Ministry of the Interior and Safety Issues Emergency Local Tax Relief Guidance amid Middle East Tensions
Tied to National Tax Service’s Corporate Tax Payment Deadline Extension
On March 10, the Ministry of the Interior and Safety announced it had issued emergency local tax guidance to municipalities nationwide to help domestic companies facing difficulties amid rising military tensions in the Middle East.
The measure is intended to ease tax burdens and preserve cash liquidity for companies affected by export disruptions and higher logistics costs. Support is aimed at firms that have suffered direct damage because of the situation in the Middle East.
If companies apply, the government will postpone payment deadlines for local taxes, including local income taxes, for up to six months.
If authorities determine additional support is necessary, they may extend the payment deadline for up to one year. This step is coordinated with the National Tax Service’s extension of corporate tax payment deadlines.
The ministry will also provide relief related to tax audits. In principle, it will suspend the initiation of local tax audits through the end of the year for companies with significant export exposure to the Middle East — including shipping, airlines, refining and petrochemical firms. Companies already under audit may apply to halt or postpone their investigations.
Companies seeking support can apply in person at their city, county, or district tax office, or by mail or fax. The ministry plans to inspect local offices to ensure the guidance is implemented quickly.
Minister Yoon Ho-jung said, “The central and local governments will work together to prevent our companies from falling into a management crisis amid uncertainty in the Middle East. We will mobilize all available tax-relief measures to ease companies’ burdens.”
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