The National Tax Service announced on the 18th that 1.15 million corporations with fiscal years ending in December last year are required to file and pay corporate taxes by March 31. This includes profit-oriented corporations as well as non-profit corporations engaged in income-generating activities and foreign corporations with domestic source income.
Corporate tax filing can be done electronically via the National Tax Service’s Hometax platform starting March 1. Last year, 99.7% of corporate tax filings were conducted electronically, and those using electronic filing are eligible for a tax credit of 20,000 won. Corporations with no sales and those that do not require tax adjustments, or non-profit corporations with only interest income, can file more easily using the Hometax simplified filing function.
Corporations subject to confirmation of faithful filing and those using the consolidated tax payment method have an extended filing deadline until April 30. Corporations subject to faithful filing verification must also submit a confirmation form prepared and reviewed by a tax representative. If the corporation subject to external audit has not completed the audit and finalized the financial statements, they can apply for an extension of the filing deadline up to three days before the deadline, with the extension granted for up to one month. However, they must pay an interest equivalent sum for the extended period.
If the payable tax amount exceeds 10 million won, installment payments are possible. If the payable tax amount is less than 20 million won, only the excess amount can be paid in installments, and if it exceeds 20 million won, up to 50% of the tax amount can be paid in installments. Small and medium-sized enterprises (SMEs) can make additional payments within two months, until June 2, following the payment deadline, while general corporations must pay within one month, by April 30.
The National Tax Service plans to sequentially guide the tax support systems such as deadline extensions and collection deferrals for companies subject to corporate tax filings. They also advised preparing proof of income and expense details and deduction and exemption items necessary for filing to ensure all tax benefits are received.