On 29 July 2020, the National Tax Agency published the updated tax relief measures for taxpayers who face difficulty paying their national tax due to the influence of the novel coronavirus disease (COVID-19). Under this, a special grace period of one year for eligible companies to make tax payments are provided as tax relief for companies in response to the economic challenges of the coronavirus (COVID-19) pandemic.
Taxpayers who meet both of the following requirements are eligible for special grace.
- Decrease in their income from a business, etc.* for any period (more than one month) after February 2020 by about 20 percent or more compared to the same period of the previous year due to the influence of COVID-19
- Difficulty paying their national tax in a lump sum Special grace covers national taxes which are due by the date between 1 February 2020, and 1 February 2021.
If taxpayers are granted special grace, delinquent taxes (interest on principal tax) will be fully discharged. In addition, taxpayers are not required to provide securities upon the application of the tax grace.
