Article 99-10 (Special Provisions on Collection of Arrears for Small Individual Businesses)

The head of a tax office may apply the special provisions for the collection of arrears to a resident who meets all of the following requirements, upon application, for arrears of income tax (including the rural special tax levied thereon) and value-added tax that are difficult to collect (hereinafter referred to as "arrears difficult to collect" in this Article), the amount of which has not yet reached the statute of limitations for the right to collect national taxes. <Amended by Act No. 17740, Dec. 29, 2020, Act No. 18601, Dec. 28, 2021, Act No. 18722, Dec. 31, 2022, Act No. 19041, Dec. 31, 2023, Act No. 19407, Dec. 31, 2024, Act No. 20048, Dec. 23, 2025> 1. A person whose average total revenue from business income for the three taxable years preceding the taxable year including the final business closing date of the resident is less than 1.5 billion won. 2. A person who has closed all businesses by December 31, 2025, and meets any of the following requirements: a. Having applied for business registration during the period from January 1, 2020, to December 31, 2028, and continuing the business for at least one month as of the application date under paragraph (3) (hereinafter referred to as "application date" in this Article). b. Being employed during the period from January 1, 2020, to December 31, 2028, and having worked for at least three months as of the application date, meeting the requirements prescribed by a Presidential Decree. c. Having commenced providing labor services during the period from January 1, 2026, to December 31, 2028, and having provided labor services for at least three months as of the application date as an artist or a labor provider under Article 77-2 (1) or Article 77-6 (1) of the Employment Insurance Act, meeting the requirements prescribed by a Presidential Decree. 3. A person who has not been punished or sanctioned under the Act on Special Cases Concerning the Punishment, etc. of Trafficking in Narcotics, etc. or who has not been undergoing related legal proceedings within five years prior to the application date. 4. A person who is not under investigation for a tax fraud case under the Act on Special Cases Concerning the Punishment, etc. of Trafficking in Narcotics, etc. as of the application date. 5. A person whose total amount of income tax (including the rural special tax levied thereon) and value-added tax among the resident's arrears is 80 million won or less as of the application date. 6. A person who has not received the special provisions on the extinction of the obligation to pay arrears for small individual businesses under Article 99-5 or the special provisions on the extinction of the obligation to pay arrears for livelihood-dependent individuals in arrears under Article 99-15.

A resident who wishes to receive the special provisions for the collection of arrears under paragraph (1) shall apply for the special provisions for the collection of arrears to the head of the tax office having jurisdiction over the arrears difficult to collect from January 1, 2020, to December 31, 2029, in accordance with a Presidential Decree (the installment payment period shall be set within five years). <Amended by Act No. 17740, Dec. 29, 2020, Act No. 18601, Dec. 28, 2021, Act No. 18722, Dec. 31, 2022, Act No. 19041, Dec. 31, 2023, Act No. 19407, Dec. 31, 2024, Act No. 20048, Dec. 23, 2025>

The head of the tax office having jurisdiction over the arrears shall not enforce collection of the arrears difficult to collect for which special provisions for the collection of arrears have been applied under paragraph (1) from the application date until the final installment payment deadline under Article 2 (2) 2. <Amended by Act No. 17740, Dec. 29, 2020>

If a resident who has received the special provisions for the collection of arrears fails to make installment payments a total of 5 times or 3 consecutive times, the head of the tax office having jurisdiction over the arrears shall, notwithstanding paragraph (5), cancel the special provisions for the collection of arrears and enforce collection. <Amended by Act No. 17740, Dec. 29, 2020>

In paragraph (1), "arrears difficult to collect" refers to arrears that fall under any of the following subparagraphs. In this case, the value of assets acquired by the resident after the reference date and discovered by the head of the tax office having jurisdiction over the arrears before the application date, and the amount paid by the resident from the reference date to the application date, shall be deducted from the arrears difficult to collect. <Amended by Act No. 17740, Dec. 29, 2020> 1. Arrears that cannot be collected from the resident because the resident has no assets as of the reference date. 2. Arrears remaining after applying distribution amounts, when the enforced collection is concluded as of the reference date and the distributed amount to the resident's arrears is insufficient to cover the arrears. 3. Arrears that cannot be collected from the resident because the total asset value as of the reference date is insufficient to cover the expenses for enforced collection, leaving no room for collection of the resident's arrears. 4. Other arrears that are recognized as difficult to collect and are prescribed by a Presidential Decree.