ENFORCEMENT DECREE OF THE LOCAL TAX ACT
Wholly Amended by Presidential Decree No. 22395, Sep. 20, 2010
Amended by Presidential Decree No. 22424, Oct. 1, 2010
Presidential Decree No. 22449, Oct. 14, 2010
Presidential Decree No. 22467, Nov. 2, 2010
Presidential Decree No. 22586, Dec. 30, 2010
Presidential Decree No. 22605, Dec. 31, 2010
Presidential Decree No. 22880, Apr. 6, 2011
Presidential Decree No. 22942, May 30, 2011
Presidential Decree No. 23482, Dec. 31, 2011
Presidential Decree No. 23535, Jan. 25, 2012
Presidential Decree No. 23711, Apr. 10, 2012
Presidential Decree No. 23718, Apr. 10, 2012
Presidential Decree No. 23947, Jul. 10, 2012
Presidential Decree No. 23966, Jul. 20, 2012
Presidential Decree No. 23993, Jul. 26, 2012
Presidential Decree No. 24296, Jan. 1, 2013
Presidential Decree No. 24425, Mar. 23, 2013
Presidential Decree No. 24502, Apr. 22, 2013
Presidential Decree No. 24563, May 31, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 24890, Dec. 4, 2013
Presidential Decree No. 25085, Jan. 1, 2014
Presidential Decree No. 25249, Mar. 11, 2014
Presidential Decree No. 25252, Mar. 14, 2014
Presidential Decree No. 25279, Mar. 24, 2014
Presidential Decree No. 25317, Apr. 22, 2014
Presidential Decree No. 25448, Jul. 7, 2014
Presidential Decree No. 25456, Jul. 14, 2014
Presidential Decree No. 25485, Jul. 18, 2014
Presidential Decree No. 25545, Aug. 12, 2014
Presidential Decree No. 25700, Nov. 4, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25910, Dec. 30, 2014
Presidential Decree No. 26302, jun. 1, 2015
Presidential Decree No. 26290, jun. 1, 2015
Presidential Decree No. 26369, jun. 30, 2015
Presidential Decree No. 26438, Jul. 24, 2015
Presidential Decree No. 26431, Jul. 24, 2015
Presidential Decree No. 26763, Dec. 28, 2015
Presidential Decree No. 26836, Dec. 31, 2015
Presidential Decree No. 26858, Jan. 6, 2016
Presidential Decree No. 26916, Jan. 19, 2016
Presidential Decree No. 26928, Jan. 22, 2016
Presidential Decree No. 27102, Apr. 26, 2016
Presidential Decree No. 27245, jun. 21, 2016
Presidential Decree No. 27431, Aug. 2, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27473, Aug. 31, 2016
Presidential Decree No. 27472, Aug. 31, 2016
Presidential Decree No. 27471, Aug. 31, 2016
Presidential Decree No. 27621, Nov. 29, 2016
Presidential Decree No. 27619, Nov. 29, 2016
Presidential Decree No. 27710, Dec. 30, 2016
Presidential Decree No. 27793, Jan. 17, 2017
Presidential Decree No. 27959, Mar. 27, 2017
Presidential Decree No. 27958, Mar. 27, 2017
Presidential Decree No. 27972, Mar. 29, 2017
Presidential Decree No. 27971, Mar. 29, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28366, Oct. 17, 2017
Presidential Decree No. 28524, Dec. 29, 2017
Presidential Decree No. 28583, Jan. 16, 2018
Presidential Decree No. 28586, Jan. 16, 2018
Presidential Decree No. 28627, Feb. 9, 2018
Presidential Decree No. 28686, Feb. 27, 2018
Presidential Decree No. 28714, Mar. 27, 2018
Presidential Decree No. 28841, Apr. 30, 2018
Presidential Decree No. 29437, Dec. 31, 2018
Presidential Decree No. 29498, Jan. 22, 2019
Presidential Decree No. 29518, Feb. 8, 2019
Presidential Decree No. 29512, Feb. 8, 2019
Presidential Decree No. 29529, Feb. 12, 2019
Presidential Decree No. 29617, Mar. 12, 2019
Presidential Decree No. 29677, Apr. 2, 2019
Presidential Decree No. 29797, May 31, 2019
Presidential Decree No. 30256, Dec. 24, 2019
Presidential Decree No. 30318, Dec. 31, 2019
Presidential Decree No. 30633, Apr. 28, 2020
Presidential Decree No. 30672, May 12, 2020
Presidential Decree No. 30704, May 26, 2020
Presidential Decree No. 30728, jun. 2, 2020
Presidential Decree No. 30893, Aug. 4, 2020
Presidential Decree No. 30934, Aug. 11, 2020
Presidential Decree No. 30939, Aug. 12, 2020
Presidential Decree No. 30975, Aug. 26, 2020
Presidential Decree No. 31212, Dec. 1, 2020
Presidential Decree No. 31243, Dec. 8, 2020
Presidential Decree No. 31221, Dec. 8, 2020
Presidential Decree No. 31222, Dec. 8, 2020
Presidential Decree No. 31252, Dec. 10, 2020
Presidential Decree No. 31343, Dec. 31, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31438, Feb. 9, 2021
Presidential Decree No. 31450, Feb. 17, 2021
Presidential Decree No. 31463, Feb. 17, 2021
Presidential Decree No. 31472, Feb. 19, 2021
Presidential Decree No. 31576, Mar. 30, 2021
Presidential Decree No. 31646, Apr. 27, 2021
Presidential Decree No. 31740, jun. 8, 2021
Presidential Decree No. 31741, jun. 8, 2021
Presidential Decree No. 31889, Jul. 13, 2021
Presidential Decree No. 31941, Aug. 10, 2021
Presidential Decree No. 31941, Aug. 10, 2021
Presidential Decree No. 31961, Aug. 31, 2021
Presidential Decree No. 31986, Sep. 14, 2021
Presidential Decree No. 32091, Oct. 21, 2021
Presidential Decree No. 32251, Dec. 28, 2021
Presidential Decree No. 32293, Dec. 31, 2021
Presidential Decree No. 32449, Feb. 17, 2022
Presidential Decree No. 32447, Feb. 17, 2022
Presidential Decree No. 32511, Feb. 28, 2022
Presidential Decree No. 32598, Apr. 19, 2022
Presidential Decree No. 32697, jun. 14, 2022
Presidential Decree No. 32747, jun. 30, 2022
CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to prescribed matters mandated by the Local Tax Act and matters necessary for the enforcement thereof.
| Article 2 (Assessed Value of Land and Houses) |
| Article 3 (Calculated Values of Multi-Family Housing Prices Not Publicly Announced) |
"Standards prescribed by Presidential Decree" in the proviso of Article 4 (1) of the Act means standards prescribed by the Minister of the Interior and Safety, considering characteristics by region, complex, area, and floor, transaction prices, and other relevant matters. In such cases, the Minister of the Interior and Safety shall hear from the relevant experts in advance. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
| Article 4 (Standards for Calculating of Assessed Values of Buildings) |
| (1) | "Standards prescribed by Presidential Decree" in Article 4 (2) of the Act means standards determined by the Minister of the Interior and Safety according to the following methods, considering specific characteristics by taxable object, as of January 1 every year: <Amended on Mar. 23, 2013; Mar. 14, 2014; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2020; Dec. 31, 2021> |
| 1. | Officetels: The following items shall apply to the standard value publicly notified by the Minister of the Interior and Safety: |
| (a) | Index by use and floor of an officetel: |
| (b) | A markup and markdown rate based on the size and shape of an officetel, on whether special auxiliary facilities, etc. are deployed, and on other circumstances; |
| 1-2. | Buildings, other than those referred to in subparagraph 1: The following items shall apply to the standard value of a new building calculated and publicly notified by the Minister of the Interior and Safety in consideration of construction costs, etc.: |
| (a) | Index by structure, use, and location of a building; |
| (b) | A residual value rate determined by the number of elapsed years of a building; |
| (c) | A markup and markdown rate based on the size and shape of a building, on whether special auxiliary facilities, etc. are deployed, and on other circumstances; |
| 2. | Ships: Apply the following items to the sum of values calculated by applying the relevant tonnage in turn to the standard price differentiated according to the classification of tonnage, considering the type, use and building cost of a ship: |
| (a) | A residual value rate determined by the number of years elapsed of a ship; |
| (b) | A markup and markdown rate based on whether a rapid cooling system, etc. exists; |
| 3. | Vehicles: Apply the residual value rate determined by the number of years elapsed of a vehicle to the standard price determined based on the manufacturer's price (referring to the import price, where such vehicle is imported), transaction price, etc. of the vehicle according to its type, passenger capacity, maximum loading capacity, and the year of production; |
| 4. | Mechanical equipment: Apply the residual value rate determined by the number of years elapsed of mechanical equipment to the standard price determined based on the manufacturer's price (referring to the import price, where such mechanical equipment is imported), transaction price, etc. of the vehicle based on its type, tonnage, type, and the year of production; |
| 5. | Standing timber: Apply the volume and the number of the standing timber to the standard value determined based on the transaction prices, etc. by type and age of the standing timber; |
| 6. | Aircraft: Apply the residual value rate determined by the number of years elapsed of the aircraft to the standard price determined based on the manufacturer's price (referring to the import price, where such aircraft is imported), transaction price, etc. of the aircraft based on its type, type, manufacturer, passenger capacity, maximum takeoff weight, and the year of production; |
| 7. | Mining rights: Subtract the acquisition cost of machinery and facilities, and the relocation cost, etc. of mechanical facilities of the relevant mine from the standard price determined based on the volume of a mineral deposit in the mine, the net import price of the mineral per ton, expenses to be incurred in the establishment of a mining right, costs spent on mining facilities and the transaction price of a neighboring mine, etc.; |
| 8. | Fishing rights or aquaculture business rights: The consideration of the type of fishing or aquaculture business, the location of a fishing ground or fish farm, fishing gear or devices, fishing methods or aquaculture methods, catches, farmed fish, the valid period of a fishing permit, etc. shall be given to the standard price determined based on transaction prices in a neighboring fishing ground or fish farm of the same type, installation costs of fishing gear, etc.; |
| 9. | Golf club membership, riding club membership, condominium membership, sports complex membership, and yacht club membership: The consideration of the assessed value, etc. under the Income Tax Act shall be given to the standard price determined based on the sale and transaction prices; |
| 10. | Facilities fixed to the ground, or installed underground or in any other structure: Calculation of their value based on the use, structure, scale, etc. of such facilities based on the standard price determined in consideration of costs required for the new construction of such facilities by type, and then application of the residual value rate determined by the number of years elapsed of the facilities to the value so calculated; |
| 11. | Facilities annexed to a building: Calculation of their value considering the use, shape, performance, scale, etc. of such facilities based on the standard price determined based on the manufacturer's price (referring to the import price, where such facilities are imported), transaction price, installation costs, etc. by type, and then application of the residual value rate determined by the number of years elapsed of the facilities to the value so calculated. |
| (2) | In applying the assessed values of facilities annexed to a building under paragraph (1) 11 (hereafter in this paragraph referred to as "facilities"), where such facilities are annexed to a building used for both residential and non-residential purposes, the assessed value under paragraph (1) 11 shall be applied proportionally according to the ratio of residential occupation and non-residential occupation in the total floor area of the building. |
| (3) | Deleted. <Dec. 31, 2021> |
| (4) | Deleted. <Dec. 31, 2021> |
| (5) | Deleted. <Dec. 31, 2021> |
| (6) | Deleted. <Dec. 31, 2021> |
| (7) | Deleted. <Dec. 31, 2021> |
| (8) | Deleted. <Dec. 31, 2021> |
| (9) | Deleted. <Dec. 31, 2021> |
| (10) | Deleted. <Dec. 31, 2020> |
[Title Amended on Dec. 31, 2021]
| Article 4-2 (Procedures for Determining Assessed Value of Buildings) |
| (1) | A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter referred to as "head of a Si/Gun/Gu") shall calculate the assessed values of buildings under his or her jurisdiction according to the method under Article 4 (1) 1 and 1-2. |
| (2) | The head of a Si/Gun/Gu shall hear opinions of the owner and interested persons of a building (hereafter in this Article referred to as "owner, etc.") on the assessed value of the building calculated pursuant to paragraph (1) in accordance with the procedures prescribed by Ordinance of the Ministry of the Interior and Safety. |
| (3) | Where the head of a Si/Gun/Gu deems that the opinion presented by the owner, etc. under paragraph (2) is reasonable, he or she may modify the assessed values determined. In such cases, the head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor) shall obtain approval of such modification from the Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor (hereafter in this Article and Article 4-3 referred to as "Mayor/Do Governor") before the modification. |
| (4) | Notwithstanding paragraph (3), where the head of a Si/Gun/Gu intends to modify the assessed value in excess of 20/100 of the assessed value already determined, he or she shall undergo the following procedures: |
| 1. | A Special Self-Governing City Mayor and a Special Self-Governing Province Governor: Consultation with the Minister of the Interior and Safety; |
| 2. | The head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor): Approval of the Mayor/Do Governor. In such cases, the Mayor/Do Governor shall have a prior consultation with the Minister of the Interior and Safety before granting such approval. |
| (5) | The head of a Si/Gun/Gu shall determine the assess value (including the determination of modification) pursuant to paragraphs (1), (3), and (4), and publicly notify the assessed value by June 1 each year. In such cases, the head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor) shall obtain approval from the competent Mayor/Do Governor before making such determination. |
| (6) | The head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor) shall submit the assessed value determined pursuant to paragraph (5) to the Mayor/Do Governor. |
| (7) | A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the Mayor/Do Governor shall notify the chief judge of the competent district court of the assessed value determined pursuant to paragraph (5) or the assessed value submitted pursuant to paragraph (6). |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 4-3 (Procedures for Determining Assessed Value of Articles Other Than Buildings) |
| (1) | The head of a Si/Gun/Gu shall calculate, determine, and publicly notify the assessed values of articles other than buildings in the manner prescribed in Article 4 (1) 2 through 11. |
| (2) | Where a new article emerges other than those prescribed in the subparagraphs of Article 4 (1) after January 1 of the relevant year or where it is deemed necessary to change the method of calculating the assessed value referred to in paragraph (1) 2 through 11 of that Article, the head of a Si/Gun/Gu may request the Minister of the Interior and Safety to establish or modify the standards for calculating assessed values. |
| (3) | Upon receipt of a request under paragraph (2), the Minister of the Interior and Safety may examine the necessity of newly establishing or modifying the standards for calculating assessed values, and may newly establish or modify the calculation methods of the assessed value prescribed in Article 4 (1) 2 through 11 based on the results of the examination. |
| (4) | Where the Minister of the Interior and Safety intends to newly establish or modify the standards for calculating assessed values pursuant to paragraph (3), he or she shall hear the opinions of related experts in advance. |
| (5) | The head of a Si/Gun/Gu shall determine and publicly notify the assessed values modified pursuant to paragraph (3). |
| (6) | The head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor) shall submit the assessed value determined or modified pursuant to paragraph (1) or (5) to the Mayor/Do Governor. |
| (7) | A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the Mayor/Do Governor shall notify the chief judge of the competent district court of the assessed value determined or determined to be modified under paragraph (1) or (5) or the assessed value submitted under paragraph (6). |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 4-4 (Institutions Specializing in Research on, and Study of, Assessed Values) |
"Related specialized institution prescribed by Presidential Decree" in Article 4 (3) of the Act means the following institutions: | 2. | An institution deemed to have expertise in calculating standards for the assessed value and publicly notified by the Minister of the Interior and Safety. |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 4-5 (Establishment of Deliberative Committee on Assessed Values) |
| (1) | A Deliberative Committee on Assessed Values (hereinafter referred to as the "Deliberative Committee on Assessed Values") shall be established under the jurisdiction of the Minister of the Interior and Safety to deliberate on the following: |
| 1. | Methods for calculating the assessed values under the subparagraphs of Article 4 (1); |
| 2. | Consultation on the modification of the assessed values of buildings under Article 4-2 (4); |
| 3. | Establishment of standards for calculating assessed values under Article 4-3 (3); |
| 4. | Other matters deemed necessary by the Minister of the Interior and Safety to be deliberated on by the Deliberative Committee on Assessed Values in relation to preparation of the standards for calculating assessed values. |
| (2) | The Deliberative Committee on Assessed Values shall be composed of up to 10 members, including one chairperson and one vice chairperson. |
| (3) | The chairperson of the Deliberative Committee on Assessed Values shall be appointed by the Minister of the Interior and Safety, from among members in general service of the Senior Executive Service in charge of local tax-related affairs in the Ministry of the Interior and Safety. |
| (4) | Members of the Deliberative Committee on Assessed Values shall be appointed or commissioned by the Minister of the Interior and Safety from among the following persons: |
| 1. | A public official of Grade IV or higher or a public official who is a member of the Senior Executive Service under the jurisdiction of the Ministry of the Interior and Safety; |
| 2. | A person who has worked as an attorney-at-law, certified public accountant, certified tax accountant, or certified appraiser for at least five years; |
| 3. | A person who is currently holding or has once held an assistant professorship or a higher position teaching law, accounting, taxation, real estate, etc. at a college or university defined in the Higher Education Act; |
| 4. | Other persons who have abundant expertise and experience in local tax. |
| (5) | The term of office of a member prescribed in paragraph (4) 2 through 4 shall be two years. |
| (6) | Meetings of the Deliberative Committee on Assessed Values shall commence with the attendance of a majority of all incumbent members, and resolutions shall be adopted with a consent of a majority of the members present. |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for the composition and operation of the Deliberative Committee on Assessed Values shall be determined by the Minister of the Interior and Safety. |
[This Article Newly Inserted on Dec. 31, 2021]
CHAPTER II ACQUISITION TAX
SECTION 1 Common Provisions
| Article 5 (Scope of Facilities) |
| (1) | Leisure facilities, storage facilities, docking facilities, berthing facilities, conduit facilities, water supply/drainage facilities, and energy supply facilities referred to in subparagraphs 4 and 6 (b) of Article 6 of the Act mean the following facilities: <Amended on Jan. 1, 2014; Dec. 31, 2019; Jan. 5, 2021; Dec. 31, 2021> |
| 1. | Leisure facilities: A swimming pool, ice rink, golf driving range (limited to a golf driving range with at least 20 stroke places which is reported as a golf driving range business under the Installation and Utilization of Sports Facilities Act), observatory, outdoor stand, or outdoor amusement facilities in resorts (including those installed inside or on the rooftop of a building, and similar to outdoor amusement facilities in resorts); |
| 2. | Storage facilities: Outdoor storage facilities (including those which are closely connected with other facilities and temporarily function as a storage), such as a water tank, oil reservoir, silo, and storage tank (excluding a storage tank with a capacity of not less than one ton); |
| 3. | Docking facilities and berthing facilities: Docks and ship ways; |
| 4. | Conduit facilities (including coupling facilities): Oil pipelines, gas pipes, or heat transmission pipes; |
| 5. | Water supply and drainage facilities: Water pipes (including coupling facilities), water supply and drainage facilities, and cover facilities; |
| 6. | Energy supply facilities: Oil filling or gas charging facilities, charging facilities for environment-friendly motor vehicles, or power transmission pylons (excluding those for transmitting less than 200,000 volts and those relocated or installed at the request of residents under Article 72 of the Electric Utility Act). |
| (2) | "Other structures or facilities prescribed by Presidential Decree" in subparagraph 4 or 6 (b) of Article 6 of the Act means piers (including structures similar thereto), mechanical or pre-fabricated steel-frame parking facilities, automatic washing or cleaning facilities for vehicles, mechanical equipment, etc., broadcasting relay towers (excluding relay towers for overseas broadcasting and social education broadcasting required by the State pursuant to Article 54 (1) 5 of the Broadcasting Act), and towers for radio communications base stations, respectively. <Amended on Jan. 1, 2014; Aug. 12, 2014> |
| Article 6 (Types and Scope of Facilities) |
"Facilities prescribed by Presidential Decree" in subparagraph 6 (c) of Article 6 of the Act means the following facilities: <Amended on Jan. 1, 2014; Aug. 12, 2014> | 1. | Lifts (elevators, escalators, and other lift equipment); |
| 2. | Power generators generating at least 20 kilowatts per hour; |
| 3. | Hot water or heat supply facilities for heating or bathing; |
| 4. | Air-conditioners of at least 7,560 kilo-calories per hour (limited to centrally controlled air-conditioners); |
| 6. | Telephone switchboards; |
| 7. | Intelligent building systems installed for automatic control of the heating, cooling, water supply and drainage, fire and burglar prevention facilities; |
| 8. | Power transmission and distribution facilities installed within a building or structure. |
| Article 7 (Scope of Vehicles Equipped with Motors) |
| (1) | "All vehicles equipped with a motor" in subparagraph 7 of Article 6 of the Act means all kits manufactured for traveling on land using a motor (excluding two-wheel motor vehicles with an engine displacement of less than 50 cc or a two-wheeled motor vehicles with a maximum rated output power of 4 kilowatt or less). <Amended on Dec. 31, 2011; Dec. 31, 2019> |
| Article 8 (Scope of Resort Facilities Similar to Condominium) |
| Article 9 Deleted. <Dec. 30, 2010> |
| Article 10 (Registration in Property Tax Ledger) |
The head of a Si/Gun/Gu who has imposed acquisition tax on the change of land category pursuant to Article 7 (4) of the Act shall record the changes of land category in the property tax ledger, and notify interested parties thereof. <Amended on Dec. 30, 2010>
| Article 11 (Acquisition of Oligopolistic Stockholders) |
| (1) | Where a stockholder or partner with limited liability who is not an oligopolistic stockholder (referring to an oligopolistic stockholder under subparagraph 2 of Article 46 of the Framework Act on Local Taxes; hereinafter the same shall apply) of a corporation becomes an oligopolistic stockholder for the first time by acquiring stocks or equities (hereinafter referred to as "stocks, etc.") of any other stockholder or partner with limited liability or by increasing capital, such stockholder or partner with limited liability shall be deemed to have acquired all stocks, etc. of the corporation which he or she owns as the relevant oligopolistic stockholder as of the date on which he or she becomes the relevant oligopolistic stockholder for the first time, and acquisition tax shall be imposed on him or her pursuant to Article 7 (5) of the Act. <Amended on Dec. 30, 2010; Mar. 27, 2017> |
| (2) | Where the ratio of stocks, etc. issued by a corporation and held by a stockholder or limited partner who has already become an oligopolistic stockholder to the total amount of stocks, etc. of the corporation (hereafter in this Article referred to as "ratio of stocks, etc.") increases when the oligopolistic stockholder acquires stocks, etc. of the corporation additionally, acquisition tax shall be imposed on the increase under Article 7 (5) of the Act, regarding the increase as acquisition: Provided, That no acquisition tax shall be imposed if the ratio of stocks, etc. after such increase is not higher than the highest ratio of stocks, etc. held by the oligopolistic stockholder previously. <Amended on Dec. 31, 2015> |
| (3) | Where a person who lost the status as an oligopolistic stockholder due to the transfer of stocks, etc., capital increase in the relevant corporation or any other event and consequently became a non-oligopolistic stockholder or a limited partner becomes an oligopolistic stockholder again by acquiring stocks, etc. of the relevant corporation, acquisition tax shall be imposed in the same manner prescribed in paragraph (2) on such person for the increase in stocks, etc., only where the ratio of stocks, etc. held by the person as at the time the person becomes an oligopolistic stockholder again is higher than the ratio of stocks previously held by the same person as an oligopolistic stockholder, deeming that the person has acquired stocks, etc. only by the increased number of stocks, etc. <Amended on Dec. 29, 2017> |
| (4) | The head of a Si/Gun/Gu who has verified the data on acquisition taxation for an oligopolistic stockholder under Article 7 (5) of the Act shall, if the object of taxation of the oligopolistic stockholder is in a different Special Self-Governing City, Do, or Special Self-Governing Province, Si/Gun/Gu (referring to an autonomous Gu; hereinafter referred to as "Si/Gun/Gu"), without delay, notify the head of the Si/Gun/Gu having jurisdiction over the object of taxation, of the ratio of the stocks, etc. of the oligopolistic stockholder, the object of taxation, the details of the price, and other materials necessary for levying acquisition tax. <Amended on Dec. 30, 2010> |
| Article 11-2 (Acquisition of Real Estate for Non-Union Members) |
The area of real estate for non-union members acquired under the proviso of Article 7 (8) of the Act shall be calculated using the following formula: | Area of land for general parcelling-out ? Area of land trusted during the project under way by a member of a housing association, etc. under Article 7 (8) of the Act /Total floor area of land |
|
[This Article Newly Inserted on Dec. 31, 2021]
[Previous Article 11-2 moved to Article 11-3 <Dec. 31, 2021>]
| Article 11-3 (Scope of Transferable Status of Trustor Without Change in Ownership) |
"Where ... as prescribed by Presidential Decree" in the proviso of Article 7 (15) of the Act means either of the following cases: | 2. | Deleted. <Dec. 31, 2021> |
[This Article Newly Inserted on Dec. 31, 2015]
[Moved from Article 11-2 <Dec. 31, 2021>]
| Article 12 (Pro Rata Standards for Acquisition Tax) |
Where one and the same article acquired under Article 8 (3) of the Act is located in an area which falls within the jurisdiction of two or more Sis/Guns/Gus, the tax base for computing acquisition tax to be paid to each Si/Gun/Gu shall be calculated by dividing the value of such acquisition as at the time of acquisition by the ratio of the assessed value of the acquired article to the portion located in each Si/Gun/Gu. <Amended on Dec. 30, 2016>
| Article 12-2 (Limits of Exemption from Acquisition Tax on Improvement of Multi-Family Housing) |
"Housing unit with a value not higher than the price prescribed by Presidential Decree" in Article 9 (6) of the Act means a house the assessed value of which is not more than 900 million won at the time of acquisition resulting from improvement. <Amended on Jan. 1, 2013> [This Article Newly Inserted on Dec. 30, 2010]
| Article 12-3 (Scope of Vehicles Eligible for Non-Taxation of Acquisition Tax) |
| (3) | A person who intends to apply for non-taxation under Article 9 (7) of the Act shall apply to the head of a Si/Gun/Gu, along with documents substantiating the grounds therefor. <Amended on Dec. 31, 2021> |
[This Article Newly Inserted on Dec. 30, 2016]
SECTION 2 Tax Bases and Tax Rates
| Article 13 (Imposition on Current State as at Time of Acquisition) |
Unless otherwise specifically provided for in this Decree, acquisition tax shall be imposed on any real estate, vehicle, mechanical equipment, or aircraft based on the de facto status as at the time of acquisition of the relevant article: Provided, That where the de facto status as at the time of acquisition is unclear, acquisition tax shall be imposed based on the status registered on the tax ledger.
| Article 14 (Calculation of Recognized Current Price and Determination of Appraisal Period) |
| (1) | "Value recognized as the current price as prescribed by Presidential Decree, such as the actual sale price in a specific case, appraised value, and public sale value (hereinafter referred to as "recognized current price")" in Article 10-2 (1) of the Act, means the value for the real estate defined in Article 7 (1) of the Act (hereafter in this Chapter referred to as "real estate, etc.") with a transaction history of a sale, appraisal, auction (referring to an auction under the Civil Execution Act; hereafter in this Article the same shall apply) or public auction, which becomes subject to acquisition within three months from six months before the date of the relevant acquisition (hereafter in this Section referred to as "appraisal period"), means the value provided in the relevant subparagraphs, as follows: |
| 1. | Where acquired real estate, etc. have ever been sold: The transaction value: Provided, That this shall not apply where the transaction value is deemed objectively unreasonable on the grounds of transaction, etc. with a specially related person under Article 101 (1) of the Income Tax Act or the Corporate Tax Act (hereinafter referred to as "specially related person"). |
| 2. | Where there is a value for the acquired real estate, etc., appraised by two or more appraisal institutions (referring to appraisal institutions with public confidence prescribed by Ordinance of the Ministry of the Interior and Safety; hereinafter the same shall apply): The average amount of such appraised value: Provided, That the following values shall be excluded, and where the relevant appraised value is deemed inappropriate in consideration of the purpose of appraisal, etc. after deliberation by the Local Tax Deliberative Committee provided in Article 147 (1) of the Framework Act on Local Taxes (hereinafter referred to as "Local Tax Deliberative Committee") even if the relevant appraisal value is less than or more than the lesser of the assessed value under Article 4 of the Act and of the value equivalent to 90/100 of the recognized current price under paragraph (3) (hereinafter referred to as the "standard amount), the value shall be the one appraised by another appraisal institution upon receipt of a request from the head of a local government; and where the value is less than the one appraised by a taxpayer, the value shall be the one appraised by the taxpayer; |
| (a) | Appraised value not suitable for the purpose of payment of acquisition tax, such as where the relevant real estate, etc. is assessed on the presumption that certain conditions will be satisfied; |
| (b) | Where the real estate, etc. are not appraised as they are as at the date of acquisition, the appraised value. |
| 3. | Where an auction or public sale of the acquired real estate, etc. occurs: The relevant auction price or public sale price; |
| (2) | Judgment on whether the value referred to in the subparagraphs of paragraph (1) is the one within the evaluation period shall be based on the dates classified as follows, and where there are at least two recognized current prices, the value for the date nearest to the date of acquisition (referring to the average value, if there are at least two such values) shall apply to the determination: |
| 1. | In cases falling under paragraph (1) 1: The date of the sales contract; |
| 2. | In cases falling under paragraph (1) 2: Price base date and the date the price assessment sheet is prepared; |
| 3. | In cases falling under paragraph (1) 3: The date when auction price or public sale price is determined. |
| (3) | Notwithstanding paragraph (1), where the area, location, and use of the acquired real estate, etc. and the assessed value under Article 4 of the Act are the same or similar (where acquisition tax has been reported pursuant to Article 20 of the Act, it shall be deemed the recognized current price until the reporting date out of the values within the appraisal period), such value shall be deemed the recognized current price. |
| (4) | The criteria for determining other real estate, etc. deemed identical or similar under paragraph (3) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. |
| (5) | Notwithstanding paragraphs (1) through (3), where there has been transactions, etc. within a period not falling under the appraisal period within two years before the acquisition date or where there has been transactions, etc. within a period not exceeding six months from the expiration date of the deadline for filing a tax return and paying a tax under Article 20 (1) of the Act, a taxpayer or the head of a local government shall request the local tax deliberation committee to deliberate on recognition of the value of the relevant transactions, etc. as the value under the subparagraphs of paragraphs (1). |
| (6) | The Local Tax Deliberative Committee upon receipt of a request for deliberation under paragraph (5) may deliberate on and determine the value of the transactions, etc. as that prescribed in the subparagraphs of paragraph (1) during the period under paragraph (5), if it deems that no extraordinary reason exists to change the price in consideration of the passage of time, changes in the surrounding environment, etc. during the period from the acquisition date to the date under the subparagraphs of paragraph (2). |
| (7) | In calculating the recognized current price, if the date specified in the subparagraphs of paragraph (2) falls before the date of acquisition of real estate, etc., where the capital expenditure (referring to the capital expenditure under Article 163 (3) of the Enforcement Decree of the Income Tax Act; hereafter in this Article the same shall apply) from the date specified in that subparagraph of that paragraph to the date of acquisition is confirmed, the capital expenditure may be added to the value specified in the subparagraphs of paragraph (1). |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 14-2 (Real Estate Exempted from Application of Recognized Current Price) |
"Real estate, etc., the value of which is not more than that prescribed by Presidential Decree" in Article 10-2 (2) 2 of the Act means real estate, etc., which are acquired articles the assessed value of which is not more than 100 million won. This Article Newly Inserted on Dec. 31, 2021]
| Article 14-3 (Procedure for Designation of Appraisal Institution with Non Approved Appraisal of Market Price) |
| (1) | "Real estate, etc., the value of which is not more than that prescribed by Presidential Decree" in Article 10-2 (3) of the Act means the following real estate, etc.: |
| 1. | Real estate, etc. the assessed value of which is not more than one billion won; |
| (2) | "Where the appraised value appraised by an appraisal institution falls short of 80/100 of the appraised value appraised by another appraisal institution or falls under any other ground prescribed by Presidential Decree" in Article 10-2 (4) of the Act means where the appraised value presented by a taxpayer (hereafter in this Article referred to as "original appraised value") falls short of 80/100 of the appraised value appraised by another appraisal institution upon the request of the head of a local government (hereafter in this Article referred to as "re-appraised value); |
| (3) | Where an appraised value falls under paragraph (2), the head of a local government may designate an appraisal institution that presents the original appraised value as an appraisal institution whose appraised market price is not approved for a period prescribed by Ordinance of the Ministry of the Interior and Safety not exceeding one year, taking into account the intentionality of unconscientious appraisal and the degree that the original appraised value is short of the re-appraised value (hereafter in this Chapter referred to as a "appraisal institution whose appraised market price is not approved") pursuant to Article 10-2 (4) of the Act. In such cases, the head of the local government shall undergo deliberation by the Local Tax Deliberative Committee. |
| (4) | The period of designation under paragraph (3) shall be counted from the date the head of the relevant local government is notified of the results of the designation of an appraisal institution whose appraised market price is not approved. |
| (5) | Before holding a meeting of the Local Tax Deliberative Committee pursuant to the latter part of paragraph (3), the head of a local government shall notify the relevant appraisal institution of the following matters and hear its opinions: |
| 1. | Details of and legal grounds for the designation as an appraisal institution whose appraised market price is not approved; |
| 2. | A statement to the effect that an appraisal institution can submit its opinions in writing on subparagraph 1 and the method of handling if no opinion is submitted; |
| 3. | Deadline for submission of written opinions; |
| 4. | Other matters necessary for presenting opinions. |
| (6) | Where the head of a local government designates an appraisal institution whose appraised market price is not approved pursuant to Article 10-2 (7) of the Act, he or she shall post the following matters on the integrated local tax information and communications network, as prescribed by Ordinance of the Ministry of the Interior and Safety: |
| 1. | Name (firm name), name (the name and corporate registration number of the representative in cases of a corporation), and business registration number of the appraisal institution whose appraised market price is not approved; |
| 2. | Period of designation as an appraisal institution whose appraised market price is not approved; |
| 3. | Reasons for the designation as an appraisal institution whose appraised market price is not approved; |
| 4. | Where the designation of an appraisal institution whose appraised market price is not approved is cancelled, the fact of the cancellation thereof. |
| (7) | Matters necessary for the designation, and notification of designation, of an appraisal institution whose appraised market price is not approved, other than those prescribed in paragraphs (3) through (6), shall be prescribed by Ordinance of the Ministry of the Interior and Safety. |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 14-4 (Acquisition Price in Cases of Gift of Encumbered Property) |
| (1) | In cases of a gift of encumbered property under Article 10-2 (6) of the Act, the scope of the portion equivalent to the amount of debts deemed acquired with compensation (hereafter in this Article, referred to as "amount of debt burden") shall be limited to the recognized current price. |
| (2) | The amount of debt burden shall be the amount of a debt verified by the acquirer that he or she acquired within three months from the end of the month in which the date of acquisition of real estate, etc. falls, which shall be classified as follows: |
| 1. | The amount of debt burden from a mortgage, provisional seizure, provisional disposition, etc. on the real estate, etc. verified by a certified copy of the register; |
| 2. | The amount of financial debt owed to a financial institution confirmed by a written confirmation of change of the debtor issued by the financial institution; |
| 3. | The amount of rental deposit for the real estate, etc. confirmed in a rental contract, etc.; |
| 4. | The amount of other debt burdens by the acquirer confirmed by objective evidentiary materials, such as judgment paper and notarial deed. |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 15 Deleted. <Dec. 31, 2021> |
| Article 16 Deleted. <Dec. 31, 2021> |
| Article 17 Deleted. <Dec. 31, 2021> |
| Article 18 (Scope of Actual Acquisition Prices) |
| (1) | An actual acquisition price prescribed by Presidential Decree provided in Article 10-3 (1) (hereinafter referred to as "actual acquisition price") shall be the sum of direct costs paid or to be paid to the counterparty to a transaction or a third party before the acquisition of the relevant article and any of the following indirect costs: Provided, That where a certain amount is discounted from the acquisition price through lump-sum payment, etc., such discounted amount shall be the acquisition price or where a person other than a corporation acquires the article, the amount other than subparagraph 1, 2, or 7 shall be the acquisition price: <Amended on May 30, 2011; Mar. 23, 2013; Nov. 19, 2014; Jun. 30, 2015; Apr. 26, 2016; Jul. 26, 2017; Dec. 31, 2018; Dec. 31, 2019; Dec. 31, 2021> |
| 1. | Interest on borrowed money appropriated for construction funds, or financial costs similar thereto; |
| 2. | Amounts equivalent to interest under a contract in installments or annual installments and late payment charges; |
| 4. | Service charges and fees paid in return for the provision of services necessary for acquisition (including trust fees paid by a trustor to a trustee, where a trustee acquires them due to construction or land development works); |
| 5. | Conditional charges to be borne by an acquirer under agreements between parties and the amount of receivables acquired, in addition to the acquisition price; |
| 6. | A loss incurred in selling national housing bonds purchased in accordance with Article 8 of the Housing and Urban Fund Act in order to acquire real estate but sold before acquiring the relevant real estate. If such bonds are transferred to any person other than a financial company, etc. prescribed by Ordinance of the Ministry of the Interior and Safety (hereafter in this Article referred to as "financial company, etc.") in such cases, the loss shall be limited to a loss incurred in the sale when such bonds are transferred to a financial company on the same day; |
| 8. | Installation costs of facilities, facilities, etc. attached to, or built-in a building to maintain or increase its utility in unity, such as built-in furniture or home appliances; |
| 9. | Expenses incurred in creating and installing gardens, affiliated facilities, etc.; |
| 10. | Expenses equivalent to those under subparagraphs 1 through 9. |
| (2) | Notwithstanding paragraph (1), none of the following expenses shall be included in actual acquisition prices: <Amended on Dec. 31, 2021> |
| 1. | Sales expenses, such as advertising expenses for the sale of articles to be acquired, and expenses incidental thereto; |
| 3. | Expenses incurred in providing compensation for a right different from acquired articles, such as moving expenses, compensation for obstructions, etc.; |
| 5. | Expenses equivalent to those under subparagraphs 1 through 4. |
| (3) | Deleted. <Dec. 31, 2021> |
| (4) | Deleted. <Dec. 31, 2021> |
| (5) | Deleted. <Dec. 31, 2021> |
[Title Amended on Dec. 31, 2021]
| Article 18-2 (Types of Wrongful Calculations) |
"Wrongful calculation" in Article 10-3 (2) of the Act means where a person has acquired real estate from a specially related person at a price lower than the recognized current price and the difference between the recognized current price and the actual acquisition price is at least 300 million won or at least an amount equivalent to 5/100 of the recognized current price. [This Article Newly Inserted on Dec. 31, 2021]
| Article 18-3 (Acquisition Prices of Vehicles) |
| (1) | "Cases prescribed by Presidential Decree, such as where the actual acquisition price falls short of the assessed value under Article 4 (2) due to acquiring a vehicle or mechanical equipment damaged by a natural disaster" in Article 10-5 (2) of the Act means cares where the head of a Si/Gun/Gu recognizes that the value of the vehicle or used mechanical equipment falls below the assessed value due to a natural disaster, fire, traffic accident, etc. |
| (2) | Where the acquisition of a vehicle or mechanical equipment falls under paragraph (1), the value as at the time of acquisition under Article 10 of the Act (hereinafter referred to as "value at the time of acquisition") shall be the actual acquisition value. |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 18-4 (Special Cases concerning Tax Base for Acquisition with or without Consideration or Original Acquisition) |
In cases of acquisitions under the subparagraphs of Article 10-5 (3) of the Act, the value at the time of acquisition shall be the value classified as follows: | 1. | In cases falling under Article 10-5 (3) 1 of the Act: The value classified as follows: Provided, That, where it is deemed that real estate, etc. are acquired from a specially related party and the wrongful calculation provided in Article 10-3 (2) of the Act is performed, the value at the time of acquisition shall be the recognized current price. |
| (a) | Payment in substitutes: Amount of payment in substitutes (including the amount paid in addition to the amount of payment in substitutes, if any): Provided, That where the amount of payment in substitutes exceeds the recognized current price, the recognized current price shall be the value at the time of acquisition; |
| (b) | Exchange: The higher of either the recognized current price of real estate, etc. transferred for exchange and the recognized current price of the transferred real estate, etc. (where any amount additionally paid to the other party and any amount of debt succeeded to from the other party exists, such amount shall be added, and where an amount additionally received from the other party and debt succeeded to the other party exists, such amount shall be deducted from the recognized current price); |
| (c) | Transfer security: The amount of debt for transfer security (including an amount additionally paid, if any, in addition to the amount of debt): Provided, That, where the amount of debts exceeds the recognized current price, the value at the time of acquisition shall be the recognized current price. |
| 2. | In cases falling under Article 10-5 (3) 2 of the Act: The recognized current price: Provided, That, where it is impracticable to calculate the recognized current price, the value at the time of acquisition shall be the assessed value. |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 18-5 (Change of Types of Ships and Vehicles) |
"Matter prescribed by Presidential Decree, such as the use of ships, vehicles, or mechanical equipment" in Article 10-6 (1) 2 of the Act, means the quality, use, engines, fixed capacity, or maximum capacity of ships, or the engine or motor, passenger capacity, maximum loading capacity, or car-body of a vehicle or mechanical equipment. [This Article Newly Inserted on Dec. 31, 2021]
| Article 18-6 (Tax Base in Cases of Deemed Acquisition) |
In any case falling under the subparagraphs of Article 10-6 (1) of the Act, where it is impracticable to verify the actual acquisition price, the value at the time of acquisition shall be the value classified as follows: | 1. | In cases falling under Article 10-6 (1) 1 of the Act: The value calculated by subtracting the value defined in item (b) from the value defined in item (a) based on the time when the land category is actually changed; |
| (a) | The assessed value of the land after the change of its category (referring to the value determined by the head of a Si/Gun/Gu using the standard comparison table of land prices provided by the Minister of Land, Infrastructure and Transport pursuant to the Act on the Public Announcement of Real Estate Values, based on the values of similar land nearby, where the reference date of public announcement of the officially assessed individual price of the relevant land is earlier than the date of acquisition due to the change of the land category); |
| (b) | The assessed value of the land before the change of the land category (referring to the officially assessed individual land price for the land category before the change thereof as at the date of acquisition due to the change of the land category: Provided, That, where no officially assessed individual land price is available for the land category before change, referring to the price calculated by the head of a Si/Gun/Gu using the standard comparison table of land prices provided by the Minister of Land, Infrastructure and Transport pursuant to the Act on the Public Announcement of Real Estate Values, based on the value of similar land nearby). |
[This Article Newly Inserted on Dec. 31, 2021]
| Article 19 (Blanket Acquisition of Real Estate) |
| (1) | If the value of each taxable object is not classifiable at the time of acquisition of a real estate, etc. at once, an amount calculated by dividing the value acquired at once by the rate of assessed value for each taxable object shall be the value at the time of acquisition. <Amended on Dec. 31, 2018; Dec. 31, 2021> |
| (2) | Notwithstanding paragraph (1), if a house, building, and the land appurtenant thereto are acquired in lump sum, the value of the real estate shall be divided into the value of the portion of the house and the value of the portion of non-residential buildings as at the time of acquisition, according to the following formula: <Newly Inserted on Dec. 31, 2015; Dec. 30, 2016; Dec. 31, 2021> |
| Total value at the time of acquisition ? [Assessed value for the portion of the house among the buildings (referring to the assessed value under Article 4 (2) of the Act; hereafter in this paragraph the same shall apply) + Assessed value for the portion of the house out of the land appurtenant thereto (referring to the assessed value for land under Article 4 (1) of the Act; hereafter in this paragraph the same shall apply)]/Assessed value for all the buildings and the land appurtenant thereto |
|
| 2. | Portion of non-residential buildings: |
| Total value at the time of acquisition ? [(Assessed value for the portion of non-residential buildings) + (Assessed value for the portion of non-residential buildings among lands appurtenant to the buildings)]/Assessed value for all buildings and the land appurtenant thereto |
|
| (3) | Notwithstanding paragraphs (1) and (2), where a person acquires a house and non-residential buildings at the same time as a result of new construction or extension, the value of the portion of the house as at the time of acquisition and that of the portion of the non-residential buildings as at the time of acquisition shall be separately calculated by the following formulas: <Newly Inserted on Dec. 30, 2016; Dec. 31, 2021> |
| Total value at the time of acquisition ? Total floor area of the house, among the buildings/Total floor area of all buildings |
|
| 2. | Portion of non-residential buildings: |
| Total value at the time of acquisition ? Total floor area of non-residential buildings/Total floor area of all buildings |
|
| (4) | In the cases falling under paragraph (1), if some of the taxable objects have no assessed values, the respective values at the time of acquisition shall be those obtained by dividing the appraised values of the real estate, etc. by the rate determined by the head of the relevant Si/Gun/Gu. <Amended on Dec. 31, 2015; Dec. 30, 2016; Dec. 31, 2018; Dec. 31, 2021> |
[Title Amended on Dec. 31, 2018]
| Article 20 (Timing of Acquisition) |
| (1) | In the case of a gratuitous acquisition, the acquisition shall be deemed to take effect on the contract date (referring to the commencement date of inheritance or bequest, in the case of acquisition by inheritance or bequest): Provided, That where the cancellation of the relevant contract is evidenced by any of the following documents without registering the relevant acquired articles, such articles shall be deemed not acquired: <Amended on Aug. 12, 2014; Jul. 24, 2015; Dec. 31, 2015; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021> |
| 1. | A protocol of compromise or a protocol of recognition and acceptance (limited to cases where the relevant protocol demonstrates that the contract was cancelled within 60 days); |
| 2. | A notarial deed (including privately certificates authenticated by a notary, but limited to those notarized within 60 days from the acquisition date); |
| 3. | A report on the cancellation of a contract in the form prescribed by Ordinance of the Ministry of the Interior and Safety (limited to those submitted within 60 days from the acquisition date). |
| (2) | In the case of derivative acquisition for value, the acquisition shall be deemed to take effect on the date stipulated in the following: <Amended on Aug. 12, 2014; Dec. 31, 2015; Dec. 30, 2016; Jan. 17, 2017; Jul. 26, 2017; Dec. 31, 2021> |
| 1. | The date of actual payment of the remainder; |
| 2. | Where it is impossible to confirm the date of actual payment of the remainder: The date on which the remainder shall be paid as specified in the contract (referring to the date on which 60 days have elapsed from the contract date where the payment date of the remainder is not specified in the contract): Provided, That where the cancellation of the relevant contract is evidenced by any of the following documents without registering the relevant acquired articles, such articles shall be deemed not acquired: |
| (a) | A protocol of compromise or a protocol of recognition and acceptance (limited to cases where the relevant protocol demonstrates that the contract was cancelled within 60 days from the acquisition date); |
| (b) | A notarial deed (including privately certificates authenticated by a notary, but limited to those notarized within 60 days from the acquisition date); |
| (c) | A report on the cancellation of a contract in the form prescribed by Ordinance of the Ministry of the Interior and Safety (limited to those submitted within 60 days from the acquisition date); |
| (d) | A report on the cancellation, etc. of a contract for a real estate transaction under statutes or regulations concerning the reporting of transactions of real estate (limited to cases where such report is submitted to the registering authority within 60 days from the acquisition date). |
| (3) | In the case of a vehicle, mechanical equipment, aircraft, or custom-built ship (hereafter in this Article referred to as "vehicles, etc."), the following dates shall be deemed the initial date of acquisition: <Amended on Dec. 31, 2021> |
| 1. | Where vehicles, etc. are manufactured, assembled, and built to receive orders or to sell: The earlier of either the date on which an actual end user receives the vehicles, etc. and or the date of the payment of the remainder on the contract; |
| 2. | Where a person who manufactures, assembles, or builds vehicles, etc. directly uses such vehicles, etc.: The earlier of either the date of registration or the date of de facto use of the vehicles, etc.; |
| (4) | With respect to acquisition by importation, the date on which the relevant article is brought into the Republic of Korea (referring to the issuance date of the import declaration certificate in the case of articles passing through a bonded area) shall be deemed the date of acquisition: Provided, That where an actual end user of a vehicle, etc. exists, the date on which the actual end user acquires either of them, or the payment date of the remainder as on the contract, whichever comes first shall be deemed the initial date of acquisition by succession; where an imported article is not brought into the Republic of Korea, or is directly used in a foreign country without having passed through a bonded area, for the convenience of the acquirer, the date of registration or filing of the imported article shall be deemed the date of its acquisition. <Amended on Dec. 31, 2021> |
| (5) | Anything acquired in annual installments (excluding those, the total acquisition value of which is subject to Article 17 of the Act) shall be deemed acquired on the date of actual payment of its annual installments. |
| (6) | Where a building is acquired through construction or repair, the date on which a written approval for use (including an inspection certificate of completion under Article 51 (1) of the Urban Development Act and a certificate of completion under the Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments or other documents equivalent to a written approval for use under any construction-related statutes or regulations; hereafter in this paragraph the same shall apply) is granted (referring to the approval date of temporary use where approval for temporary use has been obtained before the approval for use is granted; referring to the date on which the building becomes ready for actual use in the case of a building for which it is impossible to obtain approval for use or approval for temporary use) and the date of actual use, whichever comes earlier, shall be deemed the date of its acquisition. <Amended on May 31, 2019> |
| (7) | Where a housing association, established pursuant to Article 11 of the Housing Act, acquires any parcel of land that does not belong to its members, while implementing a housing construction project, out of the land acquired from its members, such land shall be deemed to be acquired on the date on which it passes an inspection for use under Article 49 of the Housing Act; whereas, if a reconstruction association, established under Article 35 (3) of the Act on the Improvement of Urban Areas and Residential Environments or a small-scale reconstruction association, established pursuant to Article 23 (2) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement acquires any parcel of land that does not belong to its members, while implementing a reconstruction project or a small-scale reconstruction project, out of the land acquired from its members, such land shall be deemed to be acquired on the day immediately following the date of public notification of the transfer of ownership under Article 86 (2) of the Act on the Improvement of Urban Areas and Residential Environments or Article 40 (2) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement. <Amended on Jul. 24, 2015; Aug. 11, 2016; Feb. 9, 2018> |
| (8) | Where any land is originally acquired through landfill, reclamation, etc. pursuant to the relevant statutes, the date on which the completion of its construction is authorized shall be deemed the date of its acquisition: Provided, That where a consent to or permission for its use is granted or it is actually used before the date on which the completion of its construction is authorized, whichever comes first between the date on which such consent or permission is granted and the date of actual use shall be deemed the date of its acquisition. <Amended on Aug. 12, 2014> |
| (9) | In the case of acquisition of a vehicle, mechanical equipment or ship by the change of its type, the date of its actual change or the date of change specified in the public register, whichever comes first shall be deemed the date of its acquisition. |
| (10) | With respect to the acquisition of land due to the change of its land category, such land shall be deemed to have been acquired on the date its land category is actually changed, or on the date of change specified in the public register, whichever comes first: Provided, That with respect to any part used before the date on which the land category is changed, the date of its actual use shall be deemed the date of its acquisition. |
| (11) | Deleted. <Dec. 29, 2017> |
| (12) | Where an asset is acquired by possession under Article 245 or 247 of the Civil Act, the date of registration or filing of the acquired article shall be deemed the date of acquisition. <Newly Inserted on Dec. 31, 2021> |
| (13) | Where an asset is acquired by a division of property under Article 839-2 or 843 of the Civil Act, the date of registration or filing of the acquired article shall be deemed the date of acquisition. <Newly Inserted on Jul. 24, 2015; Dec. 31, 2021> |
| (14) | Where registration or filing is completed prior to the date of acquisition provided in paragraph (1), (2), or (5), the date of such registration or filing shall be deemed the date of acquisition. <Amended on Aug. 12, 2014; Jul. 24, 2015; Dec. 31, 2021> |
| Article 21 (Scope of Farmland) |
Farmland prescribed in the items of Article 11 (1) 1 of the Act and in the items of subparagraph 7 of that paragraph means the following: <Amended on Dec. 30, 2010; Jan. 1, 2013> | 1. | Land, the registered category of which is a rice paddy, dry field, or orchard on the public register as at the time of its acquisition, and which is actually used for cultivating agricultural produce or perennials. In such cases, any land occupied by a farming shed, manure barn, water pumping place, pond, swamp, farm road, or waterway, etc. directly necessary for the management of farmland shall be included; |
| 2. | Land the category of which on the public register at the time of acquisition is a rice field, dry field, orchard or stock farm, which is land actually used as a cattle shed and its incidental facilities used for stock farming, grassland and forage crop field. |
| Article 22 (Scope of Non-Profit Business Entities) |
"Non-profit business entity prescribed by Presidential Decree" in the proviso of Article 11 (1) 2 of the Act means any of the following persons: <Amended on Jan. 1, 2014; Dec. 31, 2019> | 1. | Organizations for religious worship purposes; |
| Article 22-2 Deleted. <Aug. 12, 2020> |
| Article 23 (Scope of Passenger Automobiles for Non-Business Use) |
| (3) | "Motor vehicle ... prescribed by Presidential Decree" in Article 12 (1) 2 (b) of the Act means a two wheel motor vehicle with an engine displacement of 125 cubic centimeters or less or with a maximum rated output power of 11 kilowatt or less. <Amended on Dec. 31, 2019> |
| Article 24 Deleted. <Dec. 30, 2010> |
| Article 25 (Real Estate for Business Purposes of Head or Main Office) |
"Real estate for business purposes of the head or main office prescribed by Presidential Decree" in Article 13 (1) of the Act means real estate used as the head or main office of a corporation, and real estate as such head or main office's subsidiary facilities (excluding welfare facilities, such as a dormitory, a training camp, a company house, training facilities, sports facilities, and reserve forces' armory and magazine). <Amended on Nov. 29, 2016>
| Article 26 (Exception from Heavy Taxation on Corporations in Large Cities) |
| (1) | "Types of businesses prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 13 (2) of the Act means the following types of businesses: <Amended on Dec. 30, 2010; Dec. 31, 2011; Jul. 10, 2012; Jan. 1, 2013; Mar. 23, 2013; Apr. 22, 2013; Nov. 19, 2014; Jun. 30, 2015; Dec. 28, 2015; Aug. 11, 2016; Jul. 26, 2017; Dec. 29, 2017; Feb. 9, 2018; Dec. 31, 2019; May 12, 2020; Aug. 11, 2020; Dec. 8, 2020; Dec. 31, 2020; Apr. 27, 2021; Aug. 31, 2021; Dec. 31, 2021; Feb. 28, 2022> |
| 3. | Overseas construction business reported under the Overseas Construction Promotion Act (limited to real estate for an office used directly for overseas construction business where there exist actual achievement of overseas construction in the relevant year), and housing construction business projects registered with the Ministry of Land, Infrastructure and Transport under Article 4 of the Housing Act (limited to real estate on which housing construction commences within three years after it has been acquired for the housing construction); |
| 8. | Any business operated by a Government-invested corporation or Government-funded corporation (limited to a corporation in which the State or a local government has directly invested or funded at least 20/100 of paid-in capital or underlying property); |
| 10. | The manufacturing industry operated by an individual (referring to the manufacturing industry under Article 19 (1) 3 of the Income Tax Act): Provided, That this is limited to an enterprise converted into a corporation, as prescribed by Ordinance of the Ministry of the Interior and Safety, and where the value of real estate acquired by an enterprise's conversion into a corporation (referring to the assessed value under Article 4 of the Act) exceeds the value of real estate before the enterprise's conversion into the corporation, the main clause, with the exception of the subparagraphs, of Article 13 (2) of the Act shall apply to the excess value and real estate acquired after the enterprise's conversion into the corporation; |
| 14. | The broadcasting business, CATV relay broadcasting business, CATV music broadcasting business, electric sign board broadcasting business, and signal transmission network business under subparagraphs 2, 5, 8, 11 and 13 of Article 2 of the Broadcasting Act; |
| 15. | Business of operating science museum facilities under the Act on the Establishment, Operation and Promotion of Science Museums; |
| 17. | Business that an investment company for the establishment of small and medium enterprises registered pursuant to Article 37 of the Venture Investment Promotion Act performs to provide assistance in establishing a small and medium-sized enterprise: Provided, That this shall be limited to cases where the registration is completed under that Act within one month after the establishment of a corporation; |
| 18. | Business that the Korea Mine Rehabilitation and Mineral Resources Corporation under the Korea Mine Rehabilitation and Mineral Resources Corporation Act performs to rationalize the coal industry; |
| 22. | Business that the Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act performs for housing construction business; |
| 24. | Business operating indoor stadiums, stadiums, and baseball parks that conform to the Korean Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act (hereinafter referred to as "Korean Standard Industrial Classification"); |
| 32. | Business carried on by the Electric Constructors' Financial Cooperative established under Electric Constructors' Financial Cooperative Act for the electric construction business; |
| 36. | Business to construct buy-to-rent public housing (limited to residential officetels to be constructed within three years from the date of the agreement which is concluded by a public housing project operator and a buy-to-rent public housing project operator by December 31, 2022 to construct and transfer buy-to-rent public housing under Article 4 (1) 2 and 3 of the Special Act on Public Housing) under that Act; |
| 37. | A project by which a public housing project operator designated under Article 4 (1) of the Special Act on Public Housing supplies and manages equity-accumulated equity housing units for sale or profit-sharing public housing units for sale under that Act. |
| (2) | Deleted. <Aug. 12, 2020> |
| (3) | "Type of business prescribed by Presidential Decree" in the proviso, with the exception of the items, of Article 13 (3) 1 of the Act means housing construction business projects under paragraph (1) 3 and, notwithstanding the items of Article 13 (3) 1 of the Act, the period, during which real estate shall be used directly or real estate shall not be used or jointly used for another type of business or other purposes, shall be three years. <Amended on Dec. 30, 2010> |
| (4) | "Type of business prescribed by Presidential Decree, in which lease is deemed unavoidable" in Article 13 (4) of the Act means any of the following types of business: <Newly Inserted on Dec. 30, 2010> |
| 1. | Telecommunications business under paragraph (1) 4 (limited to cases where a telecommunications service provider under the Telecommunications Business Act leases telecommunications facilities or facilities pursuant to Article 41 of that Act in order to jointly use them with another telecommunications service provider); |
| 2. | Distribution industry, agricultural and fishery product wholesale markets, agricultural and fishery product joint wholesale markets, integrated distribution centers of agricultural and fishery products, distribution subsidiaries and livestock markets (limited to leased parts, where whole or some of stores, etc., the lease of which is permitted pursuant to related statutes, including the Distribution Industry Development Act, are leased) under paragraph (1) 6. |
| Article 27 (Scope of and Applicable Standards of Heavy Taxation on Acquisition of Real Estate in Large Cities) |
| (1) | "Dormant corporation prescribed by Presidential Decree" in Article 13 (2) 1 of the Act means any of the following corporations: <Amended on Jun. 28, 2013> |
| 1. | A corporation dissolved pursuant to the Commercial Act (hereinafter referred to as "dissolved corporation"); |
| 2. | A corporation deemed dissolved pursuant to the Commercial Act (hereinafter referred to as "corporation deemed dissolved"); |
| 5. | A closed corporation that has re-obtained business registration within one year before the date of acquisition of a corporation; |
| 6. | A corporation which has no business performance for at least two years before the date of acquisition of a corporation, and has replaced at least 50/100 of the executive officers of the acquired corporation within one year before or after the date of acquisition. |
| (2) | The acquisition of a dormant corporation under Article 13 (2) 1 of the Act shall be deemed to be completed when a person becomes an oligopolistic stockholder of a corporation referred to in any subparagraph of paragraph (1). <Amended on Dec. 29, 2017> |
| (3) | The acquisition of real estate due to the foundation of a corporation or the establishment of a branch or sub-office of a corporation in a large city, or to the transfer of the head office, main office, branch, or sub-office of a corporation into a large city under Article 13 (2) 1 of the Act means the acquisition of real estate (excluding the acquisition of real estate simply for the purpose of securing or exercising claims; hereafter in this Article the same shall apply) acquired by the relevant corporation, or the office or the place of business prescribed by Ordinance of the Ministry of the Interior and Safety (hereafter in this Article referred to as "office, etc.") to use directly for the purpose of the head office, main office, branch or sub-office of such corporation before such foundation, establishment, or transfer; and the acquisition of real estate since such foundation, establishment, or transfer under that subparagraph means the acquisition of each and every of real estate for business or non-business purposes within five years after the foundation, establishment, or transfer of a corporation, or office, etc. In such cases, the acquisition of real estate includes such acquisition of real estate resulting from the new construction or enlargement of a factory, the acquisition of a factory by succession, the transfer of a factory within the relevant large city, and changes in the type of business of a factory. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2019> |
| (4) | In applying Article 13 (2) 1 of the Act, where a domestic corporation that has been operating its business in a large city for at least five consecutive years establishes another corporation through the division of the domestic corporation (limited to cases meeting the requirements under Article 46 (2) 1 (a) through (c) of the Corporate Tax Act), as of the date of registration of division, such domestic corporation shall not be deemed subject to heavy taxation. <Amended on Jan. 1, 2013> |
| (5) | In applying Article 13 (2) 1 of the Act, where a corporation for which five years have elapsed after its establishment in a large city (hereafter in this paragraph referred to as "existing corporation") merges with another existing corporation, such corporation shall not be deemed subject to heavy taxation; where, after an existing corporation merges with a corporation for which five years have yet to elapse after its establishment in a large city, the corporation other than the existing corporation survives or another corporation is newly established after the merger, the portion equivalent to the asset ratio of the existing corporation that exists as at the time of the merger shall not be deemed subject to heavy taxation. In such cases, when assets are appraised, the asset ratio shall be a ratio computed based on the appraised value; and when assets are not appraised, the asset ratio shall be a ratio computed based on the book value as at the time of such merger. |
| (6) | In applying Article 13 (2) of the Act, the purpose of acquisition, the timing for the establishment, installation, or transfer of a corporation or office, etc., in cases of trust property acquired by a trustee under the Trust Act, shall be determined based on the trustor under that Act. <Newly Inserted on Dec. 31, 2019> |
| Article 28 (Scope of Villas and Application Standards) |
| (1) | Cases where part of a villa, etc. is acquired by division under the former part, with the exception of the subparagraphs, of Article 13 (5) of the Act means cases where two or more persons acquire by division, or one or more persons acquire at different times any villa, golf course, high-end house, high-end recreation center or high-end ship. <Amended on Dec. 30, 2010> |
| (2) | "Housing in agricultural and fishery areas and land annexed thereto ... fall under scopes and standards prescribed by Presidential Decree" in the former part of Article 13 (5) 1 of the Act means housing in agricultural or fishery areas and land annexed thereto which meet the following requirements: <Amended on Dec. 30, 2010; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 29, 2017; Dec. 31, 2020> |
| 1. | The site area shall be not more than 660 square meters and the total floor area of a building shall be not more than 150 square meters; |
| 2. | The value of a building (referring to the value computed by applying mutatis mutandis Article 4 (1) 1-2; hereafter in this Article the same shall apply) shall be not more than 65 million won; |
| 3. | The houses shall not be located in any of the following areas: |
| (3) | Among the villas under the latter part of Article 13 (5) 1 of the Act, a villa owned by an individual means a villa used by the principal or his or her family; a villa owned by a corporation or organization means a villa used by its executive officers and employees; and an officetel or similar building constructed to be used both for residential and non-residential purposes, which may not be verified by a business registration certificate, etc. as having been used as a place of business, shall be deemed a villa. <Amended on Dec. 30, 2010> |
| (4) | Residential buildings which are deemed high-end houses and land annexed thereto under Article 13 (5) 3 of the Act shall constitute any of the following: Provided, That buildings for residential purposes and land annexed thereto, or multi-family housing and land annexed thereto under subparagraphs 1, 2, 2-2, and 4 shall be deemed high-end houses only when their assessed values as at the time of acquisition pursuant to Article 4 (1) of the Act exceed 900 million won: <Amended on Dec. 30, 2010; Dec. 31, 2011; Aug. 12, 2020; Dec. 31, 2020> |
| 1. | A residential building on one parcel (referring to the divided parts, each of which is divided for independent use by one household; hereinafter the same shall apply), the total floor area of which (excluding the area of its parking lot) exceeds 331 square meters and land annexed thereto; |
| 2. | A residential building on one parcel, the site area of which exceeds 662 square meters and land annexed thereto; |
| 2-2. | A residential building on one parcel, in which an elevator (excluding a small elevator with the loading capacity of not more than 200kg) is installed, and land annexed thereto (excluding collective housing and land annexed thereto); |
| 3. | A residential building on one parcel, in which an escalator or a swimming pool of not less than 67 square meters, is installed or both are installed, and land annexed thereto (excluding collective housing and the land annexed thereto); |
| 4. | Collective housing on one parcel (including multi-household housing which is built for the purpose of enabling many households to reside in one building; and, in such cases, a section partitioned for one household to independently reside shall be deemed respectively a building on one parcel), the total floor area (excluding the area set aside for public use) of the building of which exceeds 245 square meters (274 square meters in the case of a multi-story house, but excluding any the area of one story of which exceeds 245 square meters), and land annexed thereto. |
| (5) | "Buildings prescribed by Presidential Decree and land annexed thereto" in the main clause of Article 13 (5) 4 of the Act means buildings used for any of the following purposes and land annexed thereto. In such cases, where a high-end recreation center is established in part of such building, land equivalent to the ratio of the total floor area of a building for the high-end recreation center to the total floor area of such building, among land annexed to the relevant building, shall be deemed the annexed land: <Amended on Dec. 30, 2010; Jan. 1, 2013; Dec. 30, 2014; Dec. 29, 2017> |
| 1. | Casinos where the parties concerned bet goods and decide a gain and loss of goods on the fortuitous results (excluding casinos for exclusive use by foreigners permitted under the Tourism Promotion Act); |
| 2. | Places where automatic gambling apparatus (referring to pachinko machines, slot machines, arcade equipment, etc.) are installed for speculation or gambling; |
| 3. | Beauty parlors where bathing rooms, etc. other than hairdressing and facial salons are annexed and which levy specified charges for the use of the facilities; |
| 4. | Places of business specified in either of the following items for an entertainment bar business subject to business license under Article 37 of the Food Sanitation Act (limited to places of business with an area of 100 square meters, including the common use area therein): |
| (a) | Places of business (cabarets, nightclubs, disco clubs, etc.) that have a dancing space for customers separated from guest seating; |
| (b) | Places of business (room-salons, high-end private bars, etc.) where the area of guest rooms which are separately and semi-permanently partitioned is not less than 50/100 of the exclusive area of a place of business, or the number of guest rooms is five, or more, in the case of employing hostesses (including temporarily employed persons, irrespective of gender). |
| (6) | "Ships which exceed standards prescribed by Presidential Decree" in Article 13 (5) 5 of the Act means ships, the assessed value of which exceeds 300 million won: Provided, That ships acquired for the purpose of an experiment or practical training shall be excluded. <Amended on Dec. 30, 2010; Dec. 30, 2016> |
| Article 28-2 (Exception to Heavy Taxation on Acquisition of Houses through Transactions with Compensation) |
In applying Article 13-2 (1) of the Act, no house under the provisions, with the exception of the subparagraphs, of that paragraph, which falls under the following subparagraphs (hereafter in this Article and Articles 28-3 through 28-6 referred to as "house") shall be deemed subject to heavy taxation: <Amended on Dec. 31, 2020; Apr. 27, 2021; Dec. 31, 2021; Feb. 28, 2022> | 2. | Any of the following houses acquired by a public housing project operator designated under Article 4 (1) of the Special Act on Public Housing in order to supply any of the following houses (including cases of new construction or reconstruction for supply in cases falling under item (a)): |
| (a) | Buy-to-rent public housing supplied pursuant to Article 43 (1) of the Special Act on Public Housing: Provided, That this shall not apply where it is not supplied as buy-to-rent public housing until two years from the date of acquisition or where it is sold, donated, or used for any other purpose, after having been supplied as buy-to-rent public housing for less than three years without good cause. |
| 3. | A house acquired for operation as a welfare house for senior citizens under Article 32 (1) 3 of the Welfare of Senior Citizens Act; Provided, That cases where real estate is not used directly for the relevant purpose without good cause within one year from the date of acquisition or where it is sold, donated, or used for any other purpose, after having been used directly for the relevant purpose for less than three years, shall be excluded herefrom. |
| 5. | A house a rental business entity defined in subparagraph 7 of Article 2 of the Special Act on Private Rental Housing acquires to supply publicly-funded private rental housing under subparagraph 4 of that Article: Provided, That the same shall not apply where it is not supplied as publicly-funded private rental housing without good cause until two years from the date of acquisition or where it is sold, donated, or used for any other purpose, after having been supplied as publicly-funded private rental housing for less than three years. |
| 6. | A house acquired to be operated as a home-based child care center under subparagraph 5 of Article 10 of the Child Care Act: Provided, That the same shall not apply where a home-based child care center is not used directly for the relevant purpose until one year from the date of acquisition thereof or where it is sold, donated, or used for any other purpose, after less than three years from the date of acquisition; however, where a home-based child care center is converted into a national or public child care center under subparagraph 1 of Article 10 of the Child Care Act, it shall be deemed directly used for the original purposes. |
| 7. | A house acquired by a real estate investment company established through joint investment by the Housing and Urban Fund under Article 3 of the Housing and Urban Fund Act and the Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act or by a real estate investment company established through investment by the Korea Asset Management Corporation established under the Act on the Establishment of Korea Asset Management Corporation, satisfying all of the following requirements as at the time of acquisition: |
| (a) | A house shall be where its seller (hereafter in this subparagraph, referred to as the "seller") resides and a household to which the seller belongs shall own no house other than the relevant house; |
| (b) | A house acquired from a seller shall be leased to the seller for at least five years and the right to re-purchase the house after the expiration of the lease period shall be granted to the seller; |
| (c) | The assessed value referred to in Article 4 of the Act (referring to the assessed value of all housing units, where only the stakes or appurtenant land are acquired) shall not exceed 500 million won; |
| 8. | Any of the following houses acquired for the purpose of being destroyed: Provided, That in cased of item (b) (vi), the same shall not apply where the relevant house is not destroyed or lost until one year after the date of acquisition or where a new house is not sold until three years after the date of acquisition, but in cases other than those of item (b) (vi), where the relevant house is not be destroyed until three years (in cases of item (b) 5, two years) without good cause: |
| (b) | A house acquired by any of the following persons for a housing construction project: Provided, That where the relevant housing construction project is to construct new houses and buildings to be used for purposes other than housing at once, it shall be limited to the portion calculated as prescribed by Ordinance of the Ministry of the Interior and Safety in consideration of the building area, etc. of the newly built housing: |
3) A housing association under subparagraph 11 of Article 2 of the Housing Act (including a person who intends to obtain approval to establish a housing association under Article 11 (2) of that Act); 6) A person who registers a business pursuant to Article 8 (1) of the Value-Added Tax Act for the purpose of engaging in the business of constructing and selling residential buildings (referring to the business of developing and supplying residential buildings under the Korea Standard Industrial Classification and the business of constructing residential buildings (limited to the business of self-employed construction)); | 9. | An unsold house (referring to a house a project entity under Article 54 of the Housing Act supplies pursuant to that Article, which is supplied on a first-come, first-served basis due to a failure to conclude a sales contract in a housing unit whose contract date stipulated in the announcement of recruitment of residents has passed as of the date of acquisition; hereafter in this Article and Article 28-6 the same shall apply) acquired by its contractor (referring to a contractor under Article 33 (2) of the Housing Act and a contractor who performs construction works under subparagraph 16 of Article 2 of the Building Act) in return for the construction consideration of the house from any of the following persons: Provided, That a house acquired by a person falling under item (a) where the person or another person regardless of title such as rental contract, has resided for at least one year shall be excluded: |
| 10. | A house which any of the following persons acquires by exercising a mortgage or debt repayment: Provided, That cases where the relevant house has not been disposed of until three years passed from the date of acquisition shall be excluded herefrom: |
| (f) | A credit union and federation thereof established pursuant to the Credit Unions Act; |
| 11. | Housing in agricultural and fishery areas under subparagraph 2 of Article 28; |
| 12. | Multi-family housing with a total floor area (referring to an exclusive use area) of one parcel, which is acquired for the purpose of direct use for lease to members, of which does not exceed 60 square meters; Provided, That any of the following houses shall be excluded herefrom: |
| (c) | A house that is not directly used for the relevant purpose until one year from the date of acquisition thereof or is sold, donated, or used for any other purpose, after having been used directly for the relevant purpose for less than three years without good cause; |
| 13. | An unsold house acquired due to a spin-off (limited to where the requirements under the subparagraphs of Article 46 (2) of the Corporate Tax Act (the total costs of a division shall be in stocks in cases of subparagraph 2 of that paragraph) by a corporation newly established through division from a divided corporation; Provided, That where any of the events prescribed in the subparagraphs of Article 47 (3) of the Corporate Tax Act occurs within three years from the registration date of the division (excluding cases falling under the proviso, with the exception of the subparagraphs, of that paragraph) shall be excluded herefrom; |
| 14. | A house acquired by a housing remodeling association under the Housing Act pursuant to Article 22 (2) of that Act; |
| (a) | A house acquired to supply land-lease housing for sale under the Housing Act; |
| (b) | A house acquired by re-purchasing it from a person who purchases land-lease housing for sale under the Housing Act; |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 28-3 (Standards for Households) |
| (1) | In applying Article 13-2 (1) through (4) of the Act, one household shall be a household consisting of a person who acquires a house and his or her family member (excluding a person living together) listed in a resident registration card for each household under Article 7 of the Resident Registration Act (hereafter in this Article, referred to as "resident registration record card for each household"); or registered alien record or alien registration card under Article 34 (1) of the Immigration Act (hereafter in this Article, referred to as "registered alien record, etc."); A spouse of a person who acquires a house (excluding a de facto marital relationship; including a person who legally divorced but shares a living with him or her or any other person in a relationship in which they are not deemed de facto divorced; hereafter in this Article the same shall apply), or a child under 30 years of age or parents (limited to where a person who acquires a house is unmarried and under 30 years of age) as at the date of acquisition shall be deemed to belong to one household even though they are not stated in the same resident registration card or registered alien record of the same household as the person who acquires a house. |
| (2) | Notwithstanding paragraph (1), any of the following cases shall be deemed separate households: <Amended on Dec. 31, 2021> |
| 1. | Where a child under 30 years of age not listed on the same resident registration record card for each household as that of his or her parents, whose income as prescribed by the Minister of the Interior and Safety generated in the 12 months immediately preceding the month in which the date of acquisition falls is at least 40/100 of the amount calculated by converting the standard median income under the National Basic Living Security Act into 12 monthly income; and is able to maintain an independent living by managing and maintaining the house he or she owns: Provided, That the same shall not apply to a minor; |
| 2. | Where a child aged 30 years old or older, a married child, or a grown-up child satisfying the income requirement under subparagraph 1 moves in to the house of his or her parent aged 65 years old or older as at the date of acquisition (including where either of his or her parents is under age 65) to live together and support his or her parent; |
| 3. | Where all members of a household have left Korea for at least 90 days for school or work-related reasons, etc., and report the address of another family as the place of residence in which the relevant household will reside after the departure pursuant to the main clause of Article 10-3 (1) of the Resident Registration Act; |
| 4. | Where a person who can form a separate household transfers his or her address to another house for household separation within 60 days from the date of acquisition of the house. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 28-4 (Methods of Calculating Number of Houses) |
| (1) | In applying Article 13-2 (1) 2 and 3 of the Act, the number of houses per household which forms the basis for applying tax rates shall be that of houses one household owns in the Republic of Korea including ones acquired as at the date of acquisition of such houses; of right to residency as an association member under subparagraph 2 of Article 13-3 of the Act (hereinafter referred to as "right to residency as an association member"); of rights to purchase a house under subparagraph 3 of that Article (hereinafter referred to as "rights to purchase a house); and the number of officetels (hereinafter referred to as "officetels") under subparagraph 4 of that Article. In such cases, for houses acquired by a right to residency as an association member or a right to purchase a house, the number of houses per household as at the time of acquisition shall be counted as of the date of acquisition of the right to residency as an association member or the right to purchase a house (for a right to purchase a house from a seller in units, the date of conclusion of a sale contract). |
| (2) | In applying paragraph (1), where a person acquires at least two from among a house, a right to residency as an association member, a right to purchase a house, or an officetel at the same time, such house shall be deemed acquired in consecutive order, as prescribed by a person liable to pay tax. |
| (3) | In applying paragraph (1), where members of one household jointly own one house, a right to residency as an association member, a right to purchase a house, or an officetel, they shall be deemed to possess one house, a right to residency as an association member, a right to purchase a house, or an officetel. |
| (4) | In applying paragraph (1), if several persons jointly own one house, a right to residency as an association member, a right to purchase a house, or an officetel, the inheritor having the largest share shall be deemed the owner of the house, the right to residency as an association member, the right to purchase a house, or the officetel, and two or more heirs with the largest share shall be determined as the owners of the right to residency as an association member, the right to purchase a house, or the officetel in accordance with the order prescribed in the following subparagraphs. In such cases, where the ownership share of a non-registered inherited house or officetel is registered as a result of a change to the existing ownership share, the ownership share shall be deemed acquired on the date of commencement of the inheritance. |
| 1. | A person who resides in the house or officetel; |
| (5) | In counting the number of houses in one household under paragraphs (1) through (4), any of the following houses, an association member's right to residency as an association member, a right to purchase a house, or officetels shall be excluded from the number of houses owned: |
| 1. | Any of the following houses: |
| (a) | A house falling under subparagraph 1 of Article 28-2, which satisfies the standards for assessed values of the relevant house under that subparagraph as at the date of counting of the number of houses; |
| (b) | A house falling under subparagraphs 3, 5, 6, and 12 of Article 28-2, which is used directly for the relevant purpose as of the date of counting of the number of houses; |
| (d) | A house falling under subparagraph 8 or 9 of Article 28-2: Provided, That in cases of a house falling under subparagraph 9 of Article 28-2, it shall be limited to the period of not more than three years from the date of acquisition of the relevant house. |
| (e) | A house falling under subparagraph 11 of Article 28-2, which satisfies the requirements under Article 28 (2) 2 as at the date of counting of the number of houses. |
| 2. | A house newly built and owned by a person who runs a business of constructing a residential building under the standard classification concerning industries publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act: Provided, That a house where a third person has resided for at least one year, irrespective of the title such as self-employed or rental contracts, shall be excluded; |
| 3. | A house, a right to residency as an association member, a right to purchase a house , or an officetel acquired by inheritance, in which case five years have not elapsed from the date of commencing the inheritance; |
| 4. | An officetel whose assessed value (referring to the assessed value of the entire building and the land appurtenant thereto, if only the stakes or appurtenant land are acquired) under Article 4 of the Act as at the date of counting of the number of houses does not exceed 100 million won. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 28-5 (Temporary Two Houses Ownership) |
| (1) | "Temporary two houses ownership prescribed by Presidential Decree" in Article 13-2 (1) 2 of the Act means two houses one household already owning one house, right to residency as an association member, right to purchase a house or officetel (hereafter in this Article and Article 36-3 referred to as "previous house, etc.) in the Republic of Korea comes to own temporarily for moving, school attendance, employment, workplace relocation, or any other similar reasons by acquiring another house (hereafter in this Article and Article 36-3 referred to as "new house") on the condition that the relevant household disposes of the existing house, etc.(including a new house where its ownership results from a right to residency as an association member or a right to purchase a house, or where the ownership of the existing house, etc. is a result of a right to residency as an association member or a right to purchase a house) within three years (two years where the existing and new houses are all within an area subject to adjustment under Article 63-2 (1) 1 of the Housing Act; hereafter in this Article referred to as "the period of temporary two houses ownership"). <Amended on Jun. 30, 2022> |
| (2) | In applying paragraph (1), when one household possessing a right to residency as an association member or a right to purchase a house acquires another house, the period of temporary two houses ownership shall be counted from the date on which the house is acquired based on the right to residency as an association member or the right to purchase a house. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 28-6 (Gratuitous Acquisition Subject to Heavy Taxation) |
| (1) | "A house with a specified price or higher prescribed by Presidential Decree" in Article 13-2 (2) of the Act means a house whose assessed value (referring to the assessed value of all housing units, if only the stakes or appurtenant land are acquired) prescribed in Article 4 of the Act as at the time of acquisition, is at least 300 million won. |
| (2) | "Cases prescribed by Presidential Decree, such as where a spouse or a lineal ascendant or descendant acquires by gratuitous acquisition the house owned by a member of a house-owning household" in the proviso of Article 13-2 (2) of the Act means any of the following cases: <Amended on Dec. 31, 2020> |
| 1. | Where the spouse or a lineal ascendant or descendant acquires the relevant house on the ground of gratuitous acquisition under Article 11 (1) 2 of the Act from a person who owns one house per household; |
| 3. | An unsold house acquired through qualified division under Article 46 (2) of the Corporate Tax Act by a corporation established through division from a divided corporation: Provided, That the same shall not apply, where any ground provided in any subparagraph of Article 46-3 (3) of that Act arises (excluding cases falling under the proviso, with the exception of the subparagraphs, of that paragraph) within three years from the registration date of the division; |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 29 (Scope of One House per Household) |
| (1) | "One house per household prescribed by Presidential Decree" in Article 15 (1) 2 (a) of the Act means a case where one household (the spouse of an heir, an unmarried lineal descendant of less than 30 years of age of an heir, or a parent of an heir who is unmarried and less than 30 years of age shall be deemed to belong to the heir's household, even if the spouse or such lineal descendant or parent is not registered in the resident registration card for the household) composed of the head of the household (excluding a Korean national residing abroad under Article 6 (1) 3 of the Resident Registration Act; hereafter in this Article the same shall apply) and his or her family members (excluding cohabitants) registered in the resident registration card for the household under the same Act (hereafter in this Article referred to as "resident registration card for each household") owns one house (referring to a building used as a residential house (referring to a house referred to in Article 11 (1) 8 of the Act) and the land appurtenant thereto, but excluding a high-end house under Article 28 (4)) within the Republic of Korea. <Amended on Jul. 24, 2015; Dec. 31, 2015; Dec. 30, 2016; Dec. 29, 2017; Dec. 31, 2018> |
| (2) | For the purpose of applying paragraph (1), if two or more persons jointly own one house, each co-owner shall be deemed to own one house, and a person who owns only the land appurtenant to a house shall also be deemed to own a house. <Newly Inserted on Jul. 24, 2015> |
| (3) | For the purpose of applying paragraph (1) or (2), if two or more persons jointly inherit one house, the heir who has the greatest share in the inheritance shall be deemed the owner of the house. If two or more heirs have the greatest share respectively, the owner of the house shall be determined in the following order among the heirs with the greatest share: <Amended on Jul. 24, 2015> |
| 1. | The person who resides in the house; |
| Article 29-2 (Tax Base of Partitioned Property) |
For the application of Article 15 (1) 4 of the Act, the assessed value for a whole subdivision of which a person acquires sole ownership, out of subdivisions of partitioned property, shall be deemed the tax base, where a person acquires sole ownership of a subdivision of partitioned property after co-owned property is partitioned. [This Article Newly Inserted on Dec. 29, 2017]
| Article 30 (Special Cases of Tax Rates) |
| (1) | "Any other acquisition prescribed by Presidential Decree, such as pseudo acquisition, etc." in Article 15 (1) 7 of the Act means the acquisition of standing trees in order to cut them and produce timber. <Newly Inserted on Dec. 31, 2015> |
| (2) | "Acquisition prescribed by Presidential Decree, such as the acquisition, etc. of leisure facilities" in Article 15 (2) 8 of the Act means any of the following acquisitions: <Amended on Dec. 30, 2010; Dec. 31, 2015; Dec. 31, 2019> |
| 1. | Acquisition of facilities stipulated under Article 5; |
| 2. | Acquisition of the land, the category of which on the cadastral records is a graveyard and is used for a grave and a site for its attached facilities; |
| 5. | Acquisition of a building after construction thereof, for which the liability to pay registration and license tax is established with regard to making registration of preservation of ownership or registration of transfer of ownership under Article 28 (1) 1 (a) or (b) of the Act and then the timing of acquisition under Article 20 arrives. |
| Article 31 (Period for Additional Collection of Heavy Taxation of Acquisition of Real Estate in Large Cities) |
"Period prescribed by Presidential Decree" in Article 16 (4) of the Act means a period within five years from the date on which the relevant real estate is acquired.
SECTION 3 Imposition and Collection
| Article 32 (Sale Notification) |
| (1) | A sale notification or report under Article 19 of the Act shall be made to the head of a Si/Gun/Gu having jurisdiction over the location of the article according to a form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (2) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on a detailed statement of changes in stocks, etc. of a corporation under Article 161 (6) of the Enforcement Decree of the Corporate Tax Act, or to provide the head of the Si/Gun related data specifying details thereon in order to impose acquisition tax on an oligopolistic shareholder, the head of the competent tax office shall comply therewith unless there is a compelling reason not to do so. <Amended on Dec. 30, 2016> |
| (3) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on an application for business registration of a branch or sub-office of a corporation under Article 11 of the Enforcement Decree of the Value-Added Tax Act, or to provide related data specifying details thereon in order to impose heavy acquisition tax pursuant to Article 13 (2) of the Act, the head of the competent tax office shall comply therewith unless there is a compelling reason not to do so. <Amended on Jun. 28, 2013; Dec. 30, 2016> |
| Article 33 (Tax Returns and Payment) |
| (1) | A person who intends to file an acquisition tax return in accordance with Article 20 (1) through (3) of the Act shall file the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, with the head of a Si/Gun/Gu having jurisdiction over the place for tax payment, stating an acquired article, the date of acquisition, or the purpose, etc. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (2) | Deleted. <Dec. 31, 2011> |
| (3) | If a saving depository of a local government, or an agency that acts on behalf of a local tax receiver (referring to any financial institution, etc. that is commissioned to perform a part of saving depository affairs of a local government under Article 49 (1) and (2) of the Enforcement Decree of the Local Accounting Act; hereinafter the same shall apply) receives the payment of acquisition tax, it shall issue to the taxpayer one copy of a receipt for the taxpayer's records, one copy of notice of payment certificate of acquisition tax (for the registry office's notification to the relevant Si/Gun/Gu), and one copy of a document confirming acquisition tax payment, respectively, and, without delay, serve the revenue collector of the relevant Si/Gun/Gu with one copy of notice of payment certificate of acquisition tax (for the relevant Si/Gun's records): Provided, That where the payment of acquisition tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act, the same may be substituted by issuing to the taxpayer a notice of the payment certificate of acquisition tax for the taxpayer's records. <Amended on Dec. 31, 2011; Nov. 29, 2016; Dec. 30, 2016> |
| Article 34 (Tax Return and Payment for Property Subject to Heavy Taxation) |
| 1. | Where a person acquires real estate for business purposes to build a head office or main office under Article 13 (1) of the Act: The date when the real estate is used as an office for the first time; |
| 2. | Where a person acquires an object of taxation for business purposes to build a new factory or extend an existing one under Article 13 (1) of the Act, or acquires real estate after a new factory is built or an existing one is extended under paragraph (2) 2 of that Article: The date on which the production facilities are installed: Provided, That where permission for business, authorization, etc. is obtained before the said date, it refers to the date on which permission for business, authorization, etc. is obtained; |
| 3. | Where the acquisition of real estate under Article 13 (2) 1 of the Act constitutes any of the following: The date on which the relevant office or place of business is established: |
| (a) | Where a corporation is established in a large city; |
| (b) | Where a branch or sub-office of a corporation is established in a large city; |
| (c) | Where a head or main office, branch, or sub-office is transferred into a large city from the outside of the large city; |
| 4. | Where real estate is acquired for the purposes of direct use for types of business excluded from heavy taxation in large cities pursuant to the proviso, with the exception of the subparagraphs, of Article 13 (2) of the Act, or real estate for the residence of employees is acquired for direct use by a corporation to parcel out or lease to employees, and then any ground under the subparagraphs of Article 13 (3) of the Act arises and such real estate becomes subject to the main clause, with the exception of the subparagraphs, of Article 13 (2) of the Act: The date on which such ground arises; |
| 5. | Where a person acquires a villa, a golf course, a high-end house, a high-end recreation center, or a high-end ship under Article 13 (5) of the Act: The date specified in the following: |
| (a) | Where a building becomes a villa or high-end house by extending or rebuilding an existing building: The date on which a written approval for use for such extension or rebuilding is issued: Provided, That where a building becomes a villa or high-end house due to other grounds, the date on which such grounds arise; |
| (b) | A golf course: The date on which the golf course is registered as a sports facilities business (including the registration on its changes) under the Installation and Utilization of Sports Facilities Act: Provided, That where a golf course is actually used prior to its registration, the date on which the golf course is actually used with regard to such use; |
| (c) | Where a building becomes a high-end recreation center pursuant to the relevant statutes after a written approval for use of the building is issued: The date on which permission for business, authorization, etc. for the relevant type of business is obtained: Provided, That where a building becomes a high-end recreation center without obtaining permission for business, authorization, etc., the date refers to the date on which the high-end recreation center actually starts its operation; |
| (d) | Where a ship becomes a high-end ship by changing its type: The date on which the type of the ship is actually changed. |
| Article 35 Deleted. <Feb. 8, 2019> |
| Article 35-2 Deleted. <Jul. 24, 2015> |
| Article 36 (Acquisition Tax Payment Verification) |
| (1) | When a taxpayer intends to make registration of an object subject to acquisition tax, he or she shall attach to an application for registration one copy of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment: Provided, That the same shall not apply where the payment of acquisition tax can be confirmed by electronic means between administrative agencies under Article 36 (1) of the Electronic Government Act. <Amended on Dec. 31, 2011; Dec. 30, 2016> |
| (2) | Notwithstanding paragraph (1), when a taxpayer intends to make registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, he or she shall attach to an application for registration, data which are electronically converted images of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming acquisition tax payment: Provided, That this shall not apply where administrative agencies may electronically verify the payment of acquisition tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Jan. 1, 2013; Dec. 30, 2016> |
| (3) | When a taxpayer intends to apply for registration following the acquisition of a ship, he or she shall attach to an application for registration one copy of notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment. In such cases, a registry office shall verify the certificate of the ship’s nationality through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, and, if an applicant does not consent to the verification, it shall require the applicant to attach a copy of the nationality certificate of such ship. <Amended on Dec. 30, 2016> |
| (4) | When completing registration, a registry office shall, without fail, place a stamp for confirmation in the amount field provided in the document confirming acquisition tax payment pursuant to paragraphs (1) through (3), and shall verify matters stated in a document on registration by comparing the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) attached and the document on registration, affix a receipt seal to the notice of certificate of acquisition tax payment with a receipt number, and then serve a revenue collector of the Si/Gun/Gu having jurisdiction over the place for tax payment, with the notice of certificate of acquisition tax payment within seven days. <Amended on Dec. 30, 2016; Jan. 5, 2021; Dec. 31, 2021> |
| (5) | Notwithstanding paragraph (4), where a registry office intends to serve a revenue collector of a Si/Gun/Gu with a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu), when the revenue collector of the Si/Gun/Gu can verify information corresponding to the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, the registry office may provide such information by electronic means. <Amended on Dec. 30, 2016> |
| (6) | When the head of a Si/Gun/Gu has received a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) or information corresponding thereto under paragraph (4) or (5), he or she shall prepare an acquisition tax return and receipt-handling record and verify whether any acquisition tax has been paid excessively or erroneously or omitted. <Amended on Dec. 30, 2016> |
[This Article Wholly Amended on Dec. 30, 2010]
| Article 36-2 (Handling of Receipt for Payment of Acquisition Tax Following Commission Registration) |
| (1) | Where a State agency or local government intends to commission a registry office to make a registration or provisional registration, it shall require a taxpayer who has to pay acquisition tax to submit one copy of a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment under Article 33 (3) and shall serve the registry office with a commission document, along with such documents: Provided, That the same shall not apply where the payment of acquisition tax can be confirmed by electronic means between administrative agencies under Article 36 (1) of the Electronic Government Act. <Amended on Dec. 31, 2011; Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), where a State agency or local government intends to commission a registry office to make a registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, it shall attach data submitted by a taxpayer who has to pay acquisition tax, which is electronically converted to images of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming acquisition tax payment: Provided, That this shall not apply where administrative agencies may electronically verify the payment of acquisition tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Jan. 1, 2014; Dec. 30, 2016> |
[This Article Newly Inserted on Dec. 30, 2010]
| Article 36-3 (Period of Temporary Two Houses Ownership) |
| (1) | "Period prescribed by Presidential Decree from the date of acquisition" in Article 21 (1) 3 of the Act means three years (two years where both the existing and new houses are located in an area subject to adjustment referred to in Article 63-2 (1) 1 of the Housing Act) from the date of acquisition of the new house (where the existing house, etc. is a right to residency as an association member or a right to purchase a house, referring to the house acquired by the relevant right to residency as an association member or the right to purchase a house). <Amended on Jun. 30, 2022> |
| (2) | "Existing house prescribed by Presidential Decree" in Article 21 (1) 3 of the Act means the existing house, etc. In such cases, a new house shall be included, where it is acquired by the right to residency as an association member or the right to purchase a house, or where the existing house etc. refers to a right to residency as an association member or a right to buy a house. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 37 (Property Exempt from Heavy Additional Tax) |
"Objects of taxation prescribed by Presidential Decree, such as taxable objects not needed to be registered or recorded" in the proviso of Article 21 (2) of the Act means any of the following: <Amended on Mar. 14, 2014> | 1. | Deleted; <Jan. 1, 2013> |
| 2. | Objects of taxation not needed to be registered (excluding golf course membership, riding club membership, condominium membership, sports complex membership, and yacht club membership), among objects of taxation subject to acquisition tax; |
| 3. | Objects of taxation which are deemed acquired, such as the change in land category, changes in vehicle types, mechanical equipment, or a ship, and the acquisition of stocks, etc. |
| Article 38 (Notification of Non-Payment of Acquisition Tax and Underpayment of Tax) |
Where the head of a registry office discovers that acquisition tax has not been paid or has not been fully paid after completing registration, he or she shall notify the head of the Si/Gun/Gu having jurisdiction over the place for tax payment thereof by the tenth day of the following month. <Amended on Dec. 30, 2016>
| Article 38-2 (Request for Provision of Information) |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 38-3 (Notification of Data Related to Gift Tax) |
The head of a tax office or the head of a regional tax service shall attach the data related to determination or correction of the real estate gift tax prescribed in Article 76 of the Inheritance Tax and Gift Tax Act to a notice prescribed by Ordinance of the Ministry of the Interior and Safety to notify the Minister of the Interior and Safety or the head of a local government of such fact pursuant to Article 22-4 of the Act by the end of the month following the month in which the date of determination or correction falls. [This Article Newly Inserted on Dec. 31, 2021]
CHAPTER III REGISTRATION AND LICENSE TAX
SECTION 1 Common Provisions
| Article 39 (Types of Licenses and Classification) |
The types of licenses and classification thereof under subparagraph 2 of Article 23 of the Act are as specified in attached Table 1. <Amended on Dec. 31, 2019>
| Article 40 (Non-Taxation) |
| (1) | "Any other registration prescribed by Presidential Decree on land, etc., the category of which is a graveyard" in Article 26 (2) 3 of the Act means registration with regard to land, the category of which is a graveyard provided in the cadastral record, as land used for a grave space and a site for its attached facilities. |
| (2) | "License prescribed by Presidential Decree" in Article 26 (2) 4 of the Act means any of the following licenses: <Amended on Dec. 30, 2010; Jan. 6, 2016> |
| 1. | A license for revision, which fails to correspond to any of the following in terms of details of revision: |
| (a) | Where a licensee is changed (excluding where the name of the representative is simply changed without change of the business entity); |
| (b) | Where the classification of a license under Article 39 for the relevant license is changed to the upper class; |
| 2. | A license that corresponds to any of the following, which is held by any person who commences the business of rendering medical service or the business of treating animals in accordance with the Medical Service Act and the Veterinarians Act: |
| (a) | A relevant license that is suspended to engage in providing public health services in accordance with the Act on the Special Measures for Public Health and Medical Services in Agricultural and Fishing Villages and a license that is issued for the establishment of a hospital or clinic (including a midwifery clinic) during the period of such service; |
| (b) | A license for the diagnosis and treatment of animals, which is granted to any veterinarian who is commissioned to work as a public veterinarian in accordance with the Veterinarians Act; |
| 3. | A license to possess firearms, where firearms or their parts are deposited pursuant to Article 47 (2) of the Act on the Safety Management of Guns, Swords and Explosives: Provided, That this shall not apply where firearms have been returned during the relevant taxable period; |
| 4. | A license for the type of the relevant business that is closed after filing a closure report under the Value-Added Tax Act, as of January 1 of each year; |
| 5. | A license for the type of the relevant business, the actual suspension of which for at least one year is verified, as of January 1 of each year; |
| 6. | A license required for the management of community property of an organization that consists only of residents for promoting welfare, etc. of village residents. |
SECTION 2 Registration and License Tax on Registration
The terms used in this Section are defined as follows:
| 1. | "Real estate" means land and buildings stipulated in subparagraphs 3 and 4 of Article 6 of the Act; |
| 3. | "One case" means each case to be registered. This shall also apply where one registers several cases to be registered in a batch of applications according to the relevant statutes or regulations, including the Registration of Real Estate Act. |
| Article 42 (Application of Tax Base) |
| (1) | Where a changed value due to the revaluation of property, depreciation and any other reason under the proviso of Article 27 (3) of the Act becomes a tax base, a value proved by the account book of a corporation, the settlement of accounts, etc. as of the date of registration shall be determined as the tax base. |
| (2) | Where a tax base for any land or building is not classified due to the gross valuation of the land and building, an amount calculated by dividing the gross-valued individual housing price by the rate of value of the land or building shall be determined as the tax base for the land or building, respectively. |
| Article 42-2 (Passenger Automobiles for Non-Business Use) |
| (1) | "Automobile" in the provisions, with the exception of the items, of Article 28 (1) 3 of the Act shall not include a two-wheel automobile with an engine displacement of 125 cc or less or a maximum rated output power of 12 kilowatt or less. <Amended on Dec. 31, 2019> |
[This Article Newly Inserted on May 30, 2011]
| Article 43 (Tax Rates for Corporate Registration) |
| (1) | A non-profit corporation referred to in Article 28 (1) 6 of the Act means any of the following: <Newly Inserted on Jul. 24, 2015; Feb. 8, 2019> |
| 3. | A corporation established under any other Special Act for a purpose similar to the purposes referred to in Article 32 of the Civil Act (excluding corporations that may distribute profits to stockholders, partners, members, or investors). |
| (2) | Where a corporation transfers its head or main office, the corporation shall pay its respective registration and license tax on the registration stipulated under Section 2 of Chapter Ⅲ of the Act (hereafter in this Section referred to as "registration and license tax") in regard to the former location according to Article 28 (1) 6 (f) of the Act, and in regard to the new location according to item (d) of that subparagraph. <Amended on Jul. 24, 2015> |
| (3) | Where a corporation establishes a branch or sub-office, the corporation shall pay its respective registration and license tax in regard to the location of its head or main office according to Article 28 (1) 6 (f) of the Act, and in regard to the location of the branch or sub-office according to item (e) of that subparagraph. <Amended on Jul. 24, 2015> |
| (4) | Where registration falls under Article 28 (1) 6 (f) of the Act and the same matters as matters set forth in such registration are to be registered in regard to a head office and a branch office, or to a main office and a sub-office, each respective registration shall be deemed one case. <Amended on, Jul. 24, 2015> |
| Article 44 (Exception to Heavy Taxation on Corporations in Large Cities) |
"Types of business prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 28 (2) of the Act means the types of business falling under any subparagraph of Article 26 (1).
| Article 45 (Scope of and Criteria for Application of Heavy Taxation on Corporations in Large Cities) |
| (1) | Where an increase in capital or investment arises to meet the minimum requirements for a license or registration due to amendments to the relevant statutes or regulations with respect to the registration of corporations under Article 28 (2) 1 of the Act, the amount of such increase shall not be deemed subject to heavy taxation. |
| (2) | In applying Article 28 (2) of the Act, any of the following cases shall not be deemed subject to heavy taxation. <Amended on Jan. 1, 2013; Dec. 31, 2018; Apr. 27, 2021> |
| 1. | Where a domestic corporation in a large city which has operated its business for at least five consecutive years as of the registration date of division incorporates a corporation by division (only applicable to cases meeting all the requirements under Article 46 (2) 1 (a) through (c) of the Corporate Tax Act); |
| (3) | In applying Article 28 (2) of the Act, where a corporation for which five years have elapsed after its incorporation in a large city (hereafter in this paragraph referred to as "existing corporation") merges with another existing corporation, such corporation shall not be deemed subject to heavy taxation; where a corporation, other than an existing corporation, becomes a corporation surviving a merger, or a new corporation is incorporated after an existing corporation merges with a corporation for which five years have yet to elapse after its incorporation in a large city, the portion equivalent to the asset ratio of such existing corporation as at the time of the merger shall not be deemed subject to heavy taxation. In such cases, the asset ratio shall be a ratio calculated, if assets are appraised, based on the appraised value, or a ratio calculated, if assets are not appraised, based on the book value of assets as at the time of the merger. |
| (4) | Deleted. <Dec. 30, 2016> |
| (5) | In applying Article 28 (2) of the Act, where any of the following applies to a corporation and the tax base for the registration and license tax on registration under the subparagraphs of Article 28 (2) of the Act is not classified, the registration and license tax shall be distributed pro rata and imposed by calculating, based on the following formula as in items (a) and (b), the ratio between the turnover of the type of business under each subparagraph of Article 26 (1) (hereafter in this paragraph referred to as "type of business excluded from heavy taxation in large cities") and the turnover of other types of business (hereafter in this paragraph referred to as "type of business subject to heavy taxation in large cities") in the total turnover of the immediately preceding business year (where no turnover exists in the immediately preceding business year, referring to the relevant business year; where no turnover exists in the relevant business year, referring to the next business year): Provided, That where no turnover exists in the following business year, it refers to the value of tangible fixed assets: <Amended on Dec. 30, 2010> |
| 1. | Where the corporation concurrently operates the type of business excluded from heavy taxation in large cities and the type of business subject to heavy taxation in large cities; |
| 2. | Where the corporation converts the type of business excluded from heavy taxation in large cities to the type of business subject to heavy taxation in large cities; |
| 3. | Where the corporation adds the type of business subject to heavy taxation in large cities to the type of business excluded from heavy taxation in large cities: |
<Formula for calculating the percentage of turnover by the type of business excluded from heavy taxation and by the type of business subject to heavy taxation in large cities>
| (a) | Turnover rate (percentage) for the type of business subject to heavy taxation of a relevant corporation (Percentage); |
| (b) | Turnover rate (percentage) for the type of business excluded from heavy taxation of a relevant corporation. |
| Article 46 (Method of Collection Where Objects for Mortgage of Registration of Same Bonds are Different) |
| (1) | Where the objects of the mortgage for the same bonds are different, and thus two or more registrations are required, and if the registry office has received an application for registration thereon, it shall impose registration and license tax regarding the amount calculated by deducting the amount which served as a basis for computing the already-paid registration and license tax paid from the total amount of the bonds as the amount of such bonds. |
| (2) | If registration or filing stipulated in paragraph (1) includes those falling under Article 28 (1) 5 of the Act and other matters, registration and license tax on the registration or filing falling under Article 28 (1) 5 of the Act shall be imposed in preference to the other matters. |
| Article 47 (Method of Collection of Tax for Registration of Additional Collateral for Security for Claim) |
| Article 48 (Tax Returns and Payment Deadline) |
| (1) | "Before filing a registration" in Article 30 (1) of the Act means by the date on which an application for registration is filed with the registry office: Provided, That it refers to the deadline for paying a patent fee, a registration fee, and a service charge payable under the Patent Act, the Utility Model Act, the Design Protection Act, and the Trademark Act, in the case of the registration and license tax on the registration of a patent right, utility model right, design right or trademark right. |
| (2) | "Date prescribed by Presidential Decree" in Article 30 (2) of the Act means the date in the following classifications: <Amended on Dec. 30, 2010> |
| 1. | In any of the following cases, the date on which the relevant office or place of business is actually established: |
| (c) | Where a head or main office of a corporation located outside of a large city under Article 28 (2) 2 of the Act is relocated into a large city; |
| (3) | A person who intends to file a registration and license tax return under Article 30 (1) through (3) of the Act shall file the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety with the head of the Si/Gun/Gu having jurisdiction over the place for tax payment. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (4) | Deleted. <Dec. 31, 2011> |
| (5) | When a saving depository of a local government or an agency collecting local taxes on behalf of the local government receives the payment of registration and license tax, it shall issue to the taxpayer one copy of a receipt for the taxpayer's records, one copy of notice of payment of registration and license tax (for the registry office's notification to the relevant Si/Gun/Gu), and one copy of a document confirming payment of registration and license tax, and, without delay, serve the revenue collector of the relevant Si/Gun/Gu with one copy of notice of payment of registration and license tax (for the relevant Si/Gun/Gu's records): Provided, That where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act, the same may be substituted by issuing a receipt for the taxpayer's records to the taxpayer. <Amended on Dec. 31, 2011; Aug. 12, 2014; Dec. 30, 2016> |
| Article 49 (Payment Verification of Registration and License Tax) |
| (1) | Where a taxpayer intends to make a registration, he or she shall attach to an application for registration one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming payment of registration and license tax: Provided, That the same shall not apply where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Dec. 31, 2011; Jan. 1, 2014; Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), when a taxpayer intends to make a registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, he or she shall attach to an application for registration, data which is electronically converted to images of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming payment of registration and license tax: Provided, That this shall not apply where administrative agencies may electronically verify the payment of registration and license tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Jan. 1, 2014; Dec. 30, 2016> |
| (3) | When a taxpayer intends to apply for registration following the acquisition of a ship, he or she shall attach to an application for registration one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming payment of registration and license tax referred to in paragraph (1). In such cases, a registry office shall verify the certificate of the relevant ship’s nationality through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, and, if an applicant does not consent to the verification, it shall require the applicant to attach a copy of the certificate of such ship’s nationality. <Amended on Dec. 30, 2016> |
| (4) | When completing registration, a registry office shall, without fail, place a stamp for confirmation in the amount field provided in the document confirming payment of registration and license tax pursuant to paragraphs (1) through (3), and shall verify matters stated in a document on registration by comparing the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) attached and the document on registration, affix a receipt seal to the notice of certificate of registration and license tax payment with a receipt number, and then serve a revenue collector of the Si/Gun/Gu having jurisdiction over the place for tax payment, with the notice of certificate of registration and license tax payment within seven days: Provided, That in the case of registration of mining rights and mining concession rights, the service of notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) may be omitted, and the current state of registration of mining rights and mining concession rights for each quarter may be notified to the head of the relevant Si/Gun/Gu by the 10th day of the month following the last day of the relevant quarter. <Amended on Dec. 31, 2011; Dec. 30, 2016; Jan. 5, 2021; Dec. 31, 2021> |
| (5) | Notwithstanding the provisions of the main clause of paragraph (4), where a registry office intends to serve a revenue collector of a Si/Gun/Gu with a notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu), when the revenue collector of a Si/Gun/Gu can verify information corresponding to the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) through administrative data matching under Article 36 (1) of the Electronic Government Act, the registry office may provide such information by electronic means. <Amended on Dec. 30, 2016> |
| (6) | When the head of a Si/Gun/Gu has received a notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) or information corresponding thereto under the main clause of paragraph (4) and paragraph (5), he or she shall prepare a registration and license tax return and receipt-handling record and verify whether any registration and license tax has been paid excessively or erroneously or omitted. <Amended on Dec. 30, 2016> |
[This Article Wholly Amended on Dec. 30, 2010]
| Article 49-2 (Handling of Payment Receipts of Registration and License Tax following Commission Registration) |
| (1) | Where a State agency or local government intends to commission a registry office to make a registration or provisional registration, it shall order a taxpayer obligated to pay registration and license tax to submit one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of the document confirming payment of registration and license tax under Article 48 (5) and shall serve the registry office with a commission document, along with such documents: Provided, That the same shall not apply where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Dec. 31, 2011; Jan. 1, 2014; Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), where a State agency or local government intends to commission registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, it shall attach data submitted by a taxpayer who has to pay acquisition tax, which is electronically converted to images of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming payment of registration and license tax: Provided, That this shall not apply where administrative agencies may electronically verify the payment of registration and license tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended on Jan. 1, 2014; Dec. 30, 2016> |
[This Article Newly Inserted on Dec. 30, 2010]
| Article 50 (Notification of Non-Payment of Registration and License Tax and Underpaid Tax) |
| (1) | Where the head of a registry office discovers that acquisition tax has not been paid or has been underpaid after completing the registration, he or she shall notify the head of the Si/Gun/Gu having jurisdiction over the place for tax payment thereof by the tenth day of the following month. <Amended on Dec. 30, 2016> |
| (2) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on an application for business registration of a branch or sub-office of a corporation under Article 11 of the Enforcement Decree of the Value-Added Tax Act, or to provide related data specifying details thereon in order to impose a heavy registration and license tax on the registration, etc. of a corporation in a large city pursuant to Article 28 (2) of the Act, the head of the competent tax office shall comply therewith unless there is a compelling reason not to do so. <Amended on Jun. 28, 2013; Dec. 30, 2016> |
SECTION 3 Registration and License Tax on Licenses
| Article 51 (Scope of Licenses Similar to Construction Permits) |
"License prescribed by Presidential Decree" in Article 35 (3) 2 of the Act means a license for any of the following: <Amended on Dec. 31, 2011; Apr. 10, 2012; Jan. 1, 2014; Dec. 30, 2014; Dec. 31, 2015; Jan. 19, 2016; Mar. 29, 2017; Oct. 17, 2017; Dec. 31, 2018> | 1. | Excavation of buried cultural assets; |
| 2. | Taking cultural property out of the Republic of Korea; |
| 4. | Conversion of farmland and change of the purpose of conversion of farmland under the Farmland Act; |
| 5. | Change of the form or quality of land; |
| 6. | Establishment of private cemeteries and creation of private natural burial grounds under Act on Funeral Services (excluding those established or created by a foundation); |
| 7. | Construction of a private road; |
| 8. | Type-approval for measuring instruments and inspection of specific instruments using heat; |
| 11. | Type-approval for construction machinery; |
| 12. | Permission for installation outside of bonded areas; |
| 13. | Reclamation of public water; |
| 14. | Creation of grassland and its conversion; |
| 15. | Permits for or reporting on the installation of livestock excreta dis- charge facilities; |
| 18. | Reporting on works generating disperse dusts; |
| 20. | Type-approval of firefighting appliances under Article 36 of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems; |
| 21. | Reporting on the import and sale of seeds under Article 38 (1) of the Seed Industry Act: Provided, That it shall be limited to reporting on the import and sale of seeds of crops eligible for registration in the National Catalog of Varieties pursuant to Article 15 of that Act; |
| 22. | Type-approval and official approval for ships and materials used for such ships; |
| 24. | Digging and picking forest produce; |
| 25. | Registration of manufacturers, etc. for self-authentication of motor vehicles under Article 30 of the Motor Vehicle Management Act (limited to registration of manufacturers, etc. for self-authentication of motor vehicles for private use); |
| 26. | Manufacture of speculating apparatus and inspection of speculating apparatus by imported item; |
| 27. | Construction and reconstruction of toll roads; |
| 28. | Development and utilization of underground water; |
| 29. | Extraction of aggregate; |
| 30. | Type-approval for environment measuring instruments; |
| 31. | Building and substantial repair; |
| 32. | Permission to install structures, or report on erecting structures; |
| 33. | Permission to export or import guns, swords, gunpowder, gas sprayers, electric shock machines, or crossbows; |
| 34. | Permission to pile up goods for at least one month in green belt, management zones or natural environment conservation zones, among permission for development acts; |
| 35. | Construction or building of temporary structures; |
| 40. | Permission to possess swords, explosives, gas sprayers, electroshock weapons, or crossbows; |
| 44. | Permission to handle prohibited substances under the Chemicals Control Act or permission to manufacture, import, or use substances subject to permission under Article 19 of that Act; |
| Article 52 (Verification of Tax Payment at Time of Granting Licenses) |
| (1) | When an agency that has the authority to grant license grants or changes a license, it shall verify that registration and license tax on the license (hereafter in this Section referred to as "registration and license tax") has been paid, enter the place for payment of registration and license tax, the amount of payment, the date of payment, and the classification of the license in a remarks column of the license register, and then issue to or serve with the applicant a license certificate. |
| (2) | Deleted. <Dec. 31, 2011> |
| Article 53 (Notification regarding Licenses) |
| (1) | Deleted. <Dec. 30, 2010> |
| (2) | Deleted. <Dec. 30, 2010> |
| (3) | Where the head of a Si/Gun/Gu imposes no registration and license tax on any of the grounds specified in Article 40 (2) 5, he or she shall notify the license-granting agency thereof. <Amended on Dec. 30, 2016> |
| Article 54 Deleted. <Dec. 30, 2010> |
| Article 55 (Keeping Tax Ledgers) |
The head of a Si/Gun/Gu shall keep a tax ledger of registration and license tax and record necessary matters in the tax ledger. In such cases, where the relevant matters are electronically processed, the tax ledger shall be deemed kept. <Amended on Dec. 30, 2016>
| Article 56 (Subject to Taxation) |
| Article 57 (Pro Rata Standard) |
| (1) | Where a leisure tax return is filed and leisure tax is paid according to Article 43 of the Act, it shall be calculated pursuant to the following classifications and paid accordingly: <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021> |
| 1. | All amounts of tax on betting tickets, horse racing tickets, etc. directly sold at the place of business subject to taxation under Article 40 of the Act (hereafter in this Chapter referred to as "bicycle racing track, etc.") shall be returned and paid to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc.; |
| 2. | 50/100 of the amount of tax on betting tickets, horse racing tickets, etc. sold at an off-site ticket booth shall be reported on a tax return and be paid to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc., and to the head of the Si/Gun/Gu having jurisdiction over the location of the outdoor ticket booth, respectively; |
| 3. | 50/100 of the amount of tax on betting tickets, horse racing tickets, etc. sold under subparagraph 3 of Article 43 of the Act shall be reported on a tax return and be paid to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc., and 50/100 of the total tax amount shall be reported on a tax return and be paid based on demographics of 19 years old or more under the Resident Registration Act as of January 1 of the year. The amount of such tax calculated pro rata by the following formula shall be reported on a tax return and paid to the head of each Si/Gun/Gu: |
The tax amount pro rata by Si/Gun/Gu = A x B
A: The amount of tax on betting tickets, horse racing tickets, etc. sold under subparagraph 3 of Article 43 of the Act x 50/100
B: Pro rata share of a Si/Gun/Gu
| The population aged 19 years old or older in each Si/Gun/Gu | | The nationwide population aged 19 years old or older in the country |
|
|
|
| 4. | Notwithstanding subparagraphs 2 and 3, where a bicycle race track, etc. are newly established, the tax amount based on the following rates shall be reported on a tax return and be paid to the head of each Si/Gun/Gu during the period prescribed by Ordinance of the Ministry of the Interior and Safety after the establishment thereof: |
| (a) | With regards to the tax amount on betting tickets, horse racing tickets, etc. sold at an off-site ticket office, a return of 80/100 of the ticket sales shall be filed with and paid to the head of a Si/Gun/Gu having jurisdiction over the location of such bicycle race track, etc., and 20/100 shall be reported on a tax return and filed with and paid to the head of Si/Gun/Gu having jurisdiction over the location of the off-site ticket office; |
| (b) | With regards to the tax amount on betting tickets, horse racing tickets, etc. under subparagraph 3 of Article 43 of the Act, a return of 80/100 shall be reported on a tax return, filed with, and be paid to the head of a Si/Gun/Gu having jurisdiction over the location of such bicycle race track, etc.; and the tax amount of 20/100 calculated pro rata by the following formula based on the statistics of the population aged 19 years old or older under the Resident Registration Act as of January 1 of the year in which the relevant tickets are sold falls and the resulting amount shall be reported on a tax return, filed with, and paid to the head of each Si/Gun/Gu. |
Tax amount pro rata by Si/Gun/Gu = A x B
A: The amount of tax on betting tickets, horse racing tickets, etc. sold under subparagraph 3 of Article 43 of the Act x 50/100
B: Pro rata share of a Si/Gun/Gu
| The population aged 19 years old or older in each Si/Gun/Gu /The nationwide population aged 19 years old or older in the country |
|
|
|
| Article 58 (Tax Returns and Payment) |
| (1) | A person who intends to file a leisure tax return pursuant to Article 43 of the Act shall file a return in the form prescribed by Ordinance of the Ministry of the Interior and Safety with the head of the Si/Gun/Gu pursuant to the subparagraphs of Article 57 (1). <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021> |
| (2) | A person who intends to pay a leisure tax pursuant to Article 43 of the Act shall pay the amount of a leisure tax calculated in the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2021> |
| Article 59 (Orders for Necessary Matters for Tax Collection) |
| (1) | The head of a Si/Gun/Gu may order a person liable to pay tax to execute necessary matters concerning tax collection under Article 46 of the Act. <Amended on Dec. 30, 2016> |
| (2) | Where a person liable to pay tax pays leisure tax, the head of a Si/Gun/Gu may grant subsidies equivalent to the expenses incurred in collecting and paying leisure tax, to the person liable to pay tax. <Amended on Dec. 30, 2016> |
| (3) | Where a person liable to pay tax violates an order issued under paragraph (1), all or part of subsidies may not be granted. |
CHAPTER V TOBACCO CONSUMPTION TAX
| Article 60 (Classification of Tobacco) |
Tobacco under Article 48 (3) of the Act shall be classified as follows: <Amended on Dec. 30, 2010; Jul. 18, 2014; Dec. 30, 2016; Mar. 27, 2018; Dec. 31, 2020> | 1. | Cigarette: Tobacco produced conveniently to be smoked in a way that the leaf tobacco added with an aromatic essence, etc. is cut to a regular width, and then is wrapped in a tobacco paper by a cigarette manufacturing machine, and others similar thereto; |
| 2. | Pipe tobacco: Tobacco produced to be smoked in a pipe in a way that the high-end special leaf tobacco added with a strong aromatic essence is specially processed, such as compression, heat-processing, etc., and then cut to a relatively wide size and others similar thereto; |
| 3. | Cigar: Tobacco produced in a way that tobacco leaves of a main tobacco taste are wrapped in a middle cover of leaves, which is further wrapped in an outer cover of leaves in order to smoothen and solidify the cigar's shape and others similar thereto; |
| 4. | Cut tobacco: Tobacco produced for a smoker to use a pipe or to wrap in a tobacco paper in a way that a low-quality leaf tobacco added with a light aromatic essence or a relatively high-quality leaf tobacco added with an aromatic essence is cut into thin shreds and others similar thereto; |
| 5. | Electronic tobacco: Tobacco produced to give the effect of smoking in a way that a person inhales a solution containing nicotine, tobacco leaves or a solid tobacco product through his or her respiratory system, using an electronic device and others similar thereto; |
| 5-2. | Waterpipe tobacco: Tobacco using an instrument in which the smoke passes through water before inhalation and others similar thereto; |
| 6. | Chewing tobacco: Tobacco processed to give the effect of smoking in a way that a person chews it in his or her mouth and others similar thereto; |
| 7. | Snuffing tobacco: Powdered tobacco produced to give the effect of smoking in a way that a person snuffs it around his or her nose and others similar thereto; |
| 8. | Snus: Tobacco produced in the form of candy or other similar forms containing powdered tobacco and nicotine packed after special processing to give the effect of smoking in a way that a person sucks or holds it in the mouth. |
| Article 61 (Adjusted Tax Rates) |
The tax rates of tobacco consumption tax adjusted pursuant to Article 52 (2) of the Act shall be as follows: <Amended on Dec. 30, 2010; Jan. 1, 2014; Jul. 18, 2014; Dec. 30, 2014; Dec. 30, 2016; Mar. 27, 2018> | (a) | Class 1 cigarette: 1,007 won per 20 cigarettes; |
| (b) | Class 2 pipe tobacco: 36 won per gram; |
| (c) | Class 3 cigars: 103 won per gram; |
| (d) | Class 4 cut tobacco: 36 won per gram; |
| (e) | Class 5 electronic tobacco: |
| (i) | Where a nicotine solution is used: 628 per milliliter of the nicotine solution; |
| (ii) | Where tobacco leaves or a solid tobacco product is used: |
| a. | Cigarette type: 897 won per 20 cigarettes; |
| b. | Other types: 88 won per gram; |
| (f) | Class 6 waterpipe tobacco: 715 won per gram; |
| 2. | Chewing or holding tobacco: 364 won per gram; |
| 3. | Snuffing tobacco: 26 won per gram; |
| 4. | Deleted. <Dec. 30, 2014> |
| Article 62 (Taking out without Paying Tax) |
"Tobacco taken out to relocate a manufacturing place or for any other reason, as prescribed by Presidential Decree" in subparagraph 3 of Article 53 of the Act means any of the following: <Amended on Dec. 31, 2015> | 1. | Taking out tobacco to relocate a manufacturing place; |
| 2. | Taking out tobacco to be exported from a manufacturing place to another place; |
| 3. | Taking out tobacco from a manufacturing place or the import and sale business entity's tobacco storage to a discarding place to discard it. |
| Article 63 (Tax Exemption) |
| 1. | To supply to naval cadets who participate in an overseas shipboard exercise and to soldiers on board; |
| 2. | To supply to soldiers stationed in a foreign country. |
[This Article Wholly Amended on Jul. 24, 2015]
| Article 64 (Scope of Tax Exemption for Tobacco Brought in by Entrants) |
| (1) | "Tobacco brought in by an entrant" in Article 54 (2) of the Act means tobacco brought in as a traveler's personal effect or unaccompanied goods or by a consignment. <Amended on Jul. 24, 2015> |
| (2) | "Tobacco ..., within the scope prescribed by Presidential Decree" in Article 54 (2) of the Act means the following: <Amended on Mar. 27, 2018> |
| Type of Tobacco | Quantity | | Cigarette | 200 cigarettes | | Cigar | 50 cigars | | Electronic tobacco | 20 millimeters of a nicotine solution | | 200 cigarettes in cigarette type | | 110 gram in any other type | | Other tobacco | 250 grams |
|
[Title Amended on Jul. 24, 2015]
| Article 64-2 (Confirmation of Bringing-in of Tax-Free Tobacco Imported Back) |
A person who is exempt from tobacco consumption tax under Article 54 (3) of the Act shall submit a written confirmation in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor, or the head of the relevant Si/Gun (hereafter in this Chapter referred to as "the head of the relevant Si/Gun") having jurisdiction over the manufacturing place or principal place of business by not later than the day immediately after the date of bringing-in, along with documents evidencing the bringing-in of tobacco into the manufacturing place or the tobacco storage of the import and sale business entity. <Amended on Dec. 30, 2016; Jul. 26, 2017> [This Article Newly Inserted on Jul. 24, 2015]
| Article 65 (Reporting on Taking out Tobacco) |
| (1) | A report on taking out tobacco under Article 55 of the Act shall be filed with the head of a Si/Gun having jurisdiction over the place of manufacturing or the location of the principal office, in the form prescribed by Ordinance of the Ministry of the Interior and Safety by the 5th day of the month following the month in which such tobacco is taken out, accompanied by data indicating the sales of tobacco in each Special Metropolitan City, Metropolitan City, Special Self-Governing City, Special Self-Governing Province, or Si/Gun: Provided, That an import and sale business entity under the proviso, with the exception of the subparagraphs, of Article 68 (2) need not attach relevant sales data. <Amended on Apr. 10, 2012; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2019> |
| (2) | A report on taking out tobacco under paragraph (1) shall be filed in a manner that taking out taxable tobacco, tobacco with unpaid taxes, and duty-free tobacco can be classified. |
| (3) | Deleted. <Dec. 31, 2019> |
| Article 66 (Matters Subject to Notification) |
| (1) | Pursuant to Article 57 (1) of the Act, the Minister of Strategy and Finance shall notify the head of the local government having jurisdiction over a manufacturing place of the following matters: |
| (a) | Name or trade name and address; |
| (b) | Names and address of the representative and the manager; |
| (c) | Types of tobacco produced; |
| (e) | Date of commencement of business; |
| (f) | The lot number of the relevant tobacco warehouse and the information about the current owner and the person having the right to use it; |
| (g) | Details of changes (limited to cases of permission for a change); |
| (h) | Other information for reference; |
| (a) | Names or trade names and addresses of the transferor and the transferee (limited to cases of transfer); |
| (b) | Names and addresses of the transferor and the transferee, or the heir and the decedent, or the representatives and managers of the merged corporation and the surviving (established) corporation after the merger; |
| (c) | Date of transfer, acquisition, commencement of inheritance, or merger; |
| (d) | Reasons for transfer, acquisition, or merger; |
| (e) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Date of revocation of a license; |
| (d) | Grounds for revocation of a license; |
| (e) | Other information for reference. |
| (2) | Pursuant to Article 57 (2) of the Act, the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor shall notify the head of the local government having jurisdiction over the principal place of business of an import and sale business entity of the following matters: |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Types of imported tobacco; |
| (d) | Name of the manufacturer (supplier); |
| (e) | Details of changes (limited to an amendment to registration); |
| (f) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Date of revocation of registration; |
| (d) | Grounds for revocation of registration; |
| (e) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Period of suspension of business operations or of closure of business; |
| (d) | Reasons for suspension of business operations or of closure of business; |
| (e) | Other information for reference. |
[This Article Wholly Amended on Dec. 30, 2016]
| Article 67 Deleted. <Dec. 30, 2016> |
| Article 68 (Bookkeeping Duties) |
| (1) | Matters to be entered in an account book by a tobacco manufacturer pursuant to Article 59 of the Act shall be as follows: <Amended on Dec. 30, 2016; Dec. 31, 2019; Dec. 31, 2020> |
| 1. | Types of raw material of purchased tobacco, and the quantity and value per type (where the raw material is tobacco, the quantity and value for each type of tobacco; hereafter in this Article the same shall apply), the date of purchase, and the name (in cases of a corporation, the title of the corporation and the name of its representative) and address of the seller; |
| 2. | Quantity and price of each type of raw material used for manufacturing tobacco, and the date the material is used; |
| 3. | Quantity of each type of tobacco sold to wholesalers and retailers in each Si/Gun; |
| 4. | Quantity of each type of tobacco manufactured and its manufacturing date; |
| 5. | Quantity of each type of tobacco kept; |
| 6. | Quantity and price of each type of tobacco (they shall be divided into duty-free tobacco, tobacco with unpaid taxes, and taxable tobacco) taken out or brought in (including tobacco brought in under Article 63 (1) 2 of the Act), the date tobacco is taken out or brought in, the name (in cases of a corporation, the title of the corporation and the name of its representative) and address of a person who brings in tobacco. |
| (2) | Matters to be entered in an account book by an import and sale business entity pursuant to Article 59 of the Act shall be as follows: Provided, That the import and sale business entities prescribed by Ordinance of the Ministry of the Interior and Safety may choose not to record the matters referred to in subparagraph 2: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2020> |
| 1. | Quantity of each type of tobacco taken out of a bonded area; |
| 2. | Quantity of tobacco sold to wholesalers and retailers by Si/Gun and by type; |
| 3. | Quantity of stored tobacco by place of storage and by type; |
| 4. | Quantity of each type of tobacco damaged or lost or destroyed; |
| 5. | Quantity of each type of tobacco consumed within a bonded area; |
| 6. | Quantity of tobacco in stock and the quantity of used tobacco necessary for verifying, etc. the quantity of tobacco. |
| Article 69 (Tax Returns and Payment and Pro Rata Standard) |
| (1) | A manufacturer who intends to file a return of and pay tobacco consumption tax under Article 60 (1) of the Act shall file with the head of the competent Si/Gun a tax return in form prescribed by Ordinance of the Ministry of the Interior and Safety, clearly stating the following matters, and pay the calculated amount of tax in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2019> |
| 1. | Amount of tax calculated according to the tax base and tax rate for each type of tobacco sold in the relevant Si/Gun in the preceding year; |
| 2. | Total amount of tax calculated by subtracting the deducted or refunded amount of tax pursuant to Article 63 of the Act from the amount of tax calculated according to the tax base and tax rate for each type of tobacco taken out of the place of manufacturing in the preceding month, and then adding the additional tax under Article 61 of the Act thereto; |
| 3. | Total amount of tax calculated according to the tax base and tax rate for each type of tobacco sold to actual retailers in the entire Si/Gun area (referring to Si/Gun area; hereinafter the same shall apply) in the preceding year; |
| 4. | Amount of tax to be actually received by the relevant Si/Gun according to the following formula: |
Amount of tax to be actually received
by the relevant Si/Gun
= Total amount of tax calculated under subparagraph 2
× Amount of tax calculated under subparagraph 1/Total amount of tax calculated under subparagraph 3 |
|
| (2) | An import and sale business entity who intends to file a return of and pay tobacco consumption tax under Article 60 (2) of the Act shall file with the competent head of the Si/Gun a tax return in form prescribed by Ordinance of the Ministry of the Interior and Safety, clearly stating the following matters, and pay the calculated amount of tax for each Si/Gun in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2019> |
| 1. | Amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco sold to retailers in each Si/Gun in the preceding year; |
| 2. | Total amount of tax calculated by subtracting the deducted or refunded amount of tax pursuant to Article 63 of the Act from the amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco taken out of a bonded area in the preceding month (excluding tobacco taken out pursuant to any subparagraph of Article 53 of the Act), and then adding the additional tax under Article 61 of the Act thereto; |
| 3. | Total amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco sold to retailers of each Si/Gun in the preceding year; |
| 4. | Amount of tax to be actually received by each Si/Gun according to the following formula: |
Amount of tax to be actually received by the relevant Si/Gun
= Total amount of tax calculated under subparagraph 2
× Amount of tax calculated under subparagraph 1/Total amount of tax calculated under subparagraph 3 |
|
| (3) | If it is impossible to calculate the amount of tobacco consumption tax for each Si/Gun on tobacco sold by a manufacturer or an import and sale business entity because no amount of tax computed under paragraph (1) 1 and 3 or (2) 1 and 3 exists, or if an import and sale business entity fails to enter the quantity of tobacco for each Si/Gun and per type pursuant to the proviso, with the exception of the subparagraphs, of Article 68 (2), the amount of tobacco consumption tax (hereafter in paragraphs (7) and (8) referred to as "actual results of collection") collected by each Si/Gun from January to December of the year before the immediately preceding year shall be distributed in proportion to the percentage of the such amount collected. <Amended on Jan. 1, 2013; Dec. 31, 2019> |
| (4) | A person who intends to file a tax return and pay tobacco consumption tax under Article 60 (5) of the Act shall file a declaration in the form prescribed by Ordinance of the Ministry of Strategy and Finance under Article 96 (2) of the Customs Act or a declaration in the form prescribed by Ordinance of the Ministry of Strategy and Finance or by the Commissioner of the Korea Customs Service under Article 241 (2) of that Act, stating the type, quantity, etc. of tobacco thereon, and shall pay the tax, along with a statement of payment in the form prescribed by the Commissioner of the Korea Customs Service under Article 287 of the Enforcement Decree of the Customs Act. <Amended on Dec. 31, 2015> |
| (5) | The details of collection that shall be attached by the head of a customs office under Article 60 (7) shall include the following matters: <Amended on Dec. 31, 2015> |
| 2. | The type, quantity, tax rate, and tax amount of taxable tobacco; |
| 3. | The filing date of the declaration or the date of imposition and the date of payment; |
| 4. | Whether any delinquent tax exists. |
| (6) | Investigation as to whether there exists any error, etc. in tobacco consumption tax returned and paid, or to be returned and paid, by import and sale business entities under paragraph (2) shall be conducted by a tax official of the Si/Gun having jurisdiction over the location of the main office; and if any error, etc. is verified, the tax official shall report it to the head of the competent Si/Gun. |
| (7) | Where there is a change to the boundary of a Si/Gun or the Si/Gun is abolished, established, divided, or merged, the actual results of collection shall be revised according to the following classifications: <Newly Inserted on Jan. 1, 2013> |
| 1. | The actual results of collection of a Si/Gun to which an area where the boundary of the Si/Gun is changed belonged in the past [referring to the area to be included in a newly established Si/Gun or another Si/Gun from the former Si/Gun (including a Si/Gun to be abolished); hereinafter referred to as "changed area")] shall be calculated by subtracting the actual results of collection of the changed area from the actual results of collection of the relevant Si/Gun; |
| 2. | The actual results of collection of a newly established Si/Gun because the changed area is included therein shall be calculated by adding up the actual results of collection of the changed area that is included therein; |
| 3. | The actual results of collection of the changed area that is included in the actual results of a Si/Gun that continues to exist because the changed area is included therein shall be added to the actual results of collection of the relevant Si/Gun. |
| (8) | The actual results of collection in the changed area shall be calculated according to the following formula based on population statistics surveyed according to resident registration cards under the Resident Registration Act as of January 1 each year: <Newly Inserted on Jan. 1, 2013> |
Actual results of collection in the changed area
= actual results of collection of a Si/Gun to which the changed area belonged in the past × population of the changed area / the whole population of a Si/Gun to which the changed area belonged in the past. |
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| Article 70 (Objects and Scope of Deduction and Refund of Amount of Tax) |
| (1) | A person who intends to receive the deduction or refund of taxes for any reason falling under any subparagraph of Article 63 (1) of the Act shall submit the application prescribed by Ordinance of the Ministry of the Interior and Safety, along with documents substantiating the fact that the relevant reason has arisen, to the head of the Si/Gun having jurisdiction over the area where the reason occurs, and then shall receive the deduction or refund certification. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A manufacturer or an import and sale business entity who has received the deduction or refund certification under paragraph (1) shall receive the deduction from the amount of tax to be paid by him or her in the following month, and if no amount of tax to return and pay in the following month exists due to the closure of his or her business or any other reason, he or she shall apply for refund, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| Article 70-2 (Follow-up Management of Deduction and Refund of Tax Amounts) |
| (1) | When a manufacturer or an import and sale business entity intends to discard tobacco brought back in a case falling under Article 63 (1) 1 or 2 of the Act, he or she shall file a declaration in the form prescribed by Ordinance of the Ministry of the Interior and Safety, stating the following matters thereon, with the head of the Si/Gun having jurisdiction over the location of the manufacturing place or the import and sale business entity's tobacco storage (hereinafter referred to as "storage" in this Article) and the head of the Si/Gun having jurisdiction over the location of the discarding place respectively by not later than three days before the scheduled date of discarding: <Amended on Jul. 26, 2017> |
| 1. | Name or trade name and address of the manufacturer or import and sale business entity; |
| 2. | The quantity of each type of tobacco to be discarded; |
| 3. | Discarding place and the scheduled date of discarding; |
| (2) | A manufacturer or an import and sale business entity shall state the following matters on a written confirmation in the form prescribed by Ordinance of the Ministry of the Interior and Safety and shall submit it to the head of the Si/Gun having jurisdiction over the storage and the head of the Si/Gun by whom a tax amount was deducted or refunded or is to be deducted or refunded respectively by not later than seven days after the date on which the discarding of tobacco is completed: <Amended on Jul. 26, 2017> |
| 1. | Matters specified in paragraph (1) 1 through 4; |
| 2. | Name or trade name and address of the discarding company. |
[This Article Newly Inserted on Dec. 31, 2015]
| Article 71 (Security for Tax Payment) |
| (1) | The amount of security for tax payment the head of a local government can accept from a manufacturer or import and sale business entity pursuant to Article 64 of the Act shall be at least the amount specified in the following: <Amended on Jan. 1, 2013> |
| 1. | In the case of a manufacturer: An amount equivalent to the amount of tax calculated by subtracting the sum of the already paid amount of tax from the sum of the calculated amount of tax on tobacco taken out of a place of manufacturing and the calculated amount of tax on tobacco to be taken out of the place of manufacturing; |
| 2. | In the case of an import and sale business entity: An amount equivalent to the amount of tax calculated by subtracting the sum of the already paid amount of tax from the sum of the calculated amount of tax on tobacco, the import of which has been declared, and the calculated amount of tax on tobacco, the import of which is declared. |
| (2) | When an import and sale business entity intends to clear imported tobacco through the customs, he or she shall submit a certificate of security for tax payment or a receipt of payment issued by the head of the Si/Gun having jurisdiction over the location of the main office, to the head of the customs office of the port of entry, as prescribed by Ordinance of the Ministry of the Interior and Safety, and the head of the relevant customs office shall permit customs clearance up to the secured quantity stated in the certificate of security for tax payment or up to the releasable quantity stated in the receipt of payment: Provided, That where it is possible to verify information on documentation to be submitted through joint use of administrative information under Article 36 (1) of the Electronic Government Act, such verification may be substituted for the submission of documentation. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (3) | Notwithstanding paragraph (1), the head of the local government having jurisdiction over the location of the principal office of a manufacturer or import and sale business entity may grant a reduction or exemption of the amount of security for tax payment to manufacturers or tobacco importers who have not failed in or intentionally evaded the payment of tobacco consumption tax for three years from the date on which they bring tobacco out of the place of manufacturing or the bonded area, as prescribed by the relevant municipal ordinance. <Newly Inserted on Aug. 12, 2014> |
| Article 72 (Appropriation of Security for Tobacco Consumption Tax) |
Where a person who has provided security pursuant to Article 64 (1) of the Act fails to pay tobacco consumption tax by the due date, or pay less than the amount due, his or her security may be appropriated for disposition fees for arrears, the amount of tobacco consumption tax, or additional dues. In such cases, if there is any shortfall, the shortfall shall be collected; and any balance after the appropriation shall be refunded.
CHAPTER VI LOCAL CONSUMPTION TAX
| Article 73 (Payment Manager) |
"Competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor prescribed by Presidential Decree" in Article 71 (1) of the Act means the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor designated by the Minister of the Interior and Safety in consideration of the ratio of local consumption tax to population, etc. <Amended on Mar. 14, 2014; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021>
| Article 74 (Payment by Persons Liable for Special Collection) |
Where a person liable for special collection pays a local consumption tax collected under Article 71 (1) of the Act, he or she may pay such tax in lump sum to the payment manager pursuant to Article 71 (1) of the Act (hereinafter referred to as "payment manager") through the Commissioner of the National Tax Service for the efficient handling of payment affairs. <Amended on Dec. 31, 2021>
| Article 75 (Pro Rata Standards for Local Consumption Tax Amount) |
| (1) | The terms used in this Article are defined as follows: <Amended on Dec. 31, 2021> |
| 1. | "Consumption index" in the formula under paragraph (1) 1 means the index of each City/Do which is the final private consumption expenditure (referring to that announced as of January 1 of each year; hereafter in this Article referred to as "private final consumption expenditure") determined and announced by the Statistics Korea pursuant to Article 17 of the Statistics Act and is converted into a percentage; |
| 2. | "Weight" means weight by region applied to the consumption index in order to narrow the financial gap between regions, which refers to 100/100 for the Seoul Metropolitan area defined in the Seoul Metropolitan Area Readjustment Planning Act, 200/100 for Metropolitan Cities other than the Seoul Metropolitan area, and 300/100 for Dos and Special Self-Governing Provinces other than Special Self-Governing Cities and the Seoul Metropolitan area; |
| 3. | "Compensation ratio of the portion of decrease in acquisition tax of the relevant City/Do" means the ratio of the total acquisition tax reduced by each housing transaction for value in the relevant City/Do to the total amount of the reduced portion of acquisition tax by each housing transaction for value nationwide; |
| 4. | "Population" means the population statistics surveyed according to the resident registration card under the Resident Registration Act as of January 1 of each year; |
| 5. | "Financial autonomy ratio" means the percentage calculated by the following formula, which is confirmed and published by the Minister of the Interior and Safety as of January 1 of each year; |
Financial autonomy ratio (%)
A: The own revenue according to the report of settlement of accounts for the year before the previous year (referring to the aggregated revenues of local tax and local non-tax revenue) = The own revenue + autonomous funds / budget size of the general account x 100
B: The autonomous funds according to the report of settlement of accounts for the year before the previous year (referring to the aggregated revenues of local subsidies and the grants-in-aid)
C: Scale of settled revenues of general accounts according to the report of settlement of accounts for the year before the previous year
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| 6. | "Reverse financial autonomy ratio" means the ratio calculated by the following formula: |
| Reverse financial autonomy ratio (%) = 100% - Financial autonomy ratio |
|
| (2) | Local consumption tax paid pursuant to Article 71 shall be proportionally distributed according to the following subparagraphs: Provided, That, the pro rata amounts, out of the amounts calculated under subparagraph 2 (a) as the amounts equivalent to 2/100 of the aggregate of amounts proportionally distributable to the relevant Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereafter in this Article and Articles 76 and 77 referred to as "City/Do"), may vary, as prescribed by Ordinance of the Ministry of the Interior and Safety in consideration of demand for social welfare, etc.: <Amended on Mar. 14, 2014; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Feb. 8, 2019; Dec. 31, 2019; Dec. 31, 2021> |
Pro rata amount of the relevant City/Do =
Local consumption tax base × 5% × (Consumer index of the relevant City/Do × Weighted value of the relevant City/Do)/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
|
| (a) | The formula for calculating the pro rata amount to compensate for an acquisition tax; |
Pro rata amount of the relevant City/Do = {[A?(A×B) -
(A×C)]?D} × E:
A: Local consumption tax base × 6%;
B: Percentage (19.24%) of the reduced amount of local subsidies under Article 71 (3) 2 of the Act;
C: Percentage (20.27%) of the reduced amount of local education subsidies under Article 71 (3) 2 of the Act;
D: Local education tax reduced under Article 71 (3) 2 of the Act {[A?(A×B)-(A×C)]÷11} ;
E: Percentage of the compensation for the reduced portion of acquisition tax of the relevant City/Do. |
|
| (b) | The formula for calculating the pro rata amount to compensate for a local education tax; |
| Pro rata amount of the relevant City/Do = Amount calculated according to item (a) × 10% |
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| (c) | The formula for calculating the pro rata amount to compensate for local subsidies; |
Pro rata amount of the relevant local government = (A×B) × C:
A: Local consumption tax base × 6%;
B: Percentage (19.24%) of the reduced amount of local subsidies under Article 71 (3) 2 of the Act;
C: Percentage of ordinary subsidies allocated for the relevant year to the relevant local government. |
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| (d) | The formula for calculating the pro rata amount to compensate for local education subsidies; |
Pro rata amount of the Office of Education of the relevant City/Do = (A×B) × C ? D:
A: Local consumption tax base × 6%;
B: Percentage (20.27%) of the reduced amount of local education subsidies under Article 71 (3) 2 of the Act;
C: Percentage of ordinary subsidies allocated to the Office of Education of the relevant City/Do as determined by the Minister of Education;
D. Pro rata amount to compensate the relevant City/Do for the deduction from the portion appropriated for compensating local education subsidies. |
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| (e) | The formula for calculating the pro rata amount to compensate the relevant City/Do for the deduction from the portion appropriated for compensating local education subsidies; |
Pro rata amount of the relevant City/Do = (A + B) × C:
A: Amount for compensating local education tax of each City/Do under item (b);
B: Amount for compensating local subsidies of each City/Do under Article item (c);
C: Percentage (3.6~10%) of the transfer under Article 11 (2) 3 of the Local Education Subsidy Act and Article 14 (5) of the Special Act on the Establishment of SejongCity. |
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| (a) | The pro rata amount of each Si/Gun/Gu: The amount specified in attached Table 2; |
| (b) | The pro rata amount of the Office of Education of each City/Do: The amount specified in attached Table 3; |
| Pro rata amount of the relevant City/Do = [(Local consumption tax base × 10%) ? (amount under subparagraph 3 + sum of each item under subparagraph 4)] × (Consumption index of the relevant City/Do × Weighted value of the relevant City/Do)/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
|
| (a) | The pro rata amount of each Si/Gun/Gu: The amount provided in attached Table 4; |
| (b) | The pro rata amount of the Office of Education of each City/Do: The amount provided in attached Table 5; |
| (a) | The pro rata amount in each City/Do: The amount calculated by the following formula: |
| (i) | From January 1, 2022 to December 31,2022: by Dec. 31, 2022; |
| Pro rata amount of the relevant City/Do = [(Local consumption tax base × 2.7%) ? (amount under subparagraph 6 + sum of each item under subparagraph 7)] × 60% × Consumption index of the relevant City/Do × Weighted value of the relevant City/Do/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
|
| (ii) | From January 1, 2023; |
| Pro rata amount of the relevant City/Do = [(Local consumption tax base × 4.3%) ? (amount under subparagraph 6 + sum of each item under subparagraph 7)] × 60% × Consumption index of the relevant City/Do × Weighted value of the relevant City/Do/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
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| (b) | The pro rata amount of a Si/Gun/Gu: Provided, That, the amount specified in A shall apply to Sejong City and Jeju Special Self-Governing Province: |
| (i) | From January 1, 2022 to December 31,2022: Until Dec. 31, 2022; |
Pro rata amount of the relevant Si/Gun/Gu = A × B:
A: Amount allocated to the City/Do to which the relevant Si/Gun/Gu belongs;
| [(Local consumption tax base × 2.7%) ? (amount under subparagraph 6 + sum of each item under subparagraph 7)] × 40% × Consumption index of the relevant City/Do × Weighted value of the relevant City/Do/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
|
B: Pro rata ratio of the relevant Si/Gun/Gu
| [(Population of the relevant Si/Gun/Gu ÷.the total population of the relevant Si/Gun/Gu within the City/Do to which the relevant Si/Gun/Gu belongs) + (Reverse-financial autonomy ratio of the relevant Si/Gun/Gu ÷.the sum of the Reverse-financial autonomy ratio of the relevant Si/Gun/Gu within the City/Do to which the relevant Si/Gun/Gu belongs)] ×1/2 |
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| (ii) | From January 1, 2023; |
Pro rata amount of the relevant Si/Gun/Gu = A × B:
A: Amount allocated to the City/Do to which the relevant Si/Gun/Gu belongs;
| [(Local consumption tax base × 4.3%) ? (amount under subparagraph 6 + sum of each item under subparagraph 7)] × 40% × Consumption index of the relevant City/Do × Weighted value of the relevant City/Do/National sum of values calculated by multiplying the consumption index of each City/Do by weighted value |
|
B: Pro rata ratio of the relevant Si/Gun/Gu
| [(Population of the relevant Si/Gun/Gu ÷.the total population of the relevant Si/Gun/Gu within the City/Do to which the relevant Si/Gun/Gu belongs) + (Reverse-financial autonomy ratio of the relevant Si/Gun/Gu ÷.the sum of the Reverse-financial autonomy ratio of the relevant Si/Gun/Gu within the City/Do to which the relevant Si/Gun/Gu belongs)] ×1/2 |
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| (3) | Deleted. <Dec. 31, 2021> |
| (4) | When making changes to the jurisdiction of a local government, or abolishing, establishing, or dividing a local government, or consolidating local governments, the amount of local consumption tax of a local government to which a former local government and a local government in which a changed zone (referring to a zone over which a local government is having jurisdiction is changed; hereafter in this paragraph the same shall apply) is newly included shall be amended in accordance with the following standards: <Amended on Feb. 28, 2022> |
| 1. | In cases falling under paragraph (2) 1 and 5, and subparagraph 8 (a) of that paragraph: The amount of local consumption tax in the changed zone calculated according to the following formula shall be increased or decreased until the year in which the private final consumption expenditure in the relevant changed area is confirmed and announced: |
| The amount of local consumption tax of the changed area = The amount of local consumption tax of a local government to which the changed area previously belonged × Population of the changed area/The whole population of the local government to which the changed area previously belonged |
|
| 2. | In cases other than those falling under subparagraph 1: The standards determined and publicly notified by the Minister of the Interior and Safety, taking into account the following matters, etc., shall be complied with until the relevant year in which the changed zone occurs: |
| (a) | Results of housing transactions for value in the changed zone and demand for social welfare; |
| (5) | Deleted. <Dec. 31, 2021> |
| (6) | Reductions in acquisition tax on each transaction of a house for value in the relevant City/Do under paragraph (1) 3 shall be calculated according to the period, method, etc. prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted on Mar. 14, 2014; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021> |
| (7) | The Minister of Education shall calculate a percentage of allocation of ordinary subsidies for the Office of Education of each City/Do under paragraph (2) 2 (d) and notify a payment manager of such percentage every year. <Newly Inserted on Mar. 14, 2014; Dec. 30, 2016; Dec. 31, 2021> |
| (8) | The Minister of the Interior and Safety shall calculate the pro rata ratio of the relevant Si/Gun/Gu and the compensation ration of a reduction in acquisition tax on each transaction of a house for value for value every year under paragraph (6), using formulas under paragraph (2) 8 (b) and notify a payment manager of such ratios. <Newly Inserted on Mar. 14, 2014; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2021> |
[Title Amended on Dec. 31, 2019]
| Article 76 (Payment by Payment Managers) |
| (1) | "Within a period prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 71 (3) of the Act means within five days from the date on which the payment manager receives local consumption tax. |
| (2) | The payment manager who pays local consumption tax pro rata pursuant to the subparagraphs of Article 71 (3) of the Act shall make the payment, along with an assessment notice and pro-rata statement under paragraph (1) of that Article. |
[This Article Wholly Amended on Dec. 31, 2019]
| Article 77 (Treatment of Refund of Local Consumption Tax) |
| (1) | Where a person liable for special collection pays local consumption tax he or she has collected under Article 74 in a lump sum through the Commissioner of the National Tax Service, if local consumption tax has been refunded in excess of the amount the person liable for special collection has to pay to the payment manager, the Commissioner of the National Tax Service may transfer an amount equivalent to the excess refund, using the money paid by another person liable for special collection. In such cases, when the refunded amount is in excess even after the amount of payment made by another person liable for special collection is transferred, such excess amount shall be carried over to the following month. |
| (2) | Notwithstanding the latter part of paragraph (1), a person liable for special collection or the Commissioner of the National Tax Service shall request the payment manager to transfer the shortage of a refund of local consumption tax in regard to the last month of a fiscal year for value-added tax. |
| (3) | The payment manager, in receipt of a request for transfer under paragraph (2), shall receive a refund from each City/Do after proportionally dividing the relevant amount for each City/Do (including a payment manager) under Article 75, and transfer it to the account designated by a person liable for special collection. <Amended on Dec. 30, 2016> |
| Article 78 (Scope of Buildings Used as Place of Business) |
| (1) | "Total floor area of a building used as a place of business prescribed by Presidential Decree" in subparagraph 6 of Article 74 of the Act means the total floor area of a building or facility used as a place of business which means any of the following: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 24, 2015; Jul. 26, 2017; Dec. 31, 2019> |
| 1. | The total floor area of a building stipulated under Article 2 (1) 2 of the Building Act (including buildings of a similar type; hereafter in this Article the same shall apply): Provided, That in the case of a workplace child care center under the Child Care Act, dormitory, company house, refectory, medical clinic, library, museum, science building, gallery, shelter, gymnasium, library, training facility, entertainment room, lounge, building for a garbage disposal facility or pollution prevention facility in operation, or any other building prescribed by Ordinance of the Ministry of the Interior and Safety which are used for the health, welfare, cultural education, etc. of employees, the total floor area thereof shall be excluded; |
| 2. | Where only machinery or a storage facility (referring to a water tank, an oil reservoir, a storehouse, a silo, etc.) exists without any building prescribed in subparagraph 1, the horizontally projected area of such machinery or storage facility. |
| (2) | Where two or more places of business jointly use a building or facility prescribed in paragraph (1), the area of such use shall be the total floor area of the building used as the place of business, and where the boundary of the area of such use is unclear, an area divided by the rate of the area for exclusive use shall be the total floor area of the building used as the place of business. |
| Article 78-2 (Scope of Total Amount of Employees' Wages) |
"Which are prescribed by Presidential Decree" in subparagraph 7 of Article 74 of the Act means the total amount of wages falling under wage and salary income under Article 20 (1) of the Income Tax Act, which an employer pays to his or her employees: Provided, That any of the following wages shall be excluded.<Amended on Dec. 31, 2019; Dec. 31, 2020> | 3. | Wages received by an employee who has been on childcare leave for at least six consecutive months for one year after his or her return to work; |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 78-3 (Scope of Employees) |
| (1) | "Who are prescribed by Presidential Decree" in subparagraph 8 of Article 74 of the Act means a person who engages in the relevant business in accordance with a contract with an employer or a person acting with his or her authority, irrespective of whether wages under Article 78-2 are paid: Provided, That a person who works overseas shall be excluded. |
| (2) | A contract under paragraph (1) shall be an employment contract which an employee concludes with an employer or a person delegated by him or her, irrespective of its name, form, or content, and where he or she is paid wages even though he or she does not actually work in the relevant place of business for a certain period for such reasons as active military service, he or she shall be deemed an employee. |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 79 (Persons Liable to Pay Tax) |
| (1) | "Who is prescribed by Presidential Decree" in Article 75 (1) 3 of the Act means a person who falls under any of the following subparagraphs: <Newly Inserted on Feb. 8, 2019; Dec. 31, 2019; Dec. 31, 2020; Dec. 31, 2021> |
| 2. | An unmarried person less than 30 years old, who is a lineal descendant of the householder under the Resident Registration Act, and also establishes an independent household under that Act; |
| (2) | "Individual who has his or her place of business of at least the scale prescribed by Presidential Decree" in Article 75 (2) 1 of the Act means a person whose tax base for value-added tax under the Value-Added Tax Act in the immediately preceding year (in the case of a business entity exempt from value-added tax, the total amount of income under the Income Tax Act) is at least 48 million won, and who does not fall under any of the following subparagraphs, from among individuals having a place of business: Provided, That this shall not apply where any of the following persons who is concurrently engaged in any other type of business: <Amended on Feb. 8, 2019; Dec. 31, 2019; Dec. 31, 2020> |
| 2. | Deleted; <Dec. 31, 2015> |
| 3. | Deleted; <Dec. 31, 2015> |
| 4. | Retailers of briquettes and grain; |
| (3) | The head of a tax office shall notify the head of a relevant Si/Gun/Gu having jurisdiction over the location of the individual business entity who has a place of business, and whose value-added tax base in the immediately preceding year (in cases of a business entity exempt from value-added tax, the total amount of income under the Income Tax Act) is not less than 48 million won, as provided in paragraph (2), of the data on the business entity . <Amended on Dec. 30, 2016; Feb. 8, 2019; Dec. 31, 2021> |
| Article 80 (Secondary Tax Liability of Owners of Buildings) |
| (1) | Cases where the secondary tax liability for pro rata business place portion may be imposed on the owner of a building pursuant to the proviso of Article 75 (2) of the Act shall be limited to cases where a shortfall exists even after the property of a business owner is collected for the already imposed pro rata business place portion. <Amended on Dec. 31, 2020> |
| (2) | Even when the owner of a building used as a place of business is a person subject to non-taxation under Article 77 of the Act, the secondary tax liability may be imposed on him or her. |
| Article 81 (Places for Tax Payment) |
| (1) | Where a building used as a place of business extends over two or more Sis/Guns/Gus, the respective pro rata business place portion shall be apportioned according to the total floor area of the building, and be paid to the heads of the relevant local governments. <Amended on Mar. 14, 2014; Dec. 30, 2016; Dec. 31, 2020> |
| (2) | Where it is impracticable to divide tax payment for the employee portion, the total amount of the employee portion shall be divided pro rata according to the percentage of the pro rata business place portion of resident tax calculated pursuant to paragraph (1) and paid to the heads of the relevant local governments. <Newly Inserted on Mar. 14, 2014; Dec. 31, 2020> |
| Article 81-2 (Provision of Computerized Registration Data) |
[This Article Newly Inserted on Dec. 31, 2019]
| Article 82 (Method of Calculating Tax Base) |
When the tax base of a pro rata business place portion prescribed in Article 80 of the Act is calculated, a fraction less than one square meter shall not be counted.<Amended on Dec. 31, 2020>
| Article 83 (Places of Business Discharging Pollutants) |
"Place of business discharging ... pollutants prescribed by Presidential Decree" in the proviso of Article 81 (1) 2 of the Act means the following places of business to which an administrative agency issued an order of improvement, an order of the suspension of business operations, an order of the suspension of use or an order of permanent closure (hereafter in this Article referred to as "order of improvement, etc.") under the Water Environment Conservation Act or the Clean Air Conservation Act during the last year before a liability to pay tax arises under Article 34 (1) of the Framework Act on Local Taxes (including places of business on which a penalty surcharge was imposed in lieu of an order of improvement, etc.): <Amended on Dec. 30, 2016; Dec. 29, 2017; Jan. 16, 2018; Dec. 31, 2020; Dec. 31, 2021> | 1. | Places of business subject to permission for or reporting on the installation of wastewater discharge facilities under Article 33 of the Water Environment Conservation Act, which fail to obtain permission for or reporting on the installation of discharge facilities under that Act; |
| 2. | Places of business which have obtained permission for or have filed a report on, the installation of wastewater discharge facilities under Article 33 of the Water Environment Conservation Act, and have been judged noncompliant after an inspection of the relevant place of business; |
| 3. | Places of business that have not obtained permission for, or have not filed a report on, the installation of an air pollutant emitting facility under Article 23 of the Clean Air Conservation Act, although such places of business are obligated to obtain permission for, or file a report on, the establishment of such emitting facility under that Act; |
| 4. | Places of business that are permitted to, or has reported on, the establishment of an air pollutant emitting facility under the Clean Air Conservation Act but fail to pass an inspection for conformity to standards. |
| Article 84 (Tax Returns and Payment) |
| (1) | A person who intends to file a return of a pro rata business place portion in accordance with Article 83 (3) of the Act shall file a return of it with the head of the relevant Si/Gun/Gu, accompanied by a statement detailing the total floor area of the building, amount of tax, and other necessary matters in a tax return form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2020> |
| (2) | A person who intends to pay a pro rata business place portion in accordance with Article 83 (3) of the Act shall pay it in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2020> |
| Article 85 (Keeping Tax Ledgers) |
The head of a Si/Gun/Gu shall keep tax ledgers of a per capita portion and pro rata business place portion and record necessary matters in such ledgers. In such cases, where the relevant matters are electronically processed, the tax ledgers shall be deemed kept. <Amended on Dec. 31, 2020>
[This Article Wholly Amended on Feb. 8, 2019]
| Article 85-2 (Basis for Calculation of Monthly Average Total Amount of Employees' Wages) |
| (1) | The monthly average total amount of employees’ wages under Article 84-4 (1) of the Act shall be calculated by dividing the total amount of wages paid to the employees of the relevant business establishment during the most recent 12 months, including the month in which the duty to pay the tax under Article 34 of the Framework Act on Local Taxes arises, (referring to the period from the month in which the duty to pay the tax arises until the month in which business operation commences, if the period of business operation is less than 12 months) by the relevant number of months. In such cases, the total amount of wages for the months in which the number of days of business operation is less than 15 days due to the commencement or suspension of business operation or the closure of business and the number of such months shall be excluded from the calculation of the monthly average total amount of employees’ wages. |
[This Article Wholly Amended on Dec. 31, 2015]
| Article 85-3 (Basis for Calculation of Number of Employees) |
The calculation of the number of employees under Article 84-5 of the Act shall be based on the average monthly number of employees. In such cases, the method of calculating the average monthly number of persons shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 26, 2017> [This Article Newly Inserted on Dec. 31, 2015]
[Previous Article 85-3 moved to Article 85-4 <Dec. 31, 2015>]
| Article 85-4 (Reporting and Payment of Employee Portion) |
| (1) | A person who intends to report the employee portion pursuant to Article 84-6 (2) of the Act shall submit a tax return prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government, along with a detailed statement mentioning the number of employees, the total amount of wages, the amount of tax, and other necessary matters. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who intends to pay the employee portion pursuant to Article 84-6 (2) of the Act shall pay the employee portion with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 14, 2014]
[Moved from Article 85-3; previous Article 85-4 moved to Article 85-5 <Dec. 31, 2015>]
| Article 85-5 (Keeping Tax Ledger) |
The head of a Si/Gun/Gu shall keep a tax ledger of the employee portion and record necessary matters in the tax ledger. In such cases, where the relevant matters are electronically processed, the tax ledger shall be deemed kept.
[This Article Wholly Amended on Feb. 8, 2019]
CHAPTER VIII LOCAL CONSUMPTION TAX
SECTION 1 Common Provisions
| Article 86 (Scope of Korean Non-Profit Corporations and Foreign Corporations) |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 87 (Places for Tax Payment) |
| (1) | Where a corporation relocates its place of business, the place of payment of local income tax of the relevant corporation shall be the location of its place of business as of the last day of the business year of the relevant corporation. |
| (2) | Where personal local income tax needs to be refunded or additionally collected after the year-end adjustment of personal local income tax of a worker whose place of work changes or who receives wage and salary income from at least two employers, the place of payment of personal local income tax shall be classified as follows: <Amended on Dec. 30, 2016; Dec. 31, 2019> |
| 1. | A worker whose place of work changes: The place of work as of the end of the taxable period subject to year-end tax adjustment; |
| 2. | A worker who receives wage and salary income from two or more employers: The principal place of work as of the end of the taxable period subject to year-end tax adjustment; |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 88 (Pro Rata Methods for Corporate Local Income Tax) |
| (1) | "The criteria prescribed by Presidential Decree" in Article 89 (2) of the Act means the rate calculated by the following formula (hereafter in this Chapter referred to as "pro rata rate"): |
| (Number of employees within jurisdiction of the relevant local government/Total number of employees of the corporation + Total floor area of the buildings within jurisdiction of the relevant local government/Total floor area of the buildings of the corporation)/2 |
|
| (2) | The calculation of the number of employees and the total floor area of buildings under paragraph (1) shall be based on the following criteria as at the end of each business year. If a building directly used as a place of business is located in an area which falls within the jurisdiction of two or more local governments in such cases, the number of employees and the total floor area of the building shall be calculated according to the proportion of the total floor area of the building in the area for each of the local governments involved, and matters concerning a specific method of proportional allocation shall be prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Dec. 30, 2016; Jul. 26, 2017> |
| 2. | Total floor area of buildings: The total floor area of the buildings defined by Article 2 (1) 2 of the Building Act (including structures in a similar form) and used directly as the place of business: Provided, That the horizontal projected area shall be deemed the total floor area in the case of machines or facilities (limited to water tanks, oil tanks, warehouses, storage tanks, oil pipelines, water pipelines, and electric power transmission towers) where it is impracticable to determine the total floor area due to structural characteristics. |
| (3) | Where the head of a local government increases or decreases the tax rate of corporate local income tax from the standard tax rate under Article 103-20 (2) of the Act, the taxpayer shall pay the amount calculated by the following formula by adding the amount to, or subtracting the amount from, corporate local income tax: |
| (4) | If a corporation has its places of business in areas within jurisdiction of two or more Gus in the Special Metropolitan City or in the same Metropolitan City, the corporation shall file a tax return and pay the corporate local income tax to be paid to the Special Metropolitan City or the Metropolitan City to the head of the Gu having jurisdiction over its head office or principal place of business (the head office or principal place of business of the parent corporation, in the case of a consolidated corporation) in a lump sum: Provided, That, if a corporation does not have its head office or principal place of business in the Special Metropolitan City or a Metropolitan City, it shall file the tax return and pay the tax to the head of the Gu having jurisdiction over the principal place of business prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Dec. 31, 2015]
SECTION 2 Local Income Tax on Global Income and Retirement Income of Residents
| Article 88-2 (Special Cases of Calculation of Tax Amount for Excess Refund from Workplace Mutual Aid Associations) |
[This Article Newly Inserted on Aug. 12, 2014]
| Article 89 (Special Exceptions to Calculation of Tax Amount on Real Estate Business Entities) |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 90 (Preliminary Return of Profit Margins on Purchase and Sale of Land of Real Estate Business Entities and Payment of Tax) |
| (1) | A person who intends to file a preliminary return of profit margin on the purchase and sale of land, etc. pursuant to Article 93 (5) of the Act shall submit a preliminary return and computation of profit margin on the purchase and sale of land, etc. in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2019> |
| (2) | When a real estate business entity pays the calculated amount of tax on profit margins on the purchase and sale of land, etc. pursuant to Article 93 (7) of the Act, he or she shall pay the amount of tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 91 (Profit Margins on Purchase and Sale of Land) |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 91-2 (Special Cases concerning Calculation of Finalized Tax Amount on Global Income Related to House Rental Income Subject to Separate Taxation) |
| (1) | “Rental house prescribed by Presidential Decree” in the proviso of Article 93 (11) of the Act means the rental housing meeting all the following requirements (hereafter in this Article referred to as “registered rental house”): <Amended on Apr. 28, Dec. 31, 2020> |
| 1. | It shall be any of the following items: |
| (b) | Long-term private rental housing defined in subparagraph 5 of Article 2 of the Special Act on Private Rental Housing which a person registered as a rental business entity under Article 5 of that Act is on lease [in cases of buy-to-rent private rental housing that leases an apartment, limited to those for which applications for registration were filed (including where a report thereon modification of registered matter is filed to add housing to be leased; hereafter in this paragraph the same shall apply) pursuant to Article 5 of the previous Special Act on Private Rental Housing (referring to those that were before they were partially amended by the Special Act on Private Rental Housing (Act No. 17482); hereinafter the same shall apply) before July 10, 2020; |
| (c) | Short-term private rental housing under subparagraph 6 of Article 5 of the previous Special Act on Private Rental Housing which a person registered as a rental business entity under Article 5 of that Act is on lease (limited to those for which an application for registration was filed on or before July 10, 2020); |
| 3. | The annual increase rate of its rental security deposit and rent (hereafter in this subparagraph referred to as "rents, etc.") shall not exceed 5/100. In such cases, no request for an increase shall be made within one year after a lease contract is concluded or the rent, etc. agreed upon are increased, and the provisions of Article 44 (4) of the Special Act on Private Rental Housing governing conversion shall apply mutatis mutandis to the mutual conversion of rental security deposit and monthly rents when a rental business entity requests an increase in rents. |
| (3) | "Cases prescribed by Presidential Decree such as cancellation of registration due to falling under Article 6 (1) 11 of the Special Act on Private Rental Housing" in the proviso, with the exception of the subparagraphs, to Article 93 (12) of the Act means the cases falling under Article 122-2 (3) of the Enforcement Decree on the Income Tax Act. <Newly Inserted on Apr. 27, 2021> |
| (7) | "Unavoidable reasons prescribed by Presidential Decree" in the proviso of Article 93 (13) of the Act means any of the following cases: <Amended on Dec. 31, 2020; Apr. 27, 2021> |
| 1. | Where it is impracticable to dispose of, or lease rental housing due to bankruptcy or compulsory execution; |
| 2. | Where it is impracticable to dispose of, or lease rental housing, in order to perform obligations under statutes or regulations; |
| (8) | House rental income under Article 93 (14) of the Act shall be calculated as follows: <Amended on Dec. 31, 2020; Apr. 27, 2021> |
| 1. | When applying paragraph (1), the amount of income generated from rental of a registered rental house shall be calculated based on the number of months the house is rented during a certain period out of a taxable period. In such cases, where the rental period of the registered rental house for the month in which the commencement date or closing date of the relevant rental period falls is at least 15 days, such rental period for that month shall be deemed one month; |
| 2. | Where a rental house is registered during the relevant taxable period, the amount of income generated from rental of the house shall be calculated according to the following calculation formula; |
| [Amount of income generated during the registered period × (1-0.6)] + [Amount of income generated during the non-registered period × (1-0.5)] |
|
| 3. | Where the amount of income is generated from a registered rental house and a house other than a registered one during the relevant taxable period, the amount which is additionally deducted if the global income in the relevant taxable period is not more than 20 million won, pursuant to Article 93 (11) of the Act, shall be calculated according to the following calculation formula: |
| (Amount of income generated from the registered rental house/ total house rental income × 4 million won) + (Amount of income generated from a house other than a registered rental house/total house rental income × 2 million won) |
|
[This Article Wholly Amended on Dec. 31, 2019]
| Article 92 (Final Return of Tax Base and Tax Amount and Payment of Tax) |
| (1) | A person who intends to file a final tax return and pay tax pursuant to Article 95 (1) of the Act shall submit a final tax base return of personal local income tax on global income or retirement income, a calculation of payment and attached documents prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who intends to pay personal local income tax on global income or retirement income pursuant to Article 95 (3) of the Act shall pay such tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (3) | "Resident prescribed by Presidential Decree, such as a small-scale business entity" in Article 95 (4) of the Act means a person who is served by the Commissioner of the National Tax Service with a final tax base return and written calculation of payment on tentative tax base, tax amount, etc., for filing a final tax base return of global income under Article 70 of the Income Tax Act. <Amended on Dec. 31, 2021> |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 93 (Amended Tax Return and Payment of Tax) |
| (1) | Where a resident files an amended tax return pursuant to Article 96 (1) of the Act, he or she shall submit an amended tax return to the head of a local government having jurisdiction over the place for tax payment, along with documents proving the details of an amended income tax return. |
| (2) | Where an additional tax amount to be paid takes place due to an amended tax return filed under Article 96 (3) of the Act, a resident shall pay the additional tax amount in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 94 (Determination and Correction of Tax Base and Tax Amount) |
| (1) | In principle, determination or correction of the tax base and tax amount under Article 97 of the Act shall be made in accordance with data determined or corrected by the head of a tax office or the head of a regional tax services having jurisdiction over the place for tax payment, a final tax base return and documents attached thereto, or an on-site survey as prescribed in the Income Tax Act. |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 95 (Notification of Tax Base and Tax Amount) |
| (1) | When the head of a local government having jurisdiction over the place for tax payment notifies a resident of the tax base and tax amount pursuant to Article 97 (4) of the Act, he or she shall notify the resident of the tax base, tax rate, tax amount, and other necessary matters in writing. In such cases, the same shall also apply where there is no tax to be paid. |
| (2) | Where the head of a local government having jurisdiction over the place for tax payment imposes personal local income tax on at least two inheritors on the amount of income that the ancestor earns, he or she shall distribute the tax base and tax amount based on the share of each inheritor and notify each inheritor of the tax base and tax amount. |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 96 (Occasional Imposition) |
| (1) | The head of a local government having jurisdiction over the place for tax payment shall determine the tax base and tax amount under Article 98 of the Act by applying Article 94 (1) mutatis mutandis. <Amended on Jul. 24, 2015> |
| (2) | Where a business entity receives the amount of income from the UN armed forces in the Republic of Korea or a foreign agency in a foreign exchange certificate or Korean won via a foreign exchange bank, the head of a local government may determine the tax base and tax amount for the amount the business entity receives pursuant to Article 98 of the Act. |
| (3) | In the case of occasional imposition of tax under Article 98 of the Act, matters necessary for the calculation of the tax amount thereof shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 97 Deleted. <Jul. 24, 2015> |
| Article 98 (Calculation of Tax Refunds by Retroactive Deduction of Losses) |
| (1) | "Amount calculated as prescribed by Presidential Decree" in the main clause of Article 101 (1) of the Act means the amount calculated by subtracting the amount referred to in subparagraph 2 from the amount referred to in subparagraph 1 (hereafter in this Article referred to as "retroactively deducted tax amount for loss"): <Amended on Dec. 31, 2021; Feb. 28, 2022> |
| 1. | Calculated amount of personal local income tax on global income of the relevant small and medium enterprise for the immediately preceding taxable period; |
| 2. | Calculated amount of personal local income tax on global income of the relevant small and medium enterprise calculated by applying tax rates in the immediately preceding taxable period to the amount calculated by subtracting the amount it intends to get a retroactive deduction (limited to the tax base of personal local income tax on global income in the immediately preceding taxable period), which is the loss brought forward referred to in Article 45 (3) of the Income Tax Act, from the tax base for personal local income tax on global income in the immediately preceding taxable period. |
| (2) | Where an application for refund of the retroactively deducted tax amount for losses is filed under the proviso of Article 101 (1) of the Act for purposes of applying paragraphs (1) and (7), "immediately preceding taxable period" shall be construed as "immediately preceding taxable period or the period prior thereto", "85-2 of that Act" as "Article 8-4 of the Act on Restriction on Special Cases concerning Taxation; Where the calculated amount of personal local income tax exists during both the immediately preceding taxable period and the period prior thereto, the loss shall be first deducted from the tax base during the period prior to the immediately preceding taxable period. <Newly Inserted on Feb. 28, 2022> |
| (3) | A person who intends to get a refund on the retroactively deducted tax amount for losses pursuant to Article 101 (2) of the Act shall submit an application for the refund on the retroactively deducted tax amount for losses prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 26, 2017; Feb. 28, 2022> |
| (5) | The amount of personal local income tax refunded as the loss carried forward is reduced pursuant to Article 101 (5) of the Act shall be calculated by the following formula. In such cases, where only some of the losses carried forward under Article 45 (3) of the Income Tax Act have been retroactively deducted, the losses which have not been retroactively deducted shall be deemed to have been reduced ahead of others. <Newly Inserted on Dec. 31, 2021; Feb. 28, 2022> |
| Amount of tax refund under Article 101 (3) of the Act (hereafter in this Article referred to as "initial tax amount refunded") × Amount exceeding losses not retroactively deducted, which is the amount of loss reduced / Amount of the loss retroactively deducted. |
|
| (6) | Where the head of a local government having jurisdiction over the place for tax payment collects the amount of tax refund pursuant to Article 101 (5) of the Act, he or she shall collect the amount calculated by multiplying the amount referred to in subparagraph 1 by the rate referred to in subparagraph 2, plus the amount of tax refund: <Amended on Mar. 31, 2021; Feb. 28, 2022> |
| 2. | The interest rate under Article 34 of the Enforcement Decree on the Framework Act on Local Taxes for a period from the date following the date of notification of the initial tax amount refunded to the date of notice of the amount of personal local income tax collected pursuant to Article 101 (5) of the Act: Provided, That where a taxpayer has good cause to get an excessive refund of the amount of personal local income tax, an interest rate provided in the main clause of Article 43 (2) of that Decree of shall apply. |
| (7) | Where the tax base for personal local income tax on global income or the amount of personal local income tax on global income in the immediately preceding taxable period, which forms the basis for calculating the retroactively deducted tax amount for loss, is changed due to correction, etc., the head of a local government having jurisdiction over a place for tax payment shall immediately re-determine the initial tax amount refunded and refund or collect the difference between the tax amount refunded as retroactively deducted tax amount for loss and the amount of tax re-determined. <Newly Inserted on Dec. 31, 2021; Feb. 28, 2022> |
| (3) | The calculation of the amount of tax refund on retroactively deducted tax amount for loss and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017Dec. 31, 2021; Feb. 28, 2022> |
[This Article Wholly Amended on Mar. 14, 2014]
[Title Amended on Feb. 28, 2022]
| Article 99 (Submission of Detailed Statements of Distribution to Each Joint Business Partner) |
Where joint business partners file a final tax base return, the representative joint business partner shall submit a final tax base return to the head of a local government having jurisdiction over the place for tax payment, along with a detailed statement of distribution to each joint business partner prescribed by Ordinance of the Ministry of the Interior and Safety mentioning the amount of income generated in the place of business of the relevant joint business partners, the amount of additional tax, and the amount of specially collected tax: Provided, That where a joint business partner has submitted a detailed statement of distribution to each joint business partner to the head of a local government having jurisdiction over the place for tax payment pursuant to Article 150 (6) of the Enforcement Decree of the Income Tax Act, he or she need not submit to the head of such local government. <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 31, 2019> [This Article Wholly Amended on Mar. 14, 2014]
SECTION 3 Local Income Tax on Capital Gains of Residents
| (1) | Deleted. <Dec. 30, 2016> |
| (3) | Deleted. <Aug. 12, 2014> |
| (4) | Deleted. <Aug. 12, 2014> |
| (5) | Deleted. <Aug. 12, 2014> |
| (6) | Deleted. <Dec. 31, 2020> |
| (9) | Deleted. <Mar. 27, 2018> |
| (10) | Deleted. <Mar. 27, 2018> |
| (11) | Deleted. <Mar. 27, 2018> |
[This Article Wholly Amended on Mar. 14, 2014]
| Article 100-2 (Preliminary Tax Returns and Payment of Tax) |
| (1) | A person who intends to file a preliminary tax return pursuant to Article 103-5 (1) of the Act shall file a preliminary tax base return of personal local income tax on capital gains prescribed by Ordinance of the Ministry of the Interior and Safety and a calculation of payment with the head of a local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who intends to pay personal local income tax on capital gains pursuant to Article 103-5 (3) of the Act shall pay the personal local income tax in the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Aug. 12, 2014; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-3 (Final Tax Base Return for Personal Local Income Tax on Capital Gains) |
| (1) | A person who intends to file a final tax return and pay tax pursuant to Article 103-7 (1) or (6) of the Act shall submit a final tax base return for personal local income tax on capital gains prescribed by Ordinance of the Ministry of the Interior and Safety and a calculation of payment to the head of a local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 29, 2017> |
| (2) | "Cases prescribed by Presidential Decree" in the proviso of Article 103-7 (3) of the Act means any of the following cases: <Amended on Apr. 28, 2020> |
| 1. | Where a person who has filed a preliminary tax return on assets subject to the application of cumulative tax rates at least twice in the relevant year fails to file a tax return by adding together the amount of capital gains already reported pursuant to Article 103-6 (2) of the Act; |
| 2. | Where rights to land, a building and real estate under Article 94 (1) 1, 2, and 4 of the Income Tax Act and other assets have been transferred at least twice, and the calculated amount of personal local income tax on capital gains reported at first is changed if Article 103 (2) of that Act applies; |
| 3. | Where the rights on land, buildings, or real estate, and other assets under Article 94 (1) 1, 2, and 4 of the Income Tax Act have been transferred at least twice, and the calculated amount of personal local income tax on capital gains reported at first is changed if Article 103 (2) of that Act applies; |
| (3) | A person who intends to pay personal local income tax on capital gains pursuant to Article 103-7 (4) through (6) of the Act shall pay tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017; Dec. 29, 2017> |
| (4) | The amount equivalent to the interest under the latter part of Article 103-7 (7) of the Act shall be calculated by the following formula: <Amended on Dec. 29, 2017> |
| Amount equivalent to interest = Amount of deferred payment under Article 103-7 (7) of the Act × Number of days from the date following filing deadline until the date of payment × interest rate under Article 43 of the Enforcement Decree of Local Tax Act |
|
[This Article Newly Inserted on Mar. 14, 2014]
SECTION 4 Local Income Tax on Income of Nonresidents
| Article 100-4 (Special Cases of Tax Return and Payment of Personal Local Income Tax of Nonresidents) |
| (1) | Where a representative reporting person files a final tax return on local income tax base of his or her nonresident members pursuant to Article 103-11 (3) of the Act, he or she shall submit a report prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over his or her place for tax payment: Provided, That where a representative reporting person falls under the proviso of Article 182 (2) of the Enforcement Decree of the Income Tax Act, he or she shall submit the report to the head of a local government having jurisdiction over the place for tax payment of an organization to which he or she belongs. <Newly Inserted on Feb. 28, 2022> |
| (1) | If a nonresident who intends to file a local income tax return and pay the tax pursuant to Article 103-12 (4) of the Act falls under Article 126-2 (1) or (2) of the Income Tax Act, he or she shall submit a report on the settlement of capital gains on securities of a nonresident in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the seat of the Korean corporation that issued the relevant securities. <Amended on, Nov. 19, 2014; Jul. 24, 2015; Jul. 26, 2017;Feb. 28, 2022> |
| (2) | If a nonresident who intends to file a local income tax return and pay the tax pursuant to Article 103-12 (4) of the Act falls under the main clause of Article 126-2 (3) of the Income Tax Act, he or she shall submit a report on capital gains on securities of the nonresident in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the seat of the Korean corporation that issued the relevant securities. <Amended on Nov. 19, 2014; Jul. 24, 2015; Jul. 26, 2017;Feb. 28, 2022> |
[This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Feb. 28, 2022]
SECTION 5 Special Collection of Tax on Personal Local Income
| Article 100-5 (Obligations to Perform Special Collection) |
| (1) | Where a person liable for special collection under the latter part of Article 103-13 (1) of the Act (hereafter in this Section referred to as "person liable for special collection") pays the amount of tax he or she has specially collected pursuant to Article 103-13 (2) of the Act, he or she shall attach a statement of calculation and a detailed statement to a statement of payment. |
| (2) | Where a person liable for special collection of personal local income tax pays the amount of tax he or she has specially collected, notwithstanding the provisions of paragraph (1), he or she may choose not to attach a detailed statement of wage and salary income, interest income, annuity income under Article 20-3 (1) 1 and 2 of the Income Tax Act, and business income paid by the National Health Insurance Corporation under the National Health Insurance Act: Provided, That where a person having the authority to impose tax requests him or her to submit a detailed statement because he or she needs to identify the results of tax payment of each person in order to handle civil petitions, such as the issuance of a certificate of tax payment, he or she shall attach the detailed statement. |
| (3) | Where a person liable for special collection of personal local income tax discovers errors in the amounts of specially collected tax to be paid to each local government pursuant to the former part of Article 103-13 (3) of the Act, he or she shall adjust the overpaid or underpaid proportion in the amount of specially collected tax he or she should pay to the relevant local government by the tenth day of the month following the month to which the date he or she discover errors belongs. In such cases, where the remainder exceeds the amount of specially collected tax of the following month which he or she should pay to the relevant local government, it shall be adjusted in the amount of specially collected tax of the following month. |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-6 (Exceptions to Additional Taxes on Non-Performance of Obligations) |
"Persons prescribed by Presidential Decree" in the proviso of Article 103-14 of the Act means the United States Armed Forces stationed in the territory of the Republic of Korea. [This Article Newly Inserted on Mar. 14, 2014]
| Article 100-7 (Refund of Personal Local Income Tax) |
| (1) | When local income tax shall be refunded to an income earner under Article 103-15 (1) of the Act, the difference shall be refunded by adjusting the local income tax that shall be specially collected and paid by the person liable for special collection with the difference: Provided, That, if there is no amount of local income tax that shall be specially collected and paid by the person liable for special collection, the difference shall be refunded as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 26, 2017> |
| (2) | Paragraph (1) shall apply mutatis mutandis to cases where an amount overpaid or erroneously paid shall be refunded out of local income tax already specially collected and paid by the person liable for special collection under Article 103-13 of the Act. |
| (3) | Where a person liable for special collection who receives an application for refund under Article 103-16 (1) of the Act shall set the amount of tax to be refunded at 1/10 of the amount calculated according to the calculation formula referred to in Article 202-2 (1) of the Enforcement Decree of the Income Tax Act, and where personal local income tax to be refunded exceeds personal local income tax subject to special collection and payment in the month in which the refund is to be made, he or she shall make a refund following some adjustments of personal local income tax he or she is to specially collect and pay after the following month: Provided, That where the relevant person liable for special collection files an application for refund, the head of a local government having jurisdiction over special collection shall refund such excess amount. <Amended on Dec. 31, 2020> |
[This Article Wholly Amended on Jul. 24, 2015]
[Title Amended on Dec. 31, 2020]
| Article 100-8 (Collection Subsidies) |
| (1) | Collection subsidies the head of a local government pays to a tax association pursuant to Article 103-17 (3) of the Act shall be 2/100 of the tax amount such tax association has paid. <Amended on Mar. 27, 2018; Dec. 31, 2018> |
| (2) | A tax association that intends to receive collection subsidies under paragraph (1) shall monthly submit an invoice to the head of a local government having jurisdiction over the place for tax payment by the 20th day of the following month every month: Provided, That where the tax association intends to claim collection subsidies incurred during the relevant taxable period, the association may submit invoices all at once by the last day of February of the following year.<Amended on Mar. 27, 2018; Dec. 31, 2018> |
| (3) | If any amount shall be refunded to a tax association, out of a tax amount paid by the tax association, after paying a collection subsidy to the tax association under paragraph (1), such refundable amount shall be paid by adjusting the collection subsidies invoiced after the date of accrual of such refundable amount by the difference in the collection subsidy calculated by excluding the refundable amount. <Newly Inserted on Mar. 27, 2018> |
[This Article Newly Inserted on Mar. 14, 2014]
[Moved from Article 100-9; previous Article 100-8 Deleted]
| Article 100-9 (Payment of Specially Collected Tax Amount by Nonresidents) |
Where a person liable for special collection has no domicile, residence, head office, principal office, or place of business (including a place of business of a foreign corporation in the Republic of Korea) in the Republic of Korea, he or she shall designate a tax manager under Article 139 of the Framework Act on Local Taxes and report such designation to the head of a local government having jurisdiction over the place for tax payment: Provided, That where he or she has reported to the head of a tax office having jurisdiction over the place for tax payment pursuant to the proviso of Article 207 (1) of the Enforcement Decree of the Income Tax Act, he or she shall be deemed to have filed a report to the head of a local government having jurisdiction over the place for tax payment. <Amended on Mar. 27, 2017> [This Article Newly Inserted on Mar. 14, 2014]
[Moved from Article 100-10; previous Article 100-9 moved to Article 100-8 <Dec. 31, 2020>]
| Article 100-10 (Deduction of Tax Base for Foreign Corporate Tax) |
| (1) | A domestic corporation that intends to make the tax base for corporate local income tax prescribed in Article 103-19 (2) of the Act after deducting the amount of foreign corporate tax referred to in Article 57 (1) of the Corporate Tax Act shall (hereinafter referred to as "amount of foreign corporate tax"), when reporting the tax base for corporate local income tax and the tax amount to the head of a local government having jurisdiction over a place for tax payment pursuant to Article 103-23 of the Act, also submit a statement of deduction of the tax base for the amount of foreign corporate tax as prescribed by Ordinance of the Ministry of the Interior and Safety . |
| (2) | Where a domestic corporation is unable to submit a statement of deduction of the tax base for corporate local income tax under paragraph (1) when it files a report on the tax base for and amount of the corporate local income tax under Article 103-23 of the Act due to a delay in the determination or notification of corporate tax on foreign source income by a foreign government, different taxable periods, etc., the domestic corporation may submit a statement of deduction of the tax base for the amount of foreign corporate tax under paragraph (1), along with documents evidencing the relevant ground for delay, within three months from the date he or she receives a notice on the corporate tax on foreign source income from foreign governments. |
| (3) | Paragraph (2) shall apply mutatis mutandis where there is a change in the amount of foreign corporate tax due to a rectification by the foreign government on the foreign source income. |
| (5) | Where the amount of foreign corporate tax is carried forward and is deducted when calculating the tax base for corporate local income tax for the business year in which such amount is carried forward, the amount carried forward first shall be deducted. |
| (6) | The head of a local government having jurisdiction over the location of the head office or principal office of a domestic corporation may request the relevant domestic corporation, the head of the tax office having jurisdiction over the place for tax payment, or the commissioner of the competent regional tax office to submit the details of the report on the amount of foreign corporate tax, receipts, details of revisions, and other necessary data, if necessary for verifying the amount of foreign corporate tax to be deducted pursuant to Article 103-29 (2). |
[This Article Newly Inserted on Dec. 31, 2020]
[Previous Article 100-10 moved to Article 100-9 <Dec. 31, 2020>]
SECTION 6 Local Income Tax on Income of Korean Corporations in Each Business Year
| Article 100-11 (Calculation of Number of Months) |
The number of months referred to in Article 103-21 (2) of the Act shall be calculated according to the calendar, and the number of days less than one month shall be deemed one month. [This Article Newly Inserted on Mar. 14, 2014]
| Article 100-12 (Reporting of Tax Base) |
| (1) | When a person files a tax return under Article 103-23 (1) or (2) of the Act, he or she shall state the tax base and amount of corporate local income tax (including corporate local income tax on capital gains on land, etc. under Article 103-31 of the Act and unappropriated earnings of the company) on the income calculated for each business year in accordance with Section 1 of Chapter II (excluding Article 13) of the Corporate Tax Act according to the entries made under Article 112 of that Act and other necessary matters in the tax return. <Amended on Dec. 31, 2015> |
| (2) | The tax return under paragraph (1) shall be a return of the tax base and amount of corporate local income tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Dec. 31, 2015; Dec. 30, 2016; Jul. 26, 2017> |
| (3) | A statement of tax adjustment under Article 103-23 (2) 2 of the Act shall consist of the tax base and the statement of tax adjustment of corporate local income tax prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (4) | "A statement of pro rata of corporate local income tax in the form prescribed by Presidential Decree" in Article 103-23 (2) 3 of the Act means a statement of pro rata in the form prescribed by Ordinance of the Ministry of the Interior and Safety, including details of pro rata to each local government. <Amended on Dec. 31, 2015; Jul. 26, 2017> |
| (6) | A corporation may file a tax return of the tax base for corporate local income tax and the amount of such tax by means of electronic filing under Article 2 (1) 29 of the Framework Act on Local Taxes. In such cases, the submission of financial statements may be substituted by the submission of a standard statement of financial position, a standard statement of profit or loss, and standard accompanying statements on the calculation of profit or loss. <Newly Inserted on Dec. 31, 2015; Jan. 5, 2021> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-13 (Reporting of Pro Rata and Payment of Corporate Local Income Tax) |
| (1) | A Korean corporation that intends to file a corporate local income tax return pursuant to Article 103-23 (1) of the Act shall submit a written report of pro rata of corporate local income tax under Article 100-12 (4), stating the total amount of corporate local income tax and the details of proportional calculation of corporate local income tax for the head office or the principal place of business and each place of business under Article 88, to the head of the relevant local government, along with the tax base return and amount of corporate local income tax under Article 100-12 (2): Provided, That where it has made an electronic report through the local tax information and communication network under Article 135 of the Framework Act on Local Taxes, it shall be deemed to have submitted the report of pro rata. <Amended on Nov. 19, 2014; Dec. 30, 2016; Mar. 27, 2017> |
| (2) | Where a Korean corporation pays corporate local income tax pursuant to Article 103-23 (3) of the Act, it shall pay such tax to the relevant local government in a form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-14 (Amended Returns on Corporate Local Income Tax) |
| (1) | A Korean corporation that intends to file an amended return pursuant to Article 103-24 (1) of the Act shall file an amended return with the head of a local government having jurisdiction over the place for tax payment with documents verifying the details of the amended corporate tax return. <Amended on Aug. 12, 2014> |
| (2) | A person who intends to pay an additional tax amount incurred from an amended return under Article 103-24 (3) of the Act shall pay it using the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted on Aug. 12, 2014; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Pursuant to Article 103-24 (5) of the Act, a corporation intending to request for correction, etc. under Article 50 of the Framework Act on Local Taxes shall prepare a written request for determination or correction under Article 31 of the Enforcement Decree of that Act for each place for tax payment and collectively submit such request to the head of the local government having jurisdiction over the seat of its head or principal office as at the end of the relevant business year. <Newly Inserted on Dec. 31, 2019> |
[This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Dec. 31, 2019]
| Article 100-15 (Determination and Correction) |
| (1) | Where the head of a local government having jurisdiction over the place for tax payment determines or corrects the tax base and the amount of corporate local income tax pursuant to Article 103-25 of the Act, he or she shall, in principle, make such determination or correction in accordance with data the head of a tax office or the head of a regional tax services having jurisdiction over the place for tax payment has determined or corrected pursuant to the Corporate Tax Act, a final tax base return and documents attached thereto, or an actual survey based on books or other evidentiary documents. |
| (2) | Deleted. <Mar. 27, 2018> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-16 (Notification) |
Where the head of a local government notifies a Korean corporation of the tax base and the tax amount pursuant to Article 103-25 (4) of the Act, he or she shall send a notice of tax payment, along with details of the calculation of the tax base and the tax amount, and where there is no amount that becomes the tax base for each business year or no tax amount to be paid, he or she shall notify it of the details determined. [This Article Newly Inserted on Mar. 14, 2014]
| Article 100-17 (Determination of Occasional Imposition) |
| (2) | Where the head of a local government having jurisdiction over the place for tax payment occasionally imposes tax on a corporation in which case reasons under paragraph (1) arise pursuant to Article 103-26 (1) of the Act, he or she shall determine the tax base and the tax amount thereof by applying Article 100-15 (1) and (4) hereof and Article 103-21 (2) of the Act mutatis mutandis. <Amended on Dec. 30, 2016> |
| (3) | Where a corporation receives the amount of business income from the UN armed forces in the Republic of Korea or a foreign agency in a certificate of foreign exchange or Korean won via a foreign exchange bank, the head of a local government having jurisdiction over the place for tax payment may determine the tax base on the amount such corporation receives pursuant to Article 103-26 of the Act. |
| (4) | Where the head of a local government having jurisdiction over the place for tax payment occasionally imposes tax pursuant to paragraph (3), the amount calculated by multiplying the amount calculated pursuant to Article 100-15 (4) hereof by tax rates under Article 103-20 of the Act shall be the amount of tax thereof. <Amended on Dec. 30, 2016> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-18 (Calculation of Amount of Tax Refund on Retroactive Deduction for Loss) |
| (1) | "Amount of corporate local income tax prescribed by Presidential Decree" in the main clause of Article 103-28 (1) of the Act means the amount calculated (hereafter in this Article referred to as "amount of corporate local income tax for the immediately preceding business year") by subtracting the amount of corporate local income tax deducted, or reduced or exempted (hereinafter referred to as "amount of tax reduction or exemption"), which is corporate local income tax on income in the immediately preceding business year, from the calculated amount of corporate local income tax for the immediately preceding business year (excluding corporate local income tax on capital gains on land, etc. under Article 103-31 of the Act; hereafter in this Article the same shall apply). <Amended on Feb. 28, 2022> |
| (2) | "Amount calculated as prescribed by Presidential Decree" in the main clause of Article 103-28 (1) of the Act means the amount calculated by subtracting the amount referred to in subparagraph 2 from the amount referred to in subparagraph 1 (hereinafter referred to as "retroactively deducted tax amount for loss"): <Amended on Dec. 31, 2020; Feb. 28, 2022> |
| 1. | Calculated amount of corporate local income tax for the immediately preceding business year; |
| 2. | Amount calculated by applying tax rates of the immediately preceding business year to the amount calculated by subtracting the losses in the relevant business year under Article 14 (2) of the Corporate Tax Act, which were retroactively deducted under Article 72 of that Act (limited to the tax base of the immediately preceding business year, and hereafter in this Article referred to as "amount of loss retroactively deducted") from the tax base of the immediately preceding business year. |
| (3) | Where an application for refund is filed for the retroactively deducted tax amount for loss under the proviso of Article 103-28 (1) of the Act, "immediately preceding business year" in applying paragraph (1), (2), or (8), shall be construed as "immediately preceding business year or the business year prior thereto", and "Article 72 of that Act" as "Article 8-4 of the Act on Restriction of Special Cases concerning Taxation, and where calculated amounts of corporate local income tax exist in the immediately preceding business year and a business year before such immediately preceding business year, losses shall be first deducted from the tax base for a business year before such immediately preceding business year. <Newly Inserted on Feb. 28, 2022> |
| (4) | A corporation that intends to get a refund pursuant to Article 103-28 (2) of the Act shall submit an application for refund of the amount of corporate local income tax after retroactive deduction prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place for tax payment by a deadline for filing a tax return under Article 103-23 (1) of the Act. <Amended on Nov. 19, 2014; Jul. 26, 2017; Feb. 28, 2022> |
| (6) | The amount of corporate local income tax to be collected as the loss is reduced pursuant to Article 103-28 of the Act shall be calculated according to the following formula: Provided, That where only some of the losses referred to in Article 14 (2) of the Corporate Tax Act are retroactively deducted, the losses not retroactively deducted shall be deemed reduced first: <Amended on Dec. 31, 2021; Feb. 28, 2022> |
| Amount of tax refund under Article 103-28 (3) of the Act (hereafter in this Article referred to as "initial tax amount refunded") × Reduced losses exceeding losses not retroctively deducted / Amount of loss retroactively deducted. |
|
| (7) | Where the head of a local government having jurisdiction over the place for tax payment collects the amount of tax refund pursuant to Article 103-28 (5) of the Act, he or she shall collect the amount calculated by multiplying the amount referred to in subparagraph 1 by the rate referred to in subparagraph 2, plus the amount of tax refund: <Amended on Mar. 27, 2017; May 31, 2019; Dec. 31, 2021; Feb. 28, 2022> |
| (8) | Where the amount of corporate local income tax for the immediately preceding business year or the tax base amount, which forms the basis for calculating the amount of tax refund, is changed after the head of a local government having jurisdiction over the place for tax payment determines the initial tax amount refunded, he or she shall immediately re-determine the initial tax amount refunded and make an additional refund or collect the amount equivalent to the amount of excessive tax refund. <Amended on Dec. 31, 2021; Feb. 28, 2022> |
| (9) | Where the amount of loss retroactively deducted exceeds the tax base amount when the head of a local government having jurisdiction over the place for tax payment re-determines the initial tax amount refunded pursuant to paragraph (8), the amount of such loss exceeding the tax base amount shall not be deemed the amount of loss retroactively deducted. <Amended on Dec. 31, 2021; Feb. 28, 2022> |
[This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Feb. 28, 2022]
| Article 100-19 (Liability for Special Collection) |
| (1) | A person liable for special collection under Article 103-29 (2) of the Act (hereafter in this Article referred to as "person liable for special collection") shall pay the tax amount specially collected under Article 103-29 (3) of the Act, along with the payment statement in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jun. 1, 2015; Jul. 26, 2017> |
| (2) | A person liable for special collection shall submit a statement of special collection of corporate local income tax of each person liable to pay the tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction of the location of the person liable for special collection not later than last day of February of the year immediately following the year in which the tax is specially collected (the date falling on the second month following the month in which the date of temporary or permanent closure of business or the date of dissolution falls, if the person liable for special collection is temporarily or permanently closed or dissolved). In such cases, if the location of the person liable for special collection is not in the area where the place of business of a person liable to pay the tax is located, the head of a local government having jurisdiction over the location of the person liable for special collection shall send the relevant statement of special collection of corporate local income tax to the head of the local government having jurisdiction over the place of business of the person liable to pay the tax. <Newly Inserted on Jun. 1, 2015; Jul. 26, 2017; Dec. 31, 2018> |
| (3) | A person liable for special collection shall submit a statement of special collection of corporate local income tax under the former part of paragraph (2) by any of the following means: <Newly Inserted on Jun. 1, 2015> |
| 1. | Submission of the statement in person or by mail in the form of print-out or in diskettes or any other medium for storage of information; |
| (4) | When a person liable for special collection specially collects corporate local income tax from a person liable to pay the tax, he or she shall issue a receipt of specially collected corporate local income tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That, if a withholding agent under Article 73 and 73-2 of the Corporate Tax Act issues a receipt of the withholding tax under Article 74 of that Act, including the specially collected amount of corporate local income tax and the information about the place for tax payment for the tax therein, the receipt of specially collected corporate local income tax shall be deemed issued. <Newly Inserted on Jun. 1, 2015; Jul. 26, 2017; Feb. 12, 2019> |
| (5) | Notwithstanding the main clause of paragraph (4), a person liable for special collection does not need to issue a receipt of specially collected corporate local income tax, if the amount of interest income or dividend income under Article 73 and 73-2 of the Corporate Tax Act, which has accrued during one year for each account, is not more than one million won: Provided, That the receipt of specially collected corporate local income tax shall be issued, if a person liable to pay the tax requests to issue the receipt. <Newly Inserted on Jun. 1, 2015; Feb. 12, 2019> |
| (6) | "Persons prescribed by Presidential Decree" in the proviso of Article 103-29 (4) of the Act means the United States Armed Forces stationed in the Republic of Korea. <Newly Inserted on Feb. 8, 2019> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-20 Deleted. <Jul. 24, 2015> |
| Article 100-21 (Special Taxation on Capital Gains on Land) |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-22 (Special Exceptions to Reporting of Tax Base by Korean Nonprofit Corporations) |
| (1) | When applying Article 103-32 (1) of the Act, a Korean nonprofit corporation may choose not to report the tax base on some of the interest income specially collected. |
| (2) | A Korean nonprofit corporation shall not include interest income the tax base of which has not been reported pursuant to Article 103-32 (1) of the Act in the tax base through an amended return, tax return after a deadline for filing the tax return or correction. |
| (3) | When a corporation files a preliminary return of the tax base of capital gains under Article 103-32 (5) of the Act, it shall submit the preliminary return of the tax base of capital gains on corporate local income in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 24, 2015; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 14, 2014]
SECTION 7 LOCAL INCOME TAX ON INCOME OF KOREAN CORPORATIONS IN EACH CONSOLIDATED BUSINESS YEAR
| Article 100-23 (Calculation of Tax Base for and Calculated Amount of Corporate Local Income Tax for Each Consolidated Corporation) |
| (1) | Where it is intended to deduct foreign corporate tax pursuant to Article 103-34 (2) of the Act, a foreign corporate tax amount shall be subtracted from the individually reverted amount of tax base of each consolidated corporation under Article 120-22 (2) 1 of the Enforcement Decree of the Corporate Tax Act (hereafter in this Chapter referred to as "individually reverted amount of tax base"). In such cases, the amount of foreign corporate tax to be subtracted shall be limited to the amount of foreign corporate tax accrued in the consolidated corporation. <Newly Inserted on Dec. 31, 2021> |
| (2) | The amount of foreign corporate tax to be subtracted under paragraph (1) shall be limited to the individually reverted amount of tax base of each consolidated corporation, and the amount exceeding the individually reverted amount of tax base may be carried forward to be deducted pursuant to Article 103-19 (3) of the Act. <Newly Inserted on Dec. 31, 2021> |
| (3) | Where the tax base for corporate local income tax for a consolidated business year carried forward from the amount of foreign corporate tax for each consolidated corporation under paragraph (2) is calculated, the amount carried forward first shall be subtracted from the amount carried forward. <Newly Inserted on Dec. 31, 2021> |
| (4) | A consolidated corporation that intends to make the amount calculated by deducting the amount of foreign corporate tax under Article 103-34 (2) of the Act shall prepare and submit a statement of deduction of the tax base for corporate local income tax prescribed by Ordinance of the Ministry of the Interior and Safety for each consolidated corporation when filing returns on the tax base for corporate local income tax and the calculated amount of corporate local income tax for the relevant consolidated business year to the head of a local government having jurisdiction over a place for tax payment pursuant to Article 103-37 (1) of the Act. <Newly Inserted on Dec. 31, 2021> |
| (5) | Except as provided in in paragraphs (1) through (4), Article 100-10 (2) through (4) and (6) shall apply mutatis mutandis to subtraction of the tax base for foreign corporate tax of a consolidated corporation. <Newly Inserted on Dec. 31, 2021> |
| (6) | The calculated amount of corporate local income tax of each consolidated corporation under Article 103-35 (4) of the Act shall be the amount calculated by multiplying the amount referred to in subparagraph 1 by the rate referred to in subparagraph 2. In such cases, where a consolidated corporation is liable to pay corporate local income tax on capital gains from land, etc. under Article 103-31 of the Act, such tax shall be added thereto: <Amended on Jul. 24, 2015; Dec. 31, 2021> |
| 1. | The individually reverted amount of tax base (where a foreign corporate tax amount is subtracted pursuant to paragraph (1), it shall be the tax base for corporate local income tax after subtracting the amount of foreign corporate tax pursuant to Article 103-34 (2) of the Act from the individually reverted amount of tax base of the relevant consolidated corporation); |
[This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Dec. 31, 2021]
| Article 100-24 (Amount of Tax Reduction or Exemption for Consolidated Corporations) |
When applying Article 103-36 (1) and (2) of the Act, the amount of tax reduction or exemption for each consolidated corporation shall be the amount calculated by multiplying income from which a tax reduction or exemption is allowed by consolidated tax rates (in the case of a tax reduction, the amount calculated by multiplying the amount of tax reduction by the relevant tax reduction rate). In such cases, income from which a tax reduction or exemption is allowed shall be limited to the tax base amount individually belonging to each consolidated corporation. [This Article Newly Inserted on Mar. 14, 2014]
| Article 100-25 (Return and Payment of Amount of Consolidated Tax) |
| (1) | A tax return under Article 103-37 (1) of the Act shall be a tax return on the tax base and amount of corporate local income tax on the income for each consolidated business year in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Dec. 31, 2015; Dec. 30, 2016; Jul. 26, 2017> |
| (2) | "Documents specified by Presidential Decree as those accompanying a statement of tax adjustment" in Article 103-37 (1) 2 of the Act means a statement of the tax base of corporate local income tax of a consolidated group and tax adjustment and supplementary documents prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Dec. 31, 2015; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 14, 2014]
SECTION 8 Local Income Tax on Income from Liquidation of Korean Corporations
| Article 100-26 (Tax Return) |
When a Korean corporation files a tax return pursuant to Article 103-43 of the Act, it shall submit a return of the tax base and the amount of corporate local income tax on income from liquidation in the form prescribed by Ordinance of the Ministry of the Interior and Safety, stating the amount of income from liquidation as calculated in accordance with Article 103-41 of the Act, and a statement of financial position under Article 84 (2) 1 of the Corporate Tax Act (referring to the statement of financial position under Article 85 (2) of that Act in the case of an interim return) to the head of the local government having jurisdiction over the place for tax payment. <Amended on Nov. 19, 2014; Jul. 24, 2015; Jul. 26, 2017> [This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Jul. 24, 2015]
SECTION 9 Local Income Tax on Income of Foreign Corporations in Each Business Year
| Article 100-27 (Tax Returns for Foreign Corporations) |
| (1) | A foreign corporation which cannot file a tax return under Article 103-23 of the Act because the settlement of accounts of its head office, etc. under Article 7 (6) 2 of the Enforcement Decree of the Corporate Tax Act is not finalized or due to other unavoidable cause but should file a return of the tax base for corporate local income tax on income in each business year pursuant to Article 103-51 (2) of the Act may file an application for extension of a deadline for filing a tax return with the head of a local government having jurisdiction over the place for tax payment, along with a statement of reasons within 60 days from the last day of the relevant business year: Provided, That where it has filed an application for extension of a deadline for filing a tax return with the head of a tax office pursuant to Article 136 of the Enforcement Decree of the Corporate Tax Act, it shall be deemed to have filed such application along with an application for a deadline for filing a corporate local income tax return. <Amended on Feb. 12, 2019> |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-28 (Special Exceptions to Tax Return on Capital Gains on Securities of Foreign Corporations and Payment of Tax) |
A foreign corporation that intends to file a tax return on capital gains, etc. on securities and pay tax pursuant to Article 103-51 (5) of the Act shall prepare written reports according to the following classification, and shall submit the same and pay tax: | 1. | Where it reports and pays the amount equivalent to the amount of specially collected tax on income the tax on which has not been specially collected out of capital gains on stocks or investment certificates pursuant to Article 98-2 (1) of the Corporate Tax Act: A written report on the adjustment of capital gains on securities of the foreign corporation; |
| 2. | Where it reports and pays the amount of tax on capital gains on stocks, investment certificates, or other securities pursuant to Article 98-2 (3) of the Corporate Tax Act: A written report on capital gains on securities of the foreign corporation; |
| 3. | Where it reports and pays the amount of tax on income generated by receiving the transfer of ownership of assets in the Republic of Korea pursuant to Article 98-2 (4) of the Corporate Tax Act: A written report on income generated by receiving the transfer of ownership of assets of the foreign corporation. |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-29 (Special Exceptions to Tax Return on Personal Services Income Tax Return of Foreign Corporations and Payment of Tax) |
A foreign corporation that intends to file its personal services income tax return and pay the tax pursuant to Article 103-51 (6) of the Act shall submit a report on personal services income of the foreign corporation prescribed by Ordinance of the Ministry of the Interior and Safety, along with documents verifying expenses related to such income and pay tax. <Amended on Nov. 19, 2014; Jul. 26, 2017> [This Article Newly Inserted on Mar. 14, 2014]
SECTION 10 Special Taxation of Partnership Enterprises
| Article 100-30 (Corporate Local Income Tax Return on Income from Quasi-Liquidation) |
A corporation converted to a partnership enterprise that intends to file a corporate local income tax return on income from quasi-liquidation and pay tax pursuant to Article 103-53 (2) of the Act shall report the corporate local income tax base and the tax amount on income from quasi-liquidation prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place for tax payment, along with the statement of financial position as of the date of quasi-liquidation and pay tax by the date three months lapse after the last day of the immediately preceding business year of the first business year to which special taxation on partnership enterprises applies. <Amended on Nov. 19, 2014; Jul. 26, 2017> [This Article Newly Inserted on Mar. 14, 2014]
| Article 100-31 (Distribution Ratio of Profits and Losses) |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-32 (Calculation and Allocation of Tax Amount for Partnership Enterprises) |
| (1) | Amounts referred to in the subparagraphs of Article 103-54 (1) of the Act shall be calculated by regarding a partnership enterprise as a Korean corporation. |
| (2) | When applying Article 103-54 (2) of the Act, the amount distributed to partners pursuant to paragraph (1) of that Article shall be deducted or added according to the following methods: |
| 1. | Amount of tax deduction or tax reduction or exemption: Method of deduction from the calculated amount of local income tax; |
| 2. | Amount of specially collected tax: Method of deduction as the amount of tax paid already; |
| 3. | Additional tax: Method of adding to the calculated amount of local income tax; |
| 4. | Amount of tax equivalent to corporate local income tax on capital gains on land, etc.: Method of adding to the calculated amount of corporate local income tax. In such cases, the amount of tax equivalent to corporate local income tax on capital gains on land, etc. shall be the amount calculated by multiplying the amount calculated by regarding a partnership enterprise as a Korean corporation by the aggregate distribution ratio of profits and losses to partners which are a Korean corporation and a foreign corporation. |
| (3) | Deleted. <Dec. 30, 2016> |
[This Article Newly Inserted on Mar. 14, 2014]
SECTION 11 Supplementary Provisions
| Article 100-33 (Notification of Tax Amount Related to Local Income Tax) |
| (1) | "Head of a local government prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 103-59 (1) and (2) of the Act means the head of a local government having jurisdiction over the place of payment of income tax and corporate tax. |
| (2) | Where the head of a tax office, etc. electronically processes data of which he or she notifies the head of a local government pursuant to Article 103-59 (1) and (2) of the Act, he or she may notify the head of a local government of such data in electronic form. |
| (3) | Where the head of a local government who receives notification under paragraph (1) discovers that the seat of the head office or principal office of a corporation is different from the seat of its place of business, he or she shall notify, without delay, the head of a local government having jurisdiction over the place of business of the relevant corporation of the tax base, etc. for corporate tax of the relevant corporation. |
[This Article Newly Inserted on Mar. 14, 2014]
| Article 100-34 (Making and Making up for Local Tax Refund) |
The amount of local income tax refund shall be made or made up for by a local government having jurisdiction over the place for tax payment under Article 89 of the Act. <Amended on Apr. 28, 2020> [This Article Wholly Amended on Dec. 31, 2019]
| Article 100-35 (Keeping Tax Management Ledgers) |
The head of each local government shall keep the following tax ledgers and shall record necessary matters therein. If the relevant matters are computerized in such cases, the tax management ledgers shall be deemed to be kept. <Amended on Dec. 31, 2015>
| 1. | Tax ledger of local income tax; |
| 2. | Ledger of adjustment of specially collected amounts of corporate local income tax. |
[This Article Newly Inserted on Mar. 14, 2014]
[Title Amended on Dec. 31, 2015]
| Article 100-36 (Settlement of Specially Collected Amount of Corporate Local Income Tax) |
| (1) | "The settled amount as prescribed by Presidential Decree" in Article 103-62 (3) of the Act means an amount of corporate local income tax payable proportionally for each place of business in the relevant place for tax payment, as calculated in accordance with Article 88 (1). |
| (2) | Where the head of a local government having jurisdiction over the location of the head office under Article 103-62 (2) of the Act (hereinafter referred to as "location of the head office") shall refund a refundable tax amount to a taxpayer under Article 103-62 (1) of the Act, he or she shall reserve the payment of the amount distributable to the head of the local government having jurisdiction over the filing place defined by Article 103-62 (1) of the Act (hereinafter referred to as "filing place") and shall refund the refundable amount to the relevant corporation in a lump sum (limited to the amount that the head of the relevant local government shall refund to the person liable to pay the tax). In such cases, the remaining amount after paying the refund to the relevant corporation shall be paid to the head of the local government having jurisdiction over the filing place. |
| (3) | If a taxpayer wishes to have a specially collected amount of corporate local income tax settled under Article 103-62, he or she shall submit the documents prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the location of the head office. <Amended on Jul. 26, 2017> |
| (4) | Upon completion of the settlement under Article 103-62, the head of the local government having jurisdiction over the location of the head office shall give notice of relevant matters as follows: |
| 1. | To the person liable to pay a tax: Details of refund or appropriation; |
| 2. | To the head of the local government having jurisdiction over the location of the relevant branch office: Details of payment, refund, or appropriation. |
[This Article Newly Inserted on Dec. 31, 2015]
| Article 100-37 (Persons Subject to Additional Payment of Local Income Tax) |
| (1) | The persons subject to the additional payment of local income tax and the calculation of the tax amount under Article 103-63 (1) of the Act shall be as follows: <Amended on Dec. 30, 2016; Feb. 12, 2019; May 31, 2019> |
| 1. | Where an additional amount equivalent to interest is included in gross income and is paid additionally as corporate tax under Article 29 (7) or 30 (3) of the Corporate Tax Act: 10/100 of the additional amount equivalent to interest, which shall be paid additionally as corporate tax; |
| 2. | Where an additional amount equivalent to interest is included in gross income and is paid additionally as corporate tax or income tax under Article 9 (4), 10-2 (4), 33 (3), 34 (2), 38-2 (3), 39 (3), 40 (5), 46 (3), 46-4 (2), 47-4 (2), 60 (4), 61 (5), 62 (2), 85-2 (2), 85-7 (2), 85-8 (2), 85-9 (2), 97-6 (3), or 104-11 (3) of the Restriction of Special Taxation Act: 10/100 of the additional amount equivalent to interest, which shall be paid additionally as corporate tax or income tax. |
| (3) | The amount paid additionally as corporate local income tax under Article 103-63 (3) of the Act shall be added to corporate local income tax for the business year in which the date of sale of bonds, etc. under paragraph (2) falls. <Newly Inserted on May 31, 2019> |
[This Article Newly Inserted on Dec. 31, 2015]
[Title Amended on Dec. 30, 2016]
| Article 100-38 (Application of Special Cases concerning Refunds Following Correction of False Accounting Entries) |
In applying Article 103-64 of the Act, the deductible tax amount shall be calculated by the following formula, where a request for correction is filed on any other ground for the request for correction, in addition to the ground specified for a request for correction in the former part of Article 103-64 (1) in the same business year: | Overpaid tax amount × tax base overstated due to false accounting entries / Sum of tax base overstated |
|
[This Article Wholly Amended on Mar. 27, 2018]
SECTIONS 1 Common Provisions
| Article 101 (Scope of Land Subject to Special Aggregate Taxation) |
| (1) | "Land annexed to buildings prescribed by Presidential Decree, such as land annexed to a building to be used as a factory" in Article 106 (1) 2 (a) of the Act means the land annexed to any of the following buildings: Provided, That the land annexed to the buildings for which permission, etc. should be obtained, but has not been obtained, or which are used without obtaining approval for use (including approval for temporary use) pursuant to the relevant statutes or regulations, including the Building Act, shall be excluded: <Amended on Dec. 30, 2010; Dec. 30, 2016> |
| 1. | Land annexed to buildings to be used as factories within an area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding any of the following areas), which is the land within the scope computed by multiplying the floor area of the buildings to be used as factories (referring to the horizontally projected area, in the case of installations other than buildings) by the applicable multiple for each specific-use area under paragraph (2): |
| 2. | Of land annexed to buildings (excluding buildings to be used as factories prescribed in subparagraph 1), the land annexed to buildings that excludes any of the following land, and is within the scope of space computed by multiplying the floor area of the buildings (referring to the horizontally projected area, in the case of installations other than buildings) by the applicable multiple by specific-use area under paragraph (2): |
| (b) | Land annexed to buildings where the assessed values of the buildings is less than 2/100 of the assessed value of the relevant annexed land, excluding the floor area of such buildings. |
| (2) | The applicable multiple by specific-use area to be applied to paragraph (1) shall be as follows: |
| By specific-use area | Applicable multiple | | Urban area | 1. exclusively residential area | 5 times | | 2. Semi-residential area; commercial area | 3 times | | 3. General residential area; industrial area | 4 times | | 4. Green belts | 7 times | | 5. Unplanned area | 4 times | | Specific-use area other than urban area | 7 times |
|
| (3) | "Land prescribed by Presidential Decree" in Article 106 (1) 2 (b) of the Act means any of the following: <Amended on Dec. 30, 2010; May 30, 2011; Jul. 20, 2012; Mar. 23, 2013; May 31, 2013; Jun. 28, 2013; Aug. 12, 2014; Nov. 19, 2014; Jan. 22, 2016; Jun. 21, 2016; Dec. 30, 2016; Jul. 26, 2017; Feb. 8, 2019; Dec. 31, 2019; Dec. 31, 2020> |
| 1. | Land for a garage used by a person who has obtained a license for or the registration of the passenger transport business or the trucking transport business under the Passenger Transport Service Act or the Trucking Transport Business Act, or the registration of the automobile lease business pursuant to the conditions of such license or registration, which has an area of up to 1.5 times the space standard of the minimum retained garage of the transport service or lease business; |
| 2. | Land for parking lots or outdoor work places satisfying the registration standards for construction machinery rental business, construction machinery maintenance business, construction machinery sales business or construction machinery dismantlement business to be used by a person who has filed for registration of the construction machinery business under the Construction Machinery Management Act according to registration requirements of such business, which has an area of up to 1.5 times the standard of the minimum space of such facilities; |
| 3. | Land for a driving school, which is owned by a driving school registered under the Road Traffic Act, within the districts equipped with the facilities required under that Act; |
| 4. | Land for bonded warehouses among the land for open storage yards and container storage places designated or publicly announced by the Minister of Oceans and Fisheries or a Mayor/Do Governor pursuant to the Harbor Act, and among the patented bonded districts obtaining a special permit from the head of a customs office pursuant to the Customs Act, which has an area of up to 1.2 times the maximum space used for the storage and management of goods, etc. during the relevant business year and the immediately preceding two business years; |
| 5. | Land for automobile management business (limited to land for the place of the automobile maintenance business, automobile-scrapping business, automobile transaction business or automobile auction business) to be used by a person who has filed for registration of the automobile management business under the Motor Vehicle Management Act according to the standards of facilities of such registration and that is with an area of up to 1.5 times the minimum space standards of such facilities; |
| 12. | Land for a corporate graveyard, the installation and management of which has been permitted under Article 14 (3) of the Act on Funeral Services and the land category of which is registered as a graveyard on the cadastral records; |
| 13. | The following forests: |
| 14. | Land for experiments, research, practical exercises or seed production being directly used for the research and production of seeds as farmland owned by a seed business entity registered to run a seed-farming business pursuant to Article 37 (1) of the Seed Industry Act; |
| 16. | Land used for keeping automobiles towed under the Road Traffic Act, and equipped with facilities provided for in that Act; |
| 17. | Land being directly used for landfill of wastes, which is owned by a person with a license for terminal waste disposal business or for general waste disposal business under Article 25 (3) of the Wastes Control Act. |
| Article 102 (Scope of Land Subject to Separate Taxation) |
| (1) | "Land prescribed by Presidential Decree" in Article 106 (1) 3 (a) of the Act means the following land: <Amended on Mar. 23, 2013; Jan. 1, 2014; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017; Dec. 31, 2021> |
| 1. | A factory site: Land annexed to a building to be used as a factory located in the areas stipulated in the items of Article 101 (1) 1 (including buildings under Articles 103 (1) 2 and 3), which is within the extent of standard space for factory sites prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That the same shall not apply to buildings for which permission, etc. shall be obtained pursuant to the relevant statutes or regulations including the Building Act but is in use as a factory without permission, etc., or land annexed to buildings requiring approval for use but is in use as a factory without approval (including approval for temporary use); |
| 2. | A rice paddy, field, or orchard: |
| (a) | Farmland owned by individuals and actually being used for farming as of the base date for tax, which is the rice paddy, field, or orchard (hereafter in this Article referred to as "farmland"): Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland located within the development restriction districts and green belts (including an area, the detailed use of which based on classification referred to in the items of Article 36 (1) 1 of the National Land Planning and Utilization Act is not designated among urban areas under subparagraph 1 of Article 6 of that Act; hereafter in this paragraph the same shall apply); |
| (b) | Farmland actually used for farming as of the base date for tax as land owned by an agricultural corporation defined in subparagraph 3 of Article 2 of the Farmland Act: Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland within the development restriction districts and green belts; |
| (d) | Farmland owned by social welfare business entities under relevant statutes or regulations for the purpose of consumption by welfare institutions; |
| (e) | Farmland acquired by a corporation through landfill or reclamation which is owned by the corporation and actually being used for farming as of the base date for tax: Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland located within the development restriction districts and green belts; |
| (f) | Farmland owned by a clan; |
| 3. | Land for stock farming: Land owned within the scope of land area calculated by applying the standards of land and buildings for the following livestock farming based on the year immediately preceding the year in which the base date for tax falls, as land for stock farm used by an individual or a corporation for livestock farming, and located in the development restriction districts and green belts within an urban area, and in an area outside the urban area: |
<Standards for Land and Buildings for Livestock Farming>
| Category | Business | Number of livestock (maximum number during a year) | cattle shed and its incidental facilities | grassland or forage crop field | Note | | cattle shed (㎡) | incidental facilities(㎡) | grassland(ha) | forage crop field(ha) | | 1.Korean cattle (beef cattle) | breeding | for one | 7.5 | 5 | 0.5 | 0.25 | Including breeding of horses, mules, donkeys | | 2.Korean cattle (beef cattle) | fatting | for one | 7.5 | 5 | 0.2 | 0.1 | | | 3. Milch cows | stock farming | for one | 11 | 7 | 0.5 | 0.25 | | | 4. Sheep | stock farming | for ten | 8 | 3 | 0.5 | 0.25 | | | 5. Deer | breeding | for ten | 66 | 16 | 0.5 | 0.25 | | | 6. Rabbit | breeding | for 100 | 33 | 7 | 0.2 | 0.1 | Including breeding of chinchilla | | 7. Pig | hog raising | for five | 50 | 13 | - | - | Including dog breeding | | 8. Poultry | chicken raising | for 100 | 33 | 16 | - | - | | | 9. Mink | breeding | for five | 7 | 7 | - | - | Including fox breeding |
|
| (2) | "Forests prescribed by Presidential Decree" in Article 106 (1) 3 (b) of the Act means the following forests: <Amended on Dec. 30, 2010; Jan. 1, 2014; May 26, 2020> |
| 3. | A forest within a park natural environment district designated pursuant to the Natural Parks Act; |
| 4. | A forest owned by a clan; |
| 5. | Any of the following forests: |
| (b) | A forest within a development restriction zone among the military bases and the protection zones of military installations under the Protection of Military Bases and Installations Act, and a forest for which two years have not elapsed from the date of revocation of development restriction zones; |
| (c) | A forest within a clearance zone designated under the Road Act; |
| (4) | "Land prescribed by Presidential Decree" in Article 106 (1) 3 (d) of the Act means land within the extent of standard space for factory sites prescribed by Ordinance of the Ministry of the Interior and Safety under paragraph (1) 1. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| 1. | Land within the premises of a factory of which the State or a local government imposes restrictions on the use, disposal, etc. for any purpose other than national defense; |
| (a) | Land the ownership of which shall vest in the State or a local government, without consideration, for public facilities pursuant to statutes or regulations regarding development projects; |
| 3. | Land for a military facility for testing explosives for which a permit has been issued under Article 53 of the Defense Acquisition Program Act (excluding the area used for any purpose other than the permitted purpose) and land for which such permit was revoked not more than one year ago; |
| 4. | Existing real estate, defined in subparagraph 6 of Article 2 of the Special Act on the Construction and Development of Innovation Cities, which the Korea Rural Community Corporation, established pursuant to the Korea Rural Community Corporation and Farmland Management Fund Act, acquires and temporarily owns with intention to sell it to others, according to a request of the Minister of Land, Infrastructure and Transport to purchase the land pursuant to Article 43 (3) of the Special Act on the Construction and Development of Innovation Cities; |
| 5. | Land that the Korea Water Resources Corporation, established pursuant to the Korea Water Resources Corporation Act, acquired according to an implementation plan formulated or approved by the Minister of Environment under the Korea Water Resources Corporation Act and the Act on Construction and Management of Dams and Assistance to Their Environs and are used for power generation, waterworks, the supply of water for the industries and agriculture or flood control, among specific purposes under subparagraph 1 of Article 2 of the Act on Construction and Management of Dams and Assistance to Their Environs. |
| (6) | "Land specified by Presidential Decree" in Article 106 (1) 3 (f) of the Act means the land specified in any of the following subparagraphs (excluding the land specified in Article 106 (1) 3 (c) of the Act). In such cases, the land specified in subparagraphs 5 and 7 through 9 shall be included in the land in which a facility or a system referred to in any of that subparagraphs is under construction: <Newly Inserted on Dec. 29, 2017; Jun. 2, 2020; Dec. 31, 2021> |
| 1. | Land that is continuously used as a de facto salt farm as at the base date for tax or land that ceases to be used as a salt farm, although it has been continuously used as a salt farm: Provided, That any land used for any other purpose after it ceases to be used as a salt farm shall be excluded; |
| 2. | Land located in a mining area subject to a mining right established under the Mining Industry Act, for which a mining plan has been approved by the Minister of Trade, Industry and Energy (if a part of such land is used for any purpose other than mining, such part shall be excluded); |
| 3. | Land owned by the Korean Broadcasting System, established pursuant to the Broadcasting Act as the land appurtenant to broadcast relay facilities used for the business activities provided for in Article 54 (1) 5 of that Act; |
| 6. | Land that a common telecommunications business operator under Article 5 of the Telecommunications Business Act directly uses to install and preserve telecommunications systems (referring to telecommunications systems referred to in Article 8 of the Regulations on the Accounting and Reporting of Telecommunications Business) provided for common telecommunications services (limited to the land of which the Korea Telecommunications Corporation completed the registration on or before December 31, 1983 pursuant to Article 5 of the Addenda to the Enforcement Decree of the Korea Telecommunications Corporation Act (Presidential Decree No. 10492)); |
| 7. | Land that the Korea District Heating Corporation, established pursuant to the Integrated Energy Supply Act, directly uses for heat generation systems; |
| 7-2. | Land for supply facilities, owned for direct use by the Korea District Heating Corporation, among business entities under the Integrated Energy Supply Act, for which the obligation to pay property tax arises from 2022 to 2025; |
| 8. | Land that the Korea Gas Corporation, established pursuant to the Korea Gas Corporation Act, directly uses for systems for the supply of gas produced by the corporation; |
| 10. | Land that the Korea Railroad Corporation, established pursuant to the Korea Railroad Corporation Act, owns to directly use it for any of the projects specified in Article 9 (1) 1 through 3 and 6 of that Act (in cases under Article 9 (1) 6 of that Act, limited to projects for the development of a railroad station); |
| 11. | Land that the a port authority, established pursuant to the Port Authority Act, owns to use as a port facility (referring to harbor facility defined in subparagraph 5 of Article 2 of the Harbor Act) and uses or plans to use for the business activities specified in Article 8 (1) of the Port Authority Act: Provided, That any part of the land allocated for the facilities specified in subparagraph 5 (c) through (e) of Article 2 but used for any profit-making business under Article 107 (hereafter in this Article referred to as "profit-making business") shall be excluded; |
| 12. | Land owned by the Korea Airports Corporation under the Korea Airports Corporation Act to use it for airport facilities pursuant to subparagraphs 1 and 2 of Article 3 of the Enforcement Decree of the Airport Facilities Act, excluding land for parking facilities for airport users (limited to pay parking lots) prescribed in subparagraph 1 (f) of that Article and land for profit-making business from among land for support facilities referred to in subparagraph 2 of that Article, which is land for which the liability to pay a property tax arises from 2022 to 2025; |
| (7) | "Land specified by Presidential Decree" in Article 106 (1) 3 (g) of the Act means the land specified in the following subparagraphs (excluding the land specified in Article 106 (1) 3 (c) of the Act): Provided, That the land specified in subparagraph 9 or 11 shall be excluded, if a project for the development of a site or a construction project has not commenced within five years from the date of acquisition: <Newly Inserted on Dec. 29, 2017; Feb. 9, 2018; Feb. 27, 2018; Apr. 2, 2019; Dec. 31, 2020; Jun. 8, 2021; Feb. 17, 2022> |
| 1. | Land filled or reclaimed pursuant to the Public Waters Management and Reclamation Act not more than four years ago from the approval date of the completion of the project (referring to the date of approval or permission for use, such approval or permission for use is granted before the approval date of the completion of the project); |
| 4. | Land (limited to land for housing construction and for industrial complexes) that the implementer of an urban development project under Article 11 of the Urban Development Act provides for the urban development project; land (limited to land for housing construction and land for industrial complexes) that the implementer of a land compartmentalization and rearrangement project under the former Land Compartmentalization and Rearrangement Projects Act (referring to that Act in force until before it is repealed by Act No. 6252); hereafter in this subparagraph the same shall apply) for a land compartmentalization and rearrangement project; and land (limited to land for housing construction and land for industrial complexes) that the implementer of a development project for a free economic zone or the relevant unit district for the development project under Article 8-3 of the Special Act on Designation and Management of Free Economic Zones provides for the development project for a free economic zone (limited to land for housing construction and land for an industrial complex): Provided, That this shall be applicable only to the following periods: |
| (a) | From the date on which the implementation plan for an urban development project under the Urban Development Act is publicly notified until the supply of the land developed by the development project is completed (referring to the date of acquisition by the purchaser) or until the completion of the project is publicly announced pursuant to Article 51 of that Act; |
| (b) | From the date on which the implementation of a land compartmentalization and rearrangement project is authorized or from the date on which a project plan is publicly announced (limited to cases where the implementer of a land compartmentalization and rearrangement project is the State) until the supply of the land developed by a land compartmentalization and rearrangement project under the former Land Compartmentalization and Rearrangement Project Act is completed (referring to the date of acquisition by the purchaser) or until the completion of the project is publicly announced pursuant to Article 61 of that Act; |
| (c) | From the date on which the approval of the implementation plan for a project for the development of a free economic zone under the Special Act on Designation and Management of Free Economic Zones is publicly notified until the supply of the land developed by the project for the development of the free economic zone is completed (referring to the date of acquisition by the purchaser) or until an inspection of the completion of the project is undertaken under Article 14 of that Act; |
| 5. | Land that the implementer of an industrial complex development project under Article 16 of the Industrial Sites and Development Act provides after obtaining approval of an industrial complex development implementation plan under that Act: Provided, That it shall be limited to the following periods; |
| (a) | Where a contract for sale in lots or lease is concluded before a project implementer directly uses it or before authorization of completion of an industrial complex development project: From the date the project for the development of an industrial complex is commenced to the earlier of either of the following dates: |
| (i) | Authorization date of completion; |
| (ii) | The date of completion of the supply of land (referring to the date the relevant site is actually used, such as the date of acquisition, the commencement date of lease, or the commencement date of construction works); hereafter in this subparagraph the same shall apply) |
| (b) | Where no contract for sale or lease is concluded after authorization of completion of the industrial complex development project: From the date the industrial complex development project is commenced to the earlier of the following dates: |
| (i) | The date five years have elapsed after the date of authorization of completion; |
| (ii) | The date of completion of supply of land; |
| 8. | Land that the Korea SMEs and Startups Agency, established pursuant to the Small and Medium Enterprises Promotion Act, owns for the purpose of selling it by lots or leasing it to small and medium business entrepreneurs pursuant to that Act; |
| 10. | Land (excluding leased land) falling within any of the following categories and owned by the Korea Water Resources Corporation, established pursuant to the Korea Water Resources Corporation Act: |
| 11. | Land (including leased land) that the Korea Land and Housing Corporation, established pursuant to the Korea Land and Housing Corporation Act, owns for the purpose of selling houses or lease the land to others according to that Act; and land that a special purpose company, established pursuant to the Asset-Backed Securitization Act, acquired from the Korea Land and Housing Corporation and owns for the purpose of asset-backed securitization; |
| (c) | Existing real estate defined in subparagraph 6 of Article 2 of the Act and purchased upon a request of the Minister of Land, Infrastructure and Transport to purchase pursuant to Article 43 (3) of the Special Act on the Construction and Development of Innovation Cities; |
| (f) | Land purchased as reserved land but included in a public works project; and land reconverted into reserved land due to a change or cancellation of the relevant public works project; |
| (h) | Land purchased and reserved to implement a policy to stabilize the land market as part of plans announced by the Government on August 31, 2005 to reform real estate systems; |
| (i) | Land purchased on or before December 31, 1997. |
| 1. | Land that a non-profit business entity under subparagraph 2 of Article 22 owns and uses for educational business purposes: Provided, That land for profit-making business purposes shall be excluded; |
| (a) | Land for the knowledge industry, the cultural industry, the information and communications industry or a resources storage facility provided for in Article 2 of the Industrial Sites and Development Act or land for a facility for education, research, information processing or distribution directly related to any of the afore-mentioned industries and facilities; |
| (b) | Land for a business specialized in collecting, transporting and disposing of wastes, a business specialized in renewing raw materials, a business specialized in treating effluent, a warehouse business, a business specialized in the installation and operation of a cargo terminal or any other logistics facility (excluding a passenger transportation business), a business specialized in the rental of industrial machinery and equipment, an electricity business or an industry specialized in local specialty in an agro-industrial complex; land for facilities for the supply of gas under subparagraph 5 of Article 2 of the Urban Gas Business Act; or land for a facility for an integrated energy supply facility under subparagraph 6 of Article 2 of the Integrated Energy Supply Act; |
| 5. | Land owned by a person who has the establishment of a knowledge industry center approved under Article 28-2 of the Industrial Cluster Development and Factory Establishment Act falling under any of the following items: Provided, That it shall be limited to five years from the date on which a liability to pay property tax arises for the first time after the establishment of the knowledge industry center is approved; and limited to the land for extension, in the case of an extension: ); |
| (a) | Land for which a knowledge industry center is newly built or extended to be directly used as facilities under Article 28-5 (1) 1 and 2 of that Act (hereafter in this Article referred to as "facilities for occupancy in a knowledge industry center") or to sell in lots or lease it; |
| (b) | Land (including leased land) directly used as facilities for occupancy in a knowledge industry center (excluding the land the business on which is under suspension for at least 60 days as at the base date for property tax) or owned for the purpose of sale in lots or lease (including leased land) after constructing or expanding a knowledge industry center; |
| 6. | Land that an occupant (limited to a person operating a small or medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises) who initially bought a subdivided unit of a knowledge industry center from the person who newly built or extended the knowledge industry center pursuant to Article 28-4 of the Industrial Cluster Development and Factory Establishment Act directly uses for a business specified in Article 28-5 (1) 1 or 2 of that Act (excluding cases where business operations have been suspended for at least 60 days as at the base date for property tax or an area leased to a third party) (limited to five years from the date on which an obligation to pay property tax initially arises after a person buys a subdivided unit of a knowledge industry center); |
| 8. | Land that the Incheon International Airport Corporation, established under the Incheon International Airport Corporation Act, owns for airport facilities (referring to airport facilities defined in subparagraph 7 of Article 2 of the Airport Facilities Act) and uses or plans to use for business activities provided in Article 10 (1) of the Incheon International Airport Corporation Act: Provided, That any of the following land shall be excluded: |
| (a) | International business areas, new airport cities, reservoirs (limited to parts used for profit-making business purposes), logistics complexes (limited to parts used for profit-making business purposes) and reserved area [limited to land not classifiable as the access surface, inner access surface, transfer surface, or inner transition surface under Article 5 (1) 3 and 4 of the Enforcement Decree of that Act]; |
| (9) | Farmland and forests referred to in paragraphs (1) 2 (d) and (f), and (2) 4 and 6 shall be limited to those owned prior to May 31, 1990 (including farmland or forest owned through inheritance or through acquisition due to corporate merger on or after June 1, 1990), and among land for stock farms referred to in paragraph (1) 3, land for stock farms within an urban area and forests stipulated under the items of paragraph (2) 5 shall be limited to those owned prior to December 31, 1989 (including land for stock farms or forest owned through inheritance or through acquisition due to corporate merger on or after January 1, 1990). <Amended on Dec. 29, 2017> |
| (10) | For purposes of applying paragraph (1) or (2), land shall be subject to separate taxation until the time specified in the following cases: <Amended on Dec. 31, 2015;Dec. 29, 2017; Dec. 31, 2019> |
| (11) | Where the land is included in or excluded from the scope of the land subject to separate taxation under paragraphs (1) through (8) as the current status of use, area, etc. is changed among the land owned by a person liable to pay tax as of the base date of taxation, the person liable to pay such tax may apply for the application of the land subject to separate taxation with the head of the local government having jurisdiction over such location within 15 days from the base date of taxation. <Newly Inserted on Dec. 31, 2021> |
| (12) | The methods and procedures for filing an application under paragraph (11), including forms and evidentiary data, shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted on Dec. 31, 2021> |
| Article 103 (Scope of Buildings) |
| (1) | The scope of buildings under Article 101 (1) shall include the following buildings: <Amended on Jan. 1, 2014; Nov. 19, 2014; Dec. 31, 2015; Jul. 26, 2017; Dec. 31, 2018; Dec. 31, 2019> |
| 1. | Deleted; <Dec. 31, 2015> |
| 2. | A building in which case a building permit was received, but the commencement of construction is restricted pursuant to Article 18 of the Building Act; |
| 3. | A building under construction [including a building (referring to a building where the relevant administrative authority has confirmed the use and floor area) that is to be built on the land owned by the implementer of a development project under statutes or regulations regarding development projects at a stage before the building passes the completion inspection or the use of the building is permitted after the implementer provides the land for the development project with approval of an implementation plan for the development project and commences the land development project in order to use it as the land appurtenant to the building (excluding the land subject to separate taxation under Article 106 (1) 3 of the Act)): Provided, That cases where construction works have been suspended for at least six months as of the base date for tax without good cause shall be excluded herefrom; |
| 4. | Objects fixed to the ground prescribed by Ordinance of the Ministry of the Interior and Safety, such as gas piping systems. |
| (2) | The scope of buildings to be used as factories under Articles 101 and 102 shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| Article 103-2 (Scope of Buildings or Houses Demolished or Destroyed) |
"The appurtenant land specified by Presidential Decree" in Article 106 (1) 2 (c) means the land appurtenant to a building or house where it has not passed six months, as of the base date for tax, since the date on which the building or house was actually demolished or destroyed (referring to the date of demolition or destruction on official records, if the date of actual demolition or destruction is unknown). In such cases, the buildings or housing for which permission, etc. or approval for use (including temporary approval for use) should be obtained pursuant to the relevant statutes or regulations including the Building Act but permission, etc. or approval for use has not been obtained shall be excluded therefrom. <Amended on Dec. 31, 2018> [This Article Newly Inserted on Dec. 31, 2015]
| Article 104 (Urban Areas) |
| Article 105 (Calculation of Scope of Land Annexed to House) |
Where the boundary of land annexed to a house is unclear pursuant to Article 106 (2) 3 of the Act, land equivalent to ten times the floor area of the house shall be deemed land annexed to such housing.
| Article 105-2 (Imposition Based on Current Status of Objects Registered in Public Register) |
"Cases prescribed by Presidential Decree, such as where the burden of property tax is reduced due to using an object subject to property tax differently from the current status registered in the public register" in the proviso of Article 106 (3) of the Act means the following cases: | 1. | Where an object subject to property tax is used without obtaining permission, etc. despite the relevant statutes or regulations and an imposition of property tax according to the current status would reduce the burden of property tax; |
| 2. | Where the use as of the base date for property tax is deemed to be temporarily different from the current status registered in the public register. |
[This Article Newly Inserted on Dec. 31, 2021]
[Previous Article 105-2 moved to Article 105-3 <Dec. 31, 2021>]
| Article 105-3 (Feasibility Assessment of Land Subject to Separate Taxation) |
| (1) | The feasibility assessment of separate taxation under Article 106-2 (1) of the Act (hereafter in this Article referred to as "feasibility assessment") shall be as follows: |
| 1. | Land that the Minister of the Interior and Safety intends to exclude from land subject to separate taxation under Article 106 (1) 3 of the Act (hereafter in this Article referred to as "land subject to separate taxation") or to reduce the scope thereof; |
| 2. | Land that the head of a central administrative agency requests to be added to the land subject to separate taxation or to expand the scope thereof. |
| (2) | Where the head of a central administrative agency requests the Minister of the Interior and Safety to expand or add land subject to separate taxation, he or she shall submit data containing the following: |
| 1. | The necessity of expanding or adding the land subject to separate taxation; |
| 2. | The size of the land subject to separate taxation which is added or expanded; |
| 3. | Expected economic effects of the application of separate taxation; |
| 4. | The size of local taxes to be reduced and measures to make up for financial resources; |
| 5. | Other data necessary for the feasibility assessment, such as the relevant business plan, budget, and an analysis of business revenue and expenditure. |
| (8) | The Minister of the Interior and Safety may request the head of a relevant administrative agency, etc. to submit an opinion or data pertaining to the feasibility assessment, if necessary. In such cases, the head, etc. of the relevant administrative agency shall comply with such request, unless there is a compelling reason not to do so. |
| (4) | The Minister of the Interior and Safety shall formulate standards for the feasibility assessment by taking the following matters into account: |
| 1. | Matters relating to the feasibility of separate taxation, including the necessity to apply separate taxation and the feasibility of the subject matters thereof; |
| 2. | Matters relating to the economic effects of separate taxation and the impact on the local government's finances. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for the detailed criteria, procedures, etc. for the feasibility assessment shall be determined by the Minister of the Interior and Safety. |
[This Article Newly Inserted on Dec. 31, 2019]
[Moved from Article 105-2 <Dec. 31, 2021>]
| Article 106 (Scope of Persons Liable to Pay Tax) |
| (1) | Deleted. <Apr. 27, 2021> |
| (2) | Where a person has gratuitously received a right to use land for sale which is created upon receipt of advance payment by the State, a local government, or a local government association, and the creation of which was actually completed, such person shall be deemed a vendee referred to in Article 107 (2) 4 of the Act. <Amended on Jan. 1, 2014> |
| (3) | Where it is unclear in regard to a person who is vested in the ownership of property pursuant to Article 107 (3) of the Act and it is intended to impose property tax on the user of such property as he or she is deemed a person liable to pay tax, such fact shall be notified to him or her in advance. <Amended on Jan. 1, 2014> |
| Article 107 (Scope of For-Profit Business) |
| Article 108 (Non-Taxation) |
| (1) | "Roads, rivers, embankments, conduits, reserving ponds, and graves prescribed by Presidential Decree" in Article 109 (3) 1 of the Act means the following land: <Amended on Jun. 1, 2015; Dec. 31, 2019> |
| 1. | Roads: Roads referred to in the Road Act (excluding facilities for road management, rest facilities, gas stations, charging stations, traffic information centers, tourist information centers among road appurtenance defined in subparagraph 2 of Article 2 of that Act and research facilities established adjoining a road) and private roads opened for the purpose of contributing to the free passage of the general public: Provided, That a vacant lot in a site under Article 80-2 of the Enforcement Decree of the Building Act shall be excluded; |
| 3. | Embankments: Embankments under the Act on the Establishment, Management of Spatial Data: Provided, That any embankment used exclusively by a specific person shall be excluded; |
| 4. | Conduits: Conduits for agricultural purposes and those provided for the drainage of natural running water; |
| 5. | Reserving ponds: Dams, reservoirs, and small reserving ponds provided for agricultural purposes and power generation, and naturally-formed lake and marsh; |
| 6. | Graves: Land, the category of which on the public register is a grave yard and is used for a grave and a site for its attached facilities. |
| 1. | Land located within a controlled protection zone, among the military bases and the protective zones of military installations under the Protection of Military Bases and Installations Act: Provided, That rice paddies, fields, orchards, and sites shall be excluded; |
| 3. | A forest within a nature conservation district in a park under the Natural Parks Act; |
| (3) | "Buildings or housing prescribed by Presidential Decree" in Article 109 (3) 5 of the Act means a building or housing (limited to building parts under Article 2 (1) 2 of the Building Act; hereafter in this paragraph the same shall apply) to which an administrative agency has issued an order of removal as of the base date for property tax, or for which a contract for compensation and removal has been entered into as a plan is finalized for the building that is to be removed in the relevant year when the property tax is imposed. In such cases, where part of a building or housing is removed, it shall be limited to the part removed as such. <Amended on Dec. 30, 2010> |
SECTION 2 Tax Bases and Tax Rates
| Article 109 (Fair Market Price Rates) |
"Fair market price rates prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 110 (1) of the Act means the rates classified as follows: <Amended on Jun. 30, 2022> | 1. | Land and buildings: 70/100 of the relevant assessed value; |
| 2. | Houses: 60/100 of the relevant assessed value: Provided, That where a tax base for property tax, for which liability for tax payment is established in 2022, 45/100 of the assessed value shall apply to a house recognized as one house per household (including a house, the assessed value of which exceeds 900 million won) pursuant to Article 110-2. |
| Article 110 (Buildings for Factories) |
"A building used as a factory prescribed by Presidential Decree" in Article 111 (1) 2 (b) of the Act means a building used as a factory prescribed by Ordinance of the Ministry of the Interior and Safety equipped with production facilities to be used for manufacture, process, repair, printing, etc. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
| Article 110-2 (Scope of One House per Household Subject to Special Cases concerning Property Tax Rates) |
| (1) | "One house per household prescribed by Presidential Decree" in Article 111-2 (1) of the Act means where one household, consisting of family members (excluding cohabitants) who are recorded in the resident registration card for each household under Article 7 of the Resident Registration Act (hereafter in this Article referred to as "resident registration card for each household") as of the base date for tax owns only one house other than the following houses (hereafter in this Article, referred to as "one house per household"): <Amended on Apr. 27, 2021; Dec. 31, 2021> |
| 3. | An unsold housing unit built and owned by any of the following persons registered as a business entity as at the base date for tax, for which five years have not passed from the date the liability to pay property tax first arose: Provided, That an unsold housing unit built and owned by a person specified in item (a), but is not supplied under Article 54 of the Housing Act, shall be excluded herefrom, if it has been occupied by any third party for at least one year, regardless of its title, such as lease; |
| (b) | A person who has obtained approval of a project plan; |
| 5. | A house (referring to a contractor under Article 33 (2) of the Housing Act and a contractor who performs construction works under subparagraph 16 of Article 2 of the Building Act) received as the construction price from a person under subparagraph 3 (a) or (b) falling under that subparagraph (limited to houses only for which five years have not passed since the liability to pay a property tax for the relevant house arose as of the base date for tax after the date he or she received the relevant house as the construction price: Provided, That a house received from a person under subparagraph 3 (a) and is not supplied under Article 54 of the Housing Act shall be excluded herefrom, if it has been occupied by any third party for at least one year, regardless of its title such as a lease contract. |
| 8. | A house acquired on the ground of inheritance, for which five years have not passed from the date of commencement of inheritance as of the base date for tax; |
| 9. | A house owned since before the marriage, for which five years have not passed from the date of marriage as of the base date for tax; Provided, That it shall be limited to cases where only one house has been owned since the pre-marital period and no additional house was acquired after the marriage. |
| (2) | Notwithstanding paragraph (1), any of the following cases shall be deemed the ownership of one house per household: |
| 1. | Where only one house falling under paragraph (1) 6 or 8 is owned as of the base date for tax, such house; |
| 2. | Where a person owns one of the houses falling under paragraph (1) 9, the one prescribed by Ordinance of the Ministry of the Interior and Safety. |
| (3) | In applying paragraphs (1) and (2) notwithstanding paragraph (1), a spouse, an unmarried child under age 19 as of the base date for tax or a parent (limited to where the house owner is unmarried and under age 19) shall be deemed to belong to one household even though they are not listed in the same resident registration card with the house owner, and each one shall be deemed separate households in any of the following cases: |
| 1. | Where a child aged 19 years or more or a married child lives with a parent aged 65 or more (including where one of the parents is under the age of 65) to provide support through cohabitation as of the base date for tax; |
| 2. | Where all members of a household have left Korea for at least 90 days due to school attendance, work-related conditions, etc., and one of the household members report the place of residence to which the relevant household will belong after the departure to the address of another family member pursuant to the main clause of Article 10-3 (1) of the Resident Registration Act; |
| (4) | In applying paragraphs (1) and (2), where a person owns only the co-owned portion or land appurtenant to the house, such case shall be deemed one house per household for the purpose of calculating the number of houses: Provided, That in cases of co-ownership of one house within the same household, it shall be deemed one house. |
| (5) | Notwithstanding the main clause of paragraph (4), in cases of co-owned inherited house for which the inheritance has been commenced and the registration of inheritance is not filed (limited to inherited houses for which five years have passed from the date of the commencement of inheritance), a person liable to pay tax under Article 107 (2) 2 of the Act shall be deemed to possess the inherited house. <Amended on Dec. 31, 2021> |
[This Article Newly Inserted on Feb. 17, 2021]
| Article 111 (Scope of Land) |
"Land, a building or housing unit prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 112 (1) of the Act means those listed in the following: <Amended on Dec. 30, 2010; Dec. 31, 2015> | 1. | Land: Land subject to property tax stipulated under Chapter Ⅸ of the Act excluding rice paddies, fields, orchards, land for stock farms and forests, and whole land (including land to which the replotting method is applied within an urban development zone implemented in the combined method) for which a disposition of substitute land is publicly announced, as land within an urban development zone implemented in a replotting method under the Urban Development Act; |
| 2. | Buildings: Buildings subject to property tax stipulated under Chapter Ⅸ of the Act; |
| 3. | Houses: Houses subject to the imposition of property tax under Chapter Ⅸ of the Act: Provided, That, in the case of a development restriction zone under the National Land Planning and Utilization Act, the scope of such houses shall be limited to villas or high-end houses under Article 13 (5) 1 or 3 of the Act (based on the assessed value as of the base date for tax). |
| Article 112 (Housing Types) |
With regard to a multi-unit house referred to in subparagraph 1 (c) of attached Table 1 of the Enforcement Decree of the Building Act, the partitioned portion which a household may independently use shall be deemed a house on one parcel. In such cases, with regard to the land annexed thereto, the area divided in proportion to the rate of the floor area of the building shall be deemed the annexed land of one parcel.
SECTION 3 Imposition and Collection
| Article 113 (Application and Permission for Payment in Kind) |
| (1) | A person who intends to pay property tax in kind pursuant to Article 117 of the Act shall file an application with the head of the Si/Gun/Gu having jurisdiction over the place for tax payment, along with documentation prescribed by Ordinance of the Ministry of the Interior and Safety by ten days prior to the payment deadline. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (2) | Upon receipt of an application for in-kind payment under paragraph (1), the head of a Si/Gun/Gu shall notify a person liable to pay tax in writing of whether permission is granted within five days from the date on which he or she receives the application. <Amended on Dec. 30, 2016> |
| (3) | Where real estate to which permission for in-kind payment under paragraph (2) has been granted is paid in kind, as prescribed by Ordinance of the Ministry of the Interior and Safety, it shall be deemed to have been paid within the payment deadline. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| Article 114 (Disposal of Inappropriate Real Estate in regard to Management and Disposition) |
| (1) | Where the head of a Si/Gun/Gu deems it inappropriate to manage and dispose of real estate for which an application for in-kind payment has been filed pursuant to Article 113 (1), he or she may choose not to grant permission. <Amended on Dec. 30, 2016> |
| (2) | Where a taxpayer who has been given notice of non-permission under paragraph (1) above and Article 113 (2) files an application for permission by replacing the real estate with any other real estate located within the jurisdiction of the relevant Si/Gun/Gu, which can be managed and disposed of, within ten days from the date on which he or she has been given such notice, the head of the Si/Gun/Gu may accept the application and grant permission for such replacement. <Amended on Dec. 30, 2016> |
| (3) | Where real estate permitted pursuant to paragraph (2) is paid in kind, as prescribed by Ordinance of the Ministry of the Interior and Safety, it shall be deemed to have been paid within the payment deadline. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| Article 115 (Appraisal of Real Estate to which Permission for In-Kind Payment is Granted) |
| (1) | The value of real estate to which permission for in-kind payment is granted pursuant to Articles 113 (2) and 114 (2) shall be based on the market price as of the base date for property tax. |
| (2) | The market price under paragraph (1) shall be according to the value determined pursuant to the following: Provided, That values of expropriation, public sale, appraisal, etc. which are deemed market prices, as prescribed by Ordinance of the Ministry of the Interior and Safety, shall be deemed market prices: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | In applying paragraph (2), where values publicly announced by the Commissioner of the National Tax Service are proved by separate appraisal methods of real estate under Article 61 (1) 3 of the Inheritance Tax and Gift Tax Act, the publicly announced values shall be deemed market prices. |
| Article 116 (Standards Amount of Tax to be Paid in Installments and Application for Payment in Installments) |
| (1) | Where the payment in installments is permitted pursuant to Article 118 of the Act, the amount of tax so paid shall be based on the following standards: <Amended on Dec. 31, 2019> |
| 1. | Where the amount of tax to be paid is not more than five million won: An amount exceeding 2.5 million won; |
| 2. | Where the amount of tax to be paid exceeds 5 million won: An amount equivalent to or less than 50/100 of the amount of such tax. |
| (2) | A person who intends to pay in installments pursuant to Article 118 of the Act shall file an application prescribed by Ordinance of the Ministry of the Interior and Safety with the head of a Si/Gun/Gu within the payment deadline of property tax. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| (3) | Where the head of a Si/Gun/Gu receives an application for payment in installments pursuant to paragraph (2), he or she shall provide a modified notice, classifying the tax payment notice already issued as a tax payment notice to be paid within the payment deadline and the tax payment notice to be paid within the deadline for payment in installments. <Amended on Dec. 30, 2016> |
| Article 116-2 (Duty of Payment of Tax in Kind of Trustee of Trust Property) |
The date of creating the trust under Article 119-2 (1) 1 of the Act shall be the date the fact that the property belongs to trust property can be asserted against a third party pursuant to Article 4 of the Trust Act: Provided, That where the date such fact be assertable against a third party is prescribed otherwise by other statutes, it refers to such date. [This Article Newly Inserted on Apr. 27, 2021]
[Previous Article 116-2 moved to Article 116-3 <Apr. 27, 2021>]
| Article 116-3 (Those Eligible for Special Cases concerning Property Tax for Confucian Schools and Religious Organizations and Application Therefor) |
| (3) | A person who intends to apply for the payment of property tax on land summed by individual organization pursuant to Article 119-3 (2) of the Act shall submit an application for exclusion from combined taxation of property tax on land prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the location of the relevant land 20 days prior to the commencement of the payment period under Article 115 of the Act: |
| 2. | Minutes of the meetings of the board of directors of the Confucian school foundation, etc.; |
| (4) | Upon receiving an application under paragraph (3), the head of a local government shall determine as to whether to allow the aggregation of the property tax by individual organization, and shall notify the applicant of the result thereof in writing, including the details stating that an amount of tax may be collected as a penalty, if any details of the application is not true. In such cases, the head of a local government may notify the relevant applicant of the result by electronic means, if the relevant applicant requests so. |
| (5) | Where a property tax on land has been paid summed by individual organization following an application under paragraph (3), the application under paragraph (3) may not be filed again from the following year until the change of ownership of the relevant land. |
[This Article Newly Inserted on Dec. 31, 2019]
[Moved from Article 116-2 <Apr. 27, 2021>]
| Article 117 (Notice of Registration in Tax Ledgers) |
Where the head of a Si/Gun/Gu has registered unreported property in the tax ledger pursuant to Article 120 (3) of the Act, he or she shall give notice of such fact to the parties concerned. <Amended on Dec. 30, 2016>
| Article 118 (Method of Calculating Tax Ceiling) |
"Amount equivalent to the property tax on the property concerned in the immediately preceding year as calculated according to the method prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 122 of the Act means the amount corresponding to the amount of tax or the amount of tax, respectively calculated by the following methods, with respect to the amount of tax calculated under Article 112 (1) 1 of the Act and the amounts of tax calculated under Article 112 (1) 2 of the Act and paragraph (2) of that Article, respectively: <Amended on May 30, 2011; Dec. 31, 2011; Aug. 31, 2016; Feb. 17, 2021; Feb. 28, 2022> | 1. | An amount corresponding to the amount of tax on land: |
| (a) | Where there exists the tax base (referring to the tax base under Article 110 of the Act in the case of the amount of tax calculated under Article 112 (1) 1 of the Act; referring to the tax base for land, etc. under Article 110 of the Act in the case of the amount of tax calculated under Article 112 (1) 2 of the Act and paragraph (2) of that Article) in the immediately preceding year for taxable land in the relevant year: An amount of tax calculated by applying the statutes or regulations, tax base, etc. in the immediately preceding year for each taxable land: Provided, That where persons liable to pay tax and the land state of each parcel of taxable land in the relevant year are identical with those in the immediately preceding year, it means the amount of tax imposed on the relevant land in the immediately preceding year; |
| (b) | Where there exists no tax base in the immediately preceding year for taxable land in the relevant year due to the partition, consolidation, change of land category, new registration, conversion of registration, etc.: An amount of tax calculated by applying the statutes or regulations, tax base (referring to the tax base calculated by applying the statutes or regulations in the immediately preceding year), etc. in the immediately preceding year for each taxable land that is deemed that it, as the taxable land in the relevant year, existed as of the base date for tax in the immediately preceding year: Provided, That where there exists no tax base in the immediately preceding year for taxable land in the relevant year due to the partition and consolidation of land, it means the amount of tax under the following classifications: |
| (i) | Where the area or share has not increased compared to taxable land prior to the partition or consolidation: An amount of tax applicable to the area or share owned in the relevant year, among the amount of tax imposed on land prior to the partition or consolidation in the immediately preceding year; |
| (ii) | Where the area or share has increased compared to taxable land prior to the partition or consolidation: The aggregate tax calculated pursuant to subitem (ⅰ) for the area or share of taxable land prior to the partition or consolidation and the amount of tax calculated pursuant to the main clause of subitems (ⅰ) and (ⅱ) for the area or share of the increased taxable land after the partition or consolidation; |
| (c) | Notwithstanding items (a) and (b), where a change is made in the classification of objects of taxation under Article 106 (1) of the Act for taxable land in the relevant year, an amount of tax calculated by applying the statutes or regulations, tax base (referring to the tax base calculated by applying the statutes or regulations in the immediately preceding year), etc. in the preceding year for each taxable land in the relevant year, deeming as if the classification of objects of taxation in the relevant year applied to taxable land in the immediately preceding year; |
| (d) | Notwithstanding items (a) through (c), where tax is imposed on taxable land in the relevant year because a house thereon has been lost or destroyed due to the implementation of a rearrangement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents and then another house is under construction (even before starting the construction of another house after a house is lost or destroyed, it shall be deemed to be under construction for three years from the date on which the base date for property tax arrives for the first time), an amount corresponding to the amount of tax calculated according to the following formula (where an amount corresponding to the amount of tax on land in the immediately preceding year calculated according to item (b) is less than the aforementioned amount, such amount corresponding to the amount of tax under item (b)): |
Amount de facto taxed on the house before destruction x (130/100)n
n= (Taxable year ? year de facto taxed on the house before destruction ? 1) |
|
| 2. | An amount corresponding to the amount of tax on houses and buildings: |
| (a) | Where the tax base exists in the immediately preceding year for houses and buildings in the relevant year: An amount of tax calculated for each object of taxation by applying the statutes or regulations, tax base, etc. in the immediately preceding year: Provided, That where an amount of tax is imposed on the relevant house and building in regard to the relevant person to pay tax in the immediately preceding year, it means such amount of tax; |
| (b) | Where no tax base exists in the immediately preceding year for taxable houses and buildings in the relevant year due to new construction, enlargement, etc. of a house and building: An amount of tax calculated for each object of taxation by applying the statutes or regulations, tax base (referring to the tax base calculated by applying the statutes or regulations, etc. in the immediately preceding year), etc., deeming as if taxable houses and buildings in the relevant year existed as of the base date for tax in the immediately preceding year; |
| (c) | Where tax rates, other than tax rates stipulated in Article 111 (1) 2 (c) of the Act and subparagraph 3 (b) of that paragraph, apply or do not apply to taxable houses and buildings in the relevant year due to change of use, etc.: Notwithstanding items (a) and (b), an amount of tax calculated by applying the statutes or regulations, tax base (referring to the tax base calculated by applying the statutes or regulations in the immediately preceding year), etc. in the immediately preceding year, deeming as if the relevant tax rates applied or did not apply in the immediately preceding year as well; |
| (d) | In the case of a house, notwithstanding the main clause of item (a) and items (b) and (c), where the amount corresponding to the amount of tax calculated under the main clause of item (a) and items (b) and (c) differs considerably from the amount of tax imposed pursuant to the proviso of item (a) in the immediately preceding year on an owner of a neighboring house, the price of which (referring to the house price publicly announced under Act on the Public Announcement of Real Estate Values) is similar to the relevant house: An amount corresponding to the amount of tax calculated considering the amount of tax so imposed; |
| 3. | In applying subparagraphs 1 and 2, where the provisions of non-taxation and reduction or exemption, tax rate to be increased or decreased under Article 111 (3), special cases concerning tax rates under Article 111-2 do not apply or apply to land, buildings and houses in the relevant year, the amount corresponding to the amount of tax under Article 112 (1) 1 of the Act and the amount corresponding to the amount of tax under paragraphs (1) 2 and (2) of that Article shall be calculated, deeming that such relevant provisions were or were not applied to the case in the immediately preceding year. |
| 4. | Notwithstanding subparagraph 3, where the tax rate under Article 111 (1) 3 (b) applies to a house to which the special case on tax rates under Article 111-2 (1) of the Act was applied in the immediately preceding year because its assessed value exceeds 900 million won in the relevant year (limited to where the person liable to pay tax is the same person), it shall be the amount of tax levied on the relevant house in the immediately preceding year under the proviso of subparagraph 2 (a). |
| Article 119 Deleted. <Dec. 31, 2021> |
| Article 119-2 (Organization and Operation of Organization Exclusively Responsible for Real Estate Taxation Data Analysis and Notice of Data) |
| (1) | An organization exclusively responsible for real estate taxation data analysis referred to in Article 123 (1) of the Act shall be the one performing the duties referred to in Article 15 (3) 30 of the Decree on the Organization of the Ministry of the Interior and Safety and Institutions under Its Jurisdiction, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017; Feb. 28, 2019; Feb. 17, 2021> |
| (2) | The taxation data on property tax and comprehensive real estate holding tax under Article 123 (2) 3 of the Act shall be as follows: <Amended on Feb. 17, 2021> |
| 1. | Data on property tax for a house, building and land referred to in Article 116 of the Act, data on the changed tax amount, and data on occasional imposition; |
[This Article Newly Inserted on Apr. 22, 2014]
[Title Amended on Feb. 17, 2021]
| Article 119-3 (Information System for Data on Comprehensive Real Estate Holding Tax) |
| (1) | The Minister of the Interior and Safety shall build and operate an information system necessary for the collection, processing, provision, etc. of taxation data on comprehensive real estate holding tax among taxation data under Article 123 (2) 3 of the Act. <Amended on Nov. 19, 2014; Jul. 26, 2017; Feb. 17, 2021> |
| (2) | When the Minister of the Interior and Safety notifies the Commissioner of the National Tax Service of data under Article 21 (2) through (5) of the Comprehensive Real Estate Holding Tax Act, he or she shall devise a method to do so by linking the information system built under paragraph (1) to the information system operated by the National Tax Service. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Apr. 22, 2014]
[Title Amended on Feb. 17, 2021]
CHAPTER X MOTOR VEHICLE TAX
SECTION 1 Motor Vehicle Tax on Possession of Automobile
| Article 120 (Scope of Construction Machinery Deemed Automobiles) |
| Article 121 (Non-Taxation) |
| 1. | Automobiles provided for national defense: Automobiles registered as special automobiles for military use pursuant to subparagraph 6 of Article 70 of the Motor Vehicle Management Act and directly used for such original purposes; |
| 2. | Automobiles provided for convoy, guard, or traffic patrol: Automobiles stipulated under the following items: |
| (a) | Automobiles for convoy: Automobiles used for protecting the President, the sovereign of a foreign country, and any other important person; |
| (b) | Automobiles for guard: Guard automobiles of police stations; |
| (c) | Automobiles for traffic patrol: Automobiles with a special mark and special structure used for the traffic patrol to maintain the traffic safety and perform the traffic patrol; |
| 3. | Automobiles provided for firefighting, cleaning, and garbage removal: Automobiles with a special structure and marks indicating relevant purposes specified by the State or a local government, which are directly used for such original purposes; |
| 4. | Automobiles provided for the transportation of patients: Automobiles with a special structure and a mark suitable for transporting patients, which are used only for their original purposes; |
| 5. | Automobiles provided for road construction: Automobiles with a special structure, which are used for the repair and construction of roads and the construction appurtenant thereto, not for the transportation of cargo. |
| (2) | "Other automobiles prescribed by Presidential Decree, such as automobiles used by foreign diplomatic agencies in Korea" in subparagraph 3 of Article 126 of the Act shall be as follows: <Amended on Dec. 30; Feb. 28, 2022> |
| 1. | Automobiles that are produced in a special structure in order for the Government to exclusively use for the postal service and radio waves and that have marks indicating such use; <Amended on Dec. 30, 2016> |
| 2. | Automobiles used by foreign diplomatic agencies in the Republic of Korea, the United Nations agencies, and foreign aid organizations in the Republic of Korea (including foreign nongovernmental aid organizations); |
| 3. | Automobiles exported after filing their export declaration with the head of a customs office under the Customs Act; |
| 4. | Automobiles recognized by the head of a Si/Gun/Gu as uncollectable or unusable due to their disappearance, loss, destruction, or damage caused by natural calamities, fire, traffic accidents, etc.; |
| 6. | Automobiles that are under compulsory execution proceedings, such as public sale, etc., from the date delivered to the executing agency until the date preceding the payment of the auction award in such a public sale; |
| 7. | Deleted; <Feb. 8, 2019> |
| (3) | A person who intends to apply for non-taxation pursuant to paragraph (2) 3 through 5 shall apply to the head of a Si/Gun/Gu, along with documents substantiating the grounds therefor. <Amended on Dec. 30, 2016> |
| Article 122 (Distinction between Business and Non-Business Uses and Calculation of Automobile Age) |
| (1) | "For business use" in Article 127 of the Act means that an automobile is provided to meet the demand of the general public after a license (including registration) is granted pursuant to the Passenger Transport Service Act or the Trucking Transport Business Act, or after registration for the construction machinery rental business set forth in the Construction Machinery Management Act is made; and "for non-business use" means that an individual or a corporation provides an automobile for uses, other than business use, or that the State or a local government provides an automobile for its official use. |
| 1. | The age of an automobile, the initial date of which falls between January 1 and June 30 = The tax year - the year in which the initial date falls + 1; |
| 2. | The age of an automobile, the initial date of which falls between July 1 and December 31: |
| (a) | The age of an automobile for the first-term: The tax year - the year in which the initial year falls; |
| (b) | The age of an automobile for the second-term: The tax year - the year in which the initial year falls + 1. |
| Article 123 (Types of Automobiles) |
The types of automobiles under Article 127 (2) of the Act shall be classified as follows: <Amended on Jan. 1, 2013; Dec. 31, 2019> | 2. | Other passenger automobiles: Automobiles that use electricity, solar energy, and alcohol among those under subparagraph 1; |
| 3. | Automobiles for passengers and freight: |
| (e) | Small general buses: Buses, other than large general buses under item (d), as buses for urban bus transportation business, buses for agricultural and fishing villages bus transportation business, buses for shuttle bus transportation business, buses for inter-city bus transportation business (excluding express buses under item (a)) and buses for non-business use under Article 3 of the Enforcement Decree of the Passenger Transport Service Act; |
| 4. | Freight automobiles: Freight automobiles (excluding any trailing truck, the maximum loading capacity of which exceeds eight tons) under Article 3 of the Motor Vehicle Management Act, and dump trucks and concrete mixer trucks registered pursuant to the Construction Machinery Management Act. In such cases, a concrete mixer truck shall be deemed a freight automobile, the maximum loading capacity of which exceeds 10,000 kilograms; |
| 5. | Special motor vehicles: |
| (a) | Large special motor vehicles mean the following motor vehicles: |
| (i) | A trailing truck the maximum loading capacity of which exceeds eight tons; |
| (iv) | A motor vehicle that does not fall under paragraphs 1 through 4 and 6, the maximum loading capacity of which exceeds four tons or the engine displacement of which exceeds 4,000cc; |
| (b) | Small special motor vehicles mean the following motor vehicles: |
| (ii) | A motor vehicle that does not fall under subparagraphs 1 through 4 and 6, the gross weight of which is not more than four tons or the engine displacement of which is not more than 4,000cc. |
| 6. | Compact automobiles with three or less wheels: |
| (a) | Automobiles with three wheels: Compact automobiles with three wheels and a structure suitable for transporting persons or freight; |
| (b) | Two wheel motor vehicles: Motor vehicles reported and registered as two wheeled ones, the engine displacement of which exceeds 125cc or with a maximum continuous rated power exceeding 12 kilowatt. |
| Article 124 (Determination on Types of Automobiles) |
Where an automobile involves two or more types specified in Article 123 in determining the type of the automobile, the main type shall be chosen; and where it is difficult to choose its main type, the head of a Si/Gun/Gu shall determine the main type. <Amended on Dec. 30, 2016>
| Article 125 (Location of Automobile and Tax Return and Payment) |
| (1) | The location of an automobile under the main clause of Article 128 (1) of the Act means the place indicated as the place of main usage in the registration ledger for the relevant automobile or construction machinery: Provided, That where the place indicated in the registration ledger is unclear, the address of its owner shall be deemed the place of the automobile. |
| (2) | A person who intends to pay an annual tax amount in a lump sum pursuant to Article 128 (3) of the Act shall file a return thereon and pay it to the head of a Si/Gun/Gu, along with the payment notice on the taxable object, tax base, calculated amount of tax, and amount of tax paid, during the period specified in any subparagraph of Article 128 (3) of the Act. In such cases, the head of a Si/Gun/Gu may send the payment notice to a person who filed a tax return and paid the annual tax amount in a lump sum in January pursuant to Article 128 (3) 1 of the Act, if the person fails to report the payment of the annual tax amount for the following year in a lump sum. <Amended on Dec. 30, 2016> |
| (3) | "Amount of tax for the period after the deadline for payment in a lump sum" in Article 128 (3) of the Act means the annual tax amount where a tax return is filed and payment is made during the period from January 16 to January 31, an amount of tax for the second term where a tax return is filed and payment is made during the payment period of the tax for the first term, or an amount of tax for the period after the installment payment period where a tax return is filed and payment is made within the installment payment period. <Amended on Jan. 1, 2013> |
| (4) | When filing an annual tax return and pay the amount under Article 128 (3) and (4) of the Act, or imposing and collecting it, the location of an automobile under paragraph (1) shall be deemed the place for tax payment; where the location of the automobile is changed after the annual tax amount has been returned or paid or has been imposed and collected, no motor vehicle tax on the possession of an automobile in the relevant year (hereafter in this Section referred to as "motor vehicle tax") shall be imposed in the changed location of the automobile. |
| (5) | Where a person liable to pay tax pays the annual tax amount in quarterly installments pursuant to the proviso of Article 128 (1) of the Act, the amount to be paid in installments for the first term and the amount to be paid in installments for the second term shall be collected by the respective Si/Gun/Gu having jurisdiction over the location of the automobile as of March 16 and as of September 16, respectively. <Amended on Dec. 30, 2016> |
| (6) | "Interest rate prescribed by Presidential Decree" in the formula in Article 128 (3) and (4) of the Act means the rate classified as follows: <Newly Inserted on Dec. 31, 2020> |
| 1. | Year 2021 and 2022: 10/100; |
| 4. | From the year 2025 and thereafter: 3/100. |
| Article 126 (Methods of Calculating Amount of Tax on Daily Installment in Cases of Change in Ownership during Taxable Period) |
The amount calculated on a daily installment pursuant to Articles 128 (5) and 130 (1) through (3) of the Act means the amount computed by dividing, by the total number of days in the relevant year, the amount calculated by multiplying the annual tax amount on the relevant automobile by the number of days in the taxable period: Provided, That in the case of a passenger automobile for non-business purposes which has been used for at least three years pursuant to Article 122 (2), it refers to the amount computed by dividing the amount obtained by multiplying the amount of tax in the relevant term in which the registration date of ownership transfer (referring to the date of transfer, in cases under the proviso of Article 130 (3) of the Act) computed pursuant to Article 127 (1) 2 of the Act falls by the number of days in the taxable period, by the total number of days in the corresponding term. <Amended on Jan. 1, 2013>
| Article 127 (Amount of Tax in Cases of Change in Use or Types of Automobiles) |
When the use or type of an automobile is changed, the amount of tax shall be calculated by adding up the amounts of taxes calculated based on the types of automobile before and after the change of its use or type by applying mutatis mutandis Article 126.
| Article 128 (Seizure of Vehicle Registration Plates) |
| (1) | Upon receipt of a request from the head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor; hereafter in this paragraph the same shall apply) under the main clause of Article 131 (1) of the Act, the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor shall not issue an automobile registration certificate or shall seize the vehicle registration plate and notify the head of the Si/Gun thereof. <Amended on Dec. 30, 2016; Feb. 8, 2019> |
| (2) | Where a person liable to pay tax fails to pay motor vehicle tax in arrears within the reminder period, the head of a Si/Gun/Gu shall not issue an automobile registration certificate, or shall seize the vehicle registration plate. <Amended on Dec. 30, 2016; Feb. 8, 2019> |
| (3) | Where the head of a Si/Gun has chosen not to issue an automobile registration certificate, or has seized the vehicle registration plate pursuant to paragraph (2), he or she shall give notice of such fact to a person liable to pay tax. <Amended on Feb. 8, 2019> |
| (4) | Where a person liable to pay tax pays motor vehicle tax in arrears, the head of a Si/Gun/Gu shall immediately return the vehicle registration number plate seized to the person liable to pay tax, or shall request the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor (excluding a Special Self-Governing City Mayor or a Special Self-Governing Province Governor) to immediately return the vehicle registration plate seized to the person liable to pay tax. <Amended on 30, 2016; Feb. 8, 2019> |
| (5) | Except as otherwise expressly provided in paragraphs (1) through (4), matters necessary for seizing vehicle registration plates shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017 Feb. 8, 2019> |
[Title Amended on Feb. 8, 2019]
| Article 128-2 (Temporary Cancellation of Seizure of Vehicle Registration Plates) |
| (1) | Where a taxpayer intends to apply for temporary cancellation of the seizure of a vehicle registration plate pursuant to Article 131 (2) of the Act, he or she shall submit an application prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a Si/Gun/Gu, along with data evidencing the grounds for temporary cancellation of the seizure. The same shall also apply where he or she intends to apply for an extension of the period of temporary cancellation of the seizure of a vehicle registration plate. |
| (2) | Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the head of a Si/Gun/Gu temporarily cancels the seizure of a vehicle registration plate pursuant to Article 131 (2) of the Act, the period thereof shall not exceed six months. In such cases, where the grounds for temporary cancellation under Article 131 (2) of the Act still exist until the said period expires, the period may be extended only once by up to three months. |
| (3) | Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the head of a Si/Gun/Gu temporarily cancels the seizure of a vehicle registration plate or extends the period of temporary cancellation pursuant to paragraph (2), he or she may attach conditions that the delinquent motor vehicle tax be paid in installments, if necessary. In such cases, the period for installment payment shall be the period of a temporary cancellation of the seizure of a vehicle registration plate or an extended period of such temporary cancellation, and the number of installments shall be determined by the relevant Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor, or head of a Si/Gun/Gu in consideration of the purpose of use of the automobile and its relevance to maintaining livelihood of the person liable to pay tax. |
| (4) | In any of the following cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the head of a Si/Gun/Gu may revoke the temporary cancellation of the seizure of a vehicle registration plate and seize it again: |
| 1. | Where a person liable to pay tax is delinquent in paying another local tax; |
| 2. | Where it is deemed that the motor vehicle tax in arrears cannot be collected from the relevant person liable to pay tax, due to his or her compulsory execution, commencement of auction, declaration of bankruptcy, etc.; |
| 3. | Where a person liable to pay tax fails to meet the conditions for payment in installments under paragraph (3); |
| 4. | Where any other situation arises making it impracticable to expect the payment of the motor vehicle tax in arrears by the person liable for tax payment. |
| (5) | Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the head of a Si/Gun/Gu temporarily releases or extends the period of temporary cancellation of the seizure of a vehicle registration plate pursuant to paragraph (2), or seizes it again pursuant to paragraph (4), he or she shall give notice of such fact to a person liable to pay tax. |
[This Article Newly Inserted on May 31, 2019]
| Article 129 (Notification of Tax Data) |
In any of the following events, the head of a local government shall notify the head of a Si/Gun/Gu having jurisdiction over the place for tax payment of the following: <Amended on Dec. 30, 2016>
| 1. | Acquisition of an automobile or the transfer of its ownership; |
| 2. | The change in the main place where the automobile is used; |
| 3. | The change in the use of the automobile; |
| 4. | Disuse of the automobile; |
| 5. | The change in the motor, frame, passenger capacity or maximum loading capacity of the automobile. |
| Article 130 (Keeping Tax Ledgers) |
The head of a Si/Gun/Gu shall keep an motor vehicle tax ledger and record necessary matters in the tax ledger. In such cases, where the relevant matters are electronically processed, the tax ledger shall be deemed kept. <Amended on Dec. 30, 2016>
SECTION 2 Motor Vehicle Tax on Driving of Motor Vehicles
| Article 131 (Adjusted Tax Rates) |
The adjusted tax rate under Article 136 (2) of the Act shall be 260/1000 of the amount of traffic, energy and environment tax on the taxable goods under Article 135 of the Act (hereafter in this Section referred to as "taxable goods"). <Amended on Dec. 30, 2014>
| Article 132 (Tax Returns and Payment) |
A person who intends to file a motor vehicle tax return on the operation of a motor vehicle under Article 137 (1) of the Act (hereafter in this Section referred to as "motor vehicle tax") shall file a tax return with the person liable for special collection under the latter part of Article 137 (1) of the Act (hereinafter referred to as "person liable for special collection") in the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, along with the following documents, and shall pay the tax, along with a statement of payment in the form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2014; Jul. 26, 2017>
| Article 133 (Pro Rata Standards and Methods) |
| (1) | The pro rata of the amount of motor vehicle tax collected under the former part of Article 137 (3) of the Act shall be based on the following amounts: <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017> |
| 1. | The amount of motor vehicle tax collected for non-business passenger automobiles by the Special Metropolitan City or each Metropolitan City, Special Self-Governing City, Special Self-Governing Province, Si or Gun (hereafter in this Section referred to as "Si/Gun") referred to in Section 1 of Chapter X of the Act. In such cases, from January to June, it shall be the settled amount of tax of the year before the preceding year, and from July to December, it shall be the settled amount of tax of the preceding year; |
| 2. | Subsidies to oil tax paid to the transport industry following an increase in tax on oil. In such cases, the total amount thereof shall be the amount in the paying year, which is determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of the Interior and Safety. |
| (2) | An amount of pro rata of the amount of motor vehicle tax by Si/Gun according to the standard under paragraph (1) shall be the sum of the following amounts: <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| 983 billion won/12 x The amount of motor vehicle tax collected by the relevant Si/Gun under Section 1 of Chapter 10 of the Act for the year before the preceding year or the immediately preceding year/ the amount of motor vehicle tax collected nationwide under Section 1 of Chapter 10 of the Act for the year before the preceding year or the immediately preceding year |
|
| 2. | Subsidies to oil tax by Si/Gun for the relevant month that is determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of the Interior and Safety, in regard to the amount remaining after deducting (983 billion won/12) from the total amount of motor vehicle tax collected in the relevant month. |
| Article 134 (Payment by Persons Liable for Special Collection) |
| (1) | A person liable for special collection who has collected motor vehicle tax shall remit the amount of tax collected (referring to the collected amount of tax remaining after deducting the expenses incurred in handling administrative affairs, etc. pursuant to the latter part of Article 137 (3) of the Act; hereinafter the same shall apply) to the Mayor of Ulsan Metropolitan City (hereafter in this Section referred to as "main person liable for special collection") by the 10th day of the month following the month in which the collection date of motor vehicle tax falls, and at the same time, forward the details of such remittance and the copies of documents under the subparagraphs of Article 132. |
| (2) | The main person liable for special collection shall proportionally distribute the aggregate amount of motor vehicle tax remitted by persons liable for special collection under paragraph (1) and the amount of self-collected motor vehicle tax in the preceding month by Si/Gun pursuant to Article 133, and shall pay motor vehicle tax so proportionally distributed to the saving depository of each Si/Gun in accordance with the notice of payment prescribed by Ordinance of the Ministry of the Interior and Safety by the deadline specified in the former part of Article 137 (3) of the Act and notify each Si/Gun of the detailed statement on the pro rata. <Amended on Dec. 31, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| Article 134-2 (Security for Tax Payment) |
| 1. | Manufacturer: The amount equivalent to the tax amount determined by subtracting the sum of already paid tax amounts from the aggregate of the calculated tax amount on taxable objects taken out of the manufacturing place and the calculated tax amount on taxable objects to be taken out of the manufacturing place; |
| 2. | Import and sale business entity: The amount equivalent to the tax amount determined by subtracting the sum of already paid tax amounts from the aggregate of the calculated tax amount on taxable objects for which an import declaration has been filed and the calculated tax amount on taxable objects for which an import declaration is to be filed. |
| (2) | Notwithstanding paragraph (1), a person liable for special collection may exempt a manufacturer or an import and sale business entity from providing security for tax payment, if the manufacturer or import and sale business entity has engaged in the relevant business for three years before the date on which taxable objects are taken out of the manufacturing place or bonded area and has no record of default on the payment of motor vehicle tax or intentional evasion of the tax. In such cases, the manufacturer or import and sale business entity who is exempt from the tax shall submit a certificate of exemption from security for tax payment to the head of the customs office at the place of customs clearance in the form prescribed by Ordinance of the Ministry of the Interior and Safety, when the manufacturer or import and sale business entity takes out taxable objects from the manufacturing place or bonded area. <Amended on Jul. 26, 2017> |
| (3) | For customs clearance of imported taxable objects, an import and sale business entity shall submit a certificate of exemption from security for tax payment to the head of the customs office at the place of customs clearance in the form prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That the submission of documents may be substituted by verification of relevant information, if it is possible to verify information by matching relevant information against administrative information available for sharing under Article 36 (1) of the Electronic Government Act. <Amended on Jul. 26, 2017> |
| (4) | Upon receipt of a certificate of exemption from security for tax payment paragraph (3), the head of the customs office at the place of customs clearance shall permit customs clearance within the maximum of the amount of security for tax payment stated in the certificate. |
[This Article Newly Inserted on Dec. 30, 2014]
| Article 134-3 (Satisfaction of Motor Vehicle Tax with Security) |
If a person who provided security for tax payment under Article 137-2 (1) fails to pay the full amount or part of motor vehicle tax by the deadline, the expenses incurred in disposing of the delinquent tax, the amount of motor vehicle tax, and additional charges may be satisfied with the asset provided as security. If there is any deficit in such cases, motor vehicle tax shall be collected additionally, while the remainder, if any, shall be refunded. [This Article Newly Inserted on Dec. 30, 2014]
| Article 135 (Notification of Amount of Tax) |
When the head of a tax office or the head of a customs office receives a traffic, energy and environment tax return or the payment of traffic, energy and environment tax under Articles 7 and 8 of the Traffic, Energy and Environment Tax Act pursuant to Article 140 of the Act or determines or corrects the amount of such tax under Article 9 of that Act, he or she shall notify the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Special Self-Governing Province Governor, or the head of the Si/Gun having jurisdiction over the place of payment for traffic, energy and environment tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety. In such cases, where the head of a tax office or the head of a customs office electronically processes the relevant data, he or she may provide a notice in electronic form. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 30, 2016; Jul. 26, 2017>
CHAPTER XI LOCAL RESOURCE AND FACILITY TAX
SECTION 1 Common Provisions
| Article 136 (Subject to Taxation) |
| (1) | The following shall be subject to local resource and facility tax under Article 142 (2) 1 of the Act: <Amended on Dec. 31, 2011; Jan. 1, 2013; Mar. 23, 2013; Jan. 1, 2014; Aug. 12, 2014; Nov. 19, 2014; Jul. 24, 2015; Jul. 26, 2017; Feb. 8, 2019; Dec. 31, 2020> |
| 1. | Water used for power generation: Running water directly used for power generation: Provided, That running water used for generating electricity of up to 3,000 kilowatts out of the total volume of generation per hour by a power plant, as running water directly used by a business entity engaging in small-scale power generation business, the capacity of power-generating facility of which is less than 10,000 kilowatts shall be excluded; |
| (a) | Potable water: Underground water pumped up to be sold as potable water (including underground water used in the process designed to sell it as portable water); |
| (b) | Water for bathing: Hot spring water pumped up to be used for bathing; |
| (c) | Water for other purposes: Underground water pumped up, other than that stipulated under items (a) and (b): Provided, That the following underground water shall be excluded: |
| (ii) | Underground water falling under the proviso of Article 7 (1) and Article 8 (1) 1 through 5 (limited to a well for household use, from which less than 30 tons of water per day may be pumped out using a discharging pipe that measures not more than 32 millimeters in inner diameter in the cases of underground water falling under Article 8 (1) 5) of the Groundwater Act; |
| 3. | Underground resources: Mined minerals: Provided, That coal and the minerals mined from a mine with sales of not more than one billion won during the most recent year from the month in which tax liability arises (if the period from the month in which business is commenced until the month in which tax liability arises is less than 12 months, sales during the relevant period), among mines referred to in Article 58 of the Enforcement Decree of the Mining Industry Act, shall be excluded herefrom; |
| 4. | Deleted; <Dec. 31, 2020> |
| 5. | Deleted; <Dec. 31, 2020> |
| 6. | Deleted. <Dec. 31, 2020> |
| (2) | The following shall be subject to local resource and facility tax for specified facilities under Article 142 (2) 2: <Newly Inserted on Dec. 31, 2020> |
| 1. | Containers: Incoming and outgoing containers using a wharf where containers are handled: Provided, That transshipment containers, containers for coastal-transportation, and containers not loaded with freight shall be excluded; |
| 2. | Nuclear power generation: Electricity generated by a nuclear power plant; |
| 3. | Thermal power generation: Electricity generated by a thermal power plant, the capacity of power-generating facility of which is at least 10,000 kilowatts per hour; Provided, That any of the following electricity shall be excluded herefrom: |
| (b) | Electricity generated by a district electric business entity defined in subparagraph 13 of Article 2 of the Electricity Utility Act; |
| (c) | Electricity generated by an electric installation for private use defined in subparagraph 19 of Article 2 of the Electricity Utility Act; |
| Article 137 (Non-Taxation) |
| (1) | No local resource and facility tax for firefighting under Article 142 (2) 3 of the Act shall be imposed on the facilities specified in Article 5 (excluding the facilities that fall under Article 138 (1) 2 and (2) 2 and the ones installed as part of such buildings). <Amended on Jul. 24, 2015; Dec. 31, 2015; Dec. 31, 2020> |
| (2) | No local resource and facility tax for firefighting shall be imposed on a building or housing (limited to building parts under Article 2 (1) 2 of the Building Act; hereafter in this paragraph the same shall apply) to which the administrative agency has issued an order of removal, or for which a contract for removal and compensation has been entered into, as a plan is finalized to remove the building or housing within the relevant year when local resource and facility tax for firefighting is imposed. In such cases, where part of a building or housing is removed, only the part removed as such shall be exempt from local resource and facility tax. <Amended on Dec. 30, 2010; Dec. 31, 2020> |
SECTION 2 Tax Bases and Rates
| Article 138 (Buildings Vulnerable to Fire) |
| (1) | "Buildings vulnerable to fire prescribed by Presidential Decree, such as oil reservoirs, gasoline stations, oil refineries, amusement centers, theaters, and buildings with at least four stories, but not more than ten stories" in Article 146 (3) 2 of the Act means any of the following: Provided, That any of the buildings under paragraph (2) shall be excluded herefrom: <Amended on Apr. 6, 2011; Jan. 1, 2014; Dec. 31, 2015; Jan. 19, 2016; Dec. 31, 2018; Dec. Dec. 31, 2020> |
| 1. | A building with at least four stories, but up to ten stories for non-residential purposes. In such cases, the basement floor and rooftop shall not be counted as a story; |
| (a) | Private teaching institutes, video-viewing rooms, small theaters for video projection, and song-practice rooms among neighboring living facilities: |
| (b) | Entertainment establishments: Provided, That any dance hall or dancing school, the aggregate floor area of which is less than 200 square meters, and any entertainment bar or karaoke bar, the aggregate floor area of which is less than 33 square meters and 150 square meters, respectively, shall be excluded; |
| (c) | Theaters, cinemas, video-viewing rooms, small theaters for video projection, or wedding halls, among cultural, gathering and sports establishments; |
| (d) | Wholesale markets, retail markets, and stores among sales establishments and passenger bus terminals among transportation facilities; |
| (e) | Lodging facilities: Provided, That lodging facilities with a floor area of less than 60 square meters for the part used as guest rooms shall be excluded herefrom; |
| (f) | Funeral parlors (including funeral parlors affiliated to medical facilities); |
| (g) | Factories prescribed by Ordinance of the Ministry of the Interior and Safety (hereafter in this Article referred to as "factories"); |
| (h) | Warehouses among warehouse facilities (limited to any warehouse set up for business purpose), freight terminals, loading dock, and collection and delivery facilities; |
| (i) | Buildings for parking lots among facilities related to aircraft and motor vehicles; |
| (j) | Facilities for storing and treating hazardous substances. |
| (l) | Private teaching institutes among education and research facilities; |
| (2) | "Large buildings vulnerable to fire prescribed by Presidential Decree, such as large-scale marts, multiplexes theaters (excluding theaters under subparagraph 2), department stores, hotels, and buildings with at least 11 stories" in Article 146 (3) 2-2 of the Act means the following: <Newly Inserted on Jan. 1, 2014; Aug. 12, 2014; Dec. 31, 2015; Jan. 19, 2016; Dec. 29, 2017; Dec. 31, 2018; Dec. 31, 2020; Aug. 10, 2021> |
| 1. | High-rise buildings with at least 11 stories for non-residential purposes; |
| (a) | Entertainment bars with a floor area of at least 500 square meters, among entertainment facilities: Provided, That the total floor area of an entertainment bar shall be at least 330 square meters, if the entertainment bar is located at an underground level or on the fifth or a higher floor above ground; |
| (b) | Any of the following cinemas among cultural and meeting facilities: |
| (i) | A cinema complex with at least 10 screens; |
| (ii) | A cinema with at least 500 seats; |
| (iii) | A cinema established on the underground floor; |
| (c) | Any of the following sales facilities, the total floor area of which is at least 10,000 square meters: |
| (e) | A factory or warehouse in a unit with a total floor area of at least 15,000 square meters (limited to logistics warehouses or cold storage or refrigerated warehouses with walls made of sandwich panels (referring to composite materials provided in Article 52-4 (1) of the Building Act)), in the case of warehouse facilities), among factories and warehouse facilities; |
| (g) | A composite building, the floor area of which is at least 30,000 square meters. In such cases, with regard to a mixed-use building (referring to a building which includes a neighborhood living facility, sales facility, business facility, accommodation facility, or entertainment establishment, and is used for dwelling purposes), the floor area for housing part shall be excluded, and where the housing part and part used for purposes other than dwelling purposes share stairs, the area of stairs shall be deemed the area of the housing part and included in the total floor area. |
| (3) | Where a building or whole building on one parcel is used both for a purpose stipulated under paragraph (1) 2 or (2) 2 and for any other purpose, or is used separately, the method of assessing the tax base and the amount of tax shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Jan. 1, 2014; Nov. 19, 2014; Jul. 26, 2017> |
[Title Amended on Dec. 1, 2014]
SECTION 3 Imposition and Collection
| Article 139 (Payment Notice) |
Where the due date for payment of local resource and facility tax for firefighting and the property tax due date falls on the same date, local resource and facility tax may be also stated in the payment notice of property tax. <Amended on Dec. 31, 2020>
CHAPTER XII LOCAL EDUCATION TAX
| Article 140 (Calculation of Tax Base) |
Where a person liable to pay local education tax fails to pay local tax which constitutes the tax base for local education tax, or pays less than the amount due, and thus an additional tax is added to the relevant amount of tax, the amount of the additional tax so added shall not be included in the tax base for local education tax.
| Article 141 (Tax Returns and Payment, and Imposition and Collection) |
| (1) | When a person liable to pay tax files a local education tax return and pays the local education tax pursuant to Article 152 (1) of the Act, he or she shall record local education tax alongside the relevant amount of local tax, and the sum thereof in the tax return form and the payment form of local tax constituting the tax base. |
| (2) | When the head of a Si/Gun/Gu imposes and collects local education tax pursuant to Article 152 (2) of the Act, he or she shall provide a written notice stating the relevant amount of local tax and local education tax, and the sum thereof in the tax return form and the payment form for local tax constituting the tax base. <Amended on Dec. 30, 2016> |
| (3) | When the head of a Si/Gun/Gu imposes and collects local education tax on unavoidable grounds, he or she shall give notice of only the amount of local education tax, indicating local tax items and the amount of tax constituting the tax base for the relevant local education tax on the payment notice. <Amended on Dec. 30, 2016> |
ADDENDA <Presidential Decree No. 22395, Sep. 20, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first tax liability which arises after this Decree enters into force.
Article 3 (Applicability concerning Timing of Acquisition)
The amended provisions of provisos to Article 20 (1) and (2) 2 shall apply, beginning with the first gratuitous acquisition by succession or acquisition for consideration by succession after this Decree enters into force. Article 4 (General Transitional Measures)
The former provisions shall govern any local tax imposed, reduced or exempted, or to be imposed, reduced or exempted under the former provisions as at the time this Decree enters into force.
Article 5 (Transitional Measures concerning Timing of Acquisition of Ships Acquired in Annual Installments by Importation or Building)
Article 73 (3) of the Enforcement Decree of the former Local Tax Act shall govern the timing of acquisition of a ship acquired in annual installments by importation or building as at the time this Decree enters into force, notwithstanding the amended provisions of Article 20 (11). Article 6 (Transitional Measures concerning Handling of Payment Receipts of Registration Tax)
Article 7 (Transitional Measures concerning Calculating Ceiling of Property Tax Burden)
In computing tax ceiling on the calculated amount of tax on land, etc. under Article 112 (1) 2 of the Act and Article 112 (2) among the amount of property tax for the year 2011 pursuant to the amended provisions of Article 118 in order to separate the amount of tax calculated under Article 112 (1) 1 from the amount of tax calculated under Article 112 (1) 2 and (2) pursuant to Article 6-2 of the Addenda to the Local Tax Act (Wholly Amended by Act No. 10221), for the purpose of the amended provisions of Article 118, "tax base in the immediately preceding year" shall be construed as "tax base for urban planning tax under the former Local Tax Act (referring to that prior to the Local Act (wholly amended by Act No. 10221); hereafter the same shall apply in this Article)"; "statutes and tax base in the immediately preceding year" as "tax base under the former Local Tax Act and urban planning tax"; "amount of tax imposed" as "amount of urban planning tax imposed"; and "tax base calculated by applying statutes in the immediately preceding year" as "tax base for urban planning tax calculated by applying the former Local Tax Act," respectively. <Amended by Presidential Decree No. 22942, May 30, 2011> Article 8 Omitted.
Article 9 (Relationship with other Statutes)
ADDENDA <Presidential Decree No. 22424, Oct. 1, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 22449, Oct. 14, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 16, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22467, Nov. 2, 2010>
This Decree shall enter into on the date of its promulgation.
ADDENDA <Presidential Decree No. 22586, Dec. 30, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011: Provided, That the amended provisions of Article 102 (2) 2 shall enter into force on February 5, 2011. Article 2 (General Applicability)
This Decree shall apply, beginning with the first establishment of liability to pay tax after this Decree enters into force.
Article 3 (Applicability concerning Scope of Exemption from Acquisition Tax on Repair of Multi-Family Housing)
The amended provisions of Article 12-2 shall apply, beginning with the first acquisition tax on repair of multi-family housing after this Decree enters into force. Article 4 (Applicability concerning Special Case of Tax Rate for Acquisition Tax)
| (1) | The amended provisions of subparagraph 4 of Article 30 shall apply, beginning with the first special case of the tax rate for acquisition tax after this Decree enters into force. |
| (2) | The amended provisions of subparagraph 5 of Article 30 shall also apply to the acquisition of a building, in regard to which the former liability to pay registration tax is established for preservation registration of ownership or registration of transfer of ownership (excluding any registration made on the ground of acquisition) before this Decree enters into force, and for which the timing of acquisition under Article 20 arrives after this Decree enters into force. |
Article 5 (Applicability concerning Payment of Acquisition Tax in Installments)
The amended provisions of Article 35-2 shall apply, beginning with the first acquisition by an individual of housing, a vehicle or machinery equipment after this Decree enters into force. Article 6 (Applicability concerning Scope of Tax Exemption for Tobacco)
The amended provisions of Article 64 (2) shall apply, beginning with the first tobacco brought into the Republic of Korea after this Decree enters into force. Article 7 (General Transitional Measures)
Article 8 (Transitional Measures concerning Collection through Heavy Taxation on Corporation Registration, etc. within Areas of Large Cities)
With regard to the application of the tax rate for heavy taxation, where a corporation that is subject to the tax rates under Articles 131 and 137 of the former Local Tax Act pursuant to the proviso to Article 138 (1) of the same Act (referring to the former Local Tax Act pursuant to Article 13 of the Addenda to the Local Tax Act (Partially Amended by Act No. 10416)) before December 31, 2010, shifts to or adds a type of business, other than the type of business excluded from heavy taxation in large cities, or in cases due to the violation of the liability to directly use real estate in the type of business excluded from heavy taxation in large cities, Articles 101, 102 and 104-2 of the former Enforcement Decree of the Local Tax Act shall govern, notwithstanding the amended provisions of Articles 26, 34, 45 and 48 (2). Article 9 Omitted.
ADDENDA <Presidential Decree No. 22605, Dec. 31, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 22880, Apr. 6, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22942, May 30, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 102 (5) 24 and 32 through 35 shall enter into force on January 1, 2012. Article 2 (Applicability concerning Scope of Prices of Acquiring Real Estate)
The amended provisions of Article 18 (1) 6 and 7 and the amended provisions of Article 18 (4) 3 shall apply, beginning with the first acquisition of real estate after this Decree enters into force: Provided, That the loss from the sale of the class 2 national housing bond shall apply, beginning with the acquisition of real estate in accordance with the first public notice for recruitment of occupants after this Decree enters into force. Article 3 (Applicability concerning Special Aggregate Taxation and Separate Taxation)
| (1) | The amended provisions of Articles 101 (3) 17 and 102 (5) 5 and 31 shall apply, beginning with the first establishment of liability to pay property tax after this Decree enters into force. |
| (2) | The amended provisions of Article 102 (5) 24, 32 and 33 shall apply, beginning with the first establishment of liability to pay property tax on or after January 1, 2012. |
| (3) | The amended provisions of Article 102 (5) 34 shall apply, beginning with the first case of obtaining approval for establishment of a knowledge industry center on or after January 1, 2012. |
| (4) | The amended provisions of Article 102 (5) 35 shall apply, beginning with the first purchase in lots of a knowledge industry center on or after January 1, 2012. |
Article 4 (Applicability concerning Property Tax Ceiling on Lost or Destroyed House)
The amended provisions of subparagraph 1 (d) of Article 118 shall apply, beginning with first establishment of liability to pay property tax after this Decree enters into force.
ADDENDA <Presidential Decree No. 23482, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2012: Provided, That the amended provisions of subparagraphs 1 and 2 of Article 133 shall enter into force on the first day of the month in which the date on which the Free Trade Agreement between the Republic of Korea and the United States of America enters into force falls, and the amended provisions of subparagraph 6 of Article 136 shall enter into force on January 1, 2014. Article 2 (General Applicability)
This Decree shall apply, beginning with the first establishment of liability to pay tax after this Decree enters into force.
Article 3 (Applicability concerning Acquisition Tax on Two-Wheel Automobiles with Engine Displacement of not More than 50cc)
The amended provisions of Article 7 (1) shall apply, beginning with the first establishment of liability to pay tax after January 1, 2007.
ADDENDA <Presidential Decree No. 23535, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23711, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Registration and License Tax on Pro Rata License Portion)
| (1) | The amended provisions of subparagraph 40 of Article 51 and subparagraph 35 in the columns of Class V of attached Table shall apply, beginning with from the first registration and license tax on a pro rata license portion that constitutes liability for taxation after January 1, 2012. |
| (2) | The amended provisions of subparagraph 175 in the columns of Class III of attached Table and subparagraphs 33 and 34 in the columns of Class V of attached Table shall apply, beginning with the first registration and license tax on a pro rata license portion that constitutes liability for taxation after this Decree enters into force. |
ADDENDA <Presidential Decree No. 23718, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 15, 2012. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 23947, Jul. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 18, 2012.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 23966, Jul. 20, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 22, 2012. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23993, Jul. 26, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 27, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24296, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply to a local tax that constitutes liability for taxation after this Decree enters into force.
ADDENDA <Presidential Decree No. 24425, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among Presidential Decrees amended pursuant to Article 6 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcements dates of the respective Presidential Decrees. Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24502, Apr. 22, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 24, 2013.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24563, May 31, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 2, 2013.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Presidential Decree No. 24890, Dec. 4, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 5, 2013. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 25058, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first income on which liability to pay tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 25249, Mar. 11, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25252, Mar. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first income on which liability to pay tax arises in the period of taxation to which the enforcement date of this Decree belongs: Provided, That with regard to local income tax under Chapter VIII, this Decree shall apply, beginning with the first income on which liability to pay tax arises because the first period of taxation begins after the partially amended Local Tax Act (Act No. 12153) enters into force. Article 3 (Applicability concerning Change of Payment Managers)
The amended provisions of Article 73 shall apply, beginning with the first local income tax to be paid in the month following the month to which the enforcement date of this Decree belongs. Article 4 (Applicability concerning Criteria for Proportional Distribution of Local Consumption Tax)
The amended provisions of Articles 75 (1), (5) and (8) and 76 (2) shall apply, beginning with the first local consumption tax paid or refunded in the first period of taxation which begins pursuant to the Value-Added Tax Act after the partly amended Local Tax Act (Act No. 12118) enters into force. Article 5 (Special Exceptions to Personal Local Income Tax Returns, etc.)
| (1) | A person who intends to file a provisional tax return on profit margins on the purchase and sale of land, etc. under Article 90 (1), a final tax base return under Article 92 (1), an amended tax return under Article 93 (1), a final tax base return on the place of business of joint business partners under Article 99, a provisional tax base return on capital gains under Article 100-2 (1), a final tax base return under Article 100-3 (1), and a tax return on capital gains on securities under Article 100-4 with the head of a tax office or the head of a regional tax service having jurisdiction over the place of tax payment pursuant to Article 13 (1) of Addenda to the partially amended Local Tax Act (Act No. 12153), shall file such tax returns in accordance with forms prescribed by Ordinance of the Ministry of Security and Public Administration along with an income tax return, provisional tax return, or amended tax return under the Income Tax Act. |
| (2) | Where the head of a tax office or the head of a regional tax service having jurisdiction over the place of tax payment collects income tax by determination, correction or determination of occasional imposition under the Framework Act on National Taxes or the Income Tax Act, he/she shall also determine, correct or determine occasional imposition of personal local income tax pursuant to Article 13 (2) of Addenda to the partially amended Local Tax Act (Act No. 12153) and give notice of the imposition thereof along with income tax in accordance with a form prescribed by Ordinance of the Ministry of Security and Public Administration. |
Article 6 (General Transitional Measures)
| (1) | Where a person has filed a local income tax return and paid local income tax in accordance with the former provisions before this Decree enters into force, he/she shall be deemed to have filed a resident tax return and a local income tax return and paid the aforesaid taxes pursuant to this Decree. |
| (2) | The former provisions shall apply to local tax which has been imposed or reduced or exempted or which should be imposed or reduced or exempted in accordance with the former provisions as at the time this Decree enters into force. |
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25317, Apr. 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Registration and License Tax)
The amended provisions of the attached Table shall apply, beginning with the first liability to pay a tax that arises after this Decree enters into force.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 25448, Jul. 7, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 8, 2014.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25456, Jul. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 15, 2014.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 25485, Jul. 18, 2014>
This Decree shall enter into force on July 21, 2014.
ADDENDA <Presidential Decree No. 25522, Jul. 28, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2014.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25545, Aug. 12, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 5 (2) shall enter into force on January 1, 2015. Article 2 (General Applicability)
This Decree shall apply, beginning with the first liability to pay a tax that arises after this Decree enters into force: Provided, That the amended provisions of Articles 100 and 100-7 pertaining to local income tax shall apply, beginning with the first income or transfer which occurs during the period of taxation into which the enforcement date of this Decree falls. Article 3 (Applicability to Reduction or Exemption of Security for Tax Payment)
The amended provisions of Article 71 (3) shall apply, beginning with the tobacco brought out of the place of manufacturing or the bonded area, or brought into Korea after this Decree enters into force. Article 4 (Applicability to Calculation of Tax Amount for Excess Repayment from Workplace Mutual Aid Associations)
The amended provisions of Article 88-2 shall apply, beginning with the portion paid in installments after this Decree enters into force. Article 5 (General Transitional Measures)
The former provisions shall apply to local taxes imposed, reduced or exempted, or to be imposed, reduced or exempted under the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 25700, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decree amended in accordance with Article 5 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcement dates of the respective Presidential Decrees. Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25910, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015. (Proviso Omitted.)
Article 2 (General Applicability)
This Decree shall apply to the cases where the duty to pay a tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 26290, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Submission of Statements of Special Collection of Corporate Local Income Tax)
The amended provisions of Article 100-19 (1) through (3) shall also apply to the cases where the tax is specially collected on or after January 1, 2015. Article 3 (Applicability to Issuance of Receipts of Specially Collected Corporate Local Income Tax)
The amended provisions of Article 100-19 (4) and (5) shall apply to the cases where the duty to pay the tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 26302, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26369, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 26431, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply to the cases where the duty to pay a tax arises after this Decree enters into force.
Article 3 (Applicability to Scope of Land Subject to Separate Taxation of Property Tax)
The amended provisions of Article 102 (5) 12 shall apply to the cases where notice is given on the imposition of property tax after this Decree enters into force.
ADDENDA <Presidential Decree No. 26438, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2015.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26763, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 29, 2015.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 26836, Dec. 31, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2016. (Proviso Omitted.)
Article 2 (General Applicability)
This Decree shall apply to cases where the duty to pay a tax arises after this Decree enters into force.
Article 3 (Applicability to Method of Proportional Distribution of Corporate Local Income Tax)
The amended provisions of Article 88 shall apply to cases where a corporate local income tax return is filed after this Decree enters into force. Article 4 (Applicability to Tax Returns on Unappropriated Earnings of Enterprises)
The amended provisions of Article 100-12 (1) shall apply to tax returns filed on corporate local income tax after this Decree enters into force. Article 5 (Applicability to Refund of Personal Local Income Tax)
The amended provisions of Article 100-34 shall apply to cases where a decision or a correction is made with regard to personal local income tax after this Decree enters into force. Article 6 (Applicability to Separate Taxation)
Article 7 (General Transitional Measures)
Former provisions shall apply to the local taxes imposed, reduced, or exempted or to be imposed, reduced, or exempted under former provisions at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 26858, Jan. 6, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 7, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26916, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 21, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 26928, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2016.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27102, Apr. 26, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 18 (4) shall apply to the cases where the duty to pay the tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 27245, Jun. 21, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 23, 2016.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27431, Aug. 2, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 4, 2016. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27471, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27473, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27619, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27621, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27710, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017.
Article 2 (General Applicability)
This Decree shall apply to cases where a tax liability arises after this Decree enters into force.
Article 3 (Applicability to Tax Rates of Resident Tax to Places of Business Discharging Pollutants)
Article 4 (Applicability to Proportional Distribution of Corporate Local Income Tax)
The amended provisions of the latter part of Article 88 (2) shall apply to the cases where a return on the tax base and amount is filed after this Decree enters into force. Article 5 (Applicability to Refunds Following Determination or Correction of Local Income Tax)
The amended proviso to Article 100-34 shall apply where an amount for which a correction is requested or a determined amount is refunded after this Decree enters into force. Article 6 (General Transitional Measures)
Former provisions shall apply to the local taxes imposed, reduced, or exempted or to be imposed, reduced, or exempted under former provisions at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 27793, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 20, 2017.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27958, Mar. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 27959, Mar. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27971, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Presidential Decree No. 27972, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017.
Articles 2 through 10 Omitted.
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 the Addenda, the amendment to a Presidential Decree which was promulgated before this Decree enters into force but whose enforcement date has yet to arrive, shall enter into force on the enforcement date of the relevant Decree. Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28366, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28524, Dec. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Transitional Measures concerning Acquisition of Dormant Corporation)
Notwithstanding the amended provisions of Article 27 (2), the former provisions shall apply to a person who became an oligopolistic stockholder under the former provisions of Article 27 (2) before this Decree enters into force. Article 4 (Transitional Measures concerning Business Establishments Emitting Air Pollutants)
Notwithstanding the amended provisions of Article 83, the former practices shall apply to violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 28583, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28627, Feb. 9, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 9, 2018.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 28686, Feb. 27, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 27, 2018. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28714, Mar. 27, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2018: Provided, That the amended provisions of subparagraph 5 of Article 60, subparagraph 1 (e) (ii) of Article 61 and Articles 64 (2), 88-2, 100 (6), 100 (8), 100-9 (1) and (3), 100-15 (2) and 100-38 shall enter into force on the promulgation date of the Decree. Article 2 (Applicability to Exemption from Tax on Cigarette Type Electronic Tobacco Brought in by Entrants)
The amended provisions of Article 64 (2) shall begin to apply where an entrant brings in electronic tobacco in such type pursuant to Article 54 (2) of the Act on or after the enforcement date provided for in the proviso to Article 1 of the Addenda. Article 3 (Applicability to Personal Local Income Tax on Capital Gains)
The amended provisions concerning capital gains in this Decree shall begin to apply to transfers occurring after this Decree enters into force: Provided, That the amended provisions of Article 100 (6) shall begin to apply to the income accruing during the taxable year in which the enforcement date under the proviso to Article 1 of the Addenda occurs. Article 4 (Applicability to Adjustment of Collection Subsidies)
The amended provisions of Article 100-9 (3) shall begin to apply to the refundable amounts accrue on or after the enforcement date provided for in the proviso to Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 28841, Apr. 30, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 1, 2018.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 29437, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2019.
Article 2 (General Applicability)
This Decree shall begin to apply to liabilities to pay a tax that arise after this Decree enters into force.
Article 3 (Applicability to Collection Subsidies Paid to Tax Association)
The amended provisions of Article 100-9 (1) shall begin to apply to portions of income generated after this Decree enters into force. Article 4 (Applicability to Submission of Statements of Special Collection of Corporate Local Income Tax)
The amended provisions of the former part of Article 100-19 (2) shall begin to apply to the portions specially collected after this Decree enters into force.
ADDENDA <Presidential Decree No. 29498, Jan. 22, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2019.
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 29512, Feb. 8, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Pro Rata Standard for Local Consumption Tax)
ADDENDA <Presidential Decree No. 29518, Feb. 8, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 29529, Feb. 12, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 18 Omitted.
ADDENDA <Presidential Decree No. 29617, Mar. 12, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 14, 2019.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 29677, Apr. 2, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 29797, May 31, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 128-2 shall enter into force on July 1, 2019. Article 2 (Applicability to Scope of Land Subject to Separate Taxation)
The amended provisions of Article 102 (8) 5 shall apply where the obligation to pay the tax arises after this Decree enters into force. Article 3 (Transitional Measures concerning Timing of Acquisition of Buildings)
The previous provisions shall apply to the timing of acquiring any of the following buildings as at the time this Decree enters into force, notwithstanding the amended provisions of Article 20 (6). | 1. | Buildings for which a certificate of inspection of completion under Article 51 (1) of the Urban Development Act has been issued; for which public announcement of the completion of construction works has been made under paragraph (2) of that Article; or for which permission for use prior to the inspection of completion or public announcement of the completion of construction works is made under the proviso of Article 53 of that Act. |
| 2. | A building for which notice of completion of construction works has been published pursuant to Article 83 (4) of the Act on the Improvement of Urban Areas and Residential Environments, a building for which permission for use has been granted before authorization of completion was granted pursuant to the main clause of paragraph (5) of that Article, a building for which permission for completion has been granted pursuant to the proviso of paragraph (5) of that Article or a building for which certificate of completion has been issued pursuant to Article 74 of the Enforcement Decree of that Act; |
Article 4 (Transitional Measures concerning Reduction of Interest Rate in Cases of Additional Collection of Tax Refunds Following Retroactive Deduction of Losses)
In cases of the tax amount refunded before this Decree enters into force, the previous provisions shall apply to the interest rate for the period from the day following the date the initial tax amount refunded is notified until the date this Decree enters into force, notwithstanding the amended provisions of Article 100-18 (5) 2. Article 5 (Transitional Measures concerning Reduction of Interest Rate on Additional Dues in Extending Deadline for Filing Tax Base Return of Corporate Local Income by Foreign Corporations)
Where approval for extending a deadline for filing a return is obtained before this Decree enters into force, the previous provisions shall apply to the interest rate for the period from the date following the deadline for filing a return before such extension until the date before this Decree enters into force, notwithstanding the amended provisions of Article 100-27 (2).
ADDENDA <Presidential Decree No. 30256, Dec. 24, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 16, 2020. (Proviso Omitted.)
Articles 2 through 33 Omitted.
ADDENDA <Presidential Decree No. 30318, Dec. 31, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2020: Provided, That the following amended provisions shall enter into force on the dates specified as follows:
| 1. | The amended provisions of Articles 87 (2) and (3) and 100 (34): The date of promulgation; |
| 2. | The amended provisions of subparagraphs 164 and 177 of Type 4 of attached Table 1: Jan. 16, 2020; |
| 3. | The amended provisions of subparagraph 31 of Type 1 of attached Table 1, subparagraph 31 of Type 2 of that Table, subparagraph 32 of Type 3 of that Table, and subparagraph 31 of Type 4 of that Table: March 14, 2020. |
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Applicability to Change of Places for Tax Payment for Year-end Tax Adjustment Following Change of Workplace)
The amended provisions of Article 87 (2) shall begin to apply to the year-end tax adjustments made after the enforcement date specified in the proviso of Article 1 of these Addenda. Article 4 (Applicability to Submission of Statement of Distribution to Each Joint Business Partner)
The amended provisions of the proviso of Article 99 shall begin to apply to the periods for a final tax base return for personal local income tax on global income that arrive after this Decree enters into force. Article 5 (Transitional Measures concerning Scope of House Falling under Four or More Houses per Household)
In applying the amended provisions of Article 22-2 (1), where one household possessing three or more houses in the Republic of Korea concludes a sale and purchase contract for a house before December 4, 2019, and a party to such contract acquires the relevant house within three months (three years, where a parceling-out contract of multi-family housing has been concluded) after this Decree enters into force, the house shall not be deemed a house that counts toward the fourth or more per household. <Amended on Aug. 12, 2020>
ADDENDA <Presidential Decree No. 30633, Apr. 28, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Calculation of House Rental Income Subject to Separate Taxation)
The amended provisions of Article 91-2 (1) 3 shall begin to apply to the house lease contracts renewed or newly concluded after this Decree enters into force, and the conversion between rental security deposits and monthly rents shall begin to apply where a house is converted after this Decree enters into force. Article 3 (Applicability to Final Tax Base Return for Personal Local Income Tax on Capital Gains)
The amended provisions of Article 100-3 (2) 3 shall begin to apply where assets are transferred during the taxable period in which this Decree enters into force. Article 4 (Applicability to Additional Interest Rates from Extension of Deadline for Filing Corporate Local Income Tax Return of Foreign Corporations)
The amended provisions of Article 100-27 (2) shall also apply where approval for extension of the deadline for reporting was obtained before this Decree entered into force but the deadline for approval for extension has not elapsed as at the time this Decree entered into force: Provided, That where the initial deadline for reporting has passed, the same shall apply only to the period from the enforcement date of this Decree until the deadline for approval for extension. Article 5 (Applicability to Making and Making up for Local Tax Refund)
The amended provisions of Article 100-34 shall begin to apply to portions of refunds of local income tax made after the date this Decree enters into force.
ADDENDA <Presidential Decree No. 30672, May 12, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That ... <omitted> ... Article 2 (1), (2), and (5) of these Addenda shall enter into force three months after the date of the promulgation. Article 2 Omitted.
ADDENDA <Presidential Decree No. 30704, May 26, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 27, 2020.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 30728, Jun. 2, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Special Cases concerning Scope of Land Subject to Separate Taxation)
Notwithstanding the amended provisions of subparagraphs 1 through 3, 8, and 9 of Article 102 (8), with regards to the land subject the classification of taxable objects of which is changed from separate taxation to separate aggregate taxation or general aggregate taxation (hereafter in this Article referred to as "land subject to change in the classification of taxable objects"), the area computed by multiplying the ratio for each taxable year according to the following table by the lot of land whose classification of taxable objects is changed until 2025 shall be deemed land subject to separate taxation. In such cases, it shall be limited where the person liable to pay tax of the land subject to the changed tax classification is not changed. | Taxable Year | Ratio | | Year 2020, 2021 | 100/100 | | Year 2022 | 80/100 | | Year 2023 | 60/100 | | Year 2024 | 40/100 | | Year 2025 | 20/100 |
|
ADDENDA <Presidential Decree No. 30893, Aug. 4, 2020>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on August 5, 2020. (Proviso Omitted.) |
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 30934, Aug. 11, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2020.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 30939, Aug. 12, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Houses Acquired by Association Members' Rights to Residency as Association Member or Right to Purchase Houses)
The amended provisions of the latter part of Article 28-4 (1) shall begin to apply to the rights to residency as an association member and the rights to purchase a house acquired after this Decree enters into force. Article 3 (Special Cases concerning Calculation of Number of Inherited Houses)
Notwithstanding the amended provisions of Article 28-4 (5) 3, a house, the right to residency as an association member, the right to purchase a house, or officetel acquired before this Decree enters into force shall be excluded from the number of houses for purposes of calculating it for five years after this Decree enters into force. Article 4 (Transitional Measures concerning Tax Rates for Acquisition Tax on House)
ADDENDA <Presidential Decree No. 30975, Aug. 26, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 28, 2020.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31212, Dec. 1, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 4, 2020.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31221, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 31222, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31243, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31252, Dec. 10, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31343, Dec. 31, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2021: Provided, That the following amended provisions shall enter into force on the dates specified in the following subparagraphs:
| 2. | The amended provisions of Articles 91-2 (1) 1, 91-2 (2), and 100-18 (2) 2: The promulgation date; |
| 2. | The amended provisions of Article 100 (6) 3: June 1, 2021; |
| 3. | The amended provisions of subparagraph 55 of type 1 of attached Table 1, subparagraph 55 of type 2 of attached Table 1, subparagraph 56 of type 3 of attached Table 1, subparagraph 55 of type 4 of attached Table 1, and subparagraph 203 of type 4 of attached Table 1: February 19, 2021; |
| 4. | The amended provisions of subparagraph 27 of type 1 of attached Table 1, subparagraph 27 of type 2 of attached Table 1, subparagraph 27 of type 3 of attached Table 1, and subparagraph 27 of type 4 of attached Table 1: March 5, 2021; |
| 5. | The amended provisions of subparagraph 199 of type 1 of attached Table 1: April 8, 2021; |
| 6. | The amended provisions of Articles 4 (1) 1 and 1-2 and 28 (2) 2: January 1, 2022. |
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Applicability to Period of Temporary Two Houses Ownership for Houses subject to Management and Disposal)
Article 4 (Special Cases concerning Application of Separate Taxation on Land to Be Used in Industrial Complex Development Projects)
With respect to land for which authorization for completion of the industrial complex development project was obtained before this Decree entered into force but sale or lease contracts are not concluded as at the date this Decree enters into force, the enforcement date of this Decree shall be deemed the date of authorization for completion, and the amended provisions of Article 102 (7) 5 (b) shall apply. Article 5 (Transitional Measures concerning Scope of and Standards for Application of Residential Buildings Deemed High-End Houses and Land appurtenant thereto)
Notwithstanding the amended provisions of Article 28 (4) 1 and 2, the previous provisions shall apply where it is confirmed, by evidentiary documents, that a sale and purchase contract (including a sale contract) for a residential building and appurtenant land, the value of which is not more than 90 million won, has been paid before this Decree enters into force. Article 6 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31438, Feb. 9, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 19, 2021.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 31450, Feb. 17, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 31463, Feb. 17, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31472, Feb. 19, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 19, 2021.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 31576, Mar. 30, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2021. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31646, Apr. 27, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Applicability to Calculation of Finalized Tax Amount on Global Income Related to House Rental Income Subject to Separate Taxation)
The amended provisions of Article 91-2 (3) and (6) shall begin to apply to the tax base returns filed after this Decree enters into force. Article 4 (Applicability to Scope of Land Subject to Separate Taxation)
The amended provisions of Article 102 (8) 5 (b) shall also apply where the obligation to pay a tax arises after May 31, 2019.
ADDENDA <Presidential Decree No. 31740, Jun. 8, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 9, 2021.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31741, Jun. 8, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 9, 2021.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31889, Jul. 13, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 31941, Aug. 10, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 31961, Aug. 31, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 10, 2021.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 31986, Sep. 14, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32091, Oct. 21, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 21, 2021.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 32251, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2022.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32293, Dec. 31, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2022: Provided, That the following amended provisions shall enter into force on the dates specified in the following subparagraphs:
| 1. | The amended provisions, with the exception of the subparagraphs, of Article 4 (1), Articles 4 (1) 1-2, (3), and (6) through (9), 4-2 through 4-5, 14, 14-2 through 14-4, 15 through 17, 18 (excluding paragraph (1) 4 of that Article); Articles 18-2 through 18-6, 19, 20 (1) and (2), 38-3, and Article 7 of the Addenda (excluding paragraphs (3) and (4) of that Article): January 1, 2023; |
| 1. | The amended provisions of subparagraph 157 of type 3 of attached Table 1,subparagraph 111 of type 4 of attached Table 1: January 21, 2022; |
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Applicability concerning Pro Rata Standards for Local Consumption Tax)
The amended provisions of Article 75 and attached Tables 2 through 5 shall begin to apply to the local consumption taxes paid or refunded under the Value-Added Tax Act after this Decree enters into force. Article 4 (Applicability to Provision of Tax Convenience by Final Tax Base Return of Global Income)
The amended provisions of Article 92 (3) shall also apply to payment reminder the head of the relevant local government having jurisdiction over a place for tax payment sends under Article 95 (4) of the Act after this Decree enters into force. Article 5 (Special Cases concerning Pro Rata Standards for Local Consumption Tax)
Notwithstanding the amended provisions of Article 75 (2) 6, the pro rata amount falling under Article 71 (3) 4 (a) of the Act from January 1, 2022 to December 31, 2022 shall be 1. 311 trillion and 6, 709 million and 2,000 won. Article 6 (Special Cases concerning Scope of Land Subject to Separate Taxation)
| (1) | Where the land owned before this Decree enters into force and continuously owned after this Decree enters into force among the land subject to separate taxation under the amended provisions of Article 102 (8) 1 as subject to general aggregate taxation or subject to special aggregate taxation, which is owned by the land subject to separate taxation before this Decree enters into force, the taxable year referred to in the following subparagraphs by the lot of the land on which the taxable object is changed, notwithstanding the amended provisions: The area calculated by multiplying each rate shall be deemed land subject to separate taxation. |
| 1. | Land falling under any subparagraph of Article 101 (1); |
| 2. | Land, other than those under subparagraph 1: |
Article 7 Omitted.
ADDENDA <Presidential Decree No. 32447, Feb. 17, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 18, 2022.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32449, Feb. 17, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 18, 2022.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32511, Feb. 28, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall begin to apply to liabilities to pay a tax that arise after this Decree enters into force.
ADDENDA <Presidential Decree No. 32598, Apr. 19, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 20, 2022.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32697, Jun. 14, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 16, 2022.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32747, Jun. 30, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Heavy Taxation of Acquisition Tax and Requirements for Exclusion from Temporary Two Houses in Areas subject to Adjustment)
The amended provisions of Articles 28-5 (1) and 36-3 (1) shall also apply where the criteria prescribed in the same amended provisions are satisfied by disposing of the former housing, etc. under Articles 28-5 and 36-3 after May 10, 2022.