Recent Tax Law Change

On June 19, 2018, the government approved the bill to amend the Presidential Decrees of the Basic National Tax Law and the National Tax Collection Law. This amendment was announced and became effective from June 26, 2018. The major changes to the laws are as follows:

Extensions of tax payment and collection newly enacted for Small and Medium Enterprise (SME) in disaster regions effective from June 26, 2018

Currently an extension period of nine months to a maximum 1 year is allowed to companies under certain limited circumstances.

Under the amended laws, however, extension periods of payment due date as well as extension of reprieve period for tax collection and disposition for failure in tax payment of Small and Medium Enterprise (‘SME’) in “disaster regions” (defined) will be expanded as follows.

Before

Revised

Qualification
- Where a taxpayer suffers calamities or robbery
- Where a taxpayer suffers disease
- Where a taxpayer suffers serious loss in business or major crisis, etc.

Extension period
- Payment due date: extended for up to 9 months
- Suspension periods for tax collection: extended for up to 9 months
- Suspension periods of disposition for failure in tax payment: extended for up to 1 year

Qualification
- SME in “disaster regions” which suffers calamities, robbery, disease, serious loss in business or major crisis, etc.

Extension period
- Payment due date: extended for up to 2 years
- Suspension periods for tax collection: extended for up to 2 years
- Suspension periods of disposition for failure in tax payment: extended for up to 2 years