The National Tax Service has decided to extend the corporate tax payment deadline by three months for small and medium-sized export companies struggling due to the global economic slowdown and rising raw material prices. Additionally, companies affected by the recent Jeju Air passenger plane accident and SMEs in special disaster areas will also be eligible for the same tax relief measures.
The National Tax Service announced the tax relief measures on February 24, stating that this initiative aims to reduce the financial burden on export SMEs and support their business stabilization.
The support targets approximately 16,000 export SMEs with fiscal years ending in December, whose exports account for over 50% of their sales and have seen a decline in revenue compared to the previous year. It also includes SMEs recognized as outstanding exporters by the Korea Customs Service, Korea International Trade Association, and KOTRA. As of this year, domestic supply amounts verified through local letters of credit or purchase confirmations will also be recognized as export figures, expanding the range of beneficiaries.
Moreover, 2,193 SMEs located in areas deemed special disaster zones, including those affected by the Jeju Air incident and in Jeollanam-do’s Muan County, will be included as beneficiaries.
The extension of the payment deadline will be applied ex officio by the National Tax Service without any additional applications, moving the initial corporate tax payment deadline from March 31 to June 30. In cases of installment payments for tax amounts exceeding 10 million won, the installment deadline will also be extended from the original June 2 to September 2. However, the deadline for filing the corporate tax remains unchanged on March 31, and filing must be completed by this date.
For companies with tax refunds, the deadline for refund payments, previously within 30 days after the filing deadline, will be shortened to 10 days (by April 10) to facilitate quicker disbursements.
In addition, the National Tax Service plans to prioritize the processing of R&D tax credit pre-reviews and corrections requests, and companies without clear tax evasion evidence will generally be excluded from corporate tax filing audits, allowing export SMEs to focus on their business operations.
Furthermore, even companies not included in this tax relief initiative can apply for extended payment deadlines if they have incurred significant business losses. Additional tax relief measures such as tax lien exemptions can also be provided. Applications can be made online via the National Tax Service’s Hometax platform (www.hometax.go.kr) by searching for ‘Payment Deadline Extension’.
This measure raises attention to whether it can alleviate the financial burden on export SMEs and disaster-affected companies, and help them maintain business stability amid the global economic downturn.