According to the National Tax Service on the 6th, the targets for filing and payment of VAT for the 2nd term of 2020 are 1.33 million corporate businesses, 4.68 million general businesses, and 1.97 million simple businesses. In the same period last year, the number of final reports increased by 330,000 (70,000 for corporations and 260,000 for individuals) from 7.35 million.
The National Tax Service has extended the reporting deadline by one month only for this VAT report for private businesses suffering from management difficulties due to Corona 19. Individual business owners can report and pay by the 25th of the following month without visiting the tax office using Hometax, ARS, or mobile simple report. Corporate business owners can report and pay by the 25th as before.
The National Tax Service is implementing the general tax exemption system for small individuals as part of active cleaning support to overcome Corona 19. Reduction targets are individuals whose supply price is 40 million won or less during the taxable period (6 months), and the tax amount paid by individuals who do not fall under the exemption business such as real estate leases, sales, and taxable entertainment venues is the level of simple taxpayers (5~30%). Is relieved. The standard amount for exemption from payment by individual simple taxpayers was also temporarily raised, raising the standard amount from 30 million won to 48 million won. In addition, the total amount of supply consideration for the taxable period (one year) was 30 million won or more and less than 48 million won, and the tax paid was also exempted for simple taxpayers who are not exempted from reduction or exemption.
The IRS plans to provide early refunds to support liquidity of corporate funds. If a taxpayer who is eligible for cleaning support, such as a small and medium-sized business or exemplary taxpayer, applies for an early refund, it will be paid by the 29th of the month, 12 days earlier than the legal payment deadline, unless it is necessary to confirm the facts such as an unfair refund charge. Small businesses whose sales in the previous year were less than KRW 1 billion or decreased by more than 30% compared to the previous year can also receive the refund by the 15th of the following month if they report a general refund. The policy is to provide maximum support, such as extending the payment deadline upon request, to businesses suffering from management difficulties due to disasters, restructuring, and rapid decline in sales.
The National Tax Service provides a variety of information materials through the Hometax’Report Help Service’ to help businesses report faithfully. In addition, it analyzes data, internal and external taxation data, and on-site information to provide additional customized help data according to the characteristics of taxpayers such as business type, size, and business conditions to 970,000 businesses.
On the other hand, it is easier and more convenient to report VAT by using the hometax’prefill’ service. In addition, the National Tax Service reorganized the value-added tax ARS reporting system introduced in January last year for convenient reporting by small private business owners, so that even’no-performing businesses’ without sales or purchase details can be reported through ARS.
Kim Ju Ogija [email protected]