Corporate Tax Interim Prepayment Begins... Outline of Extra Tax Revenue From 'Samjeon-Nix' Expected to Emerge

The reporting and payment of interim corporate tax prepayments for December-closing corporations have begun.

The scale of extra tax revenue driven by the unprecedented semiconductor industry boom is also expected to take shape soon.

The National Tax Service announced today (August 4) that December-closing corporations must report and pay their interim corporate tax prepayment amounts by the 31st.

The number of target corporations stands at 545,000, an increase of 17,000 from last year.

Interim prepayments can be reported and paid through two methods: ▲ 50% of the tax calculated for the previous fiscal year, or ▲ tentative settlement of accounts based on business performance for the first half of this year.

However, approximately 2,600 corporations (excluding small and medium-sized enterprises) belonging to large enterprise groups designated for public disclosure by the Fair Trade Commission must report and pay exclusively through the tentative settlement method.

Accordingly, once Samsung Electronics and SK Hynix report their corporate taxes using the tentative settlement method, it is expected that a rough estimate of this year's total extra tax revenue can be projected.

Cumulative operating profits up to the first half of this year reached KRW 146.7 trillion for Samsung Electronics and KRW 98.1529 trillion for SK Hynix, approaching a total of KRW 245 trillion.

This is equivalent to about one-third of the government's total budget for this year (based on the main budget).

Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol has stated regarding this year's tax revenue scale that it can be predicted only after receiving the first-half operating results and the August corporate tax interim prepayments.

Small and medium-sized enterprises with a tax payment of KRW 20 million or less can pay KRW 10 million by the end of August and the remainder up to two months later.

Other companies can pay 50% or more by the end of August and the remaining amount within one month from that date.

Samsung Electronics and SK Hynix are also expected to make their interim payments over two months until the end of September.

As part of tax support, the National Tax Service is extending the corporate tax interim prepayment deadline by two months to November 2, automatically without taxpayers' applications, for small and medium-sized enterprises hit by the Homeplus incident, high exchange rates, and high oil prices.

This is expected to provide a liquidity support effect of KRW 909.2 billion for a total of 40,474 corporations.

Even if they are not corporations subject to the automatic extension, small and medium-sized enterprises experiencing management difficulties can apply for a deadline extension via Hometax, and the service will actively review it.

Corporations subject to the interim corporate tax prepayment reporting can file and pay via Hometax or Sontax.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.