The Seongnam city government announced Wednesday that it will extend the corporate local income tax payment deadline by up to three months and allow installment payments for amounts exceeding 1 million won to ease the financial burden on companies facing business difficulties.
The three-month extension targets export-oriented small and mid-sized enterprises with declining revenues, as well as companies in recession-hit sectors such as petrochemicals, steel and construction. Firms that have already received an automatic extension on their national corporate tax deadline from the tax authority will also have their local corporate income tax deadline automatically extended to the end of July without a separate application.
Installment payments are available when the tax amount exceeds 1 million won. For amounts of 2 million won or less, the portion exceeding 1 million won may be paid in installments. For amounts exceeding 2 million won, up to 50% of the total tax may be paid in installments. General companies must complete payment by June 1, while small and mid-sized enterprises have until June 30.
In addition, corporations that meet grounds stipulated in Article 6 of the Enforcement Decree of the Framework Act on Local Taxes — such as natural disasters or significant business losses — may separately apply for a deadline extension. Companies in shipping, aviation, oil refining, petrochemicals and export construction plant sectors experiencing difficulties due to recent Middle East geopolitical developments may receive an extension of up to six months, with a one-time additional extension allowing a maximum of one year. Companies seeking a deadline extension may submit an application to the Local Income Tax Division at Seongnam City Hall by April 28, three days before the filing deadline, to receive a consultation.
Seongnam said that during the intensive corporate local income tax filing and payment period running through the 30th, for-profit corporations with fiscal years ending in December 2025, nonprofit corporations engaged in profit-generating activities and foreign corporations with domestic-source income must file and pay the tax. The city explained that filing is required even for corporations with no income or those reporting losses, and that companies with business establishments in two or more local government jurisdictions must file separately with each municipality based on respective establishment criteria. Filing in only one jurisdiction may be treated as a failure to file, potentially resulting in penalty surcharges.
Filing can be done electronically through Wetax, or by mail or in person at the local government office that has jurisdiction over the business establishment's location.