Korea Customs Service intends to reduce the financial burden of companies experiencing management difficulties by implementing the “Business support program for small & medium-sized trading companies,” reflecting the policy for the recovery of the domestic market and boost of export.
- Tax support for special disaster areas and critical industries
- It is possible to defer payment or make the divided payment without security for the tax amount to be paid or the tax amount to be collected for up to one year within 50% of the amount of tax paid in the previous year.
- It is possible to defer customs duty investigation until completion of damage relief, and a company being investigated can request the suspension of customs duty investigation.
- The application for refund of the company concerned will be changed to the P/L (Paperless) system. The decision will make an expedited refund of refund and request for payment on the very day of application.
- Support with the export refund
- The authority will make a refund of the head of the customs office after checking the excessive taxes paid during the year.
- Automatic real-time information is sent to the exporter (or customs broker) after checking the application for a refund for the export declaration made for the past 2 years.
- The range of goods subject to simplified fixed amount refund is being expanded for a quick refund for small & medium enterprises for exported goods. (4,486 items as of 2019)
- Support for the debtor rehabilitation
- The companies for which disposition of delinquent tax was deferred by submitting the plan to pay the taxes in arrears are allowed to make import customs clearance, including the disposition of outstanding tax and notification of delinquent tax to the Korea Credit Information Service.
- If a company cannot pay the tax being paid by installment payment, it is possible to maintain installment payment for the remaining amount by providing security (the amount in arrears should be paid).
- Deferral of payment·Divided payment
Any of the following companies are eligible:
- A small & medium manufacturing enterprise stipulated in Article 2 of the Framework Act on Small and Medium Enterprises
- A company with cumulative reported income of US$100,000,000 or less for the past 2 years and whose rate of employment of disabled people is 3% or more according to the “Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities”
- A company approved for business restructuring plan according to Article 10 of the “Special Act on the Corporate Revitalization.”A company approved by the “Deliberation Committee for Business Reconstruction Plan” of the competent department including the Ministry of Trade, Industry, and Energy according to the Act (implemented from August 13, 2016)
Satisfying all the requirements below
Tax paid at the time of import declaration, etc.
- Import business continued for the past 2 years
- No violation of customs duty regulations (including notification disposition) or default in payment of tax, including customs duty for the past 2 years. Short-term default paid within one month of the occurrence of default is excluded, however.
- A company that is recording positive (+) current net income at least once during the past 3 years or continuous increase of sales amount (excluding the company approved for business reorganization plan).
Tax collected and fine for negligence
- No violation of customs duty regulations (including notification disposition) or default in the payment of tax, including customs duty for the past 2 years. Short-term default paid within one month of occurrence of default is excluded, however.
- The related item of import declaration is not one of the items subject to taxation audit in advance
- It is possible to defer payment or make divided payment (up to 6 installments) without security for up to one year within 50% of the amount of tax paid in the previous year.
- If it is projected that the company may go bankrupt or become insolvent due to the additional tax and fine for negligence, it is possible to defer payment or make divided payment (up to 6 installments) without security for up to one year (9 months in the case of fine for negligence) for the tax to be collected.
- A company that has to pay the collected tax can make divided payment by paying 5% of the imposed tax first and submit the plan to pay the balance even if it does not satisfy requirement 1.