October this year is marked by 10 consecutive days of holidays from Sep. 30 through Oct. 9, including two weekends, a temporary national holiday, National Foundation Day, Chuseok Holidays and Hangul Day. Because there are fewer working days in October compared to other months, the National Tax Service has extended the due date for filing, payment, issuance, submission, etc. as follows, in accordance with Article 6 of the Framework Act on National Taxes and Article 2 of the Enforcement Decree of the same Act, for the convenience of taxpayers.

No.	Tax-Related Obligations	Due date
		Original	Extended
1	Filing of report of withholding of income tax and payment of withholding tax	Oct. 10	Oct. 13
2	Filing and payment of securities transaction tax	Oct. 10	Oct. 13
3	Filing and payment of principal and income of income contingent loans subtracted at source	Oct. 10	Oct. 13
4	Payment of stamp tax (applicable to stamp tax approved for deferred payment)	Oct. 10	Oct. 13
5	Submission of statement of commencement or termination of pension	Oct. 10	Oct. 13
6	Issuance of electronic tax invoice and electronic invoice	Oct. 10	Oct. 13
7	Submission of electronic tax invoice file by business operators using a receipt form prescribed by National Tax Service Notice no. 2016-10	Oct. 11	Oct. 16
8	Application for non-taxation or tax exemption for non-residents and foreign companies under tax treaties	Oct. 9	Oct. 13
9	Petroleum distributors' application for refund of tax exempted on tax-free petroleum	Oct. 10	Oct. 13
10	Submission of liquor sale record	Oct. 10	Oct. 13
11	Filing of report of tax associations’ collection of tax and payment of tax	Oct. 10	Oct. 13

October is the month in which a preliminary return of value added tax (VAT) should be filed and the tax amount payable should be paid. Entrepreneurs operating a business subject to VAT should file a preliminary return of VAT for the turnover of sales from Jul. 1 through Sep. 30 and pay the relevant amount by Oct. 25.

General taxable persons are imposed an amount equal to half of the VAT paid in the preceding taxable period (Jan. 1-Jun. 30, 2017), but they can choose to file a preliminary return if business performance has declined or when they have tax refundable subject to early refund.

General taxable persons can choose to file a preliminary return in the following cases:

▪ Article 48 (4) of the Value Added Tax Act, Article 90 (5) of the Enforcement Decree of the Act
  - If the value of supply or the amount of tax payable for the portion of each preliminary return period falls short of
    1/3 of either the value of supply in the immediately preceding taxable period or the amount of tax payable due to
    the suspension of, or decline in business operations
  - If an early refund is sought for the portion of each preliminary return period

▪ Article 108-3 of the Restriction of Special Taxation Act
  - If VAT (output tax) is generated from the account of a business operator for trading gold or copper scrap, etc.

   Even if a company purchased an auto insurance for business-use vehicles covering only part of a business year, vehicle-related expenses for the period covered by insurance were recognized as expense for the year 2016, since the regulation on inclusion of expenses related to business-use vehicles became effective in 2016. However, in 2017 and onwards, expenses related to business-use vehicles shall not be included in expense if a company’s auto insurance does not cover the entire business year.

   Source: National Tax Service (June 28, 2017)

   A domestic company adopted an annual salary system for its executives and paid severance pay to executives for their service period under the condition that no severance pay will be paid going forward. Afterwards, at a general meeting of shareholders, the company resolved to go back to the salary system they had before adopting the annual salary system, and also resolved to pay severance pay for the period starting from the date of transition to the old salary system. In this case, the company’s contribution to retirement pension can be included in expense.

   Source: National Tax Service (June 22, 2017)