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May Comprehensive Income Tax Reporting
May is an important time for sole proprietors, freelancers, and rental income earners to report their comprehensive income tax.
Busan has announced that the final reporting and payment of personal local income tax (comprehensive income portion) for the year 2025 must be completed by June 1.
Notably, starting this year, if the personal local income tax is not reported separately, additional taxes may be imposed, so careful attention is required. Previously, it was often misunderstood that local income tax was automatically processed after the comprehensive income tax was reported, but now the reporting process needs to be carefully verified.
And the reporting channels will start operating from May 6, so if you plan to visit to report, it's important to check the schedule in advance.
How to Report with WeTax and HomeTax
Personal local income tax reporting is done through the National Tax Service's HomeTax and WeTax. First, report your comprehensive income tax on HomeTax or SonTax app, then move to the local income tax reporting screen to complete your final report on WeTax.
The reporting procedure is as follows: First, access HomeTax or SonTax. Secondly, complete the comprehensive income tax report. Thirdly, click the 'Move to Local Income Tax Reporting' button. Fourthly, proceed with the linked reporting through WeTax. Finally, complete the payment or transfer to the virtual account.
Taxpayers who receive the 'All-fill guideline' find the reporting process relatively simple.
The guideline contains pre-calculated tax information from the National Tax Service, and paying through the virtual account specified in the guideline is considered as the completion of reporting.
Each district in Busan is expected to operate reporting channels for all-fill taxpayers throughout May. It is essential to carry an ID when visiting.
Eligible for Payment Deadline Extension
For the 2026 reporting, the payment deadline for some sole proprietors' personal local income tax will be automatically extended to August 31. However, one point to note is that even if the payment deadline is extended, the reporting must be completed by June 1.
Those eligible for the payment deadline extension include small business owners, businesses sensitive to commodity prices, and businesses that suffered from platform non-settlement. This is an important matter that businesses should not overlook.
Starting in January 2026, small business owners will receive the benefit of automatic extension of the value-added tax payment deadline.
For general tax payers, if the annual revenue in 2024 is less than 1 billion won and the first quarter sales decrease by more than 30% compared to the same period last year, they will qualify.
Most small-scale taxpayers are included regardless of industry and size, but real estate rental businesses and some professional businesses are excluded.
Additionally, industries sensitive to commodity prices include petroleum chemical manufacturing and transportation industries.
Businesses that have suffered due to delayed settlements on platforms can also receive support. If settlements with Tmon, Wemakeprice, or Interpark Commerce are delayed, they can benefit from the payment deadline extension. However, taxpayers subject to diligent reporting verification and those with financial income exceeding 20 million won are excluded from automatic extensions.
This policy is expected to provide practical help to small business owners.
Cautions for Personal Local Income Tax
The most notable change this year is the strengthening of reporting obligations. If taxpayers neglect to report personal local income tax thinking that they only need to report comprehensive income tax, they risk incurring additional taxes.
There is a misconception among small business owners and freelancers that “it’s okay to report later because I’m subject to payment extension,” which is not true. Care must be taken to avoid being disadvantaged by such misinformation.
In summary:
The reporting deadline is set for June 1, 2026. Taxpayers subject to diligent reporting must complete the related procedures by June 30. Payment can be extended until August 31, but reporting must be completed within the legal deadline.
Additionally, using electronic reporting reduces the burden of documentation and minimizes the possibility of errors. The city of Busan actively encourages the use of electronic reporting through HomeTax and WeTax.
Summary of 2026 Comprehensive Income Tax
For the 2026 personal local income tax reporting, the management of omitted reports has become stricter.
It is particularly important to note that those with extended payment deadlines must still complete their reports by June 1.
Linking HomeTax and WeTax makes reporting much easier. In particular, if you have received the all-fill guideline, simply paying will acknowledge your reporting and add convenience.
During the comprehensive income tax reporting period in May, it is common for a rush of traffic on the deadline day, so it is advisable to complete both reporting and payment in advance.
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Frequently Asked Questions (FAQ)
Q. When is the reporting deadline for the 2026 personal local income tax and comprehensive income tax?
Comprehensive income tax reporting must be done in May, and personal local income tax by June 1.
The reporting period for the 2026 comprehensive income tax is in May, and personal local income tax (comprehensive portion) reporting and payment, according to Busan city standards, must be completed by June 1. Particularly, reporting must be completed within the legal deadline, and while the payment deadline can be extended, the reporting deadline must be adhered to. Taxpayers subject to diligent reporting verification must complete the related procedures by June 30.
Q. How do I report personal local income tax?
After reporting comprehensive income tax on HomeTax or SonTax, complete local income tax reporting on WeTax.
Personal local income tax reporting is first completed on the HomeTax website or SonTax app by reporting comprehensive income tax, then linking by clicking the 'Move to Local Income Tax Reporting' button on the local income tax reporting screen to proceed with reporting on WeTax. Afterwards, the reporting process is finalized by completing payment or transferring to a virtual account. It’s essential to carefully verify each stage of this dual-reporting process.
Q. How does receiving an all-fill guideline change the reporting process?
Upon receiving the all-fill guideline, reporting is completed with only the payment.
Taxpayers who receive the 'All-fill guideline' will receive a simplified reporting process as it contains pre-calculated tax information from the National Tax Service. Paying through the virtual account specified in the guideline is considered as the completion of reporting. Each district in Busan will operate reporting channels for all-fill taxpayers, and it is essential to carry an ID when visiting.
Q. Who is eligible for the payment deadline extension and what should they be aware of?
Some taxpayers, like small business owners, will have their payment deadlines extended to August 31; however, reporting must be done by June 1.
For 2026, small business owners, those in industries sensitive to commodity prices (like petroleum chemical manufacturing and transportation), and businesses that suffered from platform non-settlement are included in the eligibility for the payment deadline extension. However, even if the payment deadline is extended, reporting must still be completed before June 1, so comply with the reporting period to avoid disadvantages. Taxpayers subject to diligent reporting verification and those with financial income exceeding 20 million won are excluded from the extension benefits.
Q. What should be noted when reporting comprehensive income tax in 2026?
Failure to report personal local income tax may lead to additional taxes, so caution is required.
Starting in 2026, if taxpayers only report comprehensive income tax and neglect personal local income tax, the risk of additional taxes increases. Reporting obligations have been strengthened, and a separate local income tax reporting process must be carried out, so small business owners and freelancers need to adhere to reporting and payment deadlines and actively use electronic reporting. Delaying reporting under the assumption of being eligible for payment extension could result in disadvantages.
