Korea considers reform of interim corporate tax payments

[Graphics by Song Ji-yoon]

The South Korean government is considering a plan to require companies to pay interim corporate taxes based on a six-month provisional settlement.

Maeil Business Newspaper has learned on Wednesday that the Ministry of Economy and Finance is currently conducting an internal review of the six-month provisional corporate tax payment.

Currently, companies can choose between paying half of the previous year‘s corporate income tax or the amount calculated from a provisional settlement for the first half of the current year (January to June) when paying their interim corporate income tax.

The government is considering a revision to unify the payment of interim corporate income tax to the latter option.

The government is considering making the six-month provisional settlement payment mandatory as a measure to improve the accuracy of corporate tax revenue forecasts, said a ministry official.