NTS Extends Tax Deadline for Geoje, Tongyeong Small Businesses to Nov. 2

The National Tax Service (NTS) announced on the 18th that it has extended the tax payment deadline for two months for over 1,200 SMEs in the Geoje and Tongyeong regions of South Gyeongsang Province affected by heavy rains, allowing payments to be made by November 2 without a separate application. All SMEs subject to interim corporate tax prepayment located in Geoje and Tongyeong will see their payment deadlines extended by two months from the original end of August to November 2 without needing to apply. Interim corporate tax prepayment is a system where a portion of income earned during the year is paid in advance based on estimates, and this measure aims to alleviate the economic burden caused by the torrential rain.

According to statistics from the South Gyeongsang Provincial Disaster and Safety Countermeasure Headquarters, 274 households and 498 people evacuated in Geoje and Tongyeong, while damage occurred to 365 hectares of farmland, two on-land fish farms, and five national heritage sites.

The NTS has established a 'Rain Damage Taxpayer Support Counter' at the Tongyeong Tax Office and the Geoje Branch. This constitutes a one-stop system that handles tax consultations and support applications for affected businesses in one place.

The NTS plans to identify corporations that have lost more than 20% of their business assets and are eligible for disaster loss tax deductions, providing individual guidance so they can apply for the deduction during the interim tax payment process. The disaster loss tax deduction is a system that refunds a portion of corporate tax based on the loss ratio when more than 20% of total business assets are lost due to natural disasters; it can be applied for via HomeTax.

According to the NTS, the deadline for filing interim corporate tax is August 31, and severely affected companies can apply for a filing extension at their local tax office. Taxpayers with affected businesses that are not subject to automatic extension or who have outstanding tax arrears can apply for a payment deadline extension and deferral of seized property sales through their local tax office or HomeTax. Taxpayers affected by the rains in regions other than Geoje and Tongyeong may also receive support for filing and payment extensions and deferrals of seized property sales, depending on their damage and legal regulations.