NTS to give tax favors to subcontractors

Subcontractors of insolvent companies will receive tax favors. The National Tax Service (NTS) said Monday that it has decided to offer tax deals to subcontractors which fell into financial crunches because of their relationships with 52 companies such as Daewoo Motor and Dong-Ah Construction, which have become subject tot he restructuring drive.

These subcontractors will be allowed to pay taxes after the deadline. The measure will be applied only to subcontractors of companies which were declared insolvent by the government on Nov. 3. The government will also determine whether or not to give tax benefits to insolvent companies, based on their ability to return the money.

The NTS decided to extend the deadline for subcontractors¡¯ payment of income, corporate and value-added taxes by as long as six months if they ask for it. The agency will not take an action to force subcontractors to pay taxes for as long as nine months, if they are paying the taxes or the deadline is not set yet.