In the selection of those subject to verification of value-added taxes, comprehensive income tax, and corporate tax reporting this year, unless there is clear evidence of tax evasion, taxpayers affected by the disaster in the special disaster zone will generally be excluded.
If a taxpayer has received a tax audit notice or is undergoing an audit, the possibility of postponing or halting the audit will also be actively considered upon the taxpayer's application.
A National Tax Service official said, "The agency is actively providing tax relief for taxpayers facing difficulties due to natural disasters and business downturns," and noted, "We will continue to provide the maximum possible tax relief within the limits set by law."