A Korean tax bill has arrived and the money is not there; leave it and a penalty accrues. There is a tool to use first — an extension of the payment deadline. Where a ground is accepted, payment can be put back or split for up to 9 months, and no late-payment penalty runs meanwhile. We read Articles 13 to 16 of the National Tax Collection Act and Articles 11 to 14 of its Enforcement Decree in the original.
1. Up to 9 months. The period is set within 9 months from the day after the extension, and instalments may be ordered (Decree Article 12(1)).
2. Apply at least 3 days before the deadline. Apply 10 days before and hear nothing within 10 days, and it is deemed approved (Act Article 13(5)).
3. No late-payment penalty during the extension. Decree Article 13 says so.
What grounds qualify — Article 13(1) of the Act
The head of the competent tax office may extend the deadline where it is recognised that the taxpayer cannot pay a national tax by the payment deadline, or the deadline in a demand notice, for one of the following reasons. "Extension" includes having the tax paid in instalments.
| Ground (statute) | Example (added by us) | Basis |
|---|---|---|
| Serious loss of property through disaster or theft | Fire, flood, theft | Act Art. 13(1)(1) |
| Marked loss in the business, or a risk of dishonour or insolvency | Collapse in sales, a customer's default | Act Art. 13(1)(2) |
| The taxpayer or a cohabiting family member needs 6 months or more of treatment for illness or serious injury, or has died and the family is in mourning | Long hospital stay, bereavement | Act Art. 13(1)(3) |
| Books or documents seized or held; the tax agent hit by disaster or the books stolen; and similar | — | Decree Art. 11(1), (4) |
| Grounds equivalent to the first three | — | Decree Art. 11(5) |
The examples in the middle column are ours; the statute goes only as far as the left. Decree Article 11 also covers payment made difficult by a banking system failure or closure (items 2 and 3). The text says "may extend" — a ground does not make it automatic; the tax office has to accept it. Whether simply having no money is enough is not stated in the text (our reading).
How long — Decree Article 12
- 9 months as the rule — within 9 months from the day after the extension or deferral. The tax office may set instalment dates and amounts.
- Over 6 months: instalments in the last 3 — where the period exceeds 6 months, it should as far as possible provide for equal instalments within 3 months from the day 6 months have passed.
- A special 2 years — for those with a place of business in an employment disaster area, an industrial crisis response area or a special disaster area (within 2 years of its declaration), applying in respect of income tax, corporate tax or VAT, the period may be set within 2 years (Article 12(2)).
| Example (our arithmetic) | Timing | Amount |
|---|---|---|
| Original payment deadline | 30 November 2026 | 9 million won |
| Extended by 9 months | To around 31 August 2027 | — |
| Equal instalments in the last 3 months | Months 7, 8 and 9 | 3 million won, 3 times |
The table applies the statutory "9 months" and "equal instalments within 3 months after 6 months have passed" to our own figures. The actual period and number of instalments are set by the tax office, which need not grant the full 9 months. The date simply adds months, hence "around".
When and how to apply — Decree Article 14
The application goes to the head of the competent tax office at least 3 days before the deadline expires, and may be filed through the national tax network (Hometax). Where the tax office accepts that this was not possible, it may be filed up to the deadline.
- The taxpayer's address or residence and name
- The tax period, tax item, amount and deadline of the tax to be paid
- The reason for and period of the extension or deferral sought
- Where instalments are sought, the instalment amount and number
Silence counts as approval
The tax office must notify its decision by the day the deadline expires (Act Article 13(4)). And where the taxpayer applied at least 10 days before expiry and the tax office gives no decision within 10 days of the application, the application is deemed approved on the day 10 days have passed (paragraph (5)).
So "3 days before" is the last line, and filing "10 days before" is the better position — it brings the protection of deemed approval if nothing comes back (our reading). How supporting documents are attached will be on the form, which we did not check this time.
If no bill has been issued yet — deferral of the payment notice (Act Article 14)
For tax not yet notified, a deferral of the payment notice is available on the same grounds, including notice in instalments. The frame of application, notification and deemed approval after 10 days matches Article 13.
What runs and what does not during the extension
| Item | During the extension or deferral | Basis |
|---|---|---|
| Late-payment penalty | Not imposed | Decree Art. 13 |
| Tax security | The tax office may require security equal to the amount | Act Art. 15 |
Security is something the office "may require", with a proviso that it does not in cases set by Presidential Decree, such as a business that has suffered serious loss but is accepted as able to pay by the extended deadline. Decree Article 16 lists three such cases — serious business loss where the tax office, weighing the amount, the period and past payment history, accepts that payment can be made within the period; serious loss of property through disaster or theft, or payment made difficult by a banking system failure or closure; and similar cases. The penalty rates themselves are in penalty relief for late returns.
When it is cancelled — Act Article 16
- An instalment is not paid by its date
- A request for additional security or a change of guarantor is not met
- A change in assets or the like means the extension is no longer needed
- A ground for collection before the deadline (Article 9(1)) means the full amount cannot be collected
On cancellation the tax covered may be collected all at once. And where the extension of a designated payment deadline is cancelled on the first, second or fourth ground, no further extension can be granted for that tax (Article 16(3)).
Miss one instalment and the remainder comes back at once with re-extension barred (our gloss). Apply for instalments you can keep.
Checklist
- ☐ Which ground in Article 13(1) of the Act your situation falls under
- ☐ The date 10 days (at the latest 3 days) before the payment deadline
- ☐ The reason, period, instalment amount and number stated in the application
- ☐ Material supporting the ground
- ☐ The approved instalment dates in the calendar
Questions that remain
Does the same work for local taxes?
Local taxes such as property and automobile tax rest on a different law (Article 26 of the Framework Act on Local Taxes), which we did not read this time — local tax penalties are in penalties on local taxes.
Can the filing deadline be put back too?
This article is about the payment deadline. Extension of a filing deadline sits in the Framework Act on National Taxes and was not read this time.
Does it cover interim prepayment of global income tax?
The statute says "national tax" without singling out tax items. The interim amount can be checked with the interim prepayment calculator.
Sources
- National Tax Collection Act [in force 2 October 2026] [Act No. 21490, amended 24 March 2026] — original text (checked 8 October 2026). Article 13 (grounds; 10 days), Article 14 (deferral of payment notice), Article 15 (security), Article 16 (cancellation).
- Enforcement Decree of the National Tax Collection Act [in force 27 February 2026] [Presidential Decree No. 36126, partially amended 27 February 2026] — original text. Article 11 (grounds), Article 12 (9 months; 6 months; 3 months; 2 years), Article 13 (no late-payment penalty), Article 14 (3 days before; contents of the application), Article 16 (exceptions to security).
- Not read. Decree Article 15 (notification) and Article 17 onwards (cancellation grounds), the application form, filing-deadline extension under the Framework Act on National Taxes, Article 26 of the Framework Act on Local Taxes, and the grounds in Article 9 of the Act.
- Our reading and arithmetic. The examples by ground, the 9 million and 3 million won instalment example and its dates, the point that 10 days before is the better position.
Where to check further
- Hometax or your tax office — applying for an extension.
- Due dates by tax — the tax calendar.
Written on 8 October 2026. The provisions follow the original text at the Korea Law Information Center; the reading and arithmetic are ours.
