Korea extends Q3 VAT payment deadline to Dec 28 for flood-hit, Homeplus firms
In short
The National Tax Service said 627,000 corporate businesses must file and pay third-quarter value-added tax on their July–September results by Oct. 26. Payment deadlines for 36,000 businesses in summer flood-hit areas and 1,000 Homeplus tenants, suppliers and partner businesses are extended by about two months, to Dec. 28. Individual general taxpayers and small corporations face a Nov. 2 payment deadline, and eligible small firms can receive early refunds by Nov. 4.
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The National Tax Service said 627,000 corporate businesses liable for value-added tax must file and pay VAT on their July–September results by Oct. 26. Individual general taxpayers, 2.23 million of them, and 190,000 small corporations do not file a preliminary return but instead pay half of the tax paid in the previous period through a preliminary notice. Yonhap reported that the tax agency announced the schedule on Oct. 4, while the Chosun Ilbo and the Kyunghyang Shinmun said the announcement was made on Oct. 5. [ 2 , 3 , 4 ]
The agency extended payment deadlines by about two months, to Dec. 28, for 36,000 businesses in areas hit by summer heavy rain — Andong, Uiseong, Geoje, Tongyeong and Yeonggwang — and for 1,000 Homeplus tenants, suppliers and partner businesses, according to Yonhap and the Kyunghyang Shinmun. Newsis reported the extension applies without a separate application. The Kyunghyang Shinmun said the change concerns payment only, that filing must still be completed by Oct. 26, and that the eligible corporate businesses are limited to small and medium-sized firms. [ 1 , 2 , 4 ]
Small and medium-sized enterprises and other businesses eligible for tax support that apply for an early refund within the filing deadline will be paid by Nov. 4, six days before the legal deadline of Nov. 10, the tax agency said. Yonhap and the Kyunghyang Shinmun reported that recipients include businesses with revenue of 1 billion won or less, small and medium-sized firms and exporters meeting certain requirements, and businesses in special disaster areas. [ 2 , 4 ]
The tax agency said it extended the preliminary-notice payment deadline to the end of October because holidays cluster in early October and could delay delivery of the notices; because the last day is a Saturday, the actual deadline is Nov. 2, it said. Businesses whose third-quarter revenue or tax payable falls below one-third of the previous period, or that have grounds for an early refund, may instead file a preliminary return, in which case the previously notified amount is cancelled. The Kyunghyang Shinmun reported that small corporations are those with total supply value below 150 million won in the first half of the year. [ 2 , 4 ]
The tax agency said it will send mobile notices to affected businesses from Oct. 6 and show whom the measures cover on the Hometax “integrated inquiry” screen. Filers can use the “pre-filled” service on Hometax, which populates sales and purchase tax figures, and a filing help service offering a good-faith filing checklist, analysis of past filings and changes to tax law; 230,000 corporations will also receive analysis reflecting their own business results. [ 2 , 4 ]
Why it matters
The measure gives extra time to businesses whose cash flow was hit by summer flooding and by what the Kyunghyang Shinmun described as a prolonged Homeplus rehabilitation process. It applies to a large share of Korea's corporate tax base — 627,000 corporate filers — but the delays are administrative, not a reduction in tax owed, and filing duties still stand.
Key facts
- The National Tax Service said 627,000 corporate businesses must file and pay value-added tax on July–September results by Oct. 26. [ 2 , 3 , 4 ]
- Individual general taxpayers, 2.23 million of them, and 190,000 small corporations pay half of the previous period's tax through a preliminary notice by Nov. 2, after the deadline was extended to the end of October and fell on a Saturday. [ 2 , 4 ]
- Payment deadlines for 36,000 businesses in Andong, Uiseong, Geoje, Tongyeong and Yeonggwang, areas hit by summer heavy rain, and for 1,000 Homeplus tenants, suppliers and partner businesses, are extended by about two months to Dec. 28. [ 1 , 2 , 3 , 4 ]
- The extension covers payment; the Kyunghyang Shinmun reported filing must still be completed by Oct. 26 for the affected corporate businesses, which are limited to small and medium-sized firms. [ 4 ]
- Small and medium-sized enterprises and other tax-support recipients that apply for an early refund within the filing deadline will be paid by Nov. 4, six days before the legal deadline of Nov. 10. [ 2 , 4 ]
- The tax agency said it will send mobile notices to affected businesses from Oct. 6 and show eligibility on the Hometax integrated inquiry screen. [ 4 ]
- The Kyunghyang Shinmun reported that small corporations are those with total supply value below 150 million won in the first half of the year. [ 4 ]
Confirmed by several sources
- The National Tax Service announced third-quarter VAT filing and payment arrangements, including extensions for flood-hit and Homeplus-linked businesses. [ 1 , 2 , 3 , 4 ]
- Corporate businesses subject to VAT must file and pay for July–September results by Oct. 26. [ 2 , 3 , 4 ]
- Payment deadlines for businesses in flood-hit areas and for Homeplus tenants, suppliers and partner businesses are extended to Dec. 28, about two months later than the standard deadline. [ 1 , 2 , 3 , 4 ]
- Individual general taxpayers and small corporations have a Nov. 2 payment deadline. [ 2 , 3 , 4 ]
- Eligible businesses can receive early VAT refunds by Nov. 4, six days ahead of the legal deadline. [ 2 , 4 ]
Still unclear
- The date the National Tax Service made the announcement. Yonhap says the tax agency announced the schedule on Oct. 4, while the Chosun Ilbo and the Kyunghyang Shinmun say it was announced on Oct. 5; the documents do not resolve the difference.
- The state of the Homeplus rehabilitation process referred to in the coverage. The Kyunghyang Shinmun cites a prolonged Homeplus rehabilitation process as a reason for relief, but none of the documents describe the proceedings or their status.
What local media are saying
Timeline, local time
- Newsis reports the National Tax Service will extend VAT payment deadlines for businesses in heavy-rain-hit areas and for Homeplus tenants, suppliers and partner businesses without a separate application. [ 1 ]
- Yonhap publishes the full schedule: 627,000 corporate businesses file by Oct. 26, individuals and small corporations pay by Nov. 2, and affected businesses get until Dec. 28. [ 2 ]
- The Chosun Ilbo reports the same deadlines, noting the Nov. 2 and Dec. 28 dates. [ 3 ]
- The Kyunghyang Shinmun publishes detailed eligibility rules, the Nov. 4 early-refund date and plans to send mobile notices from Oct. 6. [ 4 ]