CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to provide for matters delegated from the Local Tax Collection Act and matters necessary for the enforcement of such delegated matters.
| Article 2 (Certificate of Tax Payment) |
A certificate of tax payment specified in Article 5 (1) of the Local Tax Collection Act (hereinafter referred to as the "Act") shall certify that no other local taxes are delinquent as at the date of the issuance thereof with the exception of the following amounts:
| Article 3 (Government Agency) |
| Article 4 (Submission of Certificates of Tax Payment) |
Where a person who receives the price under Article 5 (1) 1 of the Act is other than the original contractor, the person shall submit a certificate of tax payment as follows: | 1. | Cases due to transferring obligations: The person shall submit certificates of tax payment of both the transferor and transferee; |
| 2. | Cases arising from an assignment order of a court: The person shall submit a certificate of tax payment of a creditor who has attached property; |
| Article 5 (Exceptions to Submission of Certificates of Tax Payment) |
| (1) | In cases falling under Article 5 (1) 1 of the Act, where a person falls under any of the following, he/she need not submit a certificate of tax payment: |
| 1. | Where the person receives the price under a private contract specified in any of the subparagraphs of Article 26 (1) (excluding subparagraph 1 (d) of the aforesaid paragraph) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party or any of the subparagraphs of Article 25 (1) (excluding subparagraph 7 (a) of the aforesaid paragraph) of the Enforcement Decree of the Act on Contracts to Which a Local Government Is a Party; |
| 2. | Where the State or a local government receives the price, and the price is vested in the National Treasury or the treasury of the local government; |
| 3. | Where a tax official receives the price through garnishment in accordance with collecting delinquent local taxes; |
| 4. | Where the competent court deems that it is difficult to proceed with the bankruptcy proceedings because a trustee in bankruptcy prescribed in Article 355 of the Debtor Rehabilitation and Bankruptcy Act is refused to be provided a certificate of tax payment, and the relevant court requests the head of the local government to except the certificate of tax payment from the submission thereof; |
| 5. | Where a taxpayer intends to pay the full contract price for the amount of delinquent local taxes, or to pay a portion of the contract price for the full delinquent local taxes. |
| (2) | Where a taxpayer should submit a certificate of tax payment because he/she falls under any of the subparagraphs of Article 5 (1) of the Act, the competent authorities, etc. may allow him/her to omit a certificate of tax payment by referring to the head of a local government (limited to the reference through the local tax information and communication network) or by verifying whether he/she has failed to pay local taxes by datamatching administrative information under Article 36 (1) of the Electronic Government Act after obtaining the consent from the taxpayer. |
| Article 6 (Application for and Issuance of Certificates of Tax Payment) |
| (1) | A person who intends to be issued with a certificate of tax payment pursuant to Article 5 (2) of the Act shall file a written application (including electronic document) with a tax official, stating the following matters: <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | The name (where the person is a corporation, referring to the name of the corporation; hereinafter the same shall apply), domicile, place of residence, place of business or office of the taxpayer (where issued electronically, referring to the electronic mail address or electronic mail box of the account holder who has joined the information and communication network announced by the Minister of the Interior and Safety or the electronic mail box (referring to the place to which he/she may have access using the authorized certificate defined in subparagraph 8 of Article 2 of the Digital Signature Act) in the local tax information and communication network; hereinafter referred to as "domicile or place of business"); |
| 2. | Purposes of the use of the certificate of tax payment; |
| 3. | The number of copies of the certificate of tax payment. |
| (2) | Where a tax official receives an application to issue a certificate of tax payment pursuant to paragraph (1), he/she shall confirm the amount of delinquent local taxes (including the amount of delinquent local taxes which a taxpayer owes to another local government) of the relevant taxpayer and issue a certificate of tax payment. |
| Article 7 (Period of Validity of Certificates of Tax Payment) |
| (1) | The period of validity of a certificate of tax payment under Article 5 of the Act shall be 30 days from the date issued: Provided, That where a local tax is notified to the relevant applicant as of the date of the issuance thereof or where the legal deadline of a local tax (excluding a local tax which is reported and paid or which is paid due to special collection) ends within 30 days from the date of issuance thereof, the period of validity thereof may be reduced to the payment deadline for the relevant local tax. |
| (2) | Where a tax official reduces the period of validity pursuant to the proviso to paragraph (1), he/she shall specify the period of validity and reasons for such reduction in the relevant certificate of tax payment. |
| Article 8 (Request for Permission to Peruse Unpaid Local Taxes, etc.) |
A person who intends to request the head of a local government to permit him/her to peruse details of unpaid local taxes, etc. pursuant to Article 6 of the Act shall file an application to peruse such details of unpaid local taxes stating the following, with the head of the local government, along with a document evidencing the consent of a lessor and the identity of a lessee: | 1. | The name and domicile or place of business of the person who files an application to persue details of unpaid local taxes, etc.; |
| 2. | The name and domicile or place of business of the lessor; |
| 3. | Matters concerning the building the lessee intends to rent. |
| Article 9 (Reasons for Exception to Restrictions on Permission, etc.) |
"Reasons prescribed by Presidential Decree" in Article 7 (1) of the Act means reasons the head of a local government recognizes, in any of the following cases: | 1. | Where tax payment is notified through service by publication; |
| 2. | Where it is difficult for a taxpayer to pay local taxes because he/she has suffered serious economic loss due to damage from a storm, flood, lightning, fire, war, other disaster or theft; |
| 3. | Where it is difficult for a taxpayer to pay local taxes due to disease contracted by the taxpayer or his/her family residing together with him/her; |
| 4. | Where it is difficult for a taxpayer to pay local taxes because his/her business has incurred a serious loss; |
| 5. | Where a taxpayer has a reason corresponding to any of the following: |
| (a) | Where he/she is subject to compulsory execution; |
| (b) | Where he/she is declared bankrupt; |
| (c) | Where his/her assets are subject to auction; |
| (d) | Where his/her corporation is dissolved; |
| 6. | Where the property of a taxpayer constitutes a reason to suspend collecting delinquent local taxes under Article 104 of the Act; |
| 7. | Where there are reasons corresponding to subparagraphs 1 through 6. |
| Article 10 (Reporting on Business Subject to Restrictions on Government Licensed Business) |
"Reporting prescribed by Presidential Decree" in Article 7 (1) of the Act means reporting necessary to lawfully conduct business provided for in Appendix of the Enforcement Decree of the Local Tax Act.
| Article 11 (Procedures for and Methods of Imposing Restrictions on Government Licensed Business) |
Where the head of a local government requests the competent authorities not to grant permission, etc. (hereinafter referred to as "permission, etc.") under Article 7 (1) of the Act pursuant to the aforesaid paragraph, procedures and methods for imposing restrictions on permission, etc. shall be prescribed by Ministerial Decree of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
| Article 12 (Calculating Number of Times Taxpayer Has Failed to Pay Local Taxes and Reasons for Exception to Suspension of Government Licensed Business or to Revocation of Permission, etc. therefor) |
| (1) | The number of occasions a taxpayer has failed to pay local taxes under Article 7 (2) of the Act shall be calculated by regarding one copy of a notice to pay local tax as one occasion. |
| (2) | "Cases prescribed by Presidential Decree" in Article 7 (2) of the Act means any of the subparagraphs of Article 9, where the head of a local government recognizes reasons therefor. |
| Article 13 (Procedures for Suspending Government-Licensed Business or Revocation of Permission, etc. therefor) |
Where the head of a local government intends to request the competent authorities to suspend government-licensed business or to revoke permission, etc. therefor, he/she shall make a written request, stating the following:
| 1. | The name and domicile or place of business of a business operator; |
| 3. | Reasons suspending business or revoking permission, etc. is required; |
| Article 14 (Replying Results of Measures concerning Request for Restrictions, etc. on Government Licensed Business) |
Where the head of a local government makes a request under Article 7 (1) or (2) of the Act, the competent authorities shall immediately notify the head of the relevant local government of the result of measures taken.
| Article 15 (Requests for Ban on Departing from Republic of Korea or Lifting thereof) |
| (1) | "Persons prescribed by Presidential Decree" in Article 8 (1) of the Act means any of the following persons recognized by the head of a local government regarding whom it is impracticable to secure tax obligations by attaching property, selling attached property at public auction, providing security, or a tax guarantee issued by a guarantor, or it is likely for him/her to evade the collection of delinquent local taxes: |
| 1. | A person whose spouse or lineal ascendant or descendant has emigrated to a foreign country (including where the person is staying in the foreign country long-term for at least three years); |
| 2. | A person who has remitted money equivalent to at least US$ 50,000 for the last two years as of the date the ban on departing from the Republic of Korea is requested; |
| 3. | A person whose overseas assets equivalent to at least US$ 50,000 have been discovered; |
| 4. | A person who has failed to pay a large amount of local taxes or habitually, whose list is disclosed pursuant to Article 11 (1) of the Act; |
| 5. | A person who has departed from and returned to the Republic of Korea at least three times or who has stayed overseas for at least six months in a state that the amount of delinquent local taxes is at least 50 million won for the last one year as of the date the departure ban from the Republic of Korea is requested: Provided, That where he/she has stayed overseas for justifiable reasons, such as for business, medical treatment of disease, the death of his/her lineal ascendant or descendant, the foregoing shall not apply to the number of times he/she has departed from and returned to the Republic of Korea or the number of days of his/her overseas stay; |
| (2) | Where the head of a local government requests the Minister of Justice to ban the departure of a delinquent taxpayer from the Republic of Korea pursuant to Article 8 (1), he/she shall specify the following: |
| 1. | An item of subparagraphs of paragraph (1) under which the delinquent taxpayer falls; |
| 2. | A reason it is impracticable to secure tax obligations by attaching property, selling attached property at public auction, providing security, a tax guarantee issued by a guarantor, etc.; |
| 3. | A reason the head of the local government deems a delinquent taxpayer likely to evade the collection of delinquent local taxes. |
| (3) | "Where other reasons prescribed by Presidential Decree exist" in Article 8 (3) 4 of the Act means where the amount of delinquent local taxes falls below 50 million won following the payment of delinquent local taxes, the revocation of determination of imposition, etc. |
| (4) | Where the head of a local government deems a person banned from departing from the Republic of Korea to be unlikely to escape overseas for the purpose of evading the collection of delinquent local taxes, in which cases he/she falls under any of the following, the head of the local government may request the Minister of Justice to lift the departure ban from the Republic of Korea: |
| 1. | Where the person intends to depart from the Republic of Korea with a specific business plan, such as executing an overseas construction contract, opening an export letter of credit, executing a joint venture contract with a foreigner; |
| 2. | Where the person intends to depart from the Republic of Korea because his/her lineal ascendant or descendant residing overseas dies; |
| 3. | Where the head of the local government deems that it is necessary to lift the ban departing from the Republic of Korea due to extenuating circumstances, such as the medical treatment of the person, in addition to reasons under subparagraphs 1 and 2. |
| Article 16 (Providing Data concerning Delinquent Local Taxes or Write-offs) |
| (1) | "Cases prescribed by Presidential Decree" in the proviso to Article 9 (1) of the Act means any of the following cases: |
| Article 17 (Request, etc. for Providing Data concerning Delinquent Local Taxes or Write-offs) |
| (1) | A person who requests data regarding delinquent local taxes or write-offs (hereinafter in this Article referred to as "requester") pursuant to Article 9 of the Act shall submit a document stating the following to the head of a local government: |
| 1. | The name and domicile or place of business of the requester; |
| 2. | Details of data requested and the purposes of the use thereof. |
| (2) | The head of a local government requested to provide data regarding delinquent local taxes or write-offs pursuant to paragraph (1) may provide such data in the file of data regarding delinquent local taxes or write-offs (referring to data storage devices or other media similar thereto in which data regarding delinquent local taxes or write-offs are recorded and stored; hereinafter the same shall apply) under paragraph (3) or in writing. |
| (3) | Where the head of a local government processes data concerning delinquent local taxes or write-offs by means of the electronic data processing system, he/she may prepare a data file concerning delinquent local taxes or write-offs. |
| (4) | Where data regarding delinquent local taxes or write-offs provided pursuant to paragraph (2) do not fall under data subject to the provision thereof for reasons, such as providing the payment of delinquent local taxes or reversing write-offs, the head of a local government shall notify a requester of such fact within 15 days from the date reasons therefore arise. |
| (5) | In addition to matters provided for in paragraphs (1) through (4), the head of a local government shall prescribe matters necessary to request data concerning delinquent local taxes or write-offs, or to provide, adjust, manage or store such data. |
| Article 18 (Scope of Providing Data concerning Delinquent Local Taxes of Foreigners and Procedures, etc. for Provision thereof) |
| (3) | Where the Minister of the Interior and Safety or the head of a local government processes data concerning delinquent local taxes of foreigners under Article 10 (1) of the Act using the electronic data processing system, he/she may prepare a data file concerning delinquent local taxes and submit such data file to the Minister of Justice through the local tax information and communication network. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 19 (Disclosure of List of Persons Who Have Failed to Pay Local Taxes in Large Amount or habitually) |
| (1) | "Where other reasons prescribed by Presidential Decree exist" in the proviso to Article 11 (1) of the Act means any of the following cases: |
| 1. | Where a taxpayer has paid at least 30 percent of the amount of delinquent local taxes (including additional dues); |
| 2. | Where a taxpayer has obtained deferment of collecting delinquent local taxes in accordance with the determination of approval of a rehabilitation plan under Article 243 of the Debtor Rehabilitation and Bankruptcy Act and is under the period of such deferment, or pays delinquent local taxes in accordance with the payment schedule in a rehabilitation plan; |
| 3. | Where the local tax deliberative committee prescribed in Article 147 of the Framework Act on Local Taxes deems the disclosure of the list of persons who have failed to pay local taxes in a large amount or habitually unbeneficial or inappropriate when taking into account the financial standing, whether a person is a minor, and other circumstances. |
| (2) | Where the head of a local government notifies persons subject to disclosure that they are subject to being disclosed on the list of delinquent taxpayers pursuant to Article 11 (3) of the Act, he/she shall urge them to pay delinquent local taxes, and where they have a reason to be excepted from being disclosed on the list of delinquent taxpayers, he/she shall notify them to submit explanatory data thereon. |
| (3) | Where the head of a local government discloses the list of delinquent taxpayers who are corporations, he/she may disclose the representatives of such corporations, concurrently. |
Section 1 Procedures for Collection
| Article 20 (Notice to Pay Local Taxes) |
Notice to pay local taxes under Article 12 of the Act shall be given by a notice to pay local taxes or payment notice, stating the following: | 1. | The taxable year, tax items, the amount, and the payment deadline for local taxes to be paid; |
| 2. | Basis for calculating the amount of local taxes and the place for paying local taxes: Provided, That where at least two local taxes are notified simultaneously by one notice to pay local taxes or notice demanding payment, reasons for calculating the amount of local taxes may be omitted. In such cases, where a taxpayer requests the head of a local government to permit him/her to peruse grounds for calculating the amount of local taxes, a tax official shall immediately permit the taxpayer to peruse reasons for calculating the same. |
| Article 21 (Payment Notice of Expenses for Disposition on Default) |
The following matters shall be stated in a notice for paying expenses for disposition on default under Article 12 (2) of the Act: | 1. | The taxable year and tax items of local taxes related to collecting expenses for disposition on default; |
| 2. | Expenses for disposition on default, basis for calculating the expenses, the payment deadline for the expenses, and the place where the expenses are to be paid. |
| Article 22 (Payment Notice to Secondary Taxpayers) |
The following matters shall be stated in a payment notice to a secondary taxpayer under Article 15 of the Act: | 1. | The name and domicile or place of business of the taxpayer; |
| 2. | The taxable year, tax items, the amount, grounds for the calculation, and the payment deadline for delinquent local taxes; |
| 3. | The amount of local taxes to be collected from a secondary taxpayer under Articles 45 through 48 of the Framework Act on Local Taxes of the amount of delinquent local taxes under subparagraph 2, basis for calculating the same, the deadline for payment thereof, and the place for paying the local taxes; |
| 4. | Provisions applied to a secondary taxpayer. |
| Article 23 (Notice, etc. to Mortgagee) |
| 1. | The name and domicile or place of business of the taxpayer and the mortgagee; |
| 2. | The taxable year, tax items, the amount and the payment deadline for delinquent local taxes; |
| 3. | The amount of local taxes levied on the taxpayer to be collected by the local government from the mortgagee among the amount of local taxes under subparagraph 2, the basis for calculating the same, the deadline for the payment thereof and the place where the amount of local taxes is to be paid; |
| 4. | Provisions applied to the taxpayer and the mortgagee. |
| Article 24 (Delegation, etc. of Collecting Special Metropolitan City Tax, Metropolitan City Tax and Do Tax) |
| (1) | A Si/Gun/Gu shall bear expenses incurred in taking measures to collect delinquent Special Metropolitan City tax, Metropolitan City tax and Do tax within the jurisdiction of the Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply), which the head of the Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) collects pursuant to the main sentence of Article 17 (1) of the Act, and expenses incurred in taking measures to collect delinquent Special Metropolitan City tax, Metropolitan City tax and Do tax collected after taking measures to collect such delinquent taxes shall be revenue of the Si/Gun/Gu. |
| (2) | The rates of subsidies (referring to the ratio of the total amount of money distributed to each Si/Gun/Gu to the amount of money collected by Sis/Guns/Gus and paid to the Special Metropolitan City, the Metropolitan City and the Do) under Article 17 (2) of the Act shall be 3/100. |
| (3) | Standards for subsidies to each Si/Gun/Gu (referring to standards for distributing a fixed portion of the Special Metropolitan City tax, Metropolitan City tax and Do tax, which is determined to be subsidies for collecting the same, to each Si/Gun/Gu) under Article 17 (2) of the Act shall be 3/100 of the amount of Special Metropolitan City tax, Metropolitan City tax and Do tax collectible by each Si/Gun/Gu: Provided, That where necessary in consideration of the actual regional circumstances, standards for subsidies may be prescribed otherwise, such as reflecting the number of taxes collected in addition to the amount of taxes collected, by Municipal Ordinance of the Special Metropolitan City, Metropolitan City or Do; and where the number of taxes collected is reflected, the number of leisure taxes collected shall be excluded therefrom. |
| (4) | The head of a Si/Gun/Gu shall pay Special Metropolitan City tax, Metropolitan City tax and Do tax which he/she has collected in the treasury of the Special Metropolitan City, Metropolitan City and Do, or pay such tax in the treasury of the Special Metropolitan City, Metropolitan City or Do through a designated bank or post office along with a payment report by the deadline designated as follows: Special Metropolitan City tax, Metropolitan City tax and Do tax collected by the head of a Si/Gun/Gu shall be paid to the treasury of the Special Metropolitan City, Metropolitan City and Do or shall be paid to the treasury of the Special Metropolitan City, Metropolitan City and Do through a designated bank or post office, along with a payment report, by the deadline designated as follows: |
| 1. | Until the day after he/she receives such taxes in cases of a Si/Gun/Gu in an area where the treasury of the Special Metropolitan City, Metropolitan City or Do, the designated bank or post office is located; |
| 2. | Within five days from the date he/she receives such taxes in cases of a Si/Gun/Gu located outside the jurisdiction of the treasury of the Special Metropolitan City, Metropolitan City or Do, the designated bank or post office. |
| Article 25 (Procedures, etc. for Entrustment of Collection) |
| (1) | A tax official who intends to entrust collecting local taxes pursuant to Article 18 of the Act shall entrust the collection thereof in writing, stating the following: |
| 1. | The domicile or place of business of a taxpayer before and after the change thereof; |
| 2. | The taxable year, tax items, objects of taxation, tax base, tax rate, the deadline for payment and the amount of local taxes the collection of which is entrusted; |
| 3. | Whether dunning or notice of demand has been issued, and the date of the issuance thereof; |
| (2) | A tax official entrusted with collecting local taxes pursuant to paragraph (1) shall immediately send a written confirmation of acquisition to a tax official who has entrusted him/her with collecting local taxes. |
| (3) | Where a tax official has entrusted collecting local taxes pursuant to paragraphs (1) and (2), in which case the collection thereof is delayed or other special reasons exist, the tax official who has entrusted the collection thereof may take measures to collect delinquent local taxes against the relevant delinquent taxpayer upon consulting a tax official entrusted with collecting the same within the jurisdiction of a local government directly entrusted with the collection thereof. |
| Article 26 (Unavoidable Accidents) |
An unavoidable incident specified in Article 19 (1) of the Act means an incident that cannot be prevented even if a person fulfills his/her fiduciary duty.
| Article 27 (Local Taxes That May Be Collected before Payment Deadline) |
Local taxes that may be collected by a local government before the payment deadline pursuant to Article 22 (1) of the Act shall be limited to any of the following local taxes, where the head of the local government deems impracticable to collect such local taxes if he/she awaits by the payment deadline: | 1. | Local taxes regarding which tax returns are filed or a notice is given; |
| 2. | Local taxes specially collected; |
| 3. | Local taxes collected by a tax association. |
| Article 28 (Notice of Collection before Payment Deadline) |
Where the head of a local government gives notice under Article 22 (2) of the Act, he/she shall state the purpose of collecting local taxes before the payment deadline pursuant to paragraph (1) of the aforesaid Article in a notice to pay local taxes or payment notice under Article 20: Provided, That where he/she has already given notice to pay local taxes or it is not required to give notice to pay local taxes, he/she shall give written notice (including an electronic document), in which the purpose of changing the payment deadline is stated.
| Article 29 (Methods of Payment and Receipt) |
| (1) | Where a taxpayer pays money collectible by a local government, he/she shall pay the money in cash, by credit card (limited to payment under Article 23 of the Act) or by securities prescribed in the Revenue Payment by Securities Act to the treasury of the local government or a local tax collection agency under Article 23 (1) of the Act (hereinafter referred to as "local tax collection agency"). |
| (2) | The treasury of the local government or a local tax collection agency shall receive local taxes, but no tax official shall receive local taxes: Provided, That in any of the following cases, a tax official may receive local taxes: |
| 1. | Where a tax official receives local taxes in an area prescribed by municipal ordinance of the local government, which is an island, the backcountry, etc. where the local government and local tax collection agency have no treasury; |
| 2. | Where a tax official receives local taxes in a small amount not more than the amount of money prescribed by municipal ordinance of the local government. |
| (3) | Article 24 (4) shall apply mutatis mutandis where a tax official pays local taxes he/she has collected pursuant to the proviso to paragraph (2) and deposited them into the treasury of each local government. |
| Article 30 (Payment of Local Taxes by Credit Card) |
| (1) | "Tax items prescribed by Presidential Decree" in Article 23 (1) of the Act means all local taxes (including special taxes for rural development which are added, additional taxes and additional dues) excluding tobacco consumption taxes and motor vehicle taxes on the driving of motor vehicles. |
| (3) | "Persons prescribed by Presidential Decree" in Article 23 (4) of the Act means those who have failed to pay at least three local taxes and in whose case the total amount of delinquent local taxes is at least one million won. |
Section 2 Deferment of Collection
| Article 31 (Determinations to Defer Collection, etc., Period of Deferment, etc.) |
| (1) | The determination of the deferment, etc. of collecting local taxes (hereinafter referred to as "deferment, etc. of collection") under Article 25 (1) of the Act shall be made in accordance with the following classification: |
| 1. | Deferred notice: Where the head of a local government defers giving notice to pay local taxes because a reason (hereinafter referred to as "reason for deferred collection, etc.") falling under any of the subparagraphs of Article 25 (1) of the Act arises before the commencement of the period of payment; |
| 2. | Notice of installments: Where the head of a local government gives notice to pay the assessed local tax in installments because a reason for deferment, etc. of collection arises before he/she gives notice to pay local tax; |
| 3. | Deferred collection: Where the head of a local government extends the payment deadline for local tax because a reason for deferred collection, ect. arises before the payment deadline for notified local tax expires; |
| 4. | Deferring collecting delinquent local taxes: Where the head of a local government extends the payment deadline for local tax because a reason for deferment, etc. of collection arises after a taxpayer is urged to pay local tax. |
| (2) | The period of deferred collection, etc. shall be within six months from the day after the head of a local government determines the deferment, etc. of collecting local taxes; and he/she shall determine the payment deadline in installments during that period and the amount of local taxes to be paid in installments. |
| (3) | Where a reason for deferred collection, etc. continues to exist until the deadline for deferment, etc. of collecting local taxes under paragraph (2) expires, the head of a local government may re-determine the deferment, etc. of collecting local taxes within a fixed period not exceeding six months only once; and he/she shall determine the payment deadline in installments during that period and the amount of local taxes to be paid in installments. |
| (4) | The period of deferment, etc. of collection due to a reason specified in Article 25 (1) 5 of the Act shall be from the latter of the day after the payment deadline for local taxes or the date of commencement of procedures for mutual agreement to the expiration date of procedures for mutual agreement. |
| Article 32 (Procedures for Filing Application for Deferred Collection, etc.) |
| (1) | A person who intends to be granted deferred collection, etc. shall file a written application (including an electronic document) with the head of a local government, stating the following: |
| 1. | The name and domicile or place of business of a the taxpayer; |
| 2. | The taxable year, tax items, the amount and the payment deadline for local taxes to be paid; |
| 3. | The amount of local taxes regarding which the person intends to be granted deferred collection, etc. among the amount of local taxes under subparagraph 2; |
| 4. | Reasons the person intends to be granted deferred collection, etc. and the period of the deferment, etc. of collection; |
| 5. | Where the person intends to be granted deferred collection, etc. by paying in installments, the amount of local taxes to be paid in installments and the number of installments. |
| (2) | Where there are reasons for deferred collection, etc., the head of a local government may allow the deferred collection, etc. by inherent jurisdiction. |
| Article 33 (Notice concerning Deferment, etc. of Collection) |
| (1) | Where the head of a local government allows the deferment, etc. of collection, he/she shall notify a taxpayer such has been deferred in writing, stating the following matters: |
| 1. | The taxable year, tax items, the amount, the payment deadline for local taxes the collection of which is deferred; |
| 2. | Where he/she grants deferred collection of local taxes by paying in installments, the amount of local taxes to be paid in installments and the number of installments; |
| 3. | The period of deferred collection, etc.; |
| 4. | Other necessary matters. |
| (2) | The determination of the deferment, etc. of collection shall become valid on the following dates: |
| 1. | Where the head of a local government determines deferred collection, etc. at the request of a taxpayer, the date the taxpayer makes a request; |
| 2. | Where the head of a local government determines deferred collection, etc. by inherent jurisdiction, the date of issuing the notice of deferred collection, etc. |
| Article 34 (Deferred Collection, etc. due to Failure in Service) |
| (1) | "Reasons prescribed by Presidential Decree, such as where the domicile or place of business is unknown" in Article 26 (1) of the Act means any of the following cases: |
| 1. | Where a notice is returned even if the head of a local government sends the notice by registered mail because the address or place of business is unknown; |
| 2. | Where the head of a local government is unable to send a notice because a taxpayer is domiciled or has his/her place of business in a foreign country; |
| 3. | Where reasons corresponding to subparagraphs 1 and 2 exist. |
| (2) | "Period prescribed by Presidential Decree" in Article 26 (1) of the Act means the period within six months from the date the head of a local government determines the deferment, etc. of collection. |
| Article 35 (Notice of Revoking Deferment, etc. of Collection) |
Notice of revoking the deferment, etc. of collection under Article 29 (2) of the Act shall be given in writing, stating the following: | 1. | The date of the revocation thereof; |
| 2. | Reasons for the revocation thereof. |
| Article 36 (Additional Charges) |
| Article 37 (Matters to Be Stated in Dunning Letter) |
The taxable year, tax items, the amount, additional dues, the payment deadline and the place of payment of local taxes that should be paid shall be stated in a dunning letter under the main sentence of Article 32 (1) of the Act.
| Article 38 (Notice of Demand to Secondary Taxpayers) |
| 1. | The name and domicile or place of business of a taxpayer; |
| 2. | The taxable year, tax items, the amount, additional dues, the deadline for payment and the place of payment of local taxes which the head of a local government intends to collect from the secondary taxpayer. |
CHAPTER III DISPOSITION OF DEFAULT
Section 1 Common Provisions
| Article 39 (Collecting Delinquent Local Taxes on Common Property) |
Where property to be attached is common property, in which case shares in common property have not been determined, delinquent taxes shall be collected as if the shares are equal.
| Article 40 (Notice of Attachment) |
| 1. | The name and domicile or place of business of a taxpayer; |
| 2. | The taxable year, tax items and the amount of local taxes related to attachment; |
| 3. | Types, quantities, quality and locations of attached property; |
| 5. | Date of preparing a report; |
| 6. | Reasons for attachment; |
| 7. | Conditions for releasing attachment. |
| Article 41 (Continuation to Take Measures to Collect Delinquent Local Taxes) |
Even where a delinquent taxpayer was declared bankrupt and property is already attached, the head of a local government shall continue to collect delinquent the relevant local taxes.
| Article 42 (Business Subject to Search at Night) |
| 1. | Business of providing food and alcoholic beverages in furnished guest rooms and of requiring persons engaged in entertainment to entertain guests; |
| 2. | Business of constructing and providing a dance hall for the general public to use; |
| 3. | Business of providing alcoholic beverages, meals and/or other foods; |
| 4. | Business similar to those in provided for in subparagraphs 1 through 3. |
| Article 43 (Restrictions on Access while Collecting Delinquent Local Taxes) |
In any of the following cases, where a tax official deems it necessary, he/she may request persons other than the relevant persons to withdraw from the place where delinquent local taxes are collected restrict persons other than the relevant persons from accessing the place:
| Article 44 (Scope of Relatives) |
"Relatives prescribed by Presidential Decree" in subparagraph 7 of Article 36 of the Act means persons in the kinship under Article 2 (1) of the Enforcement Decree of the Framework Act on Local Taxes.
| Article 45 (Procedures for Nullifying Fraudulent Conduct, etc.) |
Where the head of a local government intends to request a court to order fraudulent conduct nullified and to reinstate rights under Article 39 of the Act, he/she shall bring an action against a delinquent taxpayer or transferee of the property pursuant to the Civil Act and the Civil Procedure Act.
| Article 46 (Property Prohibited from Attachment) |
| (1) | "Property prescribed by Presidential Decree" in subparagraph 14 of Article 40 of the Act means the insurance proceeds, the cash surrender value, the redemption at maturity of guaranteed insurance, and deposits (including savings, installments, deposits and postal transfers) the balance of which for each individual is less than 1.5 million won based as follows: |
| 1. | Insurance proceeds not exceeding ten million won of the death benefit; |
| 2. | Any of the following proceeds of guaranteed insurance which are paid to a delinquent taxpayer due to an injury, disease, accident, etc.: |
| (a) | Insurance proceeds intended to cover expenses to be actually in incurred medical treatment and recovery from disability, such as consultation fees, medical treatment costs, fees for surgery, the costs of hospitalization and prescription drug costs; |
| (b) | The amount of money equivalent to 1/2 of insurance proceeds excluding insurance proceeds falling under item (a) of the insurance proceeds for medical treatment and rehabilitation; |
| 3. | The amount of money not exceeding 1.5 million won of the cash surrender value of guaranteed insurance; |
| 4. | The amount of money not exceeding 1.5 million won of the refund at maturity of guaranteed insurance. |
| (2) | Where a delinquent taxpayer has at least two insurance contracts providing for insurance proceeds, the cash surrender value, or the redumption at maturity of guaranteed insurance, the amounts under the subparagraphs of paragraph (1) shall be calculated as follows: |
| 1. | Paragraph (1) 1, 3 and 4: The total amount of the death benefits, the cash surrender values and the redemption at maturity under each insurance contract; |
| 2. | Paragraph (1) 2 (b): The amounts under each insurance contract. |
| Article 47 (Extent of Attachment of Salaries) |
| (1) | The total amount under Article 42 of the Act shall be the amount calculated by subtracting income tax and personal local income tax on earned income or retirement income from the full amount of salary receivable. |
| (2) | "Amount of money prescribed by Presidential Decree in consideration of the minimum cost of living under the National Basic Living Security Act" in the proviso to Article 42 (1) of the Act means 1.5 million won a month. |
| (3) | "Amount of money prescribed by Presidential Decree based on the cost of living of a standard household" in the proviso to Article 42 (1) of the Act means the amount calculated by totalizing the amounts under subparagraphs 1 and 2: |
| 1. | Three million won a month; |
| 2. | The amount calculated in accordance with the following calculation formula: Provided, That where the amount calculated is less than zero, the amount shall be deemed zero: |
[The amount of money prohibited from attachment (referring to the amount of money calculated monthly) under the main sentence of Article 42 (1) of the Act - the amount under subparagraph 1] x 1/2.
| Article 48 (Notice of Attachment of Property provisionally Attached or Disposed of) |
Where a tax official attaches the property provisionally attached or disposed of in a trial pursuant to Article 45 of the Act, he/she shall notify the competent court, a law enforcement officer or compulsory manager of the purpose of such attachment. The foregoing shall also apply where he/she releases attachment.
| Article 49 (Exceptions to Validity of Attachment of Fruits) |
Ripe natural fruits under Article 46 of the Act may be deemed personal property separate from land or standing trees.
Section 2 Attachment of Personal Property
| Article 50 (Indication of Attached Personal Property) |
Where a tax official indicates that personal property is the attached property pursuant to the latter part of Article 49 (1) of the Act, he/she shall stipulate the date of attachment and the name of a local government to which the tax official who has attached the personal property belongs.
| Article 51 (Procedures for Using or Profiting from Attached Personal Property) |
| (1) | A person who intends to use or profit from personal property attached pursuant to Article 49 (2) of the Act shall submit an application for permission to use or profit from attached property prescribed by Ministerial Decree of the Interior and Safety to the head of a local government. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | The head of a local government in receipt of an application for permission to use or profit from attached property pursuant to paragraph (1) shall examine whether using or profiting from the attached property interferes with the preservation of the attached property, and notify an applicant of whether he/she grants permission. |
| (3) | Where a person who has obtained permission pursuant to paragraph (2) uses or profits from the attached property, he/she shall fulfill the fiduciary duties; and where the head of a local government requests the person to deliver the relevant property, the person shall immediately comply with such request. |
| Article 52 (Attachment of Conditional Obligations) |
The head of a local government may attach conditional obligations, such as a security deposit for good conduct and security deposit for a contract, even before the conditions thereof are realized. In such cases, where it is confirmed that such obligations are not realized after the attachment thereof, he/she shall immediately release the obligations from attachment.
| Article 53 (Procedures Following Failure to Settle Debts) |
| (1) | Where a debtor who has received notification of garnishment pursuant to Article 51 (1) of the Act fails to settle his/her debt by the deadline for settlement, the head of a local government shall notify the debtor to settle his/her debt. |
| (2) | Where a debtor who has received notification pursuant to paragraph (1) fails to settle his/her debt by the deadline notified, the head of a local government shall bring a suit against the debtor on behalf of a creditor: Provided, That where the head of the local government deems the debtor has no funds to settle his/her debt, he/she may release the garnishment. |
Section 4 Attachment of Real Estate, etc.
| Article 54 (Registration, etc. of Attachment of Real Estate, etc.) |
| (1) | Where the head of a local government entrusts registering attachment of real estate, a factory foundation or mining foundation, or the registration of the alteration thereof pursuant to Article 55 (1) of the Act, he/she shall entrust the registration thereof in writing, stating the following matters: |
| 1. | Indication of property; |
| 2. | Basis for the registration thereof and the date of the registration thereof; |
| 3. | Objective of the registration thereof; |
| 4. | Person who has the right to obtain registration; |
| 5. | The name and domicile or place of business of the person who has the duty to be registered. |
| (2) | Where the head of a local government entrusts registering attachment of a ship, or the registration of the alteration thereof pursuant to Article 55 (1) of the Act, he/she shall entrust the registration thereof in writing, stating the following matters: |
| 1. | Indication of the ship; |
| 3. | Name or title of a shipowner; |
| 4. | Basis for the registration thereof and the date of the registration thereof; |
| 5. | Objective of the registration thereof; |
| 6. | Person who has the right to obtain registration; |
| 7. | The name and domicile or place of business of the person who has the duty to be registered. |
| Article 55 (Registration, etc. of Partitioned or Divided Real Estate, etc.) |
| (1) | Article 54 (1) shall apply mutatis mutandis to entrusting registration of partitioning, dividing, merging or altering real estate, a factory foundation or mining foundation under Article 55 (2) of the Act. |
| (2) | Where Article 54 (1) applies mutatis mutandis to entrusting registration pursuant to paragraph (1), the head of a local government shall also state the basis for registration on his/her behalf in a written entrustment. |
| Article 56 (Procedures for Registering Preservation of Real Estate) |
| (2) | Where necessary when the head of a local government collects delinquent local taxes, he/she may request the competent government office to issue a transcript of a land register, a transcript of a building register or comprehensive real estate certificate. |
| Article 57 (Registration, etc. of Attachment of Motor Vehicles, etc.) |
Article 54 (1) shall apply mutatis mutandis to entrusting registration of attachment of a motor vehicle, construction equipment or aircraft or the registration of the alteration thereof under Article 56 (1) of the Act.
| Article 58 (Procedures for Using or Profiting from Attached Real Estate, etc.) |
| Article 59 (Claim to Ownership by Third Party) |
| (1) | Where a third party claims ownership of attached property and requests it to be returned pursuant to Article 60 of the Act, a tax official shall suspend collecting delinquent local taxes on such property. |
| (2) | Where a tax official deems a reason to make a request under paragraph (1) justifiable, he/she shall immediately release the property from attachment; and where he/she deems a ground for such request unreasonable, he/she shall immediately notify the requester of the purport thereof. |
| (3) | Where a requester who is notified pursuant to paragraph (2) fails to prove that he/she has brought a suit on the property against a delinquent taxpayer within 15 days from the date he/she is notified, a tax official shall immediately resume collecting delinquent local taxes. |
Section 5 Attachment of Intangible Property Rights, etc.
| Article 60 (Recordal, Registration, etc. of Attachment of Intangible Property Rights, etc.) |
| (1) | Where the head of a local government entrusts the recordal or registration of attachment of intangible property rights, etc. (hereinafter referred to as "intangible property rights, etc.") under Article 38 (1) 3 of the Act or the registry or registration of the alteration thereof pursuant to Article 61 (2) of the Act, he/she shall entrust the recordal or registration thereof in writing in which the following are stated: |
| 1. | Indication of intangible property rights, etc.; |
| 2. | Basis for the recordal or registration thereof and the date of the recordal or registration thereof; |
| 3. | Objective of the recordal or registration thereof; |
| 4. | Right holder to recordal or registration thereof; |
| 5. | The name and domicile or place of business of the right holder to recordal or registration thereof. |
| (2) | The head of a local government shall submit documents under paragraph (1) along with a report on attachment. |
| Article 61 (Registration of Attachment of Rights to State or Public Property) |
| (1) | Where the head of a local government attaches a right to State or public property pursuant to Article 62 (1) of the Act, he/she shall entrust registering the attachment thereof to a relevant government office in writing stating the following: |
| 1. | The name and domicile or place of business of a contractor; |
| 2. | Indication of State or public property; |
| 3. | Other necessary matters. |
| (2) | The relevant government office entrusted with registering the attachment of the right to State or public property pursuant to paragraph (1) shall register the attachment thereof on the relevant register, and immediately notify the head of a local government of the purport of the registration thereof. |
| (3) | The head of a local government shall submit documents under paragraph (1) along with a report on attachment. |
Section 6 Releasing Attachment
| Article 62 (Report on Releasing Attachment) |
Where the head of a local government intends to release property from attachment pursuant to Article 63 of the Act, he/she shall prepare a report on release from attachment prescribed by Ministerial Decree of the Interior and Safety: Provided, That where property which he/she intends to release from attachment is movables or securities, an additional statement of the date of releasing attachment and reasons for release in the margin of a report on attachment may replace a report on release from attachment. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
| Article 63 (Notice of Releasing Attachment) |
| Article 64 (Recordal or Registration of Cancellation of Attachment) |
Section 7 Requesting Delivery and Participation in Attachment
| Article 65 (Requesting Delivery Following Declaration of Bankruptcy) |
Where the head of a local government request a trustee in bankruptcy to deliver pursuant to Article 66 of the Act, he/she shall request delivery as follows: | 1. | Where the value of the attached property is less than or is deemed less than the amount of money to be collected, he/she shall request the trustee in bankruptcy to deliver the shortage as the foundation claim; |
| 2. | Where the head of a local government intends to publically auction collateral by measures to collect delinquent local taxes because a person who had pledged collateral for tax payment was declared bankrupt, the head of the local government shall request the trustee in bankruptcy to deliver the amount of money which is short or deemed short even if he/she exercises the right to foreclose outside bankruptcy after he/she follows procedures under Article 447 of the Debtor Rehabilitation and Bankruptcy Act: Provided, That where the trustee in bankruptcy intends to sell the property, the head of the local government shall request the trustee in bankruptcy to deliver the amount of money to be collected. |
| Article 66 (Notice of Delivery of Movables, etc. Given by Agency That Has Attached Personal Property, etc.) |
Where an agency that has attached personal property, etc. (hereinafter referred to as "agency that has attached personal property, etc.") under Article 67 (1) of the Act delivers movables or securities which are released from attachment pursuant to Article 68 (3) of the Act to the head of a local government who participates in the attachment thereof or the head of a local government who has notified the sale of the attached property pursuant to paragraph (7) of the aforesaid Article, it shall send a notice of delivery of the attached property in the attachment of which he/she participates prescribed by Ministerial Decree of the Interior and Safety. In such cases, where it delivers the attached property from a third party’s custody, it shall send a notice of delivery of the attached property in the attachment of which he/she participates along with a certificate of the custody thereof and a letter of instructions to deliver the attached property, to the person who has custody of the attached property. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
| Article 67 (Acquisition of Movables, etc. in Attachment of Which Local Government Has Participated) |
| (1) | Where the head of a local government who has participated in the attachment of property receives a notice of delivery of movables or securities from an agency that has already attached personal property or securities pursuant to Article 66, he/she shall immediately acquire the relevant movables or securities. |
| (2) | The head of a local government who has acquired movables or securities pursuant to paragraph (1) shall provide a certificate of custody and a letter of instructions for delivery which he/she has received pursuant to the latter part of Article 66 where the relevant property is property kept by a third party. |
| (3) | Where the head of a local government who has acquired movables or securities pursuant to paragraph (1) deems it necessary, he/she may require a delinquent taxpayer or a third party who possesses the movables or securities which the head of the local government has acquired to obtain custody of the relevant property. |
| (4) | Where the head of a local government who has participated in the attachment of property acquires movables or securities pursuant to paragraph (1), he/she shall immediately notify an agency that has attached movables or securities, which has delivered the personal property or securities, of such fact. |
| Article 68 (Application of Provisions concerning Ordinary Attachment Mutatis Mutandis) |
Except as otherwise prescribed by this Decree, the provisions on ordinary attachment of this Decree shall apply mutatis mutanids to participation in attachment.
Section 8 Sale of Attached Property
| Article 69 (Methods of Sale at Public Auction) |
| (1) | Where the head of a local government publically auctions attached property pursuant to Article 71 (1) of the Act, he/she shall sell each piece of property at public auction: Provided, That where there are several pieces of property which he/she will publically auction, in which case he/she deems it appropriate to publically auction all property collectively based on the location, form, uses, etc. of the relevant property, he/she may publically auction all property collectively on his/her own authority or at the request of interested persons. |
| (2) | Where the head of a local government publically auction several pieces of property collectively pursuant to the proviso to paragraph (1), in which case it is necessary to specify the sale price of each piece of property, he/she shall determine a percentage of the predetermined sale price of each piece of property; and the sale price of each piece of property shall be the amount of money calculated by dividing the total sale price by a percentage of the predetermined sale price of each piece of property. |
| (3) | Even where the head of a local government may publically auction all property collectively pursuant to the proviso to paragraph (1), in which case the sale price of some pieces of property is sufficient to pay the amount of delinquent local taxes, he/she shall not publically auction other property: Provided, That where the economic usefulness of property notably diminishes if he/she publically auctions land and buildings thereon collectively or publically auctions property in partition, or a delinquent taxpayer gives consent, the foregoing shall not apply. |
| (4) | In cases falling under the main sentence of paragraph (3), a delinquent taxpayer may designate pieces of property that may be sold at public auction among the attached property. |
| Article 70 (Notice of Sale at Public Auction on Behalf of Head of Local Government to Delinquent Taxpayers, etc.) |
| (2) | The head of a local government shall notify a delinquent taxpayer, person who possesses the collateral for tax payment, person who has the right to lease on a deposit basis, the right of pledge, mortgage or other rights on the attached property, and person who has custody of the attached property pursuant to the former part of Article 49 (1) of the Act of the fact that the Korea Asset Management Corporation conducts a public auction on his/her behalf under paragraph (1). |
| Article 71 (Delivery of Attached Property) |
| (1) | Where the head of a local government requires the Korea Asset Management Corporation to conduct a public auction on his/her behalf pursuant to Article 71 (5) of the Act, he/she may deliver attached property which he/she possesses or has requested a third party to take custody of, to the Korea Asset Management Corporation: Provided, That regarding attached property which he/she has required the third party to have custody of, the delivery of a certificate of custody of the relevant property issued by the third party may replace the delivery of the property. |
| (2) | Where the Korea Asset Management Corporation acquires attached property pursuant to paragraph (1), it shall prepare a written confirmation of transfer and acquisition. |
| Article 72 (Request to Cancel Sale at Public Auction on Behalf of Local Government) |
| (1) | Where property has not been publically auctioned even though two years have elapsed from the date the Korea Asset Management Corporation was requested to conduct public auctions on behalf of the head of a local government, the Korea Asset Management Corporation may request the head of the local government to cancel such request on his/her behalf. |
| (2) | Except in extenuating circumstances, the head of a local government requested to cancel his/her request to publically auction the attached property on his/her behalf shall comply with the request of the Korea Asset Management Corporation for the cancellation of such request. |
| Article 73 (Detailed Matters concerning Public Auction Conducted on Behalf of Head of Local Government) |
Matters necessary for public auction conducted by the Korea Asset Management Corporation on behalf of the head of a local government pursuant to Article 71 (5) of the Act, not expressly prescribed by this Decree, shall be prescribed by the Minister of the Interior and Safety in consultation with the Korea Asset Management Corporation. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
| Article 74 (Commissions for Pubic Auction Conducted on Behalf of Head of Local Government) |
Commissions specified in Article 71 (7) of the Act shall be prescribed by the Minister of the Interior and Safety based on actual expenses incurred in conducting a public auction. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
| Article 74-2 (Vicarious Sale by Institutions Specialized in Sale) |
| (1) | The head of a local government shall select any of the following institutions as an institution specialized in sale under Article 71-2 (1) of the Act (hereinafter referred to as “institution specialized in sale”): |
| 1. | Institutions which the head of the local government has recognized as institutions with expertise and experience in the sale of art works, etc. provided for in Article 71-2 (1) of the Act and has publicly announced in the official bulletin and the website of the local government; |
| (2) | Notwithstanding of paragraph (1), if necessary, the head of a Si/Gun/Gu may select an institution specialized in sale, from among institutions publicly announced by the Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor pursuant to paragraph (1) 1. |
| (3) | A taxpayer who intends to request the vicarious sale of art works, etc. pursuant to Article 71-2 (1) of the Act shall prepare an application prescribed by Ministerial Decree of the Interior and Safety and submit it to the head of a local government. |
| (4) | Where the head of a local government has selected an institution specialized in sale ex officio or at the request under paragraph (3) to request the institution specialized in sale to vicariously sell art works, etc., he/she shall notify such fact to the tax payer in possession of the art works, etc. subject to sale. |
| (5) | When the head of a local government has requested an institution specialized in sale to vicariously sell art works, etc. pursuant to Article 71-2 (1) of the Act, he/she may transfer to the institution specialized in sale, the art works, etc. which he/she has possessed in a direct manner or has requested a third party to store: Provided, That a claim check issued by the third party for the art works, etc. may substitute for the transfer. |
| (6) | When the institution specialized in sale has acquired such art works, etc. subject to sale pursuant to paragraph (5), it shall prepare a handover form for such art works. |
| (7) | Except as otherwise provided for in paragraphs (1) through (6), detailed matters necessary for the procedures for selecting an institution specialized in sale and selling art works, etc. shall be determined by ordinances of the local government. |
[This Article Added by Presidential Decree No. 28715, Mar. 27, 2018]
| Article 74-3 (Commissions for Vicarious Sale by Institutions Specialized in Sale) |
Commissions specified in Article 71-2 (3) of the Act shall be prescribed by the Minister of the Interior and Safety based on actual expenses incurred in conducting vicarious sale. [This Article Added by Presidential Decree No. 28715, Mar. 27, 2018]
| Article 75 (Private Contract) |
| (1) | Where the head of a local government intends to privately contract to sell attached property pursuant to Article 72 of the Act, he/she shall prepare an estimated price report and receive price quotations from at least two persons who intend to purchase the attached property: Provided, That where he/she executes a private contract because the attached property falls under Article 72 (1) 5 of the Act, in which case the sale price exceeds the predetermined sale price at the time of the final public auction, he/she may choose not to receive price quotations. |
| (2) | Where the head of a local government intends to privately contract to sell attached property pursuant to Article 72 of the Act, he/she shall notify a delinquent taxpayer, person who possesses the security for tax payment, person who has the right to lease on a deposit basis, the right of pledge, mortgage or other rights on the attached property, of the fact that he/she intends to sell the attached property under private contract. |
| (3) | Where the Korea Asset Management Corporation enters into a private contract on behalf of the head of a local government pursuant to Article 72 (2) of the Act, Articles 70 through 74 and 81 shall apply mutatis mutandis to a notice of executing a private contract on behalf of the head of a local government, delivery of attached property, request to release attachment, fees, etc. |
| (1) | Appraisers whom the head of a local government may request to appraise the value of property subject to sale at public auction pursuant to Article 74 (2) of the Act shall be the following persons: |
| 2. | Where property subject to sale at public auction is property other than real estate referred to in subparagraph 1: An expert who has been engaged in the field related to the relevant property for at least five years. |
| (2) | Where the head of a local government requests an appraiser to appraise the value of property subject to public auction pursuant to Article 74 (2) of the Act, he/she may pay a fee to the appraiser, as prescribed by Ministerial Decree of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 77 (Government or Public Bonds, etc. in Lieu of Security Deposit for Public Auction) |
Where a bidder, etc. intends to substitute a government bond, municipal bond, securities listed on the securities market or a guarantee insurance policy (hereinafter referred to as "government or public bond, etc.") issued by an insurance company under the Insurance Business Act for a security deposit for public auction, the bidder, etc. shall submit the relevant government or public bond, etc. to the head of a local government along with the following documents: | 1. | Where the bidder, etc. pays a security deposit for public auction with a bearer government bond or unregistered public or corporate bond: Written confirmation of the establishment of the right of pledge; |
| 2. | Where the bidder, etc. pays a security deposit for public auction with a registered government bond or registered public or corporate bond: A certificate of the registration of the security interest and a power of attorney accompanied by a certificate of a seal impression of a person who has signed his/her name; |
| 3. | Where the bidder, etc. pays a security deposit for public auction with shares (including an investment certificate): Documents based on the following classification: |
| (a) | In cases of bearer shares: A share certificate issued by a corporation that has issued the relevant shares; |
| (b) | In cases of registered shares: Documents required to establish the right of pledge. In such cases, the head of a local government to whom documents required to establish the right of pledge are submitted shall entrust registering the establishment of the right of pledge to the relevant corporation. |
| Article 78 (Assessment of Government or Public Bonds, etc. Which Replace Security Deposit for Public Auction) |
| Article 79 (Matters to be publicly Announced concerning Public Auction) |
| (1) | Where the classification of land category or cadastre of land to be sold at public auction is different from indications in the land register when the head of a local government publicly announces the sale of attached property at public auction pursuant to Article 78 (2) of the Act, he/she shall also reconcile the public announcement of the sale of attached property at public auction. |
| (2) | Where any amendments are made to matters publicly announced pursuant to Article 78 (2) of the Act, the head of a local government shall immediately re-announce the matters altered. |
| Article 80 (Notice of Public Announcement of Public Auction) |
Where the Korea Asset Management Corporation publicly announces the sale of attached property at public auction pursuant to Article 78 (2) of the Act by conducting a public auction on behalf of the head of a local government pursuant to Article 71 (5) of the Act, it shall immediately notify the head of the relevant local government of such fact.
| Article 81 (Notice of Releasing Attachment) |
| (1) | Where the head of a local government releases attachment before the date attached property is publically auctioned after he/she has required the Korea Asset Management Corporation to publically auction the relevant attached property, he/she shall immediately notify the Korea Asset Management Corporation that the attachment is released. |
| (2) | The Korea Asset Management Corporation in receipt of notification pursuant to paragraph (1) shall immediately suspend public auction of the relevant attached property and notify the head of the competent local government of the suspension of the sale thereof. |
| Article 82 (Reasons for Postponement of Deadline for Requesting Distribution) |
"Reasons prescribed by Presidential Decree, such as a delay or omission in the recordal or registration of a public announcement of the sale of attached property at public auction" in the proviso to Article 78 (5) of the Act means any of the following cases: | 1. | Where the registry or registration of a public announcement of the sale of attached property at public auction is delayed or omitted; |
| 2. | Where the sale of attached property at public auction under Article 78 of the Act shall be publicly announced again for reasons, such as an omission of the notice of the sale of attached property at public auction under Article 80 of the Act; |
| 3. | Where the sale of attached property at public auction shall be publicly re-announced for other reasons similar thereto. |
| Article 83 (Reasons for Revocation of Public Auction) |
"Cases prescribed by Presidential Decree" in Article 83 (1) 4 of the Act means where the head of a local government has revoked his/her request for the sale of the relevant property at public auction under his/her inherent jurisdiction or at the request of the Korea Asset Management Corporation under Article 72 (1).
| Article 84 (Notice of Restrictions on Participation in Public Auction) |
| (1) | Where the head of a local government has imposed restrictions on participation in public auction pursuant to Article 87 of the Act, he/she shall notify the Korea Asset Management Corporation of the fact that he/she has imposed restrictions on participation in public auction. |
| (2) | Where the Korea Asset Management Corporation has imposed restrictions on participation in public auction pursuant to Article 87 of the Act by requiring him/her to conduct a public auction on behalf of the head of a local government pursuant to Article 71 (5) of the Act, it shall notify the head of the relevant local government that it has imposed restrictions on participation in public auction. |
| Article 85 (Notice of Whether to Determine Sale) |
| (1) | Where the head of a local government is impracticable to determine the sale of attached property for reasons under the subparagraphs of Article 92 (1) of the Act, he/she shall notify a successful bidder of the reasons therefor. |
| (2) | Where the Korea Asset Management Corporation gives notice pursuant to paragraph (1) of this Article or Article 92 (3) of the Act while it conducts a public auction on behalf of the head of a local government pursuant to Article 71 (5) of the Act, it shall immediately notify the head of the relevant local government that it gives notice. |
| Article 86 (Deadline for Giving Notice Demanding Payment of Purchase Price) |
Where the head of a local government gives notice demanding payment of the purchase price pursuant to Article 93 of the Act, he/she shall fix the payment deadline within ten days from the date he/she gives such notice.
| Article 87 (Transfer, etc. of Security Deposit, etc. for Public Auction) |
| (1) | Where the Korea Asset Management Corporation receives the following money because it conducts a public auction or executes a private contract on behalf of the head of a local government, it shall immediately transfer the money to a cashier of the money other than revenue and expenditure of the relevant local government or deposit the money in the account of the cashier of the money other than revenue and expenditure of the relevant local government except cases where it distributes the money on behalf of the head of the local government pursuant to the proviso to Article 97 (1) of the Act: |
| (2) | Where the Korea Asset Management Corporation deposits the security deposit for public auction, etc. it has received pursuant to paragraph (1) in the account of a non-revenue and expenditure cashier, it shall immediately notify the non-revenue and expenditure cashier of such fact. |
| Article 88 (Notice of Revocation of Determination of Sale) |
Where the Korea Asset Management Corporation revokes its determination to sell attached property pursuant to Article 95 (1) of the Act while it conducts a public auction pursuant to Article 71 (5) of the Act, it shall immediately notify the head of the relevant local government of such fact.
| Article 89 (Entrustment of Registering Transfer of Rights) |
Where the head of a local government or the Korea Asset Management Corporation follows procedures for the transfer of the rights to the property sold pursuant to Article 96 of the Act, he/she or it shall entrust cancelling registration of rights which lapse along with the following documents in addition to the registry or registration of the transfer of rights: | 1. | A written request for registration submitted by a purchaser; |
| 2. | A notice of determination to sell attached property or a transcript thereof, or a transcript of the calculation statement of distribution. |
| Article 90 (Notice of Sale of State or Public Property) |
| (1) | Where a person who purchased state or public property in accordance with collecting delinquent local taxes has fully paid the purchase price thereof, the head of a local government shall pay the amount of money which a delinquent taxpayer has yet failed to pay out of the purchase price of the relevant state or public property, and immediately notify the relevant government office of the sale of the relevant state or public property. |
| (2) | The relevant government office which receives notice pursuant to paragraph (1) shall issue documents concerning the transfer of ownership to the purchaser. |
| Article 91 (Notice of Depositing Distributed Money) |
Where the head of a local government gives notice that he/she has deposited money with creditors or delinquent taxpayers pursuant to Article 103 (2) of the Act, he/she shall attach a transcript of the calculation statement of distribution confirmed pursuant to Article 102 (3) and (4) of the Act to the notice.
Section 10 Suspension or Deferment of Collection of Delinquent Local Taxes
| Article 92 (Suspending Collection of Delinquent Local Taxes and Public Announcement of Suspension thereof) |
| (1) | Where the head of a local government publicly announces the suspension of collecting delinquent local taxes pursuant to Article 104 (3) of the Act, he/she shall post the following on the information and communication network or the bulletin board of the local government: Provided, That where necessary, he/she may publish the following in the Official Gazette, the official report or a daily newspaper: |
| 1. | The name and domicile or place of business of the delinquent taxpayer; |
| 2. | The amount of delinquent local taxes; |
| 3. | Reasons for suspending collection of delinquent local taxes; |
| 4. | Other necessary matters. |
| (2) | A public announcement under paragraph (1) shall be made with ten days from the date the head of a local government is notified of a decision on suspending collection of delinquent local taxes from the local tax deliberative committee under Article 147 of the Framework Act on Local Taxes. |
| (3) | Where the head of a local government suspends collecting delinquent local taxes because he/she has received notification under paragraph (2), he/she shall release the relevant property from attachment. |
| Article 93 (Deferred Collection of Delinquent Local Taxes) |
| (1) | The period of deferment of collecting delinquent local taxes under Article 105 (1) of the Act shall be within one year after the date of such deferment. |
| (2) | The head of a local government may collect the amount of delinquent local taxes, for which collecting delinquent local taxes has been deferred, in installments within the period of deferment of collecting delinquent local taxes under paragraph (1). |
| (3) | Articles 32, 33 and 35 shall apply mutatis mutandis to an application for the deferment of collecting delinquent local taxes, notification of the deferment thereof, notification of the revocation of the deferment thereof. |
| 1. | Where a delinquent taxpayer is missing or proves to have no property; |
| (2) | Where the head of a local government intends to write off delinquent local taxes pursuant to paragraph (1) 1, he/she shall check the whereabouts of a delinquent taxpayer or whether he/she has property with an administrative agency deemed to have a relationship with the delinquent taxpayer (including checking the administrative agency by datamatching administrative information under Article 36 (1) of the Electronic Government Act): Provided, That where the amount of delinquent local taxes is less than 300,000 won, the foregoing shall not apply. |
| (3) | Where the head of a local government revokes a write-off pursuant to Article 106 (2) of the Act, he/she shall immediately notify the relevant taxpayer of the revocation of the write-off. |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Article 2 (Transitional Measures concerning Procedures, etc. for Imposing Restrictions on Government-Licensed Business)
Where procedures, etc. for imposing restrictions on government licensed business are prescribed by municipal ordinance pursuant to Article 49 of the previous Enforcement Decree of the Framework Act on Local Taxes (referring to the Enforcement Decree thereof before amended by Presidential Decree No. 27958; hereinafter referred to as the "previous Enforcement Decree of the Framework Act on Local Taxes") before this Decree enters into force, in which case procedures, etc. for imposing restrictions on government-licensed business are pending at the time this Decree enters into force, notwithstanding Article 11, the previous provisions thereof shall apply to procedures, etc. for imposing restrictions on government-licensed business.
Article 3 Omitted.
Article 4 (Relationship with other Statutes)
Where the previous Enforcement Decree of the Framework Act on Local Taxes or the provisions thereof is cited in other statutes (including municipal ordinances) at the time this Decree enters into force, in which case this Decree contains provisions corresponding thereto, this Decree or the relevant provisions of this Decree shall be deemed cited, respectively, in lieu of the previous Enforcement Decree of the Framework Act on Local Taxes or the provisions thereof, if such exist.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended by Article 8 of Addenda, the amendments to the Presidential Decrees, which were promulgated before this Act enters into force but whose enforcement dates have not arrived yet, shall enter into force on the enforcement dates of the respective Presidential Decrees.
Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 28715, Mar. 27, 2018>
This Decree shall enter into force on March 27, 2018.