The South Korean government is launching emergency tax relief measures to ease the burden on domestic companies facing business difficulties due to escalating military tensions in the Middle East.
The Ministry of the Interior and Safety announced on the 10th that it has issued guidelines to local governments nationwide to provide local tax support for companies under liquidity pressure from export disruptions, rising logistics costs, and delayed payments.
The measures are designed to work in conjunction with the National Tax Service's earlier decision to extend corporate tax payment deadlines by three months for companies affected by the Middle East situation, aiming to reduce overall tax burdens and help businesses secure cash liquidity.
Under the ministry's guidelines, companies directly affected by the Middle East crisis can apply for extensions on local taxes including local income tax. Extensions of up to six months are available, with the possibility of deferral for up to one year if necessary.
The ministry also decided to suspend the initiation of local tax audits until the end of this year for shipping, aviation, oil refining, and petrochemical companies, as well as firms with significant export exposure to the Middle East. For companies already under audit, investigations can be suspended or postponed upon request to minimize operational burdens.
Companies seeking support can apply for payment extensions or tax audit deferrals by visiting their local municipal tax office or submitting requests via mail or fax.
"The central and local governments will work together to mobilize all available tax support measures to prevent our companies from falling into a business crisis due to uncertainties in the Middle East," said Interior Minister Yoon Ho-jung.
