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INDIVIDUAL CONSUMPTION TAX ACT

Act No. 8829, Dec. 31, 2007

Amended by Act No. 8987, Mar. 28, 2008

Act No. 9259, Dec. 26, 2008

Act No. 10445, Mar. 9, 2011

Act No. 10789, jun. 7, 2011

Act No. 11120, Dec. 31, 2011

Act No. 12157, Jan. 1, 2014

Act No. 12846, Dec. 23, 2014

Act No. 13246, Mar. 27, 2015

Act No. 14079, Mar. 22, 2016

Act No. 14378, Dec. 20, 2016

Act No. 15036, Nov. 16, 2017

Act No. 15217, Dec. 19, 2017

 Article 1 (Taxable Objects and Tax Rates)
(1) The individual consumption tax shall be levied on specific goods, admission to specific places, entertaining, eating, and drinking at specific places, and business activities at specific places. <Amended by Act No. 9909, Jan. 1, 2010>
(2) The goods on which the individual consumption tax shall be levied (hereinafter referred to as "taxable goods"), and the tax rates therefor are as follows: <Amended by Act No. 6032, Dec. 3, 1999; Act No. 6294, Dec. 29, 2000; Act No. 6521, Dec. 15, 2001; Act No. 6945, Jul. 26, 2003; Act No. 7224, Oct. 16, 2004; Act No. 7575, Jul. 8, 2005; Act No. 7840, Dec. 31, 2005; Act No. 8829, Dec. 31, 2007; Act No. 8987, Mar. 28, 2008; Act No. 9259, Dec. 26, 2008; Act No. 9909, Jan. 1, 2010; Act No. 11106, Dec. 2, 2011; Act No. 11120, Dec. 31, 2011; Act No. 11601, Jan. 1, 2013; Act No. 12157, Jan. 1, 2014; Act No. 12846, Dec. 23, 2014; Act No. 13547, Dec. 15, 2015; Act No. 14378, Dec. 20, 2016; Act No. 15217, Dec. 19, 2017>
1. Tax rates of 20/100 of the price shall apply to the following goods:
(a) Slot machines, speculation machines for amusement, and other amusement goods;
(b) Hunting guns.
2. The specified tax rates shall apply to the portions of the prices of the following goods (hereinafter referred to as "taxable prices") which exceed the standard prices determined by Presidential Decree (hereinafter referred to as "standard prices"):
(a) 20/100 of the taxable prices of the following goods:
(i) Jewelry (excluding diamond for industrial use and raw ore), pearl, tortoise shell, coral, amber, and ivory, and the products made thereof;
(ii) Precious metal products;
(iii) Deleted; <by Act No. 13547, Dec. 15, 2015>
(iv) High-quality watches;
(v) High-quality carpets;
(vi) High-quality bags;
(b) 20/100 of the taxable prices of the following goods:
(i) High-quality fur and the products made thereof (excluding rabbit fur and the products made thereof, and raw fur);
(ii) High-quality furniture;
3. The specified tax rates shall apply to the prices of the following vehicles:
(a) Passenger cars and camping cars in excess of 2,000-cubic centimeter engine displacement: 5/100;
(b) Passenger cars and two-wheeled vehicles of up to 2,000-cubic centimeter engine displacement (excluding those of up to 1,000-cubic centimeter engine displacement which comply with the specifications determined by Presidential Decree): 5/100;
(c) Electric passenger cars (excluding those of which specifications are prescribed by Presidential Decree in consideration of the detailed criteria referred to in Article 3 (2) of the Motor Vehicle Management Act): 5/100;
4. The specified tax rates shall apply to the volume of the following goods:
(a) Gasoline and substitute oil similar thereto: 475 won per liter;
(b) Light oil and substitute oil similar thereto: 340 won per liter;
(c) Kerosene and substitute oil similar thereto: 90 won per liter;
(d) Heavy oil and substitute oil similar thereto: 17 won per liter;
(e) Propane (including mixtures of propane and butane, which are determined by Presidential Decree) among petroleum gases (including liquefied gas; hereinafter the same shall apply): 20 won per kg;
(f) Butane (including mixtures of butane and propane, which do not fall under item (e)) among petroleum gases: 252 won per kg;
(g) Natural gas (including liquefied gas): 60 won per kg;
(h) Oils produced as by-products in the process of manufacturing goods, other than petroleum products, which are prescribed by Presidential Decree: 90 won per liter;
(i) Bituminous coal: 36 won per kg;
5. Deleted; <by Act No. 14079, Mar. 22, 2016>
6. The tax rates applicable to different types of tobacco (referring to tobacco defined under Article 2 of the Tobacco Business Act) are as prescribed in the attached Table.
(3) The places on which the individual consumption tax is levied for admission (including the use of relevant facilities and articles; hereinafter the same shall apply) (hereinafter referred to as "taxable places"), and the tax rates therefor shall be as follows: <Amended by Act No. 9909, Jan. 1, 2010; Act No. 10404, Dec. 27, 2010; Act No. 12157, Jan. 1, 2014; Act No. 13547, Dec. 15, 2015>
1. Horse race tracks: 1,000 won per person per admission: Provided, That the rate applicable to off-course betting facilities shall be 2,000 won;
2. Bicycle race tracks and boat race courses: 400 won per person per admission: Provided, That the rate applicable to off-course betting facilities shall be 800 won;
3. Places in which a slot machine is installed: 10,000 won per single person's admission;
4. Golf courses: 12,000 won per single person's admission;
5. Casinos: 50,000 won per single person's admission (6,300 won per single person's admission in cases of casinos licensed under Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas): Provided, That 2,000 won per single person's admission in cases of foreigners.
(4) The places on which the individual consumption tax is levied for entertaining, eating, and drinking (hereinafter referred to as "taxable entertainment place"), and the tax rates therefor shall be as follows: <Amended by Act No. 9909, Jan. 1, 2010>
Entertainment bars, foreigner-only entertainment and eating establishments, and other similar places: 10/100 of a charge for entertainment and eating.
(5) The places on which the individual consumption tax is levied for business activities (hereinafter referred to as "taxable business place"), and the tax rates therefor shall be as follows: <Amended by Act No. 9909, Jan. 1, 2010>
Casinos licensed under Article 5 (1) of the Tourism Promotion Act (including casinos licensed under Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas): Any of the following applicable tax rates based on the annual turnover (referring to the turnover in Article 30 (1) of the Tourism Promotion Act; hereinafter the same shall apply):
SubparagraphAnnual turnoverTax rate
150 billion won and less0/100
2Over 50 billion won up to 100 billion won2/100 of the amount in excess of 50 billion won
3Over 100 billion wonOne billion won + (4/100 of the amount in excess of 100 billion won)
(6) Sub-categories and kinds of the taxable goods (excluding those specified in paragraph (2) 2 (b) (i), paragraph (2) 4 (e) and (f), and paragraph (2) 6), taxable places, taxable entertainment places, and taxable business places shall be prescribed by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010; Act No. 12846, Dec. 23, 2014>
(7) The tax rates prescribed by paragraphs (2) and (3) may be adjusted by Presidential Decree within the scope of 30/100 thereof, if necessary for the adjustment of economic performance, price stabilization, and adjustment of supply and demand in order to efficiently manage the national economy, and if necessary for raising funds to support businesses according to the fluctuation of oil prices. <Amended by Act No. 9909, Jan. 1, 2010>
(8) Every decision on taxable goods shall be based on the form, purpose of use, characteristics, and other special qualities of the goods, irrespective of however named. <Amended by Act No. 9909, Jan. 1, 2010>
(9) Where the same taxable good falls into at least two items of goods specified in paragraph (2), it shall be treated as the item of goods suitable for the characteristics of the taxable goods, on condition that where the characteristics are unclear, it be treated as the item of goods used for the primary purpose of use of the taxable goods, and where the primary purpose of use is unclear, it be treated as the item of goods subject to a higher tax rate. <Amended by Act No. 9909, Jan. 1, 2010>
(10) Where taxable goods are taken out in a dissembled or unassembled state, they shall be treated as finished products. <Amended by Act No. 9909, Jan. 1, 2010>
(11) Even in cases of running a taxable entertainment place or taxable business place which falls under paragraph (4) or (5) without obtaining permission in accordance with the Food Sanitation Act, Tourism Promotion Act or other statutes, such place shall be deemed a taxable entertainment place or taxable business place subject to taxation. <Amended by Act No. 9909, Jan. 1, 2010>
(12) Except as otherwise expressly provided for in paragraphs (8) through (11), matters necessary for determining taxable goods, taxable places, taxable entertainment places, taxable business places, and entertaining, eating and drinking shall be determined by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010; Act No. 10404, Dec. 27, 2010>
 Article 1-2 (Provisional Tax Rate)
(1) The taxable goods that are leading in technological development or environment-friendly and prescribed by Presidential Decree shall be subject to the following tax rates:
1. For four years from the date prescribed by Presidential Decree: 10/100 of the tax rates specified in Article 1 (2) (hereafter referred to as "basic tax rate" in this Article);
2. For one year after the termination of the period specified in subparagraph 1: 40/100 of the basic tax rate;
3. For one year after the termination of the period specified in subparagraph 2: 70/100 of the basic tax rate.
(2) The period of application of the tax rates in paragraph (1) may be shortened or suspended or the tax rates may be raised within the scope of the basic tax rate, as prescribed by Presidential Decree.
(3) The tax rates referred to in paragraphs (1) and (2) shall apply in preference to the basic tax rate, and the tax rates prescribed in Article 1 (7).
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 2 (Non-taxation)
No individual consumption tax shall be levied on any of the following goods: <Amended by Act No. 10310, May 25, 2010>
1. Goods manufactured to be used only by manufacturers (excluding corporations) and their families;
2. Goods subject to simplified tax rates in accordance with the Customs Act;
3. Goods collected at manufacturing places in accordance with the Livestock Products Sanitary Control Act, Pharmaceutical Affairs Act or Food Sanitation Act;
4. Goods containing not less than one percent alcoholic content, on which the liquor tax is levied in accordance with the Liquor Tax Act.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 3 (Taxpayer)
Any of the following persons shall be liable to pay the individual consumption tax in accordance with this Act: <Amended by Act No. 9259, Dec. 26, 2008; Act No. 9909, Jan. 1, 2010>
1. Deleted; <by Act No. 13547, Dec. 15, 2015>
2. A person manufacturing taxable goods to take them out;
3. A person who is liable to pay customs duties in accordance with the Customs Act and takes taxable goods out of the bonded areas referred to in the Customs Act (hereinafter referred to as "bonded area");
4. With respect to goods on which customs duties are collected except for cases falling under subparagraph 3, a person liable to pay the customs cuties;
5. An operator of the taxable place referred to in Article 1 (3);
6. An operator of the taxable entertainment place referred to in Article 1 (4);
7. An operator of the taxable business place referred to in Article 1 (5).
 Article 4 (Time of Taxation)
The individual consumption tax shall be imposed in accordance with the relevant statutes as at the time of taking-out for delivery, import declaration, admission, provision of entertainment or food, or business activities as follows: Provided, That the Customs Act shall apply to the cases falling under subparagraph 4 of Article 3: <Amended by Act No. 13547, Dec. 15, 2015>
1. Individual consumption tax on goods: When taxable goods are taken out for delivery from the manufacturing place or when an import declaration of taxable goods is filed;
2. Individual consumption tax on admission: When entering taxable places;
3. Individual consumption tax on the acts of entertaining, eating and drinking: When doing the acts of entertaining, eating and drinking;
4. Individual consumption tax on the act of business: When conducting businesses at taxable business places.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 5 (Cases Considered as Manufacturing)
Any of the following cases shall be considered to manufacture the concerned goods:
1. Conducting any of the following acts for the purpose of selling at a place which is not a manufacturing place:
(a) Charging containers with the goods prescribed by Presidential Decree or decorating such goods;
(b) Undergoing processes to elevate the value of taxable goods, such as decoration, assembly and addition;
(c) Mixing the goods referred to in Article 1 (2) 4 (e) and (f) (limited to cases where the mixture is butane from among the petroleum gases specified in Article 1 (2) 4 (f));
2. Replacing or supplementing most materials of used goods to upgrade the value of the used goods to the level equivalent to that of a new product, or processing or remodelling used goods into a new product by using the whole or part of the parts of the used goods.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 6 (Cases Considered as Selling, etc.)
(1) Where taxable goods fall under any of the following subparagraphs, such goods shall be considered to be sold at a selling place or taken out of a manufacturing place: <Amended by Act No. 9909, Jan. 1, 2010>
1. Where taxable goods are used or consumed at a selling place or manufacturing place: Provided, That the same shall not apply to cases falling into causes determined by Presidential Decree;
2. Where the taxable goods which have been in a selling place or manufacturing place are converted into money through public sale, auction or bankruptcy proceedings;
3. Where there remain taxable goods at a selling place or manufacturing place in the event that the sale or manufacturing of the taxable goods is effectively discontinued: Provided, That the same shall not apply to cases where the approval of the heads of competent tax offices is obtained, falling into the causes prescribed by Presidential Decree.
(2) Where an operator of a taxable entertainment place has the acts of entertaining, eating, and drinking conducted at a place other than the taxable entertainment place, the acts of entertaining, eating, and drinking shall be considered to be conducted in the taxable entertainment place. <Amended by Act No. 9909, Jan. 1, 2010>
(3) Where an operator of a taxable business place conducts business at a place other than the taxable business place, the act of business shall be considered to be conducted at the taxable business place. <Amended by Act No. 9909, Jan. 1, 2010>
 Article 7 (Cases Considered to Have Received Full Charge for Entertainment and Food)
Where an operator of a taxable entertainment place has the acts of entertaining, eating and drinking conducted without receiving the whole or part of a charge for entertainment and food, he/she shall be considered to have received the charge in full.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 8 (Tax Base)
(1) The tax base of the individual consumption tax shall be as mentioned in the following subparagraphs: Provided, That the tax bases of the taxable goods referred to in Article 1 (2) 2 shall be the portions of the prices in subparagraphs 1 through 4, which exceed standard prices: <Amended by Act No. 9259, Dec, 26, 2008; Act No. 9909, Jan. 1, 2010; Act No. 11120, Dec. 31, 2011>
1. Deleted; <by Act No. 13547, Dec. 15, 2015>
2. Goods manufactured and taken out by the taxpayer prescribed in subparagraph 2 of Article 3: The price or quantity at the time when the goods are taken out of a manufacturing place: Provided, That in cases of the gasoline and substitute oil similar thereto referred to in Article 1 (2) 4 (a), the quantity obtained by deducting from the quantity at the time when they are taken out of a manufacturing place the quantity calculated by multiplying the quantity at the time when they are taken out of the manufacturing place by the rate which is prescribed by Presidential Decree in consideration of the degree of natural decrease, such as evaporation in the process of transporting and storing the goods until the goods are sold to consumers after leaving the manufacturing place;
3. Goods taken out of bonded areas by the taxpayer referred to in subparagraph 3 of Article 3: The quantity or the sum of the taxable prices for customs duties and customs duties at the time when importation is declared: Provided, That the proviso to subparagraph 2 shall apply mutatis mutandis to the cases of the gasoline and substitute oil similar thereto stipulated in Article 1 (2) 4 (a);
4. Goods prescribed in subparagraph 4 of Article 3: The quantity or the sum of the taxable prices for customs duties and customs duties at the time when the concerned customs duties are collected;
5. Admission to taxable places: The number of visitors at the time of entering;
6. Acts of entertaining, eating and drinking at taxable entertainment places: The charge at the time of entertaining, eating and drinking: Provided, That in cases of the taxable entertainment places that install and use a cash register pursuant to Article 23-3, the amount of cash income may become a tax base, as prescribed by Presidential Decree;
7. Act of doing business at a taxable business place: Turnover.
(2) The prices or charges under paragraph (1) 2 through 6 shall not include the individual consumption tax or value-added tax on the relevant goods, entertainment, or food, whereas the prices under paragraph (1) 2 through 4 shall include prices for the containers thereof and packing charges (excluding those determined by Presidential Decree). <Amended by Act No. 9909, Jan. 1, 2010; Act No. 13547, Dec. 15, 2015>
(3) Matters necessary for price, quantity, charge, number of persons or computation of turnover, which serve as tax bases shall be determined by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010>
 Article 9 (Filing Tax Base Returns)
(1) Any person liable to pay the individual consumption tax, under subparagraphs 2 of Article 3, and Article 6 (1) 1, shall file a tax base return (including entering data into the national tax information and communications network if filing a tax return via such network; hereinafter the same shall apply) stating the quantity, price, tax base, calculated tax amount, unpaid tax amount, amount of tax exemptions, amount of tax deductions, tax refunds, tax amount to be paid, etc. of the goods that he/she has sold at a selling place or took out of a place of manufacturing each quarter (each month for the goods falling under Article 1 (2) 4 or 6) by the items of the goods, with the head of the tax office having jurisdiction over the selling place or manufacturing place by the 25th day (or the last day of the month following the month in which the goods falling under Article 1 (2) 4 or 6 is sold or taken out) of the month following the quarter in which the date of sale or taking-out falls. <Amended by Act No. 9909, Jan. 1, 2010; Act No. 12846, Dec. 23, 2014; Act No. 13547, Dec. 15, 2015>
(2) Where the taxpayer referred to in subparagraph 3 of Article 3 files an import declaration with the head of the tax office having jurisdiction over the bonded area, the tax return referred to in paragraph (1) shall be deemed filed. <Amended by Act No. 9909, Jan. 1, 2010>
(3) The Customs Act shall apply mutatis mutandis to the taxpayer referred to in subparagraph 4 of Article 3. <Amended by Act No. 9909, Jan. 1, 2010>
(4) The taxpayer referred to in subparagraph 5 of Article 3 shall file a tax base return stating the number of visitors and admission income of each quarter by the kinds and tax rates of the taxable place, with the head of the tax office having jurisdiction over the taxable place by the 25th of the month following the quarter in which the date of admission falls. <Amended by Act No. 9909, Jan. 1, 2010>
(5) The taxpayer referred to in subparagraph 6 of Article 3 shall file a tax base return stating the number of persons, charges for entertainment and food, calculated tax amount, amount of tax exemptions, amount of tax deductions, tax amount to be paid, etc. of each month by the kind of the taxable entertainment place, with the head of the tax office having jurisdiction of the taxable entertainment place by the 25th of the month following the month in which the date of providing entertaining, eating and drinking falls. <Amended by Act No. 9909, Jan. 1, 2010; Act No. 10404, Dec. 27, 2010>
(6) The taxpayer referred to in subparagraph 7 of Article 3 shall file a tax base return stating the total amount of money received from the customers of the taxable business place, total amount of money paid to customers, turnover, total tax amount, etc. of each year, and financial statements of the previous year accompanied by the audit report prepared by a certified public accountant, with the head of the tax office having jurisdiction over the taxable business place by the last day of March of the year following the year in which the date the business was conducted falls. <Amended by Act No. 9909, Jan. 1, 2010>
(7) Notwithstanding paragraphs (1), and (4) through (6), in any of the following cases, tax base returns shall be filed by the 25th day of the month following the month in which the date the relevant cause has occurred falls: <Amended by Act No. 11120, Dec. 31, 2011; Act No. 13547, Dec. 15, 2015>
1. Where a taxpayer referred to in subparagraph 2 of Article 3 falls under Article 6 (1) 2 or 3;
2. Where a taxpayer referred to in subparagraphs 2 and 5 through 7 of Article 3 ceases the operation of his/her selling place, manufacturing place, taxable place, taxable entertainment place, or taxable business place.
(8) Matters necessary for filing tax base returns under paragraphs (1), (2), and (4) through (7) shall be prescribed by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010>
 Article 10 (Payment)
(1) Any person liable to pay the individual consumption tax under any of subparagraphs 2 and 5 through 7 of Article 3, and subparagraph 1 of paragraph (1) Article 6, shall pay the individual consumption tax of each quarter (each month in cases of the goods falling under Article 1 (2) 4 or 6 and taxable places of entertainment referred to in Article 1 (4), and each year in cases of the taxable places of business referred to in Article 1 (5)) to the head of the competent tax office by the relevant filing deadline of tax base returns prescribed by Article 9 (1), and (4) through (6). <Amended by Act No. 10404, Dec. 27, 2010; Act No. 12846, Dec. 23, 2014; Act No. 13547, Dec. 15, 2015>
(2) Any of the following persons shall pay the individual consumption tax to the head of the competent tax office by the relevant filing deadline of tax base returns prescribed by Article 9 (7): <Amended by Act No. 11120, Dec. 31, 2011>
1. A taxpayer referred to in Article 6 (1) 2 or 3;
2. A person who actually ceases the operation of his/her selling place, manufacturing place, taxable place, taxable entertainment place, or taxable business place.
(3) The Customs Act shall apply to payment of the individual consumption tax by taxpayers referred to in subparagraphs 3 and 4 of Article 3.
(4) Any person that intends to take taxable goods out of a bonded area in accordance with the Customs Act before an import declaration is accepted shall provide a seizure equivalent to the amount of the relevant individual consumption tax, as prescribed by the Customs Act.
(5) If deemed necessary for securing tax payment, the head of the competent tax office may require the operators of taxable entertainment places or taxable business places referred to in subparagraph 6 or 7 of Article 3 to provide a seizure equivalent to the amount of the relevant individual consumption tax, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 10-2 (Blanket Payment)
(1) Any person that pays or is refunded the individual consumption tax pursuant to subparagraph 1 (c) of Article 5, Article 14 (4) and Article 20-2 (1) as the taxpayer referred to in subparagraph 2 of Article 3 may pay or be refunded the individual tax amount in a lump at a manufacturing place where the concerned goods are manufactured and taken out, under the conditions prescribed by Presidential Decree.
(2) Any person that intends to pay the individual consumption tax in a limp at a manufacturing place where the concerned goods are manufactured and taken out pursuant to paragraph (1) shall make an application to the head of the competent tax office to obtain approval therefor, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 10-3 (Reports and Payments by Unit of Business Operator)
Notwithstanding the provisions of Article 9 (1), paragraphs (4) through (7) of the same Article and Article 10 (1) and (2), any business operator that is reported as a unit of business operator pursuant to Article 21 (2) (hereafter referred to as "business operator taxable by the unit of business operator" in Article 21 (3)) may make reports and payments by summing them up at the headquarters or principal office of the business operator. In such cases, the headquarters or principal office of the business operator shall, when applying this Act in connection with making reports and payments, be considered as each selling place, manufacturing place, taxable place, taxable entertainment place, or taxable business place.
[This Article Newly Inserted by Act No. 10404, Dec. 27, 2010]
 Article 10-4 (Special Cases concerning Reporting on Goods Sold or Taken out of Places of Bringing-in after Being Taken out without Tax Payment)
Where a person has taken out goods without paying the individual consumption tax under Article 14 (1) or 20-3 (1) (hereafter referred to as "person of taking-out without tax payment" in this Article) and a person who has brought in the goods which were taken out is the identical business operator, the person of taking-out without tax payment may report or pay the individual consumption tax for the relevant goods to the head of the competent tax office or customs office when selling or taking out the goods in the place of bringing-in, as prescribed by Presidential Decree, notwithstanding Article 14 (4). <Amended by Act No. 12846, Dec. 23, 2014>
[This Article Newly Inserted by Act No. 11120, Dec. 31, 2011]
 Article 10-5 (Special Provisions concerning Mixing, etc. of Different Kinds of Oil in Oil Reservoirs)
When a taxpayer referred to in subparagraph 2 or 3 of Article 3 (hereafter referred to as "manufacturer, etc." in this Article) takes any kind of oil referred to in Article 1 (2) 4 (a) through (c) out of its manufacturing place or a bonded area through an oil pipeline under the Oil Pipeline Safety Control Act or by a means of transport, such as a ship or tank lorry, and take them again out of the oil reservoir owned or leased by the manufacturer, etc., if a cause prescribed by Presidential Decree, such as mixing of different kinds of oil (hereafter referred to as "mixed oil, etc." in this Article), occurs in the oil reservoir, this Act shall apply as follows: <Amended by Act No. 11601, Jan. 1, 2013>
1. Taxpayer: Manufacturers, etc. notwithstanding subparagraph 2 of Article 3;
2. Timing of taxation: The time of occurrence of mixing of oil, etc., notwithstanding subparagraph 1 of Article 4;
3. Tax base: Quantities at the time of occurrence of mixing of oil, etc., notwithstanding Article 8 (1) 2.
[This Article Newly Inserted by Act No. 11120, Dec. 31, 2011]
 Article 11 (Decision, Decision of Correction, and Re-correction)
(1) Where the written reports referred to in Article 9 fail to be submitted or any error or omission is found in reported matters, the head of each competent tax office, local tax service, or customs office shall decide or decide the correction of tax bases and tax amounts concerned. <Amended by Act No. 11120, Dec. 31, 2011>
(2) The decision and decision of correction referred to in paragraph (1) shall be based on account books and other evidential data: Provided, That they may be based on estimations as prescribed by Presidential Decree in any of the following cases: <Amended by Act No. 11120, Dec. 31, 2011>
1. Where there are no necessary account books or other evidential data or important parts are missing when a tax base is calculated;
2. Where it is obvious that the details of account books or other evidential data are falsified in light of facility capacity, number of workers, prices of raw materials, products, manufactured goods, or various kinds of charges, etc.;
3. Where it is obvious that the details of account books or other evidential data are falsified in light of the quantity of raw materials used, quantity of power used, or other operational conditions.
(3) Where any error or omission is found in tax bases and tax amounts determined or determined to be corrected under paragraphs (1) and (2), the head of a competent tax office, local tax service, or customs office shall make re-corrections. <Newly Inserted by Act No. 11120, Dec. 31, 2011>
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 12 (Occasional Imposition)
Notwithstanding the provisions of Article 9, where a taxpayer is deemed likely to evade the individual consumption tax or is in a state of suspension or closure of business due to depression in business and other causes, the tax base and tax amount thereof may be determined occasionally. In such cases, the provisions of Article 11 (2) shall be applicable mutatis mutandis thereto.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 13 Deleted. <by Act No. 8139, Dec. 30, 2006>
 Article 14 (Taking-out without Paying Tax)
(1) No individual consumption tax shall be levied on the following goods, as prescribed by Presidential Decree:
1. Where the goods to be exported are brought to other place;
2. Where goods are taken out of a manufacturing place to be displayed in the exhibitions, shows, or fairs to be held in Korea or other equivalent places (hereinafter referred to as "exhibition, etc."), where the goods which were displayed in exhibitions, etc. held inside and outside Korea are returned to manufacturing places or taken out of bonded areas, and where duty-free goods are imported on condition that they be exhibited in international exhibitions, etc. or imported free of charge to be exhibited in exhibitions, etc. to be held in Korea;
3. Where the goods manufactured with supplied raw materials or only on commission basis are brought out of a manufacturing place to be delivered to the warehouse of a truster;
4. Where goods are taken out of a manufacturing place to undergo a specification inspection at a place other than the manufacturing place or returned to the manufacturing place;
5. Where the good which are taken in under subparagraphs 1 and 3, Article 15 (1), 16 (1), 17 (1), 18 (1), or 19 are returned to a manufacturing place by reason of poor quality or others;
6. Goods deemed not to hinder securing the payment of the individual consumption tax or regulating other matters and determined by Presidential Decree.
(2) With respect to the goods referred to in paragraph (1) which fail to prove the fact of being brought to a place of bringing-in or the fact of being provided for specified purpose of use, as prescribed by Presidential Decree, the individual consumption tax shall be collected from the sellers of the goods, persons of taking-out, or declarers of importation of the goods.
(3) Where the goods referred to in paragraph (1) is lost due to a disaster or other unavoidable causes before they are brought to a place of bringing-in, no individual consumption tax shall be collected, as prescribed by Presidential Decree.
(4) In cases falling under paragraph (1), the place of bringing-in of the relevant goods shall be deemed the selling place or manufacturing place, whereas the person of bringing-in the seller or manufacturer referred to in Article 3.
(5) Any person who brings taxable goods to a place of bringing-in under paragraph (1) shall report the relevant fact to the head of the competent tax office or customs office by the 15th day of the month following the quarter in which the date of bringing-in falls (in cases of the goods falling under Article 1 (2) 4 or 6, by the 15th day of the month following the month in which the date of bringing-in falls). <Amended by Act No. 12846, Dec. 23, 2014>
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 15 (Tax Exemption for Exportation and Military Goods)
(1) Any of the following goods shall be exempted from the individual consumption tax, as prescribed by Presidential Decree:
1. Goods for export;
2. Goods supplied to foreign forces stationed in Korea (hereinafter referred to as "foreign forces in Korea").
(2) With respect to the goods in paragraph (1) which fail to prove the fact of being provided for specified purpose of use as prescribed by Presidential Decree, the individual consumption tax shall be collected from the sellers of the goods, persons of taking-out, or declarers of importation of the goods: Provided, That where the fact is confirmed that the purpose of use of the concerned goods is changed, the individual consumption tax shall be collected immediately as prescribed by Presidential Decree.
(3) With respect to those who bring in goods exempted from the individual consumption tax pursuant to paragraph (1) 1, the individual consumption tax shall be collected from the persons of bringing-in when a specific cause determined by Presidential Decree occurs.
(4) Where goods exempted from the individual consumption tax pursuant to paragraph (1) 2 are transferred to or possessed by other person within five years from the date on which approval for exemption is obtained as prescribed by Presidential Decree, the individual consumption tax shall be collected, considering that the transferee or possessor took them out or made a declaration of importation.
(5) The provisions of Article 14 (3) shall apply mutatis mutandis to the goods taken out with an exemption from the individual consumption tax pursuant to paragraph (1).
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 16 (Diplomatic Exemption)
(1) Any of the following goods shall be exempted from the individual consumption tax, as prescribed by Presidential Decree: <Amended by Act No. 10404, Dec. 27, 2010>
1. Goods imported or purchased at a manufacturing place by diplomatic missions in the Republic of Korea, and equivalent institutions determined by Presidential Decree (hereinafter referred to as "diplomatic mission, etc. to Korea") for official use;
2. Goods imported by diplomats, and equivalent persons prescribed by Presidential Decree (hereinafter referred to as "diplomat, etc. to Korea"), and their families for their own use;
3. Petroleum used for the motor vehicles used by diplomatic missions, etc. to Korea, and diplomats, etc. to Korea.
(2) Where goods exempt from the individual consumption tax under paragraph (1) are transferred to, or held by a third person within three years from the date on which approval for exemption is granted, as prescribed by Presidential Decree, the individual consumption tax shall be collected, deeming that the transferee or holder took them out or filed an import declaration: Provided, That no individual consumption tax shall be levied on motor vehicles, among the goods exempt from the individual consumption tax under paragraph (1), even if such motor vehicles are transferred to, or held by a third person within three years from the date on which approval for exemption is granted, in extenuating circumstances prescribed by Presidential Decree, including transfer of a foreign diplomat in Korea. <Amended by Act No. 10404, Dec. 27, 2010; Act No. 12846, Dec. 23, 2014>
(3) Article 14 (3) shall apply mutatis mutandis to the goods taken out with an exemption from the individual consumption tax under paragraph (1).
(4) The Minister of Foreign Affairs shall determine the maximum annual quantity of tax-free petroleum referred to in paragraph (1) 3 by December 31 each year in consultation with the Minister of Strategy and Finance. <Newly Inserted by Act No. 10404, Dec. 27, 2010; Act No. 11690, Mar. 23, 2013>
(5) Paragraphs (1) and (2) shall apply only where the relevant country exempts diplomatic missions, diplomats, etc. of the Republic of Korea from its national tax equivalent or similar to the individual consumption tax of the Republic of Korea (the proviso to paragraph (2) shall apply only where the relevant country equally exempts diplomatic missions, diplomats, etc. of the Republic of Korea from such tax) and where the relevant country does not have any tax equivalent or similar to the individual consumption tax of the Republic of Korea. <Newly Inserted by Act No. 10404, Dec. 27, 2010; Act No. 12846, Dec. 23, 2014>
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 17 (Tax Exemption for Foreigner-Only Selling Places)
(1) With respect to goods that are taken out of a manufacturing place or selling place to be brought to a foreigner-only selling place designated by the head of the competent tax office for the purpose of selling them to non-residents, or diplomats, etc. to Korea having their addresses or abodes in Korea at the selling place, the individual consumption tax shall be exempted, as prescribed by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010; Act No. 10404, Dec. 27, 2010>
(2) The provisions of Article 14 (2) through (5) shall apply mutatis mutandis to the verification of bringing-in of, loss of, liability for tax payment of and report of the fact of bringing-in of the goods taken out with an exemption from the individual consumption tax under paragraph (1). <Amended by Act No. 9909, Jan. 1, 2010>
(3) The operator of the foreigner-only selling place in paragraph (1) shall submit a tax-free sales report to the head of the competent tax office by applying the provisions of Article 9 (1) mutatis mutandis to the tax-free goods sold quarterly (monthly for the goods falling under Article 1 (2) 4). <Amended by Act No. 9909, Jan. 1, 2010>
(4) Deleted. <by Act No. 6032, Dec. 3, 1999>
(5) Where a person who purchased individual consumption tax-exempt goods at a foreigner-only selling place does not possess the goods at the time when he/she departs from Korea, the individual consumption tax shall be collected from the purchaser. <Amended by Act No. 9909, Jan. 1, 2010>
(6) Where the goods which are brought in with an exemption from the individual consumption tax pursuant to paragraph (1) are possessed by a person who is not allowed to purchase them at the concerned selling place, the individual consumption tax shall be collected from the possessor: Provided, That the same shall not apply where the fact is confirmed that the individual consumption tax was collected from the concerned operator or purchaser. <Amended by Act No. 9909, Jan. 1, 2010>
(7) Matters concerning the designation of foreigner-only selling places and the cancellation thereof, non-resident, tax-free goods, the kind of and procedures for the sale of goods on which a tax is collected when the purchaser thereof fails to possess them at the time of departing from Korea, and reports shall be determined by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010>
 Article 18 (Conditional Tax Exemptions)
(1) Any of the following goods shall be exempted from the individual consumption tax, as prescribed by Presidential Decree: Provided, That the individual consumption tax levied on goods referred to in subparagraph 3 (a) (referring to an amount computed by subtracting the costs for installation of special equipment for persons with disabilities from the tax base) shall be exempted by up to five million won: <Amended by Act No. 10445, Mar. 9, 2011; Act No. 10789, Jun. 7, 2011; Act No. 11120, Dec. 31, 2011; Act No. 11620, Jan. 23, 2013; Act No. 12157, Jan. 1, 2014; Act No. 14079, Mar. 22, 2016>
1. Goods supplied to produce, use, and develop nuclear reactors, nuclear power or isotope, or goods used as raw materials to manufacture such goods;
2. Jewelry for physical and chemical experiments and research, industries and production of phonograph needles;
3. Any of the following passenger cars:
(a) Passenger cars purchased by persons with disabilities determined by Presidential Decree (limited to one car per disabled person);
(b) Passenger cars exclusively used for the transportation of patients;
(c) Passenger cars used for the passenger transport services under the Passenger Transport Service Act;
(d) Passenger cars used for car rental business defined under subparagraph 4 of Article 2 of the Passenger Transport Service Act: Provided, That those rented to the same person or corporation for more than six months in total within three years from the date of purchase shall be excluded;
(e) Passenger cars imported to be used for testing and studying for the development of new products or new technologies by the research institutes attached to companies and divisions in exclusive charge of research and development of companies recognized under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act;
4. Goods donated from foreign countries for charity or relief to charities, or relief institutions and organizations;
5. Goods for rites and worship which are donated to temples, churches, etc. by foreign countries and determined by Presidential Decree;
6. Specimens or articles for reference to be displayed in a school, a child care center established under the Infant Care Act (hereafter referred to as "child care center" in this Article), a science museum established under the Act on Establishment, Operation and Promotion of Science Museums, a museum established under the Museum and Art Gallery Support Act, or a place for displaying goods or to be used as teaching materials;
7. Goods donated to academic research organizations or educational institutions by foreign countries to be used for academic research or education;
8. Goods brought out of bonded areas for re-export, which are exempt from customs duties;
9. Petroleum used for vessels navigating abroad, deep-sea fishing vessels, or airplanes;
10. Petroleum used for medical treatment, manufacturing medicines, manufacturing fertilizers, manufacturing agricultural chemicals, or used as raw material for petrochemical industries;
11. Consumables other than fuel, which are recognized to be used in foreign trading ships, deep-sea fishing vessels or international airliners;
12. Deleted; <by Act No. 13547, Dec. 15, 2015>
13. Bituminous coal used for the purposes specified by Presidential Decree, including industrial purposes.
(2) The head of the competent tax office or customs office shall collect the individual consumption tax from the sellers, persons of taking-out, or declarers of importation of the goods referred to in paragraph (1) which fail to verify the facts that they have been brought to a place of bringing-in, as prescribed by Presidential Decree. <Amended by Act No. 11120, Dec. 31, 2011>
(3) If any of the causes and events specified by Presidential Decree occurs, such as a change of the use of tax-free goods after being brought into the place of bringing-in, the person of bringing-in shall file a tax base return under Article 9 with the head of the tax office or customs office having jurisdiction over the place of bringing-in by the 25th day (in cases of goods falling under Article 1 (2) 4 or 6, by the last day of the month following the month in which the date the cause occurred falls) of the month following the quarter in which the date on which the causes arise falls, and pay the individual consumption tax. <Amended by Act No. 11120, Dec. 31, 2011; Act No. 12846, Dec. 23, 2014>
(4) In cases of a passenger car referred to in the proviso to paragraph (1) 3 (d), the person who brings in the passenger car shall file a tax base return under Article 9 with the head of the tax office having jurisdiction over the place of bringing in the passenger car by the 25th day of the month immediately after the end of the quarter in which the total period of renting it to the same person or corporation exceeds six months, and shall pay the full amount of the individual consumption tax exempt: Provided, That, if the requirements prescribed by Presidential Decree are met, the use of goods shall be deemed changed under paragraph (3) on the date on which the passenger car was first rented to the same person or corporation under the proviso to the aforesaid item for the purpose of calculating the amount of the individual consumption tax payable. <Newly Inserted by Act No. 12157, Jan. 1, 2014>
(5) Article 14 (3) and (5) shall apply mutatis mutandis to the goods taken out with an exemption from the individual consumption tax pursuant to paragraph (1). <Amended by Act No. 12157, Jan. 1, 2014>
(6) Where the goods brought to a place of bringing-in with an exemption from the individual consumption tax pursuant to paragraph (1) are re-taken out to be supplied for any purpose specified in the subparagraphs of the aforesaid paragraph or subparagraphs of Article 19, the goods shall be exempted from the individual consumption tax under paragraphs (1) through (4) or Article 19. <Amended by Act No. 12157, Jan. 1, 2014>
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 19 (Unconditional Tax Exemptions)
Any of the following goods shall be exempted from the individual consumption tax, as prescribed by Presidential Decree: <Amended by Act No. 12846, Dec. 23, 2014>
1. Goods donated to charities, or relief institutions or organizations in foreign countries;
2. Marks of honor and badges awarded by foreign countries or equivalent commendation articles and medals;
3. Goods for official use sent from warships sailing abroad or missions abroad;
4. Dismantled materials and equipment that come from the dismantlement of Korean ships or other transportation means in distress;
5. Re-imported containers of export goods;
6. Where a foreign trading vessel or deep-sea fishing vessel becomes a coaster under the approval of the head of a customs office, duty-free fuel or other consumption goods that are loaded in the vessel and deemed to be used in the vessel;
7. Goods donated to the State or local governments;
8. Aid goods imported as military aid or military goods manufactured by using such goods as raw materials: Provided, That where goods other than the aid goods are mixed as raw materials, the raw materials shall not be exempted from taxation;
9. Goods imported by being carried by persons entering into Korea for purposes other than immigration or imported separately by such persons, which are exempt from duties, being recognized to be used directly by such persons;
10. Duty-free relocation goods imported by being carried by persons entering into Korea for the purpose of immigration or imported separately by such persons;
11. Petty duty-free goods given to a resident and deemed to be used by the resident;
12. Duty-free commercial samples or advertising goods imported from foreign countries;
13. Goods brought out of Korea to be exhibited in exhibitions, etc. held in foreign countries;
14. Goods re-imported and brought out of bonded areas, which are verified by the head of the competent tax office that neither refund nor deduction under this Act is made to them after they are exported with the imposition of the individual consumption tax;
15. Where homemade and individual consumption tax-exempt goods which were brought out of Korea become taxable goods through re-importation within six months after the date of acceptance of declaration of exportation, goods re-imported and brought out of bonded areas, for which the head of the competent tax office verifies the fact that no exemption, refund or deduction is made under this Act in connection with the raw materials used for the manufacturing and processing of the goods;
16. Goods to be used for guarding the Chief of the State.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 19-2 (Tax Exemption for Admission)
The act of admission falling under any of the following subparagraphs shall be exempted from the individual consumption tax, as prescribed by Presidential Decree: <Amended by Act No. 13246, Mar. 27, 2015>
1. Where an athlete participating in a competition held by the Korean Sport and Olympic Committee under the National Sports Promotion Act and the organizations affiliated thereto, or organizations prescribed by Presidential Decree, uses or enters into sports facilities during the period of competition;
2. Where a golf player prescribed by Presidential Decree enters into a golf course;
3. Where a foreigner or Korean national residing overseas prescribed by Presidential Decree, enters a casino licensed pursuant to Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 19-3 (Tax Exemption for Acts of Entertaining, Eating and Drinking)
With respect to the entertainment and food that are provided to foreign military personnel at prices in foreign currencies by those who run taxable entertainment places in the areas in which the UN forces to Korea or U.S forces to Korea are stationed and are designated by the heads of the competent tax offices, the individual consumption tax shall be exempted.
[This Article Wholly Amended by Act No. 10404, Dec. 27, 2010]
 Article 20 (Deduction from, and Refund of, Tax Amount)
(1) Where any of the following applies to the goods, the individual consumption tax of which was paid or payable or the raw materials thereof, the relevant tax amount shall be deducted from the tax amount payable or collectible, as prescribed by Presidential Decree:
1. Where the relevant tax amount is paid or collected for taxable goods which are brought from their manufacturing places or bonded areas and used directly for the manufacturing or processing of other taxable goods or fall under any of the items referred to in subparagraph 1 of Article 5;
2. Deleted; <by Act No. 13547, Dec. 15, 2015>
3. Where the relevant tax amount is paid or collected for taking out goods which are brought taxable goods from manufacturing places or bonded areas and processed or assembled pursuant to Article 1 (10).
(2) Where any of the following applies to the goods, the individual consumption tax of which was paid or payable or the raw materials thereof, the tax amount that has been already paid shall be refunded, as prescribed by Presidential Decree. In such cases, if any tax amount is payable or collectible, it shall be deducted therefrom:
1. Where taxable goods or goods manufactured or processed by using taxable goods are exported or supplied to foreign forces to Korea;
2. Goods exempted from the individual consumption tax and goods used as raw materials for such goods;
3. Where taxable goods (excluding used goods but including used goods returned for exchange or refunding in accordance with the Framework Act on Consumers) sold at or taken out of a selling place or manufacturing place are returned to the same selling place, manufacturing place (including another manufacturing place of the same company in cases of the goods referred to in each item of Article 1 (2) 4) or depositories by reason of bad quality, deterioration, natural disaster and other causes prescribed by Presidential Decree and the fact that they are returned is verified, as prescribed by Presidential Decree through reporting to the head of the competent tax office by the 25th (in cases of the goods falling under Article 1 (2) 4, the last day of the month following the month in which the date of returning falls) of the month following the quarter in which the date of returning falls. In such cases, when the fact that they are returned to depositories is verified, they shall be deemed returned to the same manufacturing place.
(3) In cases of collecting the individual consumption tax for reason of failure to verify the fact of bringing-in by the deadline fixed pursuant to Articles 14 (2), 17 (2), and 18 (2) and (3) or reporting and paying the individual consumption tax by reason of the change of purpose of goods exempted from taxation, etc., the tax amount paid or to be paid for the raw materials of the goods shall be neither deducted nor refunded. <Amended by Act No. 11120, Dec. 31, 2011>
(4) Any person intending to receive a deduction or refund under paragraphs (1) and (2) shall submit the documents prescribed by Presidential Decree along with the reports referred to in Article 9 to the head of the competent tax office or customs office by the last day of the month in which the date on which six months elapse from the date on which the relevant cause occurred falls. <Amended by Act No. 11120, Dec. 31, 2011>
(5) The additional tax imposed or to be imposed on the goods, the individual consumption tax of which, was paid or payable shall not be deducted or refunded.
(6) Where the tax amount of raw materials or purchased goods exceeds the tax amount of the goods manufactured by using such raw materials or sold goods when making the deduction under paragraph (1), the tax amount for the portion in excess shall not be deducted.
(7) Where the fact is verified that goods are not used for specified purposes, to which a refund or deduction is given because they fall under paragraph (2) 1 and 2, the refunded or deducted individual consumption tax shall be collected.
(8) Where goods on which traffic, energy and environment tax was levied are used as raw materials of the goods subject to individual consumption tax, the relevant amount of the traffic, energy and environment tax shall be refunded or deducted from the amount of the individual consumption tax payable or collectible by applying mutatis mutandis paragraphs (1) through (7). <Amended by Act No. 4665, Dec. 31, 1993; Act No. 9138, Dec. 30, 2006; Act No. 8829, Dec. 31, 2007>
 Article 20 (Deduction from, and Refund of, Tax Amount)
(1) Where any of the following applies to the goods, the individual consumption tax of which was paid or payable or the raw materials thereof, the relevant tax amount shall be deducted from the tax amount payable or collectible, as prescribed by Presidential Decree:
1. Where the relevant tax amount is paid or collected for taxable goods which are brought from their manufacturing places or bonded areas and used directly for the manufacturing or processing of other taxable goods or fall under any of the items referred to in subparagraph 1 of Article 5;
2. Deleted; <by Act No. 13547, Dec. 15, 2015>
3. Where the relevant tax amount is paid or collected for taking out goods which are brought taxable goods from manufacturing places or bonded areas and processed or assembled pursuant to Article 1 (10).
(2) Where any of the following applies to the goods, the individual consumption tax of which was paid or payable or the raw materials thereof, the tax amount that has been already paid shall be refunded, as prescribed by Presidential Decree. In such cases, if any tax amount is payable or collectible, it shall be deducted therefrom:
1. Where taxable goods or goods manufactured or processed by using taxable goods are exported or supplied to foreign forces to Korea;
2. Goods exempted from the individual consumption tax and goods used as raw materials for such goods;
3. Where taxable goods (excluding used goods but including used goods returned for exchange or refunding in accordance with the Framework Act on Consumers) sold at or taken out of a selling place or manufacturing place are returned to the same selling place, manufacturing place (including another manufacturing place of the same company in cases of the goods referred to in each item of Article 1 (2) 4) or depositories by reason of bad quality, deterioration, natural disaster and other causes prescribed by Presidential Decree and the fact that they are returned is verified, as prescribed by Presidential Decree through reporting to the head of the competent tax office by the 25th (in cases of the goods falling under Article 1 (2) 4, the last day of the month following the month in which the date of returning falls) of the month following the quarter in which the date of returning falls. In such cases, when the fact that they are returned to depositories is verified, they shall be deemed returned to the same manufacturing place.
(3) In cases of collecting the individual consumption tax for reason of failure to verify the fact of bringing-in by the deadline fixed pursuant to Articles 14 (2), 17 (2), and 18 (2) and (3) or reporting and paying the individual consumption tax by reason of the change of purpose of goods exempted from taxation, etc., the tax amount paid or to be paid for the raw materials of the goods shall be neither deducted nor refunded. <Amended by Act No. 11120, Dec. 31, 2011>
(4) Any person intending to receive a deduction or refund under paragraphs (1) and (2) shall submit the documents prescribed by Presidential Decree along with the reports referred to in Article 9 to the head of the competent tax office or customs office by the last day of the month in which the date on which six months elapse from the date on which the relevant cause occurred falls. <Amended by Act No. 11120, Dec. 31, 2011>
(5) The additional tax imposed or to be imposed on the goods, the individual consumption tax of which, was paid or payable shall not be deducted or refunded.
(6) Where the tax amount of raw materials or purchased goods exceeds the tax amount of the goods manufactured by using such raw materials or sold goods when making the deduction under paragraph (1), the tax amount for the portion in excess shall not be deducted.
(7) Where the fact is verified that goods are not used for specified purposes, to which a refund or deduction is given because they fall under paragraph (2) 1 and 2, the refunded or deducted individual consumption tax shall be collected.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
<<Enforcement Date : Jan. 1, 2019>> Article 20
 Article 20-2 (Special Cases on Refund of Individual Consumption Tax for Butane for Household Use)
(1) With respect to liquefied petroleum gas charging business operators selling the goods referred to in Article 1 (2) 4 (f) (hereafter referred to as "butane for household use" in this Article) which are used for cooking, heating and other purposes prescribed by Presidential Decree to liquefied petroleum gas sellers and other business operators prescribed by Presidential Decree and with respect to the taxpayers specified in Article 3 who manufacture or import butane for household use, the individual consumption tax amount calculated according to the following formula (hereafter referred to as "tax amount subject to refunding" in this Article) shall be refunded or deducted from the tax amount to be paid or collected:
Tax amount subject to refunding = Quantity sold as butane for household use x (tax amount prescribed in Article 1 (2) 4 (f) - tax amount prescribed in item (e) of the same subparagraph)
(2) With respect to the general urban gas business operator referred to in Article 2 of the Urban Gas Business Act and with respect to the taxpayers specified in Article 3 who sell the goods under Article 1 (2) 4 (g) (hereafter referred to as "natural gas for cooking and heating" in this Article) which are used for cooking, heating and other purposes prescribed by Presidential Decree to the users of large quantity, the individual consumption tax amount calculated according to the following formula (hereafter referred to as "tax amount subject to refunding" in this Article) shall be refunded or deducted from the tax amount to be paid or collected:
Tax amount subject to refunding = Quantity sold as natural gas for cooking and heating x (tax amount prescribed in Article 1 (2) 4 (g) - tax amount applicable to natural gas for cooking and heating)
(3) Any person that intends to receive a refund or deduction pursuant to paragraph (1) or (2) shall submit a refund application in which quantities sold each month, tax amount subject to refunding, etc. are entered to the head of the tax office or customs office having jurisdiction over the concerned business operator according to the classifications in the following subparagraphs: <Amended by Act No. 11120, Dec. 31, 2011>
1. Butane for household use: To be submitted by the last day of the following month;
2. Natural gas for cooking and heating: To be submitted by the last day of the month in which the date two months elapse from the date concerned falls.
(4) In any of the following subparagraphs, the head of each competent tax office or customs office shall collect an individual consumption tax in an amount equivalent to the sum of an amount prescribed in the subparagraph concerned and an additional tax equivalent to 40/100 (in cases of arithmetic error, 10/100) of such amount: <Amended by Act No. 11120, Dec. 31, 2011>
1. Where a person who has received a tax refund or deduction under paragraph (1) or (2) has received an excessive refund or deduction on grounds prescribed by Presidential Decree, such as issuance of falsified tax invoices: The tax amount refunded or deducted excessively;
2. Where a business operator supplied with relevant goods under paragraph (1) or (2) uses the goods for purposes other than the purposes prescribed in the said paragraph: The tax amount refunded in relation to quantities used for other purposes.
(5) The provisions of Article 7 (2) and (4) of the National Tax Collection Act shall apply mutatis mutandis to those falling under paragraph (4), according to the criteria prescribed by Presidential Decree.
(6) Matters necessary for procedures for refunding and deduction in the application of the provisions of paragraphs (1) through (5), documents to be submitted, collection of tax amount, etc. shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 20-3 (Special Cases of Taking-out of Tobacco without Paying Tax and Tax Exemptions, Deductions, and Refunds)
(1) Notwithstanding Article 14 (1), Article 53 of the Local Tax Act shall apply mutatis mutandis to the grounds for exempting the goods referred to in Article 1 (2) 6 (hereafter in this Article referred to as "tobacco") from the individual consumption tax, and Article 14 (1), with the exception of subparagraphs thereof, and Article 14 (2) through (5) shall apply to procedures therefor, additional tax collection, etc.
(2) Notwithstanding Articles 15 (1), 16 (1), 18 (1), and 19, Article 54 of the Local Tax Act shall apply mutatis mutandis to the grounds for exempting tobacco from the individual consumption tax, and the following provisions shall apply to the procedure therefor, additional tax collection, etc.: Provided, That the individual consumption tax shall be collected from a person who disposes of tobacco, if the person takes out tobacco exempt from the individual consumption tax, and subsequently transfers, sells, consumes, or otherwise disposes of such tobacco instead of using it for the relevant purpose: <Amended by Act No. 14378, Dec. 20, 2016>
1. In case of export under Article 54 (1) 1 of the Local Tax Act (excluding sample tobacco used for export counseling): Article 15 (1), with the exception of subparagraphs thereof, and Article 15 (2) through (5) shall apply;
2. Cases other than those provided for in subparagraph 1: The main sentence of Article 18 (1), and Article 18 (2), (3), and (5) shall apply.
(3) Notwithstanding Article 20 (1) and (2), the grounds for refunding the individual consumption tax paid or for deducting individual consumption tax payable for tobacco are as follows, and Article 20 (1) and (2), with the exception of subparagraphs thereof, and Article 20 (3) through (7) shall apply to the procedure therefor, additional tax collection, etc: <Amended by Act No. 14378, Dec. 20, 2016>
1. Where tobacco taken out of a manufacturing place or bonded area is destroyed or damaged due to a natural disaster or any other unavoidable cause;
2. Where tobacco taken out of a manufacturing place or bonded area is brought in a manufacturing place or a place where tobacco is stored by an import distributer under subparagraph 6 of Article 47 of the Local Tax Act due to inferior packing or quality, slow sale, or any other unavoidable cause;
3. Tax amount which has been reported and paid is in excess;
4. Tobacco exempted from individual consumption tax under paragraph (2) and tobacco used as raw materials thereof.
[This Article Newly Inserted by Act No. 12846, Dec. 23, 2014]
 Article 21 (Report of Commencement and Closing of Business, etc.)
(1) Any person that intends to sell or manufacture taxable goods or any person that intends to run a taxable place, taxable entertainment place or taxable business places shall make a report to the head of the tax office having jurisdiction over the selling place, manufacturing place, taxable place, taxable entertainment place or taxable business place (hereafter referred to as "business place" in this Article), as prescribed by Presidential Decree. The same shall apply to cases of suspending or closing the businesses or changing reported matters. <Amended by Act No. 10404, Dec. 27, 2010>
(2) Notwithstanding the provisions of paragraph (1), any business operator that has at least two business places may make a report to the head of the tax office having jurisdiction over the headquarters or principal office of the concerned business operator by the unit of business operator. <Newly Inserted by Act No. 10404, Dec. 27, 2010>
(3) Where a business operator who made a report on commencement of business pursuant to paragraph (1) intends to make a report by the unit of business operator pursuant to paragraph (2), he/she shall make a report 20 days prior to the commencement of the periods of taxation referred to in Article 9 (1) and paragraphs (4) through (6) of the same Article in which he/she intends to be applied as a business operator taxable by the unit of business operator. <Newly Inserted by Act No. 10404, Dec. 27, 2010>
(4) Any person that takes over or succeeds to a taxable goods sales business or manufacturing business, or operation of a taxable place, taxable entertainment place or taxable business place shall report such fact to the head of the competent tax office immediately. In this case, the transferee shall report under joint signature with the transferor. <Amended by Act No. 10404, Dec. 27, 2010>
(5) Where there is a merger between corporations, if the corporation in existence after the merger or corporation established through the merger (hereafter referred to as "merging corporation" in this paragraph) succeeds to the sales business, manufacturing business or operation of the, taxable place, taxable entertainment place or taxable business place of the corporation that is extinguished (hereafter referred to as "merged corporation" in this paragraph), the merging corporation shall report such fact to the head of the competent tax office immediately. In this case, the merging corporation shall report under joint signature with the merged corporation. <Amended by Act No. 10404, Dec. 27, 2010>
(6) Matters necessary for reports on the commencement or closure of business, etc. other than the matters prescribed in paragraphs (1) through (5) shall be determined by Presidential Decree. <Newly Inserted by Act No. 10404, Dec. 27, 2010>
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 22 (Cases not Considered as Closure of Business)
Where succession to a sales business or manufacturing business, or to the operation of a taxable place, taxable entertainment place or taxable business place takes place by a universal title without the actual relocation of the selling place, manufacturing place, taxable place, taxable entertainment place or taxable business place, the concerned sales business, manufacturing business or operation shall not be considered to be closed in the application of this Act.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 23 (Duty to Make Records in Account Books)
(1) Every seller or manufacturer of taxable goods and the operator of each taxable place, taxable entertainment place, or taxable business place shall keep account books at each place and enter matters concerning the manufacturing, storage, sale, admission, acts of entertaining, eating and drinking or act of business concerned in the account books, as prescribed by Presidential Decree.
(2) The operator of each taxable entertainment place shall keep account books by separating taxable parts from tax-exempt parts.
(3) The operator referred to in Article 23-3 (1) shall keep the concerned audit tape, as prescribed by Presidential Decree. In such cases, he/she shall be considered to keep the account books under paragraph (1) and make records therein.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 23-2 (Issue of Receipts)
Where the operator of a taxable entertainment place accepts a charge for entertainment and food, he/she shall issue a receipt and keep a copy thereof, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 23-3 (Installation of Cash Register)
(1) The operators of taxable entertainment places prescribed by Presidential Decree shall install and use a cash register and may issue receipts thereby. In such cases, they shall be considered to issue the receipt under Article 23-2.
(2) Matters necessary for the installation and operation of a cash register shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 24 (Succession to Rights and Duties)
(1) Where succession to a sales business, manufacturing business or to the operation of a taxable place, taxable entertainment place or taxable business place takes place by a universal title without the actual relocation of the selling place, manufacturing place, taxable place, taxable entertainment place, or taxable business place, the successor shall succeed to the following rights and duties that belonged to the predecessor: <Amended by Act No. 11120, Dec. 31, 2011>
1. Duty to make a written report of tax base referred to in Article 9, and pay tax amounts referred to in Articles 10 and 10-2 and additional tax amounts prescribed in Articles 47-2 through 47-4 of the Framework Act on National Taxes;
2. Rights and duties concerning the deduction and refund under Article 20;
3. Duty to keep account books and make records therein pursuant to Article 23;
4. Rights and duties concerning the goods which are brought in with a tax unpaid or exempt in accordance with this Act and are under post-management.
(2) Except for cases falling under paragraph (1), the provisions of paragraph (1) shall also apply to those who bring in goods with a tax unpaid or exempt pursuant to Article 14 (1) or 18 (1).
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 25 (Matters Subject to Orders, etc.)
(1) The head of each tax office or customs office may, when deemed necessary for securing the payment of the individual consumption tax, order the sellers and manufacturers of taxable goods and the operators of taxable places, taxable entertainment places, and taxable business places to issue tax invoices, use admission tickets, issue receipts, paste stickers, and other matters necessary for regulating, as prescribed by Presidential Decree. <Amended by Act No. 9909, Jan. 1, 2010>
(2) Deleted. <by Act No. 7224, Oct. 16, 2004>
(3) The head of each competent local tax service or the head of each competent tax office may, when deemed necessary for securing the payment of the individual consumption tax, order any of the following persons to classify, load and keep concerned goods, submit tax data and other matters necessary for regulation: <Amended by Act No. 9909, Jan. 1, 2010>
1. A person who obtained the designation of sales business pursuant to Article 17 (7);
2. A person falling under Article 24 (2), who brought in goods with a tax unpaid or exempt;
3. A person who manufactures or processes the parts of taxable goods.
(4) Deleted. <by Act No. 7224, Oct. 16, 2004>
[This Article Wholly Amended by Act No. 4809, Dec. 22, 1994]
 Article 26 (Right to Ask Questions and to Inspect)
(1) Every tax official may, when deemed necessary for conducting investigations on individual consumption tax, ask questions to the sellers or manufacturers of taxable goods and operators of taxable places, taxable entertainment places and taxable business places about the following matters or inspect concerned account books, documents or other things:
1. Taxable goods or products using the taxable goods, which are possessed by the sellers or manufacturers of the taxable goods;
2. Account books and documents that concern the manufacturing and storage or sale of taxable goods and products using the taxable goods;
3. Buildings, machines, instruments, materials, or other things that are necessary to manufacture, store or sell taxable goods or products using the taxable goods;
4. Account books, documents, and other things that concern admission to taxable places;
5. Account books, documents, and other things that concern the acts of entertaining, eating and drinking at taxable entertainment places;
6. Account books, documents, and other things that concern the act of business at taxable business places.
(2) Every tax official may ask questions about the origin or destination of the taxable goods that are being transported and products using the taxable goods. In such cases, the tax official may, when deemed necessary for regulating, have the transportation stopped or seal freights, or ships and vehicles or take other necessary measures.
(3) When a tax official asks questions or conducts an inspection pursuant to paragraph (1) or (2) or takes other necessary measures, he/she shall present a certificate showing his/her authority to related persons.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 27 (Request for Suspension of Business and Cancellation of Permission)
(1) In cases falling under any of the following subparagraphs, the head of each competent tax office may request the suspension of business or cancellation of permission of the concerned taxable place, taxable entertainment place and taxable business place to the administrative agency authorized to grant permission for the business through the head of the local tax service, as prescribed by Presidential Decree:
1. Where a punishment or disposition is imposed in accordance with the Punishment of Tax Offenses Act or the Procedure for the Punishment of Tax Offenses Act in connection with the operation of the taxable place, taxable entertainment place and taxable business place;
2. Where the whole or part of the individual consumption tax for admission to taxable places, acts of entertaining, eating and drinking at taxable entertainment places and act of business at taxable business places fails to be reported or paid at least three times;
3. Where the operator of a taxable entertainment place and taxable business place fails to comply with the request for the provision of a seizure for tax payment referred to in Article 10 (5).
(2) Any administrative agency authorized to grant permission shall, when receiving the request in paragraph (1), suspend business or cancel permission according to the request unless there is a justifiable cause not to do so.
[This Article Wholly Amended by Act No. 9909, Jan. 1, 2010]
 Article 28 (Jurisdiction over Administrative Affairs concerning Individual Consumption Tax)
Administrative affairs concerning the imposition and collection on the goods brought out of bonded areas or brought to bonded factories shall be handled by the heads of the customs offices having jurisdiction over the bonded areas.
[This Article Wholly Amended by Act No. 9099, Jan. 1, 2010]
 Article 29
[Previous Article 29 Moved to Article 28]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the enforcement date of the Value-Added Tax Act.
Article 2 (General Transitional Measures)
With respect to the commodity tax, woven goods tax, petroleums tax and entrance tax imposed or to be imposed under the previous provisions of the Commodity Tax Act, the Woven Goods Tax Act, the Petroleum Tax Act, and the Entrance Tax Act as at the time this Act enters into force, the previous provisions shall prevail.
Article 3 (Transitional Measures concerning Tax Refund, etc.)
With respect to the credit or refund of tax assessed in accordance with the previous provisions of the Commodity Tax Act, the Woven Goods Tax and the Petroleum Tax Act as at the time this Act enters into force, the previous provisions shall prevail: Provided, That a deduction may be made from the amount of the special consumption tax to be paid under this Act where a request therefor is made by the person concerned.
Article 4 (Transitional Measures concerning Credit of Taxation Amount for Raw Material)
Where the goods which were produced or processed from raw materials on which tax was paid pursuant to the previous provisions of the Commodity Tax Act, the Woven Goods Tax Act and the Petroleum Tax Act as at the time this Act enters into force and were not subject to taxation under the previous provisions of the Commodity Tax Act, the Woven Goods Tax Act and the Petroleums Tax Act are taxable under this Act, the paid tax amount on the raw material shall be credited from the tax amount to be paid in accordance with the provisions of this Act in cases of carrying the goods out of the manufacturing place.
Article 5 (Transitional Measures concerning Raw Material of Non-Taxable Goods)
Where the goods which were exempted from tax on the raw materials in accordance with the previous provisions of Article 10 (1) of the Commodity Tax Act, Article 9 (1) of the Woven Goods Tax Act or Article 7 (1) of the Petroleum Tax Act and those which were manufactured and processed by using raw materials which were exempted from tax in accordance with the previous provisions of Article 17 (5) of the Enforcement Decree of the Commodity Tax Act, and Article 10 (5) of the Enforcement Decree of the Woven Goods Tax Act as at the time this Act enters into force, are no longer taxable under this Act, a possessor of the goods which were not subject to taxation under the previous provisions shall be subject to the payment of the tax amount exempted under the previous provisions as if the goods were carried out from the manufacturing place as of the enforcement date of this Act. In this case the goods and half-finished goods produced by using the concerned goods as raw materials shall be calculated in terms of exempted raw materials.
Article 6 (Transitional Measures concerning Carrying-out without Tax Payment)
Where the goods which were carried into the place of carrying-in at the time of the enforcement of this Act, pursuant to the previous provisions of Article 9 (1) of the Commodity Tax Act and Article 8 (1) of the Woven Goods Tax Act (excluding the goods which were carried in for the purpose of tax exemption), are no longer taxable in accordance with the provisions of this Act, the concerned tax amounts which were not paid under the previous provisions shall be collected from the person who carried in the goods, as if they were carried out from the place of carrying-in on the enforcement date of this Act.
Article 7 (Transitional Measures concerning Ex Post Facto Administration of Tax-Exempt Goods, etc. )
The goods carried-out without tax payment (limited to the goods carried in for the purpose of tax exemption), tax-exempt goods (excluding those falling under the provisions of Article 5 of the Addenda) or non-taxation goods under the previous provisions of the Commodity Tax Act, the Woven Goods Tax Act and the Petroleum Tax Act as at the time this Act enters into force, which are under the ex post facto administration, shall be governed by the previous provisions until they complete serving the original purpose.
Article 8 (General Transitional Measures concerning Exceptional Refund of Tax)
With respect to the credit and the return of the amount of domestic consumption tax imposed or to be imposed in accordance with the provisions of the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export (hereinafter referred to as the "Act on the Refund") at the time this Act enters into force, the previous provisions shall apply.
Article 9 (Transitional Measures concerning Exceptional Refund on Raw Materials for Taxable Goods)
Where the goods manufactured or processed using the goods carried in from a bonded area as raw materials are taxable in accordance with the previous provisions of the Commodity Tax Act, the Woven Goods Tax Act and the Petroleum Tax Act and come to fall under the taxable goods according to the provisions of this Act, the tax credit in respect of the raw materials pursuant to Article 8 of the Addenda shall be made for such amount of tax already paid or payable on the amount of tax payable in accordance with the provisions of this Act.
Article 10 (Transitional Measures concerning Exceptional Refund for Raw Materials of Non-Taxable Goods)
Goods manufactured or processed for domestic consumption using raw materials on which the domestic consumption tax has been paid at time of importation in accordance with Articles 10 and 11 (1) 21 of the Commodity Tax Act, Articles 9 and 10 (1) 16 of the Woven Goods Tax Act and Article 7 of the Petroleum Tax Act found in the provisions of Article 3 (2) of the Act on the Refund become non-taxable goods in accordance with the provisions of this Act, the tax amount paid at the time of importation of the raw materials shall not be credited.
ADDENDA <Act No. 3103, Dec. 5, 1978>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability)
This Act shall begin to apply from the first goods which are carried out from a manufacturing place or the importation of which is declared on or after January 1, 1979.
Article 3 (General Transitional Measures)
As regards the special consumption tax imposed or to be imposed in accordance with the previous provisions as at the time this Act enters into force, the previous provisions shall apply.
Article 4 (Transitional Measures concerning Provisions of Belongings)
(1) Any person who possesses the goods which become newly subject to tax or an increased tax rate by the enforcement of this Act for sale at a place other than a manufacturing place or a bonded area shall declare the quantity of the goods by specifications to the head of the competent tax office within 10 days from the enforcement date of this Act.
(2) With respect to the goods for which the declaration prescribed in paragraph (1) was not filed, the special consumption tax shall be collected from the possessor according to this Act.
Article 5 (Transitional Measures concerning Affirmation and Mark of Belongings)
The head of the competent tax office who has received the declaration prescribed in Article 4 (1) shall affirm the contents of the declaration and mark the affirmation according to the goods.
Article 6 (Transitional Measures concerning Goods in Bonded Area)
With respect to the goods which are in a bonded area at the time of the enforcement of this Act and for which the importation declaration was already made, the special consumption tax shall be collected in accordance with the provisions of this Act as if the importation declaration were newly made on the day this Act enters into force: Provided, That this shall not apply with respect to the goods on which any special consumption tax is already paid.
Article 7 (Transitional Measures concerning Credit of Tax Amount of Raw Materials)
Where the goods made from the raw materials on which the special consumption tax had been already paid as at the time this Act enters into force were not taxable in accordance with the previous provisions, but now become taxable in accordance with the provisions of this Act, the tax amount paid for the raw materials shall be credited from the amount of tax payable in accordance with the provisions of this Act in cases of carrying the goods out of the manufacturing place.
ADDENDA <Act No. 3475, Dec. 31, 1981>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1982.
Article 2 (General Transitional Measures)
As regards the special consumption tax imposed or to be imposed in accordance with the previous provisions as at the time this Act enters into force, the previous provisions shall apply.
Article 3 (Transitional Measures concerning Provisions of Belongings)
(1) Any person who possesses the goods which become newly subject to tax or an increased tax rate by the enforcement of this Act for sale at a place other than a manufacturing place or a bonded area shall declare the quantity of the goods by specifications to the head of the competent tax office within ten days from the enforcement date of this Act.
(2) The head of the competent tax office who has received the declaration prescribed in paragraph (1) shall affirm the contents of the declaration and mark the affirmation according to the goods.
Article 4 (Transitional Measures concerning Credit of Tax on Raw Materials)
Where the goods made from the raw materials on which the special consumption tax was already paid as at the time this Act enters into force were not taxable under the previous provisions, but now become taxable under the provisions of this Act, the amount of tax paid for the raw materials shall be credited from the amount of tax payable in accordance with the provisions of this Act in cases of carrying the goods out of the manufacturing place.
Article 5 (Transitional Measures concerning Return Goods)
Where the goods newly subject to tax or to a change of tax rate under this Act have already been returned to the same manufacturing place of at the time of enforcement of this Act or the goods carried out before the enforcement of this Act are returned after this Act enters into force, the provisions of this Act shall apply.
Article 6 (Special Cases on Application of Tax Rate)
As regards the goods which fall under Article 1 (2), Class 3, subparagraph 7, the tax rate to the portion carried out from the factory or for which the declaration for importation was made from January 1, 1982 through December 31, 1983, the tax rate shall be 5/100 regardless of the tax rate in accordance with the provisions of Article 1 (2), Class 3, subparagraph 7.
ADDENDA <Act No. 3579, Dec. 21, 1982>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1983: Provided, That the amended provisions of Article 1 (2), Class 4, Group 2, subparagraphs 1 and 3 shall enter into force as of the date prescribed by Presidential Decree within the limit of one year from the enforcement of this Act.
(2) (General Transitional Measures) As regards the special consumption tax imposed or to be imposed in accordance with the previous provisions at the time of the enforcement of this Act, the previous provisions shall apply.
(3) (Applicability to Provisional Tax Rate) With respect to the goods to which the previous provisions of Article 1-2 (1) 1 were applied at the time of the enforcement of this Act, the term under the amended provisions of Article 1-2 (1) 1 shall be reckoned from January 1, 1982.
ADDENDA <Act No. 3910, Dec. 31, 1986>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 4024, Dec. 26, 1988>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1989.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place or carried out from a manufacturing place or a bonded area on or after the enforcement date of this Act.
Article 3 (Application to Admission Act)
The amended provisions of Article 1 (3) shall begin to apply from the first act of admission done on or after the enforcement date of this Act.
Article 4 (General Transitional Measures)
As regards the special consumption tax imposed or to be imposed under the previous provisions at the time of the enforcement of this Act, the previous provisions shall apply.
Article 5 (Transitional Measures concerning Tax Refund, etc.)
Where the goods produced using the raw materials for which the special consumption tax was paid at the time of the enforcement of this Act become non-taxable under this Act and are used for export or supplied to the foreign army stationed in Korea, the previous provisions shall apply with respect to the credit and refund of the tax amounts paid or to be paid for the raw materials.
Article 6 (Transitional Measures concerning Special Refund of Tax Amounts)
Where the goods on which domestic consumption tax is collected or to be collected in accordance with the Act on Special Cases concerning the Refund of Customs Duties, etc, Levied on Raw Materials for Export at the time of the enforcement of this Act become non-taxable under this Act and are used as raw materials for export, the previous provisions shall apply to the credit and refund of the tax amounts which was collected or is to be collected on the goods.
Article 7 (Transitional Measures concerning Carrying-out without Tax Payment)
Where the raw materials which were carried in for the purpose of being used for manufacture and process of taxable goods at the time of the enforcement of this Act pursuant to Article 14 (1) 6 and the goods which were manufactured and processed by using the concerned raw materials become non-taxable under this Act, and the concerned raw materials are not used to manufacture and process taxable goods or exist in the form of goods in process, half-finished goods, or finished goods at the place of carrying-in, they shall be regarded as carried out from the place of carrying-in as of the enforcement date of this Act regardless of the provision of Article 4, and the concerned tax amounts which were not paid in accordance with the previous provisions shall be collected from one who carried in the raw materials: Provided, That with respect to the goods which were used or is to be used for manufacture or processing of goods for export, the previous provisions shall apply.
Article 8 (Transitional Measures concerning Tax-Exempt Goods, etc.)
With respect to the administration of the goods carried out without tax payment (excluding the goods carried out without tax payment in accordance with the provisions of Article 7 of the Addenda) and the goods carried out with tax exemption at the time this Act enters into force, the previous provisions shall apply until they are used for the proper purpose.
ADDENDA <Act No. 4665, Dec. 31, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place, carried out from a manufacturing place, or declared for importation after this Act enters into force.
Article 3 (Applicability to Act of Admission)
The amended provisions of Article 1 (3) shall begin to apply from the first act of admission and the amended provisions of Article 1 (4) shall begin to apply from the first act of entertaining, eating and drinking, both of which are done after this Act enters into force.
Article 4 (General Transitional Measures)
As regards the special consumption tax imposed or to be imposed under the previous provisions at the time of the enforcement of this Act, the previous provisions shall apply.
Article 5 (Transitional Measures concerning Credit of Tax Amount Levied on Raw Materials)
Where the goods produced by using the raw materials for which the special consumption tax was paid at the time of the enforcement of this Act were nontaxable under the provisions of the previous Act but now become taxable goods under this Act, the paid tax amount levied on the raw materials shall be credited from the tax amount to be paid by the provisions of this Act when the goods are carried out from the manufacturing place.
ADDENDA <Act No. 4809, Dec. 22, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1995: Provided, That the amended provisions of Article 25 shall enter into force on July 1, 1995.
Article 2 (General Applicability)
This Act shall begin to apply from the taxable goods sold at a selling place, carried out from a manufacturing place, or declared for importation after this Act enters into force.
Article 3 (Applicability to Acts of Admission)
The amended provisions of Article 1 (3) shall begin to apply from the first act of admission done after this Act enters into force.
Article 4 (General Transitional Measures)
As regards the special consumption tax imposed or to be imposed pursuant to the previous provisions as at the time this Act enters into force, the previous provisions shall apply.
Article 5 (Transitional Measures concerning Refund, etc. of Tax Amounts)
Where the goods produced by using the raw materials for which the special consumption tax is paid at the time of the enforcement of this Act become nontaxable goods by the enforcement of this Act and where they are used for export or supplied to the foreign army stationed in Korea, the previous provisions shall apply to the credit and refund of the tax amounts which are already paid or to be paid for the raw materials.
Article 6 (Transitional Measures concerning Special Cases etc. of Refund of Tax Amounts)
Where the goods for which domestic consumption tax is collected or shall be collected under the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export as at the time this Act enters into force become nontaxable goods by the enforcement of this Act and are used as raw materials for export, the previous provisions shall apply to the credit and refund of the tax amounts which are already collected or to be collected for the goods.
Article 7 (Transitional Measures concerning Carrying-Out without Tax Payment)
Where the raw materials which were carried into the carrying-in place for the purpose of being used for manufacture and process of the taxable goods pursuant to Article 14 (1) 6 as at the time this Act enters into force and the goods which were manufactured and processed by using the raw materials concerned are not taxable by the enforcement of this Act, and the raw materials concerned are not used to manufacture and process the taxable goods or exist in the state of goods in process, half-finished goods or finished goods at the carrying-in place as of the enforcement date of this Act, the time of carrying out from the carrying-in place shall be regarded as the enforcement date of this Act notwithstanding the provisions of Article 4 and the tax amounts which are not paid under the previous provisions shall be collected from the person who carries in the raw materials: Provided, That the previous provisions shall apply to the goods which were used or to be used to manufacture or process goods for export.
Article 8 (Transitional Measures concerning Tax-Exempt Goods, etc.)
To the administration of the goods which have been carried out without tax payment (excluding the goods carried out without tax payment referred to in Article 7 of the Addenda) and the goods which have been carried out with tax exemption as at the time this Act enters into force, the previous provisions shall apply until they are used for the proper purpose, respectively.
Article 9 Omitted.
ADDENDA <Act No. 5034, Dec. 29, 1995>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1996: Provided, That in applying the tax rate to kerosene, notwithstanding the amended provisions of Article 1 (2), 17 won per liter shall apply to the part carried out from a manufacturing place or the import of which was declared in 1996.
(2) (Applicability) This Act shall begin to apply from the first taxable goods sold at a selling place, carried out from a manufacturing place, or the import of which is declared on or after this Act enters into force: Provided, That the amended provisions of the proviso to Article 20 (2) 3 shall also apply to the taxable goods carried out from a manufacturing place before this Act enters into force.
(3) (Transitional Measures) As regards the special consumption tax imposed or to be imposed pursuant to the previous provisions at the time this Act enters into force, the previous provisions shall apply.
ADDENDA <Act No. 5425, Dec. 13, 1997>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1998.
(2) (Applicability) This Act shall begin to apply from the first taxable goods carried out from a manufacturing place or the import of which is declared after this Act enters into force.
ADDENDA <Act No. 5495, Jan. 8, 1998>
(1) (Enforcement Date) This Act shall enter into force on the date following the date of its promulgation.
(2) (General Applicability) This Act shall begin to apply from the first taxable goods sold at a selling place, carried out from a manufacturing place, or the import of which is declared after this Act enters into force.
(3) (Applicability to Taxable Place) The amended provisions of Article 1 (3) shall begin to apply from the first act of admission done after this Act enters into force.
(4) (Applicability to Taxable Entertainment Place) The amended provisions of Article 1 (4) shall begin to apply from the first act of entertaining, eating and drinking done after this Act enters into force.
(5) (Transitional Measures) As regards the special consumption tax imposed or to be imposed pursuant to the previous provisions at the time of the enforcement of this Act, the previous provisions shall apply.
ADDENDA <Act No. 6032, Dec. 3, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 1 (3) 6 shall enter into force on January 1, 2000.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place, taken out from a manufacturing place, or declared for importation on or after the date this Act enters into force.
Article 3 (Applicability to Taxable Place)
The amended provisions of Articles 1 (3) and 19-2 shall begin to apply from the first act of admission conducted after this Act enters into force.
Article 4 (Applicable Cases on Application for Approval of Blanket Payment)
The amended provisions of Article 10-2 shall begin to apply from the first application for approval of blanket payment filed on or after the date this Act enters into force.
Article 5 (Special Case on Taxation on Tax-Exempt Goods, etc.)
Where the goods taken out tax-free as referred to in Article 15 and the previous Articles 16 and 18 at the time of the enforcement of this Act are exempted from the taxable goods under this Act, and where the said goods are altered in their use or transferred after the enforcement of this Act, the proviso to Article 15 (2), Article 15 (4), Article 16 (2), and the latter part of 18 (2) shall not apply.
Article 6 (General Transitional Measures)
With respect to the special consumption tax imposed or to be imposed pursuant to the previous provisions at the time of the enforcement of this Act, the previous provisions shall apply.
Article 7 (Transitional Measures concerning Refund of Tax Amount, etc.)
(1) Where the goods, manufactured from the raw materials on which the special consumption tax has already been paid or to be paid at the time of the enforcement of this Act, have become nontaxable goods by the enforcement of this Act, and where the said goods are used for export or supplied to the foreign military forces stationed in Korea, the previous provisions shall apply to the refund or deduction of the tax amount on those raw materials which has already been paid or to be paid.
(2) Where the goods, taken out from a manufacturing place or bonded area, on which the special consumption tax has been paid or to be paid at the time of the enforcement of this Act are excluded from taxable goods or the tax rate thereof is reduced as a result of the enforcement of this Act, and where the said goods are returned as referred to in the Presidential Decree to a manufacturing place, storage yard or other places determined by the Presidential Decree, and are confirmed by filing a report to the head of the competent tax office or the head of the competent customs office within 7 days from the enforcement date of this Act, the tax amount corresponding to the tax amount already paid or the part of reduced tax rate shall, notwithstanding the amended provisions of Article 20 (2) 3, be refunded or deducted.
Article 8 (Transitional Measure concerning Special Cases on Tax Amount Refund)
Where the goods, of which the inland consumption tax has been collected or is to be collected pursuant to the provisions of the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export at the time of the enforcement of this Act, have become nontaxable goods by the enforcement of this Act, and where the said goods have been used as the raw materials for the export goods, the previous provisions shall apply with respect to the refund or deduction of the tax amount on the goods which has already been collected or is to be collected.
Article 9 Omitted.
ADDENDA <Act No. 6294, Dec. 29, 2000>
(1) (Enforcement Date) This Act shall enter into force on July 1, 2001: Provided, That the amended provisions of Article 1 (2) 1 and (3) 2, and subparagraph 4 of Article 19-3 shall enter into force on January 1, 2001.
(2) (General Applicability) This Act shall begin to apply from the first taxable goods carried out of a manufacturing place or the import of which is declared on or after this Act enters into force.
(3) (Applicability to Acts of Admission, etc.) The amended provisions of Article 1 (3) 2 shall begin to apply from the first act of admission done on or after January 1, 2001, and the amended provisions of subparagraph 4 of Article 19-3 shall begin to apply from the first act of entertaining, eating and drinking done on or after January 1, 2001.
(4) (Special Cases on Application of Oil Tax Rate) Notwithstanding the amended provisions of Article 1 (2) 4, the tax rates corresponding to respective application periods on the following table shall be applied to the portion carried out of manufacturing places and declared on imports during the period from July 1, 2001 to June 30, 2006:
Taxable itemsUnitApplication period and tax rate
Jul. 1, 2001 ~
Dec. 31, 2001
Jan. 1, 2002~
Jun. 30, 2002
Jul. 1, 2002~
Jun. 30, 2003
Jul. 1, 2003~
Dec. 31, 2003
Jan. 1, 2004~
Jun. 30, 2004
Jul. 1, 2004~
Jun. 30,
2005
Jul. 1, 2005~
Dec. 31, 2005
Jan. 1, 2006~
Jun. 30, 2006
Items corr. to Art. 1 (2) 4 (b) Liter185 won191 won234 won276 won315 won363 won412 won412 won
Items corr. to Art. 1 (2) 4 (c) Liter 82 won 82 won107 won131won131 won 154 won 178 won205 won
Items corr. to Art. 1 (2) 4 (d) Liter 3 won 3 won 6 won 9 won 9 won 11 won 15 won 17 won
Items corr. to Art. 1 (2) 4 (f) Kilo- gram114 won114 won226 won323 won323 won420 won515 won592 won
Items corr. to Art. 1 (2) 4 (h) Liter 60 won 60 won 78 won 96 won 96 won112 won130 won150 won
(5) (Transitional Measures) As regards the special consumption tax which was levied or to be levied under the previous provisions at the time of enforcement of this Act, the previous provisions shall govern.
ADDENDA <Act No. 6521, Dec. 15, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 1 (4), 10-2, 18 (1), and 20-2 shall enter into force on January 1, 2002.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place, taken out from a manufacturing place, or declared for importation, or the first act of entertaining, eating and drinking done after the enforcement of this Act.
Article 3 (Applicability to Goods Such as Automobiles)
The amended provisions of Article 1 (2) shall begin to apply from the first goods sold at a selling place, taken out from a manufacturing place, or declared for importation after November 20, 2001.
Article 4 (General Transitional Measures)
With regard to the special consumption tax imposed or to be imposed under the previous provisions at the time of the enforcement of this Act, the previous provisions shall govern.
Article 5 (Transitional Measures for Refund, etc. of Tax Amount)
(1) With regard to the portion of reports on shipping out or importing the goods, for which a tax rate has been reduced under the amended provisions of Article 1 (2), from November 20, 2001 to the date preceding the enforcement date of this Act (in cases of automobiles, not later than the date preceding the date of enforcing the tax rate prescribed by the Presidential Decree pursuant to Article 1 (6) of this Act), where the taxpayer stipulated under Article 3 files a report with the head of the competent tax office or the head of the competent customs office not later than the end of a month following the month in which the enforcement date of this Act falls, along with the documentary evidence determined by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service such as an account statement of taxes, etc. verifying such facts, the tax amount equivalent to the portion of reducing the tax rate shall be either refunded or deducted.
(2) Among the goods whose special consumption tax has been paid as they were shipped out from a manufacturing place or a bonded area prior to November 19, 2001, whose tax rate has been reduced under the amended provision of Article 1 (2), with regard to the business operator such as the wholesaler, retailer, or importer, etc. retaining them as of November 20, 2001, where he/she takes them back to the place determined by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service taking account of the manufacturing place, storage space, direct sale place, bonded area, and other conveniences for tax payment, and files a report on them with the head of the competent tax office or the head of the competent customs office within 7 days from the enforcement date of this Act, and obtains a verification thereof, along with the documentary evidence determined by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service such as a confirmation note of sales of relevant goods, a confirmation note of stocks on hand, a written application for refund, etc., the tax amount equivalent to the portion of reducing the tax rate shall be either refunded or deducted.
Article 6 Omitted.
ADDENDA <Act No. 6945, Jul. 26, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods taken out from a manufacturing place or declared for importation after the enforcement date of this Act.
Article 3 (Applicability to Goods Such as Automobiles)
The amended provisions of Article 1 (2) shall begin to apply from the first goods taken out from a manufacturing place or declared for importation after July 12, 2003.
Article 4 (Transitional Measures concerning Refund, etc. of Tax Amount)
(1) Where the taxpayer stipulated in Article 3 files a report with the head of the competent tax office or the head of the competent customs office not later than the end of a month following the month in which the enforcement date of this Act falls, by appending the documentary evidence designated by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service, such as a tax statement, etc. capable of verifying such facts, as regards the portion of shipping out or of declaring imports of goods from July 12, 2003 to the date preceding the enforcement date of this Act for which a tax rate has been reduced under the amendments to Article 1 (2), the tax amount equivalent to the portion of reducing the tax rate shall be either refunded or deducted.
(2) From among the goods whose tax rate has been reduced under the amendments to Article 1 (2), and whose special consumption tax has been paid or is to be paid as they are shipped out from a manufacturing place or a bonded area before July 11, 2003, as regards the business operator, such as manufacturer, wholesaler, retailer, or importer, etc. who retains them as of July 12, 2003, the tax amount equivalent to the portion of reduced tax rate shall be either refunded or deducted, where he/she takes them back to a manufacturing place, storage space, direct sale place, bonded area, and other places designated by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service by taking account of conveniences for tax payment, etc., by appending the documentary evidence designated by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service, such as a confirmation note of sales of relevant goods, that of stocks on hand and a written application for refund, etc., and where he files a report thereon with the head of the competent tax office or the head of the competent customs office within seven days from the enforcement date of this Act, and obtains a verification thereof.
ADDENDA <Act No. 7224, Oct. 16, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Goods, including Air Conditioners, etc.)
The amended provisions of Article 1 (2) shall apply begin to apply from the first goods sold at a selling place, shipped out of a manufacturing place or declared for importation after September 24, 2004.
Article 3 (Applicability to Additional Tax)
The amended provisions of Article 13 shall begin to apply from the portion of the additional tax that is first not paid in accordance with the provisions of Article 10 or the amount of the paid tax falls short of the amount of the payable tax after the enforcement of this Act.
Article 4 (General Applicability)
This Act shall begin to apply from the first goods sold at a selling place, shipped out of a manufacturing place or declared for importation after the enforcement of this Act.
Article 5 (Special Treatment in Taxation of Tax-Free Goods, etc.)
When any goods that are shipped out of any manufacturing place as tax-free goods in accordance with the provisions of Articles 15 through 18 at the time of the enforcement of this Act are excluded from taxable goods on the grounds of the enforcement of this Act and the grounds of additional tax collection accrue following the alteration in the purpose of use of such goods or the transfer of such goods, etc. after the enforcement of this Act, the relevant tax amount shall not be collected, notwithstanding the provisions governing the shippers in the proviso to Articles 15 (2) and (4), 16 (2), 17 (5) and (6), and 18 (2).
Article 6 (Transitional Measures concerning Refund of Tax Amount, etc.)
(1) When any goods that are manufactured using any other goods for which the special consumption tax is already paid or is payable as raw materials at the time of the enforcement of this Act are excluded from taxable goods on the grounds of the enforcement of this Act, are used for export or are supplied to foreign forces stationed in Korea, the refund or the deduction of the tax amount for the raw materials that is already paid or payable shall be governed by the pervious provisions.
(2) With respect to the portion of any goods that is excluded from taxable goods in accordance with the amended provisions of Article 1 (2) and a return or an import declaration is filed on their sales, shipment and import from September 24, 2004 to the date preceding the date on which this Act enters into force, if any taxpayer provided for in the provisions of Article 3 files a return or an import declaration, accompanied evidential documents, including a tax invoice confirming the fact, which are all prescribed by the Commissioner of the National Tax Service or the Korea Commissioner of the Customs Service, with the head of the competent tax office or the head of the competent customs office by the end of the month following the month in which the date this Act enters into force falls, the paid tax amount shall be refunded or deducted.
(3) With respect to any goods that are excluded from taxable goods in accordance with the amended provisions of Article 1 (2) and for which the special consumption tax is paid or payable after they are shipped out of their manufacturing place or their bonded area prior to September 23, 2004, if any manufacturer, wholesaler, retailer, importer, etc. who possesses such goods as of September 24, 2004 files a return or an import declaration, accompanied by evidential documents, including a written confirmation of sale, a written confirmation of inventory and an application for refund, which are prescribed by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service, with the head of the competent tax office or the head of the competent customs office in order to obtain his confirmation thereof within 15 days from the enforcement date of this Act after shipping such goods into a place that is prescribed by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service taking into account manufacturing places, storage places, direct-sale stores, bonded areas and the convenience of tax payment, etc., the paid tax amount shall be refunded or deducted.
Article 7 (Transitional Measures concerning Taking-out without Paying Tax)
When raw materials that are shipped to a place in order to use them to manufacture taxable goods in accordance with the provisions of Article 14 (1) at the time of the enforcement of this Act or any goods that are manufactured using the relevant raw materials are excluded from taxable goods at the time of the enforcement of this Act on the grounds of the enforcement of this Act and the relevant raw materials are not used to manufacture taxable goods or the relevant raw materials are already used to manufacture or process taxable goods and the manufactured or processed goods are stored in the state of manufactured goods, half-finished goods or finished goods at a place into which they are shipped, such goods shall be deemed to be shipped out of such place and the relevant tax amount that is not paid under the previous provisions shall not be collected.
Article 8 (General Transitional Measures)
The special consumption tax imposed or to be imposed in accordance with the previous provisions at the time of the enforcement of this Act shall be governed by the previous provisions.
ADDENDA <Act No. 7575, Jul. 8, 2005>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Applicability to Oil Tax Rate) This Act shall begin to apply from the first taxable goods shipped out of a manufacturing place or declared for importation after this Act enters into force.
(3) (Special Cases on Application of Oil Tax Rate) With regard to the taxable goods which are shipped out of a manufacturing place or on which an import declaration is filed for the period from the enforcement date of this Act to June 30, 2007, the tax rate corresponding to respective application period on the following Table shall apply, notwithstanding the amended provisions of Article 1 (2) 4 and the provisions of paragraph (4) of the Addenda of the amended Special Consumption Tax Act (Act No. 6294): <Amended by Act No. 7840, Dec. 31, 2005>
Taxable GoodsUnitApplication Period & Tax Rate
Enforcement date of this Act ~ June 30, 2006July 1, 2006 ~ June 30, 2007
Goods corresponding to Article 1 (2) 4 (b) per liter365 won404 won
Goods corresponding to Article 1 (2) 4 (c) per liter178 won181 won
Goods corresponding to Article 1 (2) 4 (d) per liter15 won17 won
Goods corresponding to Article 1 (2) 4 (f) per kilogram360 won360 won
Goods corresponding to Article 1 (2) 4 (h) per liter130 won147 won
(4) (Transitional Measures concerning Imposition of Special Consumption Tax on Oil) The previous provisions shall govern the special consumption tax imposed or to be imposed under the previous provisions at the time of the enforcement of this Act.
ADDENDA <Act No. 7840, Dec. 31, 2005>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2006.
(2) (Examples of Application to Oil Tax Rate) The amended provisions of Article 1 (2) 4 (c) and (g) and the table in paragraph (3) of the Addenda of the Special Consumption Tax Act (Act No. 7575) shall begin to apply from the first taxable goods shipped out of a manufacturing place or declared for importation after this Act enters into force.
(3) (Transitional Measures on Special Consumption Tax on Oil) The previous provisions shall govern the special consumption tax imposed or to be imposed under the previous provisions at the time of the enforcement of this Act.
ADDENDA <Act No. 7988, Sep. 27, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Act No. 8138, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8139, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 15 Omitted.
Article 16 (Transitional Measures concerning Amendment to Other Acts)
The additional tax that was imposed or is to be imposed pursuant to the provisions of the tax-related Act falling under each of the following subparagraphs before this Act enters into force, shall be governed by the previous provisions of the corresponding tax-related Act, notwithstanding the corresponding tax-related Act amended by Article 15 (1) through (7) of the Addenda:
1. through 6. Omitted;
ADDENDA <Act No. 8829, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Article 2 (Applicability to Exception of Passenger Cars from Taxation Articles)
The amended provision of Article 1 (2) 3 (b) shall begin to apply from the first taxable goods taken out from a manufacturing place or declared for importation after this Act enters into force.
Article 3 (Applicability to Tax Rate of Oil)
The amended provisions of Article 1 (2) 4 (c) and (h) shall begin to apply from the first taxable goods taken out from a manufacturing place or declared for importation after this Act enters into force.
Article 4 (Applicability to Admission)
The amended provision of Article 1 (3) 6 shall begin to apply from the first act of admission conducted after January 1, 2008.
Article 5 (Applicability to Payment in Lump)
The amended provision of Article 10-2 (2) shall begin to apply from the first application for payment in the lump filed after this Act enters into force.
Article 6 (Applicability to Conditional Exemption of Passenger Cars from Tax)
The amended provision of Article 18 (1) 5 shall also apply where the total period of renting to the same person or the same corporation of a passenger car used for transporting passengers for a car rental business under the Passenger Transport Service Act does not exceed six months within five years from the date of purchasing the car at the time when this Act enters into force.
Article 7 (Applicability to Report of Return)
The amended provision of Article 20 (2) 3 shall begin to apply from the first return to a manufacturing place, selling place or storage yard after this Act enters into force.
Article 8 (Special Cases on Application to Tax Rate of Oil)
Notwithstanding the amended provision of Article 1 (2) 4 (h), the tax rate of 66 won per liter shall apply to the taxable goods under Article 1 (2) 4 (h) taken out from a manufacturing place or declared for importation for the period from January 1, 2008 to December 31, 2010.
Article 9 (General Transitional Measures)
The previous provisions shall apply to the special consumption tax imposed or to be imposed pursuant to the previous provisions at the time when this Act enters into force.
Article 10 (Transitional Measures concerning Refund of Tax Amount)
Where business operators such as manufacturers, wholesalers, retailers or importers or such who possess goods taken out from a manufacturing place or bonded area as of the enforcement date of this Act, for which they have paid or are going to pay the special consumption tax, as goods excluded from the taxable goods pursuant to the amended provisions of Article 1 (2) 3, have made a report to the head of the competent tax office or the head of the competent customs office, within 15 days from the enforcement date of this Act or the date when new tax rate is applied, together with documentary evidence attached thereto, such as a written confirmation on sale of the relevant goods, written confirmation of goods in stock, application for refund or such, determined by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service after having returned the goods to a factory, storage yard, place of direct sale, bonded area and other areas determined by the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service in consideration of convenience of tax payment or such, and have obtained his/her confirmation, the tax amount already paid shall be refunded or deducted.
Article 11 Omitted.
Article 12 (Relation with Other Statutes)
Where other statutes cite the previous Special Consumption Tax Act and the provisions thereof at the time when this Act enters into force, if the provisions corresponding thereto exist in this Act, this Act or the corresponding provisions of this Act shall be deemed cited in lieu of the previous provisions.
ADDENDA <Act No. 8987, Mar. 28, 2008>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Applicability to Tax Rate of Oil) This Act shall begin to apply from the first taxable goods taken out from a manufacturing place or declared for importation after this Act enters into force.
(3) (Transitional Measures concerning Imposition of Individual Consumption Tax on Oil) The previous provisions shall apply to the individual consumption tax imposed or to be imposed pursuant to the previous provisions at the time when this Act enters into force.
ADDENDA <Act No. 9259, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009: Provided, That the amended provisions of subparagraph 4 of Article 19-3 shall enter into force on April 1, 2009, the amended provisions of Article 1 (2) 1 through 3, subparagraph 4 (a) through (d) of the same paragraph, item (h) of the same subparagraph and paragraphs (3) and (4) of the same Article shall enter into force on January 1, 2010, and the amended provisions of Article 1 (5), subparagraph 7 of Article 3, Articles 6 (3), 8 (1) 7 and 9 (6) shall enter into force on January 1, 2014 (in cases of casinos permitted under Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas, January 1, 2012), and Article 9 of the Addenda shall enter into force on January 1, 2012. <Amended by Act No. 11120, Dec. 31, 2011>
Article 2 (General Transitional Measures)
This Act shall begin to apply from the first taxable goods sold at a selling place, taken out from a manufacturing place or declared for importation, the first act of admission, the first act of entertaining, eating and drinking or the first business conducted after this Act enters into force.
Article 3 (Applicability to Taxation on Doing Business at Taxable Place of Business)
The amended provisions of Article 1 (1), (5), (6), (11), and (12), subparagraph 7 of Article 3, Articles 6 (3), 8 (1) 7 and (3), 9 (6) through (8), 10 (1) and (5), and 21 through 27 shall apply from the first business activity conducted on January 1, 2014 (in cases of casinos permitted under Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas, January 1, 2012). <Amended by Act No. 11120, Dec. 31, 2011>
Article 4 (Special Cases on Application of Tax Rate of Oil)
(1) Notwithstanding the amended provisions of Article 1 (2) 4 (f), the tax rate of 252 won per kilogram shall apply to the taxable goods under the same item to be taken out from a manufacturing place or for which import is declared for the period from January 1, 2009 to December 31, 2009.
(2) Notwithstanding the amended provision of Article 1 (2) 4 (h), the tax rate of 76 won per liter shall apply to the taxable goods under the same item to be taken out from a manufacturing place or for which import is declared for the period from January 1, 2010 to December 31, 2010.
Article 5 (Applicability to Adjustment of Time for Return and Payment of Individual Consumption Tax)
The amended provisions of Article 9 (1), (4) through (8) and 10 (1) shall begin to apply from the first taxation article sold at a selling place, taken out from a manufacturing place or declared for importation, the first act of admission, the first act of entertaining, eating and drinking or the first business conducted after this Act enters into force.
Article 6 (Applicability to Exemption of Imported Passenger Cars for Test and Research from Individual Consumption Tax)
The amended provisions of Article 18 (1) 5 (e) shall begin to apply from the first passenger cars for test and research declared for importation after this Act enters into force.
Article 7 (Applicability to Taxation on Entertaining, Eating and Drinking at Korean Restaurants pursuant to the Tourism Promotion Act)
The amended provisions of subparagraph 4 of Article 19-3 shall begin to apply from the first act of entertaining, eating and drinking conducted after April 1, 2009.
Article 8 (General Transitional Measures)
The previous provisions shall apply to the individual consumption tax imposed or to be imposed pursuant to the previous provisions at the time when this Act enters into force.
Article 9 Omitted.
ADDENDA <Act No. 9909, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Article 1 (5), subparagraph 7 of Article 3, Article 6 (3), Article 8 (1) 7 and Article 9 (6) shall enter into force on January 1, 2014 (in cases of casinos permitted under Article 11 of the Special Act on the Assistance to the Development of Abandoned Mine Areas, January 1, 2012), and the amended provisions of Article 20 (limited to the amended provisions of paragraphs (3), (4), and (8)) shall enter into force on the date on which the Traffic, Energy and Environment Tax Act (Act No. 9346) repealed enters into force. <Amended by Act No. 11120, Dec. 31, 2011>
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place, brought out of a manufacturing place or declared for importation, the first act of admission, the first act of entertaining, eating and drinking or the first act of business conducted after this Act enters into force.
Article 3 (Special Cases concerning Application of Oil Tax Rates)
Notwithstanding the amended provisions of Article 1 (2) 4 (h), the taxable goods in the same item that are brought out of a manufacturing place or declared for importation during the period from January 1, 2010 to December 31, 2012 shall be subject to the tax rate of 72 won per liter. <Amended by Act No. 10404, Dec. 27, 2010>
Article 4 (Applicability to Taxation on Electric Air Coolers and Other Goods and Validity)
The amended provisions of Article 1 (2) 5 shall apply only to the goods brought out of manufacturing places or declared for importation during the period from April 1, 2010 to December 31, 2012. <Amended by Act No. 11601, jan. 1, 2013>
Article 5 (Applicability to Report of Bringing-in of Tax-Unpaid Bringing-out)
The amended provisions of Article 14 (5) shall begin to apply from the first goods brought in after this Act enters into force.
Article 6 (Applicability to Conditional Tax Exemption)
The amended provisions of Article 18 (3) shall begin to apply from the first duty to report occurring after this Act enters into force.
Article 7 (Applicability to Deduction and Refund of Tax Amount)
The amended provisions of Article 20 (2) 3 shall begin to apply from those returned first after this Act enters into force.
Article 8 (General Transitional Measures)
The individual consumption tax imposed or to be imposed in accordance with the previous provisions at the time when this Act enters into force shall be governed by the previous provisions.
Article 9 Omitted.
ADDENDA <Act No. 10310, May 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation. (Proviso Omitted)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10404, Dec. 27, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011: Provided, That the amended provisions of Article 1 (3) 1 and 2, Article 10-3 and Article 21 shall enter into force on July 1, 2011.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at a selling place, brought out of a manufacturing place or declared for importation, the first act of admission, and the first act of entertaining, eating and drinking conducted after this Act enters into force.
Article 3 (Examples of Application concerning Taxation on Admission to Off-Course Betting Facilities, etc.)
The amended provisions of Article 1 (3) 1 and 2 shall begin to apply from the first act of admission to a off-course betting facility of a horse race track or off-course betting facility of a bicycle race track or boat race course after this Act enters into force.
Article 4 (Examples of Application concerning Change of Time of Report and Payment of Individual Consumption Tax for Taxable Entertainment Places)
The amended provisions of Article 9 (5) and Article 10 (1) shall begin to apply from the first act of entertaining, eating and drinking conducted after this Act enters into force.
Article 5 (Examples of Application concerning Petroleum Excluded from Diplomatic Tax Exemption)
The amended provisions of Article 16 (1) 3 shall begin to apply from the petroleum first purchased by diplomatic missions, etc. to Korea and diplomats, etc. to Korea at a selling place or manufacturing place after this Act enters into force.
Article 6 (Examples of Application concerning Change of Period of Keeping of Goods Subject to Diplomatic Tax Exemption)
The amended provisions of Article 16 (2) shall begin to apply from the first goods obtaining approval for tax exemption after this Act enters into force.
Article 7 (Deadline of Application of Tax Exemption to Acts of Entertaining, Eating, and Drinking)
The amended provisions of Article 19-3 shall take effect until December 31, 2012.
Article 8 (General Transitional Measures)
The individual consumption tax that was imposed or exempted or is to be imposed or exempted in accordance with the previous provisions at the time when this Act enters into force shall be governed by the previous provision.
ADDENDA <Act No. 10445, Mar. 9, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 10789, Jun. 7, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11106, Dec. 2, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date the Free Trade Agreement between the Republic of Korea and the United States of America and the Exchange of Letters related to the Free Trade Agreement between the Republic of Korea and the United States of America enter into force.
Article 2 (Transitional Measure concerning Amendment of Tax Rates)
Notwithstanding the amended provisions of Article 1 (2) 3 (a), as regards tax rates applicable to passenger cars and motor vehicles for camping, which have an engine displacement of more than 2,000cc, after the Free Trade Agreement between the Republic of Korea and the United States of America and the Exchange of Letters related to the Free Trade Agreement between the Republic of Korea and the United States of America enter into force, the tax rate applicable to each applicable period in the following table shall apply to such vehicles taken out of a manufacturing place or declared as imported during the relevant period:
Applicable Periods and Tax Rates
From the enforcement date through December 21 of the enforcement year
From Jan. 1 of the year following the enforcement year through Dec. 31 of the yearFrom Jan. 1 of the second year following the enforcement year through Dec. 31 of the year
8/1007/1006/100
ADDENDA <Act No. 11120, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2012: Provided, That the amended provisions of Article 20 (3) and (4) of the partially amended Individual Consumption Act (Act No. 9909) shall enter into force on the date of enforcement of the repealed Traffic, Energy and Environment Tax Act.
Article 2 (General Applicability)
This Act shall begin to apply from the first taxable goods sold at selling places, taken out of manufacturing places or declared for importation after January 1, 2012 or from the first act of admission, the first act of entertaining, eating and drinking and the first business activity conducted after this Act enters into force.
Article 3 (Applicability to Deadlines for Reporting on Tax Bases, Deduction and Refund, and Refund and Deduction of Individual Consumption Taxes on Natural Gases for Cooking and Heating)
The amended provisions of Article 9 (7) (limited to amendments concerning the deadline for reporting), amended provisions of Article 20 (limited to amendments concerning the deadline for application referred to in paragraph (4)), and the amended provisions of Article 20-2 (3) 2 shall also apply to those of which deadline for reporting or application does not expire as of January 1, 2012.
Article 4 (Applicability to Special Case of Reporting and Payment for Goods Sold or taken out of Place of Bring-in after Being Taken out without Tax Payment)
The amended provisions of Article 10-4 shall begin to apply from the first goods taken out without tax payment after January 1, 2012.
Article 5 (Applicability to Special Case of Mixing of Different Oils, etc. in Oil Reservoirs)
The amended provisions of Article 10-5 shall begin to apply from the first occurrence of mixed oil, etc. after January 1, 2012.
Article 6 (Applicability to Decision, Decision of Correction and Re-correction)
The amended provisions of Article 11 (1) and (3) shall begin to apply from the first decision, decision of correction or re-correction of tax bases and tax amounts made after January 1, 2012.
Article 7 (Applicability to Tax Deduction and Refund under Amendments to Proviso to Article 1 of Addenda of the partially amended Individual Consumption Act (Act No. 9909) )
Article 20 (2) 3 (referring to the amendments made by Act No. 9909) shall begin to apply from the first refund made after January 1, 2010.
Article 8 (Applicability to Additional Taxes Levied on Unfaithful Reporting of Refund and Deduction of individual consumption Tax Imposed on Butane, etc. for Household Use)
The amended provisions of Article 20-2 (4) shall begin to apply from the first refund or deduction applied or butane for household use and natural gases for cooking or heating used for purposes other than their original purposes after January 1, 2012.
Article 9 (General Transitional Measures)
The previous provisions shall apply to individual consumption taxes imposed or exempted or to be imposed or exempted under the former provisions as of January 1, 2012.
Article 10 (Transitional Measures concerning Deadlines for Reporting and Payment Resulting from Closure of Selling Places and Manufacturing Places, Change of Purpose of Use of Goods, etc. )
Notwithstanding the amended provisions of Articles 9 (7) 2, 10 (2) 2 and 18 (3) (limited to amendments concerning deadlines for reporting and payment), the previous provisons shall apply to those for which a cause for reporting and payment occurs before January 1, 2012.
ADDENDA <Act No. 11601, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013: Provided, That the amended provisions of Article 1 (2) 2 (a) (vi) shall enter into force on January 1, 2014.
Article 2 (General Applicability)
This Act shall begin to apply from the taxable goods taken out of a manufacturing place or declared as imported after this Act enters into force.
Article 3 (Applicability to Special Cases concerning Mixing, etc. of Different Kinds of Oil in Oil Reservoirs)
The amended provisions of Article 10-5 shall begin to apply from the mixing, etc. of different kinds of oil occurring after this Act enters into force.
Article 4 (General Transitional Measure)
The individual consumption tax imposed or to be imposed under the previous provisions as at the time this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 11620, Jan. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12157, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014: Provided, That the amended provisions of Article 1 (2) 4 (i) and Article 18 (1) 13 shall enter into force on July 1, 2014.
Article 2 (General Applicability)
This Act shall begin to apply from the taxable goods taken out of a manufacturing place or declared as imported after this Act enters into force or the admission to a taxable place after this Act enters into force.
Article 3 (General Transitional Measure)
The individual consumption tax imposed or to be imposed under the previous provisions before this Act enters into force shall be governed by the previous provisions.
Article 4 (Transitional Measure concerning Conditional Tax Exemption)
Notwithstanding the amended proviso to Article 18 (1) 3 (d), passenger cars taken out of a manufacturing place before this Act enters into force and used for car rental business shall be governed by the previous provisions.
Article 5 (Special Cases concerning Application of Tax Rates to Admission to Casino)
Notwithstanding the amended provisions of Article 1 (3) 5, the tax rate of 5,250 won shall apply to admission during the period from January 1, 2014 to December 31, 2015.
Article 6 Omitted.
ADDENDA <Act No. 12846, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015: Provided, That the amended proviso to Article 16 (2) and the amended provisions of Article 16 (5) shall enter into force on April 1, 2015.
Article 2 (General Applicability)
This Act shall begin to apply from the goods taken out from a manufacturing place or an import declaration of which is filed after this Act enters into force.
Article 3 (Applicability to Exception of Tax-Exempt Motor Vehicles of Foreign Diplomats in Korea from Additional Tax Collection)
The proviso to Article 16 (2) and the amended provisions of Article 16 (5) shall also apply to a motor vehicle granted an exemption from the individual consumption tax before April 1, 2015, if the motor vehicle is transferred to or held by a third person on or after April 1, 2015.
Article 4 Omitted.
ADDENDA <Act No. 13246, Mar. 27, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 13547, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2016.
Article 2 (Transitional Measures concerning Imposition of Individual Consumption Tax on Deer Antlers, Aromatic Cosmetics, Cameras and Related Products)
Notwithstanding the amended provisions of Article 1 (2) 1 (b) and (c) and Article 1 (2) 2 (a) (iii), and Article 18 (1) 12, the former provisions shall apply to deer antlers, aromatic cosmetics, cameras and related products, which were taken out for delivery from the manufacturing places or for which an import declaration was filed before this Act enters into force.
ADDENDA <Act No. 14079, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14378, Dec. 20, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2017: Provided, That the amended provisions of Article 1 (2) 4 (i) shall enter into force on April 1, 2017.
Article 2 (Applicability to Special Procedure for Exemption of Individual Consumption Tax on Tobacco)
The amended provisions of Article 20-3 (2) 1 shall apply to taking-out of a manufacturing place or import declaration after this Act enters into force.
Article 3 (Applicability to Deduction and Refund of Tax on Tobacco Exempted from Individual Consumption Tax)
The amended provisions of Article 20-3 (3) 4 shall also apply to tobacco (including tobacco used as raw materials thereof) on which individual consumption tax has been imposed is paid or payable before this Act enters into force.
Article 4 (Transitional Measures concerning Imposition of Individual Consumption Tax on Royal Jelly)
Notwithstanding the amended provisions of Article 1 (2) 1, royal jelly taken out of a manufacturing place or declared for import before this Act enters into force shall be governed by the former provisions.
Article 5 (Transitional Measures concerning Imposition of Individual Consumption Tax on Bituminous Coal)
Bituminous coal taken out of a manufacturing place or declared for import before the enforcement date referred to in the amended provisions of Article 1 (2) 4 (i) shall be governed by the former provisions notwithstanding the same amended provisons.
ADDENDA <Act No. 15036, Nov. 16, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Electronic Cigarette Using Tobacco or Tobacco Solid)
The amended provisions of the attached Table shall apply beginning with the first removal out of a manufacturing place or the first import declaration after this Act enters into force.
ADDENDA <Act No. 15217, Dec. 19, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2018.
Article 2 (Transitional Measures concerning Imposition of Individual Consumption Tax on Bituminous Coal)
Bituminous coal removed from a manufacturing place or declared for import before this Act enters into force shall be governed by the previous provisions notwithstanding Article 1 (2) 4 (i).