Exemption for general taxpayers and expansion of exemption for simple taxpayers… “Benefits for an additional 900,000 people”
6.65 million individual business owners are required to file and pay VAT by the 25th of the following month, and 1.31 million corporate business owners by the 25th of this month.
Tax cuts or exemptions are applied to small private businesses or those who have suffered business sluggish due to the novel coronavirus infection (Corona 19).
The National Tax Service announced on the 6th that the number of targets for the second VAT report in 2020 was 7.6 million, an increase of 330,000 from last year. There are 1.33 million corporate businesses and 6.66 million individuals (general taxable persons 4.68 million people, simple taxable persons 1.97 million persons).
In consideration of the management difficulties caused by Corona 19, the National Tax Service has extended the VAT filing deadline for all private businesses by one month until the 25th of the following month. Corporate businesses must report and pay VAT on their business in the fourth quarter of last year, as before by the 25th of this month.
To alleviate the impact of Corona 19, the small private business owner’s exemption system, which was newly established in March last year, is also applied this time.
For individuals whose supply price (sales) is 40 million won or less during the taxable period (the second half of last year) and does not qualify for exemption-exempt projects (real estate leases, trades, and entertainment venues), the amount of tax paid will be reduced to 5-30%, which is the level of simple taxpayers. .
The standard amount for exemption from VAT for simplified taxpayers will also be temporarily expanded from’less than 30 million won’ to’less than 48 million won’ of the annual supply price. However, it should not be a reduction or exemption project.
It is estimated that 700,000 people will receive additional exemptions from general taxation and 200,000 people will receive additional exemptions from the’Corona 19 measures’. There are a total of 2.4 million small-scale private businesses receiving reductions and exemptions, which is 35% of all private businesses.
For business operators that are experiencing difficulties in management due to disasters, restructuring, and rapid decline in sales, the payment deadline is extended by receiving an application.
The National Tax Service also decided to advance the VAT refund by 10 to 12 days ahead of the legal deadline to support the liquidity of the taxpayers’ funds.
If small and medium-sized businesses, model taxpayers, corona 19-related special disaster area businesses, direct victims, and’U-turn’ companies apply for an early refund, the payment will be made by the 29th of this month, excluding those suspected of unfair refund.
Among those eligible for general refund, small businesses with sales of less than 1 billion won in the previous year and those whose sales decreased by more than 30% compared to the previous year are expected to pay the refund by the 15th of next month with 10 days.
Based on various information such as credit card payments, platform service fees, and real estate transactions, the IRS provides individual help data according to the characteristics of taxpayers to 970,000 people.
For example, a restaurant business operator using a delivery platform is provided with details of fees paid by the platform to refer to the correct report.
370,000 of the businesses provided with individual help materials are social media (SNS) markets, overseas direct purchase agencies, living accommodations, application transactions (transactions through the platform), overseas electronic service providers (app store, play store, etc.), and shared accommodation. , Similar electronic payment agency (PG) affiliates, open markets, and other businesses that use’new transactions’.
To check the contents of the help materials, you can access Hometax (www.hometax.go.kr) and select’Report/Payment’,’Value Added Tax’, and’VAT Reporting Help Service’.
The Internal Revenue Service analyzes the details of the report, and selects a person who has been reported as a subject of investigation if it detects the alleged evasion through the’confirmation of report details’ process.
Frequently occurring types of reports of infidelity are: △Omission of a business leased free of charge to a specially related person in sales △Residential rental (tax-free rental) after receiving a refund of the purchase tax of a new officetel △ After a non-data transaction, the name of a relative is stolen and disguised as a normal transaction. to be.
If VAT is refunded or deducted for fraudulent conduct, it is subject to imprisonment for up to two years or a fine not exceeding twice the amount of the refunded tax in accordance with the Tax Offender Penalty Act. /Union
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