Due to difficulties caused by the ongoing conflict between the US, Israel, and Iran, South Korean SMEs and mid-sized enterprises can defer their corporate tax payments by three months.
The South Korean National Tax Service announced an extension of the corporate tax payment deadline for small and mid-sized enterprises (SMEs) affected by the ongoing conflict in the Middle East. The deadline, originally set for March 31, has been pushed back to June 30 for those companies in the shipping, airline, refinery, and petrochemical industries. To qualify for the extension, affected businesses must submit an application along with proof of damages, such as canceled contracts or delayed shipments, by the end of this month.
In addition to the extension, any companies with corporate tax liabilities exceeding 10 million won will also benefit from a deferred payment schedule, which now allows them to pay their dues by July 31, and for SMEs, by September 1. Furthermore, the National Tax Service will temporarily refrain from initiating tax audits for the shipping, airline, and refinery/petrochemical sectors, recognizing the significant increase in operational costs caused by the Middle East tensions. This measure indicates a proactive approach to support local businesses during a challenging time.
The National Tax Service has stated that it will continue to closely monitor the situation in the Middle East and provide necessary tax support to ensure that South Korean businesses can maintain stable operational activities. This decision reflects a broader strategy to mitigate the economic impacts of international conflicts on national enterprises, demonstrating the government's commitment to safeguarding its economic stability amidst global uncertainties.
