Taxpayers must file their income and local taxes by June 1, with new support measures in place.
Category: Economy
Taxpayers in South Korea are gearing up for the annual income tax filing season, with the National Tax Service (NTS) reminding individuals with comprehensive income that they must submit their income and local taxes by June 1. Those subject to verification for diligent reporting have until June 30 to complete their filings. Starting April 24, the NTS began sending notifications to approximately 13.33 million taxpayers via mobile platforms like KakaoTalk, Naver electronic documents, and SMS. For those who do not receive these mobile notifications, paper notices will be dispatched later.
Among the notifications, 7.17 million individuals, including mid-career employees who missed year-end tax adjustments and first-time business owners such as YouTubers, will receive guidance on the reporting process. The NTS is also reaching out to 4.6 million individuals who are eligible for tax refunds, ensuring they are aware of the necessary steps to claim their refunds.
In an effort to streamline the tax filing process and reduce the burden on taxpayers, the NTS is providing customized tax filing assistance to about 1.4 million individuals this year. Each taxpayer will receive specific information based on their previous tax audits, aimed at preventing repeated mistakes. Notably, taxpayers who have purchased homes using business loans will be advised not to include the related interest as a deductible expense in their income tax filings.
As the region grapples with the economic impacts of the Middle East conflict, characterized by high oil prices, rising interest rates, and inflation, the NTS is committed to offering active tax support for vulnerable groups, including small business owners. This year, the NTS plans to provide tax relief to a record 2.65 million individuals, targeting sectors particularly impacted by the crisis, such as those in oil-sensitive industries and small to medium-sized export businesses. The NTS will also extend the income tax payment deadline for victims affected by delays in settlements from companies like TMON and WeMakePrice, which are currently undergoing bankruptcy proceedings.
As South Korea's tax policies adapt to current economic challenges, neighboring countries are also taking note. Japan and China have been observing South Korea's approach to tax relief, especially as they face similar pressures from global economic conditions. The measures taken by the NTS could influence regional tax policies, particularly in how governments respond to economic crises and support small businesses.
Globally, the tax relief initiatives in South Korea may serve as a model for other nations dealing with the economic fallout from international conflicts. As countries seek to stabilize their economies, the proactive measures taken by the NTS could encourage other governments to adopt similar strategies to support their citizens.
In addition to the general income tax filing deadlines, local taxes must also be reported and paid to municipal governments within the same timeframe. Taxpayers can easily file both their income and local taxes simultaneously through the HomeTax and SoonTax platforms, which provide real-time updates and automatic integration into the local tax payment system. This year marks a new requirement: if taxpayers fail to report their local income tax, even if they file their income tax on time, they will incur penalties for non-reporting.
In a related initiative, Gunpo City has announced that it will operate a consolidated tax filing assistance center from May 6 to June 1 at its city hall to help taxpayers navigate the filing process. This center will primarily assist those categorized as "All-Filled" taxpayers, allowing them to complete their income and local tax filings in one visit, following a brief verification process.
Similarly, Yangsan City is collaborating with the Yangsan Tax Office to establish a joint filing center for income and local taxes, running from May 6 to June 1. This facility will support small business owners and other eligible taxpayers who have received pre-calculated tax documents from the NTS, simplifying their filing experience.
Officials in both cities have emphasized the importance of timely tax filings, warning that failure to report local income tax can lead to additional fines. They are urging taxpayers to take advantage of the resources available to them this filing season.
As the June 1 deadline approaches, taxpayers are encouraged to prepare their documents and take advantage of the assistance programs offered by the NTS and local governments. This year’s tax season is particularly important as the economic climate remains uncertain, and compliance with tax obligations is more important than ever.
With the tax filing deadline fast approaching, officials stress the need for taxpayers to be proactive in fulfilling their obligations. The NTS plans to continue its outreach efforts, ensuring that all eligible taxpayers are aware of the necessary steps to complete their filings accurately and on time. As a reminder, the deadline for filing comprehensive income tax returns is June 1, with local taxes due at the same time.
In light of the current economic challenges, the NTS hopes that these measures will alleviate some of the burdens faced by taxpayers and encourage compliance. The proactive approach taken by the NTS and local governments reflects a commitment to supporting citizens during these difficult times.