Special Disaster Areas Hit by Heavy Rain to Get Up to Two-Year Extension for Filing and Payment of Corporate, VAT, and Income Taxes

National Tax Service Opens Dedicated Help Desk
Extends Tax Filing Deadlines and Defers Tax Audits for Affected Taxpayers

Taxpayers in special disaster areas affected by the recent heavy rain will have their deadlines for filing and paying corporate tax, value-added tax, and comprehensive income tax extended by up to two years.

The National Tax Service announced on September 18 that, following the designation of Baeksu-eup, Yeonggwang-gun, Gwangju, Jeonnam as a special disaster area on September 17 due to heavy rain at the end of August, it will actively provide tax support to affected taxpayers. This support includes extensions for filing and payment deadlines, suspension of seizures and sales of assets, and deferment of tax audits.

First, if a taxpayer suffering from flood damage applies for an extension of the deadline for filing and paying corporate tax, value-added tax, or comprehensive income tax, the deadline may be extended for up to two years. In areas that are not designated as special disaster zones, deadline extensions can only be requested for up to nine months.

To receive tax support, taxpayers may submit their applications through the Gwangsan Tax Office's "dedicated help desk for flood-damaged taxpayers," by mail, or through the “Hometax” online system.

In addition, if taxpayers currently have delinquent taxes and apply for postponement of asset seizure or sales of seized property, such postponement can be granted for up to two years. In particular, if flood-damaged taxpayers request deadline extensions or postponements of seizure and sales, collateral requirements will be waived as much as possible.

Furthermore, the National Tax Service will defer tax audits for taxpayers engaged in agricultural, fisheries, or aquaculture businesses in the special disaster area who have already received prior notification or whose audit is in progress.

If a national tax refund is due, the National Tax Service will process payment as quickly as possible. For business owners who have lost 20% or more of their business assets due to flood damage, income tax or corporate tax—either outstanding or to be assessed in the future—will be deducted proportionally to the loss ratio. By submitting an application for disaster loss tax deduction within three months from the date of the disaster, taxpayers may receive a tax credit.

An official from the National Tax Service stated, "We will set up a dedicated help desk for flood-damaged taxpayers at the Gwangsan Tax Office, which oversees the special disaster area, to ensure local taxpayers can focus solely on recovery from the damage. We will promptly provide related consultations and handle applications." The official added, "Going forward, even in areas not designated as special disaster zones, the National Tax Service will provide the maximum level of tax support allowed by law to taxpayers suffering difficulties due to heavy rain."

This content was produced with the assistance of AI translation services.