Gyeonggi Province 2015 Corporate Local Income Tax 1.2751 Trillion Won… 32% Increase

Gyeonggi Province announced on the 24th that the reported and paid amount of corporate local income tax for 2015 totaled 1.2751 trillion won, representing a 32% increase from the previous year.

This represents an increase of 312 billion won from the previous year (963.1 billion won), with the main cause being the impact of changes in the taxation system following amendments to the law.

According to the province, the local income tax, which had previously operated as an additional tax to national taxes (10% of the corporate tax assessment), has been restructured into an independent tax system, requiring separate reporting and payment directly to cities and counties starting this year.

Accordingly, Gyeonggi Province has continuously conducted specialized training to enhance the expertise of relevant public officials regarding the restructured corporate local income tax, held briefing sessions on the amendments targeting corporations and tax accountants, and actively encouraged internet electronic reporting and payment for taxpayer convenience.

As a result, the April corporate local income tax final reporting and payment by corporations with accounting closures at the end of 2014 was carried out stably without significant confusion.

Park Dong-kyun, Director of the Tax Administration Division of Gyeonggi Province, stated, "This year's increase in tax revenue is due to both increased corporate profits and changes in the corporate local income tax system," and added, "For corporations with accounting closures at the end of December that have not submitted tax returns, those making delayed reports by May will be eligible for a 50% reduction in unreported surcharges, so please make payment by the end of this month."