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NTS to delay tax probes for small firms hit by Japan measures
National Tax Service (NTS) Assistant Commissioner for Corporation Taxation Yim Seong-bin speaks at a press briefing at the NTS building in Sejong, Aug. 5. Courtesy of NTS
By Lee Kyung-min
By Lee Kyung-min
The National Tax Service (NTS) said Monday that it will help small- and medium-sized enterprises (SMEs) affected by Japan's export restrictions by postponing its audits and extending payment deadlines on various taxes.
The announcement came after Japan decided Friday to remove Korea from its “whitelist,” under which Korea will no longer be among 27 nations that enjoy preferential treatment on exports of nearly 1,200 items from Japan.
Eligible for the measures are materials and parts importers, not merchants that suffered due to the “boycott Japan movement.”
The NTS said it has set up an emergency tax support body, comprised of officials from 125 tax offices nationwide under respective supervision of seven NTS regional offices.
Domestic firms with annual sales of less than 150 billion won ($124.6 million) can benefit from a delay of tax audits if they are affected by Japan's restriction measures.
Upon requests from the affected firms, the NTS will extend filing or payment deadlines on corporate tax, value-added tax and income tax.
Reimbursements for overcharged taxes will be completed within a month after the requests are filed, a move the NTS considers could help the cash-strapped firms to secure operating funds.
Exempt from duties will include those who were notified to revise previously submitted tax filings due to mistakes or missing data.
The NTS will also suspend ongoing audits upon request to help them focus their time and resources on research and development efforts.