Government to delay taxes for businesses affected by outbreak

The government will seek ways to reduce the tax burden as part of its efforts to cushion the economic impact of the COVID-19 outbreak, which may mean delaying corporate and value-added taxes for affected businesses.

“Delaying filing, and extending the deadline for value-added tax and general income tax will be discussed,” Prime Minister Chung Sye-kyun said at Friday’s meeting.

Saying the outbreak has brought the economy to a halt, Chung added that the economic effects of the pandemic cannot be gauged, calling for unprecedented measures.

After the meeting, the prime minister’s office said the National Tax Service is working to extend the value-added tax payment deadline by one month for corporations and three months for small merchants operating in areas designated as disaster zones. In addition, the NTS is considering pushing back the May general income tax reporting and payment deadlines by one month.

At the meeting, Chung also stressed the need to prevent new COVID-19 cases from coming into the country.

“Of the new cases confirmed the day before yesterday, 8 percent were Koreans who returned from overseas. A statistically significant proportion of those entering the country from Europe are being diagnosed,” Chung said.

“Concerned ministries should immediately provide the facilities and manpower necessary to expand the special immigration procedures.”

With the number of COVID-19 cases rapidly increasing in Europe, Seoul will introduce more stringent screening of travelers arriving from Europe from Sunday.

From Sunday, South Koreans and foreigners coming into Korea long-term who show symptoms but test negative for the coronavirus will be required to self-quarantine for 14 days.

Those who do not have a place of residence in Korea will be housed at government facilities. Foreigners coming for short-term visits will be monitored by the authorities while they are here, and both Koreans and foreigners who test positive for the virus will be placed in isolation or in medical facilities depending on the seriousness of their symptoms.

By Choi He-suk (cheesuk@heraldcorp.com)