The Ministry of the Interior and Safety noted on the 2nd that it has decided to extend the deadline for corporate local government tax payments by three months for small corporations located in areas recently designated as special disaster zones due to wildfires. Accordingly, the target corporations can pay their corporate local government tax by the end of July.
The small corporations eligible for the extension of the corporate local government tax payment include about 10,000 in eight areas: Ulsan Ulju, Gyeongbuk Uiseong, Andong, Cheongsong, Yeongyang, Yeongdeok, Gyeongnam Sancheong, and Hadong. They were selected during the corporate tax (national tax) filing in March and will have their payment deadline extended automatically.
Additionally, if any of these corporations incurred property damage due to the wildfires, they could deduct from their corporate local government tax the amount corresponding to the rate of property loss. The deduction amount is calculated by multiplying the corporate local government tax amount by the proportion of asset loss. The deduction is limited to the value of the assets lost due to the disaster. To receive the deduction, an application for the disaster loss tax deduction must be submitted to the local government or WeTax within four months from the date of the disaster.
The government also decided to extend the corporate local government tax payment deadline for about 2,000 small corporations affected by the Jeju Air passenger plane accident and located in Jeonnam Muan-gun, which was declared a special disaster area due to the accident.
However, since only the payment deadline has been extended for the corporations involved this time, they must file their corporate local government tax returns within this month.
Han Soon-ki, director of the Ministry of the Interior and Safety's Local Government Finance Bureau, said, "We will continue to alleviate the burdens of small corporations that are struggling due to disaster damages and business downturns, and we will rationally improve the local government tax system to enhance tax payment convenience."
Meanwhile, the government will operate a "corporate local government tax concentrated reporting period" for last year's income targeting corporations with December settlements this month. The corporations that must file and pay the corporate local government tax this month account for about 94% of all corporations in the country, totaling over 1.15 million.