CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to prescribe taxation requirements of respective items of local tax imposed by local governments, imposition and collection thereof, and other necessary matters.
| Article 3 (Tax-Levying Authority) |
A local government which imposes and collects a local tax pursuant to this Act shall be the tax-levying authority of the relevant local tax according to each local government’s classification of tax items under Articles 8 and 9 of the Framework Act on Local Taxes.
| Article 4 (Assessed Value of Real Estate) |
| (1) | Assessed values of land and housing applicable in this Act shall be the publicly announced values pursuant to the Act on the Public Announcement of Real Estate Values: Provided, That where officially assessed individual land prices or individual housing prices have not been publicly announced, the assessed values shall be determined by the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu (the head of the relevant Gu means the head of the relevant autonomous Gu; hereinafter the same shall apply) by applying the standard comparison table of land prices or the standard comparison table of housing prices provided by the Minister of Land, Infrastructure and Transport pursuant to the said Act, but, where prices for multi-family housing units have not been publicly announced, such prices shall be determined by the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu in accordance with the standards prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jan. 19, 2016; Dec. 27, 2016> |
| (2) | Assessed values of buildings (including a building exclusive of its land as a housing, the individual housing price or collective housing price of which has not been publicly announced as at the time of construction due to its new construction), other than those stipulated under paragraph (1), ships and aircraft, and other objects of taxation shall be those determined by the head of the competent local government according to the standards prescribed by Presidential Decree in consideration of characteristics of each object of taxation, such as the kind, structure, use, number of years elapsed, etc. based on the standard price determined considering a transaction price, importation price, costs to be incurred in newly constructing, building or manufacturing such buildings, ships or aircraft, and other matters. |
| (3) | If the Minister of the Interior and Safety deems it necessary to conduct a survey or research in order to determine appropriate standards for the assessed values under paragraph (2), he or she may request a related specialized institution specified by Presidential Decree to conduct such survey or research. <Newly Inserted on Dec. 29, 2015; Jul. 26, 2017> |
| Article 5 (Application of the Framework Act on Local Taxes and the Local Tax Collection Act) |
[Title Amended on Dec. 27, 2016]
CHAPTER II ACQUISITION TAX
SECTION 1 Common Provisions
The terms used in relation to acquisition tax are defined as follows: <Amended on Jan. 1, 2013; Mar. 23, 2013; Jan. 1, 2014; Jun. 3, 2014; Nov. 19, 2014; Dec. 29, 2015; Dec. 27, 2016; Jul. 26, 2017; Aug. 27, 2019>
| 1. | The term "acquisition" means original acquisition (excluding acquisition of a taxable asset that has already existed, such as acquisition by a decision of expropriation), acquisition by succession, or all other acquisitions with or without compensation which include acquisitions resulting from sale, exchange, inheritance, donation, contribution, investment in kind to a corporation, construction, repair, reclamation of public waters, creation, etc. of land through reclamation, and any other acquisition similar thereto; |
| 2. | The term "real estate" means any land and building; |
| 4. | The term "building" means any building under Article 2 (1) 2 of the Building Act (including buildings similar thereto), leisure facility, storage facility, docking facility, berthing facility, conduit facility, water supply/drainage facility, energy supply facility, and any other similar facility fixed to the ground, or installed underground or on other structures (including facilities annexed thereto) prescribed by Presidential Decree; |
| 6. | The term "repair" means any of the following: |
| (b) | Repair of facilities prescribed by Presidential Decree, such as leisure facilities, storage facilities, docking facilities, berthing facilities, conduit facilities, water supply/drainage systems, energy supply facilities, and other facilities similar thereto (including facilities attached thereto), among buildings; |
| (c) | Establishment or repair of at least one type of facilities prescribed by Presidential Decree, among facilities attached to a building; |
| 7. | The term "vehicle" means all vehicles equipped with a motor, trailers, and all machinery carrying passengers or freight on the track; |
| 8. | The term "mechanical equipment" means mechanical equipment used for construction works, freight loading and landing, and mining, prescribed by Ordinance of the Ministry of the Interior and Safety, among construction machinery stipulated under the Construction Machinery Management Act and mechanical equipment similar thereto; |
| 9. | The term "aircraft" means an airplane, airship, glider, rotorcraft, and any other flight equipment similar thereto prescribed by Presidential Decree which a person boards and pilots for aviation; |
| 10. | The term "ship" means any steamship, sailing ship, barge, and all other ships, regardless of their names; |
| 11. | The term "standing timber" means any fruit tree, forest tree, and bamboos on the ground; |
| 16. | The term "condominium membership" means a right to use facilities prescribed by Presidential Decree which include a condominium under the Tourism Promotion Act and other recreational facilities similar thereto; |
| 19. | The term "base rate for heavy taxation" means the tax rate of 20/1000, which shall be added to or subtracted from the tax rate under Article 11 or 12 or which shall be the standard for applying the special exception to the tax rate under Article 15 (2); |
| 20. | The term "annual installment" means that a price that cannot be fully paid in a lump sum shall be paid in equal installments over at least two years under a sales contract in the form of an annual installment contract. |
| Article 7 (Persons Liable to Pay Taxes, etc.) |
| (1) | Acquisition tax shall be imposed on a person who has acquired real estate, a vehicle, mechanical equipment, aircraft, ships, standing trees, mining right, fishing right, aquaculture business right, golf membership, riding club membership, condominium membership, sports complex membership, or yacht club membership (hereafter referred to as "real estate, etc." in this Chapter). <Amended on Jan. 1, 2014; Aug. 27, 2019> |
| (2) | Real estate, etc. is deemed acquired when it is practically acquired even if the acquisition of such real estate, etc. is not registered or recorded under the relevant statutes, such as the Civil Act, the Motor Vehicle Management Act, the Construction Machinery Management Act, the Aviation Safety Act, the Ship Act, the Standing Timber Act, the Mining Industry Act, the Fisheries Act, and Aquaculture Industrial Development Act, and thus the owner or transferee of the relevant article shall be deemed an acquirer, respectively: Provided, That the same shall apply only to acquisition by succession in the case of vehicles, mechanical equipment, aircraft, and custom-built ships. <Amended on Mar. 29, 2016; Aug. 27, 2019> |
| (3) | With respect to parts belonging to mechanical facilities and other incidental facilities of a building, which constitute utility value as a building together with its main structure, even where a person other than the acquirer of the main structure has installed such parts, the acquirer of the main structure shall be deemed to have acquired such parts together with the main structure. <Amended on Jan. 1, 2013> |
| (4) | Where the value of a ship, vehicle or mechanical equipment increased following the actual change in the kind of a ship, vehicle or mechanical equipment or the value of land increased due to the actual change in the category of land, it shall be deemed to have been acquired. In such cases, when the land category has actually changed following the execution of an urban development project prescribed in the Urban Development Act (limited to the replotting method), the replotting land provided in accordance with the replotting plan shall be deemed acquired by the association member, and an area of land secured by the authorities in recompense of development outlay or reserved land shall bd deemed acquired by the relevant project operator, respectively. <Amended on Mar. 14, 2023> |
| (5) | Where a person becomes an oligopolistic stockholder prescribed by Presidential Decree from among oligopolistic stockholders prescribed in subparagraph 2 of Article 46 of the Framework Act on Local Taxes (hereinafter referred to as "oligopolistic stockholder") by acquiring stocks or stake of a corporation, the relevant oligopolistic stockholder shall be deemed to have acquired real estate, etc. (including real estate, etc. registered or recorded in the name of a trustee as property entrusted under the Trust Act) of the relevant corporation (where a person becomes a oligopolistic stockholder by acquiring stocks or stake issued as at the time when the corporation is incorporated, the relevant person shall not be deemed to have acquired real estate, etc.). In such cases, with regard to joint and several liability for tax payment of oligopolistic stockholders, Article 44 of the Framework Act on Local Taxes shall apply mutatis mutandis. <Amended on Jan. 1, 2014; Dec. 29, 2015; Dec. 27, 2016; Mar. 14, 2023> |
| (6) | Where a person imports any article subject to acquisition tax which is held by a foreigner (limited to a vehicle, mechanical equipment, aircraft, and ship) on lease for the purpose of directly using it or lending it to local users of leased facilities, the importer of such article shall be deemed to have acquired it. |
| (7) | Where acquisition is made through inheritance (including bequest and universal bequest made by an ancestor to his or her heir, and inheritance of trust property; hereafter the same shall apply in this Chapter and Chapter III), each heir shall be deemed to have acquired the article to be inherited (referring to the acquired article equivalent to shares, if a stake is acquired). In such cases, Article 44 (1) and (5) of the Framework Act on Local Taxes shall apply mutatis mutandis to the heir's duty to make a payment. <Amended on Dec. 27, 2010> |
| (9) | Even where a lessor under the Specialized Credit Finance Business Act leases facilities, such as construction machinery or vehicles, and where registration is made in the name of the lessee pursuant to Article 33 (1) of the same Act, such construction machinery or vehicles shall be deemed acquired by the lessor. <Newly Inserted on Dec. 27, 2010> |
| (10) | Even where the title to any mechanical equipment or vehicle is registered in the name of a mechanical equipment leasing company or a transportation company (limited to where such mechanical equipment or vehicle is registered for business use), the mechanical equipment or vehicle shall be deemed to have been acquired by the person who paid the acquisition price, if it is proved in a purchase contract, a tax invoice, the ledger of vehicle owners, etc. for the relevant mechanical equipment or vehicle that any other person paid the price to acquire the mechanical equipment or vehicle. <Newly Inserted on Dec. 27, 2010; Jul. 24, 2015> |
| (11) | Where a person acquires real estate, etc. of his or her spouse or lineal ascendant or descendant, he or she shall be deemed to have acquired real estate, etc. through the donation thereof: Provided, That where his or her acquisition falls under any of the following, he or she shall be deemed to have acquired real estate, etc. with compensation: <Newly Inserted on Jan. 1, 2014; Dec. 29, 2015> |
| 1. | Where he or she acquires real estate, etc. through public auction (including an auction; hereinafter the same shall apply); |
| 2. | Where he or she acquires real estate, etc. disposed of due to a declaration of bankruptcy; |
| 3. | Where he or she exchanges real estate, etc. that needs to be registered or recorded with another person for the transfer or exercise of the right therein; |
| 4. | Where it is proved through any of the following methods that he or she has paid the price in order to acquire the relevant real estate, etc.: |
| (a) | Where the acquirer's income for the payment of the price is verified; |
| (b) | Where the person acquires the relevant real estate with the amount procured by disposing of his or her own property or by offering his or her own property as security; |
| (c) | Where inheritance tax or gift tax has already been imposed (including cases where such tax is non-taxable or reduced or exempted) or the person has already filed a tax return and paid the price with the price for the property transferred by inheritance or gift; |
| (d) | Where it is proved that the price has been paid with the acquirer's property in a case similar to those under items (a) through (c). |
| (12) | In the case of a conditional donation that requires a person to assume debts of a donor, the person shall be deemed to acquire real estate, etc. with compensation for the portion equivalent to the amount of such debts: Provided, That paragraph (11) shall apply to a conditional donation of real estate from a spouse or a lineal ascendant or descendant. <Newly Inserted on Jan. 1, 2014; Dec. 26, 2017> |
| (13) | After a share of inherited property of each heir is determined by registration, registry, transfer of title, etc. for inherited property (hereinafter referred to as "registration, etc."), and the registration, etc. therefor is accepted after the commencement of inheritance, the value of property acquired by a specific person in excess of the original share of inherited property as a result of redivision of inherited property by an agreement among coheirs shall be deemed acquired through donation from an heir whose share of inherited property is reduced by redivision: Provided, That in any of the following cases, this shall not apply: <Newly Inserted on Jan. 1, 2014; Dec. 31, 2018> |
| 1. | Where the heir acquires inherited property by redivision and completes registration, etc. therefor within a period for reporting and payment under Article 20 (1); |
| 2. | Where changes are made to heirs and inherited property in accordance with the court's final ruling due to a lawsuit claiming the recovery of inheritance; |
| 3. | Where inherited property registered in accordance with a legal share of inherited property of coheirs by exercising the right of subrogation of creditors under Article 404 of the Civil Act is redivided by division in consultation among heirs. |
| (14) | Where a garden or an annex building, etc. is created or established in a land for which a housing site construction project is completed under the National Land Planning and Utilization Act or any other relevant statute or regulation, from among sites under Article 67 of the Act on the Establishment and Management of Spatial Data; such garden or annex building, etc., shall be deemed included in the land, and therefore the land category shall be practically deemed changed and the owner of the land shall be deemed to have acquired it: Provided, that where a garden or an annex building, etc. incidental to a building is created or established while constructing such building; such garden or annex building, etc., shall be deemed included in the building, and therefore an acquirer of the building shall be deemed to have acquired it. <Newly Inserted on Dec. 29, 2015; Dec. 31, 2019> |
| (15) | Where the status of a trustor of trusted property is transferred to another person under Article 10 of the Trust Act, the new trustor shall be deemed to acquire the relevant trust property: Provided, That this shall not apply to where it is hard to hold that a change has actually occurred to the ownership of trust property in spite of the transfer of the status of the trustor, as prescribed by Presidential Decree. <Newly Inserted on Dec. 29, 2015> |
| (16) | Where any building is supplied under the replotting plan or management disposal plan or repaid as a land repayment bond to the owner (including the heir) of real estate subject to the relevant project following the execution of an urban development project prescribed in the Urban Development Act and improvement project prescribed in the Act on the Improvement of Urban Areas and Residential Environments, the owner shall be deemed to have originally acquired the relevant building, and in cases of land, the owner shall be deemed to have acquired the relevant land by succession. In such cases, when land exceeds the land area originally owned, it is deemed to have been acquired limiting to the part corresponding to the excess area. <Newly Inserted on Mar. 14, 2023> |
| Article 8 (Places for Tax Payment) |
Places for payment of acquisition tax shall be as follows: <Amended on Dec. 27, 2010; Jan. 1, 2014; Dec. 27, 2016; Aug. 27, 2019; Dec. 31, 2019; Jun .10, 2022; Mar. 14, 2023 >
| 1. | Real estate: The location of real estate; |
| 2. | Vehicles: A place registered under the Motor Vehicle Management Act: Provided, That, if the registered place is different from the principal place of use, the place for tax payment shall be deemed the principal place of use, while the location of a railway vehicle base, in which railway vehicles are mainly cleaned, kept, arranged, inspected, repaired, shall be deemed the place for tax payment in the case of railway vehicles; |
| 4. | Aircraft: The location of the aircraft shed; |
| 5. | Ships: The location of the port of registry: Provided, That in cases of the motorized water-related leisure equipment falling under each subparagraph of Article 3 of the Act on the Registration and Inspection of Water-Related Leisure Equipment, it shall be a place registered under Article 6 (1) of the Act, and in cases of ships without a port of shipment, it shall be the location of mooring (when the place of mooring is not fixed, it shall be the address of a ship owner). |
| 6. | Standing timber: The location of standing timber; |
| 7. | Mining rights: The location of a mining area; |
| 8. | Fishing rights and aquaculture business rights: The location of fishing grounds; |
| 9. | Golf course membership, riding club membership, condominium membership, sports complex membership, or yacht club membership: The location of the relevant golf course, riding club, condominium, sports complex, or marina. |
| (2) | Where a place for tax payment stipulated under paragraph (1) is unclear, the location of the relevant article acquired shall be deemed the place for tax payment. |
| (3) | Where the same article acquired extends over at least two local governments, acquisition tax shall be distributed pro rata according to its location, as prescribed by Presidential Decree. |
| (1) | No acquisition tax shall be imposed on any acquisition by the State or a local government (excluding a corporation deemed as the State or a local government in other Acts; hereinafter the same shall apply), a local government association under Article 176 (1) of the Local Autonomy Act (hereinafter referred to as "local government association"), a foreign government or an international organization in Korea: Provided, That acquisition tax shall be levied on any acquisition by a foreign government which imposes taxes on any acquisition by the government agencies of the Republic of Korea. <Amended on Jan. 1, 2014; Dec. 31, 2019; Jan. 12, 2021> |
| (2) | No acquisition tax shall be imposed on any real estate acquired on condition of attribution or donation (including attribution of such real estate in the method stipulated under subparagraph 3 of Article 4 of the Act on Public-Private Partnerships in Infrastructure; hereafter in this paragraph referred to as “attribution, etc.”) to the State, a local government, or a local government association (hereafter in this paragraph referred to as “state, etc.”) or on an infrastructure facility specified in any item of subparagraph 1 of Article 2 of the Act on Public-Private Partnerships in Infrastructure: Provided, That acquisition tax shall be imposed on the relevant part in either of the following cases: <Amended on Dec. 27, 2010; Jul. 24, 2015; Dec. 29, 2015> |
| 1. | Where the condition is changed not to perform the condition of attribution, etc. to the State or other entity but to sell or transfer real estate to another person or not to perform the condition of attribution, etc.; |
| 2. | Where real estate or an infrastructure facility owned by the State or other entity is transferred free of charge or the right to use the donated property free of charge is granted, in return for attribution, etc. to the State or other entity. |
| (3) | No acquisition tax shall be imposed on the acquisition of any trust property through trust (limited to trust under the Trust Act, the trust registration of which is filed for) in any of the following cases: Provided, That this shall not apply to the acquisition of real estate between a housing association, etc. and its members, and the acquisition of real estate for non-members by the housing association, etc. with respect to the acquisition of the trust property: <Amended on Jul. 25, 2011> |
| 1. | Where a truster transfers any trust property to a trustee; |
| 2. | Where the trust property is transferred from a trustee to a truster following the expiration of trust; |
| 3. | Where the trust property is transferred to a new trustee due to a change of a trustee. |
| (5) | No acquisition tax shall be imposed on the acquisition of a temporary building, such as a temporary stage for shows and a construction site office (excluding objects of taxation under Article 13 (5)): Provided, That acquisition tax shall be imposed if the duration exceeds one year. <Amended on Dec. 27, 2010> |
| (6) | No acquisition tax shall be imposed on the acquisition of a housing unit resulting from improvement related to a housing unit with a value not higher than the price prescribed by Presidential Decree, among the acquisition resulting from improvement (excluding substantial repair under Article 2 (1) 9 of the Building Act) of multi-family housing under subparagraph 3 of Article 2 of the Housing Act. <Newly Inserted on Dec. 27, 2010; Jan. 1, 2013; Jan. 1, 2014; Jan. 19, 2016> |
| (7) | No acquisition tax shall be levied on acquisition through inheritance of any of the following vehicles: <Amended on Dec. 28, 2021> |
| 1. | A vehicle prescribed by Presidential Decree, which cannot be used prior to the commencement of inheritance due to a natural disaster, fire, traffic accident, excess of the age limits for motor vehicles, etc.; |
| 2. | A vehicle for which the registration is canceled within three months from the date of commencement of inheritance because such vehicle is scrapped without registration of transfer on any ground prescribed by Presidential Decree, such as where a vehicle is virtually unable to be used due to excess of the age limits for motor vehicles; |
[Title Amended on Jan. 1, 2014]
SECTION 2 Tax Base and Tax Rate
| Article 10 (Criteria for Tax Base) |
The tax base for acquisition tax shall be the value at the time of acquisition: Provided, That if acquisition is made in annual installments, the tax base shall be the amount of annual installments (referring to the amount actually paid out on each occasion and including the contract deposit included in the acquisition money; hereafter in this Chapter, the same shall apply).
[This Article Wholly Amended on Dec. 28, 2021]
| Article 10-2 (Tax Base for Gratuitous Acquisition) |
| (1) | Where real estate, etc. is acquired without compensation, the value at the time of acquisition referred to in Article 10 (hereinafter referred to as "value at the time of acquisition") shall be the value deemed to be normally determined when many unspecified persons freely engage in transactions at the time of acquisition (referring to the 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"). |
| (2) | Notwithstanding paragraph (1), in any of the following cases, the value prescribed in the relevant subparagraph shall be the value at the time of acquisition: |
| 1. | In cases of gratuitous acquisition following inheritance: The assessed value under Article 4; |
| 2. | In cases of gratuitous acquisition (excluding cases falling under subparagraph 1) of real estate, etc. the value of which is not more than that prescribed by Presidential Decree: The value determined by the taxpayer, among the recognized current price and the assessed value under Article 4; |
| 3. | In cases not falling under subparagraphs 1 and 2: The recognized current price, but where it is impracticable to calculate the recognized current price, the assessed value under Article 4. |
| (3) | Where a taxpayer intends to file a return on the value appraised under paragraph (1) based on the tax base when filing a return under Article 20 (1), the taxpayer shall request two or more appraisal institutions (in cases of real estate, etc., the value of which is not more than that prescribed by Presidential Decree, referring to one appraisal institution) to appraise and shall append the outcomes thereof. |
| (4) | 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, the head of a local government in receipt of a report under paragraph (3) may designate the relevant appraisal institution as an appraisal institution whose appraised market price is not approved for a fixed period not exceeding one year. |
| (5) | The appraised value appraised by an appraisal institution designated as an appraisal institution whose appraised market price is not approved pursuant to paragraph (4) shall not be deemed the recognized current price during the designated period. |
| (6) | In cases of a gift of encumbered property that takes over the debts of a donor under Article 7 (11) and (12), the tax base for derivative acquisition for value prescribed in Article 10-3 shall apply to the portion equivalent to the amount of obligations deemed paid acquisition (hereafter in this Article referred to as "amount of debt burden"); and the tax base for gratuitous acquisition prescribed in this Article shall apply to the remaining amount obtained by subtracting the amount of debt burden from the recognized current price of the acquired object. |
| (7) | The period of designation and the procedures for designation as an appraisal institution whose appraised market price is not approved under paragraph (4), the scope of the amount of debt burden subject to the application of the tax base for derivative acquisition for value under paragraph (6), the value which is the tax base for the derivative acquisition for value, the application thereof, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 28, 2021]
| Article 10-3 (Tax Base for Derivative Acquisition for Value) |
| (1) | Where a person acquires by succession for value (referring to a transaction to pay for acquisition, such as sale or exchange; hereafter in this Chapter the same shall apply), the value at the time of acquisition shall be the actual acquisition price prescribed by Presidential Decree (hereinafter referred to as "actual acquisition price"), including all expenses paid or to be paid to the counterparty to a transaction or a third party to acquire the relevant goods before the time of the acquisition. |
| (2) | Where the head of a local government deems that a tax burden on the relevant acquisition has been unreasonably reduced or that a tax burden has been calculated through a transaction between related parties (hereafter in this Chapter referred to as "wrongful calculation"), he or she may determine the recognized current price as the value at the time of acquisition, notwithstanding paragraph (1). |
| (3) | The types of wrongful calculation shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 28, 2021]
| Article 10-4 (Tax Base for Original Acquisition) |
| (1) | For original acquisition of real estate, etc., its value at the time of acquisition shall be the actual acquisition price. |
| (2) | Notwithstanding paragraph (1), where a person who is not a corporation builds and acquires a building and it is impracticable to ascertain the actual acquisition price, the value at the time of acquisition shall be the assessed value under Article 4. |
[This Article Newly Inserted on Dec. 28, 2021]
| Article 10-5 (Special Cases concerning Tax Base for Gratuitous Acquisition, Derivative Acquisition for Value, or Original Acquisition) |
| (1) | Notwithstanding Articles 10-2 and 10-3, the value at the time of acquisition of vehicle or machinery equipment shall be the price or value classified as follows: |
| 1. | Where a vehicle or machinery equipment is acquired without compensation: The assessed value under Article 4 (2); |
| 2. | Where a vehicle or machinery equipment is acquired by succession for value: The actual acquisition price: Provided, That, where no report of the actual acquisition price has been filed, the reported value fails to be indicated, or the reported value of the acquisition is lower than the assessed value under Article 4 (2); the value at the time of acquisition shall be the assessed value under the same paragraph; |
| 3. | Where a vehicle manufactured by a vehicle manufacturing company is directly used: The actual acquisition price. |
| (2) | Notwithstanding paragraph (1), in 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, the value at the time of acquisition of such vehicle or machinery equipment may be calculated otherwise, as prescribed by Presidential Decree. |
| (3) | Notwithstanding Articles 10-2 through 10-4, the calculation, application, etc. of the value at the time of acquisition shall be prescribed by Presidential Decree, in any of the following cases: |
| 1. | Where acquisition is made due to transactions for value, such as payment in substitutes, exchange, and transfer security; |
| 2. | Where acquisition is made due to a merger, division, or reorganization of a corporation; |
| 4. | Other cases prescribed by Presidential Decree, similar to those specified in subparagraphs 1 through 3. |
[This Article Newly Inserted on Dec. 28, 2021]
| Article 10-6 (Tax Base in Cases Deemed Acquisition) |
| (1) | In any of the following cases, the value at the time of acquisition shall be the actual acquisition price equivalent to the price increased by such change: |
| 1. | Where the land category is actually changed; |
| 2. | Where any matter prescribed by Presidential Decree, such as the use of ships, vehicles, or machinery equipment, is changed. |
| (2) | Notwithstanding paragraph (1), where a person who is not a corporation falls under any of the subparagraphs of paragraph (1) and it is impracticable to ascertain the actual acquisition price, the value at the time of acquisition shall be the value calculated by the method prescribed by Presidential Decree, based on the assessed value under Article 4. |
| (3) | Where a building is repaired, the value at the time of acquisition shall be as prescribed in Article 10-4. |
| (4) | The value at the time of acquisition of real estate, etc. of the relevant corporation deemed acquired by an oligopolistic stockholder under the former part of Article 7 (5) shall be the amount computed by dividing the total value of such real estate, etc., based on the statement of accounts of the relevant corporation, other books, etc., by the total number of stocks or investments of the relevant corporation, and thereafter by multiplying such divided amount by the number of the stocks or investments the oligopolistic stockholder acquired. In such cases, such oligopolistic stockholder shall report the value at the time of acquisition and other necessary matters, as prescribed by the relevant municipal ordinance. |
[This Article Newly Inserted on Dec. 28, 2021]
| Article 10-7 (Timing of Acquisition) |
In applying Articles 10-2 through 10-6, matters necessary for the timing of acquisition of acquired articles by type of acquisition and other relevant matters shall be prescribed by Presidential Decree. [This Article Newly Inserted on Dec. 28, 2021]
| Article 11 (Tax Rates on Acquisition of Real Estate) |
| (1) | The amount of acquisition tax on real estate shall be calculated by applying the following standard tax rates to the tax base referred to in Articles 10-2 through 10-6: <Amended on Dec. 27, 2010; Dec. 26, 2013; Jul. 24, 2015; Dec. 27, 2016; Dec. 31, 2018; Dec. 31, 2019; Dec. 28, 2021; Mar. 14, ,2023> |
| 1. | Acquisition through inheritance: |
| (b) | Anything other than farmland: 28/1000; |
| 2. | Gratuitous acquisition, other than those under subparagraph 1: 35/1000: Provided, That it shall be 28/1000 in the case of acquisition by a non-profit business entity prescribed by Presidential Decree; |
| 3. | Original acquisition: 28/1000; |
| 4. | Deleted; <Jan. 1, 2014> |
| 5. | Acquisition due to the division of property under co-ownership, or due to the transfer of shares to dissolve the co-ownership of real estate prescribed under subparagraph 1 (b) of Article 2 of the Act on the Registration of Real Estate under Actual Titleholder's Name (excluding cases of any part exceeding the share of a person himself/herself on the certified copy of register): 23/1000; |
| 6. | Acquisition due to the division of property under partnership or collective ownership: 23/1000; |
| 7. | Acquisition due to any other reason: |
| (b) | Anything other than farmland: 40/1000; |
| 8. | Notwithstanding subparagraph 7 (b), where a person acquires, through a transaction for consideration, housing (referring to housing defined in subparagraph 1 of Article 2 of the Housing Act, which is a residential building registered as housing in the building register, the written approval for use, or the written approval for temporary use under the Building Act; or in the register under the Registration of Real Estate Act (even housing which could be built without obtaining building permission or filing a building report (including cases where it is deemed to have obtained building permission or filed a building report under Article 3 of the Addenda to the Building Act (Act No. 7696)) under the Building Act (referring to the same Act before amended by Act No. 7696) and which is not registered in the building register, shall be also deemed to have been registered as housing in the building register) and the land appurtenant thereto; hereafter in this Article, the same shall apply), the following tax rates shall apply; in such cases, the value at the time of acquisition of a share in housing (limited to the value at the time of acquisition prescribed in Articles 10-3 and 10-5 (3); hereafter in this subparagraph, the same shall apply) shall be the value at the time of acquisition calculated by the following formula for the whole housing: |
Value at the time of acquisition of the whole housing = Value at the time of acquisition of the acquired share x Standard market price of the whole housing/Standard market price of the acquired share
| (a) | Housing with a value at the time of acquisition not exceeding 600 million won: 10/1000; |
| (b) | Housing with a value at the time of acquisition more than 600 million won but not exceeding 900 million won: The tax rate calculated according to the following formula; in such cases, the resulting number shall be rounded off to the fourth decimal place; |
(Value at the time of acquisition of the relevant housing x 2/300 million won ? 3) x 1/100
| (c) | Housing with a value at the time of acquisition more than 900 million won: 30/1000. |
| (2) | Where the real estate under paragraph (1) 1, 2, 7, and 8 is co-owned property, the value of the acquired shares shall be the tax base and the appropriate tax rate shall apply, accordingly. <Amended on Dec. 27, 2010; Dec. 26, 2013> |
| (3) | Where the area of a building increases due to construction (excluding new construction and reconstruction) or repair under Articles 10-4 and 10-6 (3), such increased portion is deemed the original acquisition and thus, the tax rate under paragraph (1) 3 shall apply. <Amended on Dec. 28, 2021> |
| (4) | Paragraph (1) 8 shall not apply where the owner (including his or her spouse or any of his or her lineal ascendants and descendants) of the relevant residential building acquires the land appurtenant to the relevant housing after the housing is newly built or extended: <Newly Inserted on Dec. 29, 2015; Dec. 31, 2019; Aug. 12, 2020> |
| 1. | Deleted; <Aug. 12, 2020> |
| 2. | Deleted. <Aug. 12, 2020> |
| (5) | When a corporation acquires real estate by merger or division, the tax rate falling under paragraph (1) 7 shall apply. <Newly Inserted on Mar. 14, 2023> |
| Article 12 (Tax Rates on Acquisition of Objects, other than Real Estate) |
| (1) | The amount of acquisition tax on any of the following real estate, etc. shall be calculated by applying the following standard tax rates to the tax base stipulated under Articles 10-2 through 10-6: <Amended on Dec. 27, 2010; Jan. 1, 2014; Mar. 29, 2016; Aug. 27, 2019; Dec. 31, 2019; Dec. 29, 2020; Dec. 28, 2021; Jun. 10, 2022> |
| (a) | Ships subject to registration (excluding small ships falling under item (b)): |
| (i) | Acquisition through inheritance: 25/1000; |
| (ii) | Gratuitous acquisition, other than acquisition through inheritance: 30/1000; |
| (iii) | Original acquisition: 20.2/1000; |
| (iv) | Acquisition through importation and acquisition through construction of custom-built ships: 20.2/1000; |
| (v) | Deleted; <Jan. 1, 2014> |
| (vi) | Acquisition due to any other reason: 30/1000; |
| (ii) | Engine-powered water-related leisure equipment registered under Article 3 of the Water-Related Leisure Equipment Registration and Inspection Act: 20.2/1000 |
| (c) | Ships, other than those falling under items (a) and (b): 20/1000; |
| (a) | Passenger automobiles for non-business use prescribed by Presidential Decree: 70/1000: Provided, That the tax rate shall be 40/1000 in the case of compact cars prescribed by Presidential Decree (hereafter in this Article referred to as "compact cars"); |
| (c) | Motor vehicles, other than those specified in items (a) and (b): |
| (i) | For non-business use prescribed by Presidential Decree: 50/1000: Provided, That the tax rate shall be 40/1000 in the case of compact cars; |
| (ii) | For business use prescribed by Presidential Decree: 40/1000; |
| (iii) | Deleted; <Dec. 31, 2019> |
| (d) | Motor vehicles, other than those specified in items (a) through (c): 20/1000; |
| (b) | Any other aircraft: 20.2/1000: Provided, That the tax rate shall be 20.1/1000 in the case of aircraft, the maximum takeoff weight of which is at least 5,700 kilograms; |
| 5. | Standing timber: 20/1000; |
| 6. | Mining rights, fishing rights, or aquaculture business rights: 20/1000; |
| 7. | Golf course membership, riding club membership, condominium membership, sports complex membership, or yacht club membership: 20/1000. |
| (2) | Where a ship referred to in paragraph (1) 1 or machinery equipment referred to in subparagraph 3 of the same paragraph are co-owned property, the value of the acquired shares shall be the tax base and the appropriate tax rate shall apply accordingly. <Amended on Dec. 27, 2010> |
| Article 13 (Heavy Taxation on Acquisition in Over-Concentration Control Regions) |
| (1) | Where a building newly built or extended for business purposes of the head or main office prescribed by Presidential Decree (including a building newly built or extended for business purposes of the trustor's head or main office during the period of trust or after the expiration of trust among the trust property acquired by the trustee under the Trust Act) and the land appurtenant thereto is acquired in an over-concentration control region under Article 6 of the Seoul Metropolitan Area Readjustment Planning Act, or any object of taxation for business purposes is acquired in order to build a new factory or extend an existing factory in an over-concentration control region under the same Article (excluding an industrial complex and a promotional zone subject to the Industrial Cluster Development and Factory Establishment Act, and an industrial area subject to the National Land Planning and Utilization Act), the applicable rate of acquisition tax shall be the tax rate determined by adding 200/100 of the base rate for heavy taxation to the tax rate under Article 11 or 12. <Amended on Dec. 29, 2015; Dec. 27, 2016; Dec. 31, 2019> |
| (2) | The rate of acquisition tax applicable when acquiring any of the following real estate (including the trust property acquired by a trustee under the Trust Act) shall be 300/100 of the standard tax rates under Article 11 (1) minus 200/100 of the base rate for heavy taxation (or tax rates provided in Article 13-2 (1) 1 for acquisition of a house falling under Article 11 (1) 8): Provided, That, the tax rate for acquisition tax under Article 11 shall apply to the acquisition of real estate for the direct use of the types of businesses prescribed by Presidential Decree (hereafter referred to as "type of business excluded from heavy taxation in large cities" in this Article) that need to be inevitably established in an over-concentration control region under Article 6 of the Seoul Metropolitan Area Readjustment Planning Act (excluding an industrial complex subject to the Industrial Cluster Development and Factory Establishment Act; hereafter referred to as "large city" in this Article and Article 28) and to the acquisition of residential real estate (hereafter in this Article referred to as "real estate for the residence of employees") prescribed by Presidential Decree for the direct use: <Amended on Dec. 27, 2010; Dec. 26, 2013; Dec. 27, 2016; Dec. 31, 2019; Aug. 12, 2020> |
| 1. | Where a corporation is founded in a large city [including where acquiring a dormant corporation prescribed by Presidential Decree (hereinafter referred to as "dormant corporation"); hereafter the same shall apply in this subparagraph], a branch or sub-office is established, or real estate in a large city is acquired to relocate the head office, principal place of business, branch or sub-office of a corporation to a large city (relocation from any area in the Seoul Metropolitan Area under Article 2 of the Seoul Metropolitan Area Readjustment Planning Act to Seoul Special Metropolitan City shall also be deemed relocation to a large city; hereafter the same shall apply in this paragraph and Article 28 (2)) from the outside of the large city (including the acquisition of real estate after the foundation, establishment, or relocation of any of such offices); |
| (3) | Notwithstanding the proviso to paragraph (2), with the exception of the subparagraphs, in any of the following cases, the main clause of paragraph (2) shall apply to the relevant part: <Newly Inserted on Dec. 27, 2010; Aug. 12, 2020> |
| 1. | Where the real estate acquired pursuant to the proviso to paragraph (2), with the exception of the subparagraphs, falls under any of the following cases: Provided, That in the case of the types of business prescribed by Presidential Decree, from among the types of business excluded from heavy taxation in large cities, a deadline by which the real estate shall be directly used or a period for which the use or joint use shall be prohibited for another type of business or another use may be prescribed by Presidential Decree by up to three years: |
| (a) | Where the relevant real estate is not directly used for the type of business excluded from heavy taxation in large cities, by the time one year elapses from the date of acquisition of such real estate, without good cause; |
| (b) | Where the relevant real estate is used for another type of business or another use, within one year after the date of acquisition of such real estate; |
| 2. | Where the real estate acquired pursuant to the proviso to paragraph (2), with the exception of its subparagraphs, falls under any of the following cases: |
| (a) | Where real estate is sold after being not directly used for the relevant type of business or use for at least two years from the date of acquisition of such real estate; |
| (b) | Where real estate is used or jointly used for another type of business or another use after being not directly used for the relevant type of business or use for at least two years from the date of acquisition of such real estate. |
| (4) | In applying paragraph (3), real estate shall be deemed directly used in the case of the types of business prescribed by Presidential Decree, in which lease is deemed unavoidable. <Newly Inserted on Dec. 27, 2010> |
| (5) | The amount of acquisition tax applicable when acquiring any of the following real estate, etc. (including the acquisition of a portion of a high-end residential house, etc. by dividing it) shall be calculated by applying the tax rates under Articles 11 and 12 plus 400/100 of the base rate for heavy taxation. In such cases, the aforesaid rate shall apply not only to golf courses registered as an athletic facility business under the Installation and Utilization of Sports Facilities Act (including where facilities are extended and changes of such facilities are registered subsequently; hereafter the same shall apply in this paragraph) but those which are virtually used for golf courses without registration, and if the boundary of land annexed to a high-end residential house, or a high-end recreation center is unclear, the land equivalent to ten times the floor area of the building is deemed the land annexed thereto: <Amended on Dec. 27, 2010; Dec. 31, 2011; Dec. 27, 2016; Dec. 31, 2018; Mar. 14, 2023> |
| 1. | Deleted; <Mar. 14, 2023> |
| 3. | High-end housing: Residential buildings and land annexed thereto, the area and value of which exceed standards prescribed by Presidential Decree, or in which appurtenant facilities prescribed by Presidential Decree, such as a swimming pool of at least 67 square meters, are installed: Provided, That this shall not apply where a residential building is used for non-residential purposes and a construction work for altering its use commences to use it as a non-high-end residence within 60 days from the date of its acquisition [respectively six months from the last day of the month in which the commencement date of inheritance falls in the case of inheritance, and from the last day of the month in which the adjudication date of disappearance falls in the case of disappearance (respectively nine months, if a person liable to pay tax has established his or her domicile in a foreign country)]; |
| 4. | High-end recreation centers: Buildings prescribed by Presidential Decree and land annexed thereto, among buildings used for casinos, amusement and tavern quarters, special baths, or other similar purposes: Provided, That this shall not apply where a building for a high-end recreation center is used for purposes other than its original purpose and a construction work for altering its use commences to use it for purposes other than its original purpose within 60 days from the date of its acquisition [respectively six months from the last day of the month in which the commencement date of inheritance falls in the case of inheritance, and from the last day of the month in which the adjudication date of disappearance falls in the case of disappearance (respectively nine months if a person liable to pay tax has established his or her domicile in a foreign country)]; |
| 5. | High-end ships: Private ships for non-business purposes which exceed standards prescribed by Presidential Decree. |
| (6) | The rate of acquisition tax on any object of taxation to which paragraphs (1) and (2) concurrently apply shall be 300/100 of the standard tax rates under Article 11 (1), notwithstanding the provisions of Article 16 (5). |
| (7) | Notwithstanding Article 16 (5), the tax rate for acquisition tax on taxable objects to which paragraphs (2) and (5) are concurrently applicable shall be determined by adding 200/100 of the base rate for heavy taxation to 300/100 of the standard tax rate under Article 11: Provided, That the tax rate determined by adding 600/100 of the base rate for heavy taxation to the relevant tax rate shall apply where a house under Article 11 (1) 8 is acquired. <Newly Inserted on Dec. 27, 2010; Dec. 29, 2015> |
| (8) | The scope of heavy taxation and applicable standards under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree while the scope of factories and applicable standards under paragraphs (1) and (2) 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 13-2 (Heavy Taxation on Acquisition, etc. of Housing by Corporations) |
| (1) | Notwithstanding Article 11 (1) 8, in any of the following cases where a person acquires housing (referring to housing under Article 11 (1) 8; in such cases, even if a person owns or acquires only the common share of, or land appurtenant to, the housing, he or she shall be deemed to own or acquire the housing; hereafter in this Article and Article 13-3, the same shall apply) through a transaction for consideration, the following tax rates shall apply: |
| 2. | Where one house from two houses owned by one household (excluding temporary two houses ownership prescribed by Presidential Decree) is acquired in an area subject to adjustment under Article 63-2 (1) 1 of the Housing Act (hereafter in this Chapter referred to as "area subject to adjustment") or where one houses from three houses owned by one household is acquired in an area other than an area subject to adjustment: The tax rate calculated by adding 200/100 of the base rate for heavy taxation to the corresponding tax rate calculated by applying the tax rate under Article 11 (1) 7 (b) as the standard tax rate; |
| 3. | Where one house from at least three houses owned by one household is acquired in an area subject to adjustment or where one house from at least four houses owned by one household is acquired in an area other than an area subject to adjustment: The tax rate calculated by adding 400/100 of the base rate for heavy taxation to the corresponding tax rate calculated by applying the tax rate under Article 11 (1) 7 (b) as the standard tax rate. |
| (2) | Notwithstanding Article 11 (1) 2, where one house in an area subject to adjustment and with at least a certain value prescribed by Presidential Decree is acquired due to gratuitous acquisition under Article 11 (1) 2 (hereafter in this Article referred to as "gratuitous acquisition"), the tax rate calculated by adding 400/100 of the base rate for heavy taxation to the corresponding tax rate calculated by applying the tax rate under Article 11 (1) 7 (b) as the standard tax rate shall apply: Provided, That this shall not apply to cases prescribed by Presidential Decree, such as where a spouse or a lineal ascendant or descendant acquire by gratuitous acquisition the house owned by a member of a house-owning household. |
| (3) | Notwithstanding Article 16 (5), the tax rate for acquisition tax on a taxable object to which both of paragraph (1) or (2) and Article 13 (5) concurrently apply shall be calculated by adding 400/100 of the base rate for heavy taxation to the tax rate under each subparagraph of paragraph (1) and the tax rate under paragraph (2). |
| (4) | In applying paragraphs (1) through (3), where a sales contract (including a parceling-out contract of multi-family housing) is concluded on a house before the date a designation of an area subject to adjustment is publicly notified (limited to where the fact, etc. that the down payment is verified by evidencing documents), the house shall be deemed acquired before the relevant area is designated as an area subject to adjustment. |
| (5) | In applying paragraphs (1) through (4) and Article 13-3, necessary details, such as whether the scope of houses is included, the standards for households, and the methods of calculating the number of houses, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 13-3 (Criteria for Calculating Number of Houses) |
In applying Article 13-2, a house falling under any of the following cases shall be included in calculating the number of houses owned by each household as follows: | 1. | A house trusted under the Trust Act shall be included in calculating the number of houses of the truster; |
| 3. | The status of a person selected as a recipient of a house through a "contract for supply of real estate" under Article 3 (1) 2 of the Act on Report on Real Estate Transactions (including acquisition of the relevant status by means of sale, donation, etc.; hereafter in this Article referred to as "right to purchase a house") shall be included in calculating the number of houses of the holder of the relevant right to purchase a house; |
| 4. | An officetel taxable as a house under Article 105 shall be included in calculating the number of houses of the owner of the relevant officetel. |
[This Article Newly Inserted on Aug. 12, 2020]
| Article 14 (Adjustment of Tax Rates according to Municipal Ordinance) |
The head of a local government may increase or decrease the tax rates of acquisition tax within the extent of 50/100 of the tax rates under Article 11 and 12, as stipulated by the relevant municipal ordinance.
| Article 15 (Special Cases concerning Tax Rates) |
| (1) | The amount of acquisition tax on any of the following acquisitions shall be calculated by applying the tax rate determined by subtracting the base rate for heavy taxation from the tax rate determined under Article 11 or 12, but the amount of acquisition tax on the acquisition of a house under Article 11 (1) 8 shall be calculated by multiplying the relevant tax rate by 10/500: Provided, That, if the acquired property falls under Article 13 (2), 300/100 of the tax rate calculated using the formula specified in the main clause of this paragraph, with the exception of its subparagraphs, shall apply: <Amended on Dec. 27, 2010; Jul. 24, 2015; Dec. 29, 2015; Dec. 26, 2017> |
| 1. | Where a vendor repurchases the real estate accompanied by a repurchase registration within the period of repurchase: Acquisition of any real estate by a vendor and vendee; |
| 2. | Any of the following acquisitions through inheritance: |
| (a) | Acquisition of one house per household prescribed by Presidential Decree; |
| 3. | Acquisition by a merger of corporations under Article 44 (2) or (3) of the Corporate Tax Act: Provided, That this shall not apply where the taxable objects acquired by the merger of corporations become taxable objects defined by Article 16 after the merger or where the event specified in either subparagraph of Article 44-3 (3) of the Corporate Tax Act (excluding cases that fall under the proviso to the same paragraph with the exception of its subparagraphs) arises within three years from the date of registration of the merger; |
| 4. | Acquisition due to the division of property under co-ownership or partnership-ownership, or due to the transfer of shares to dissolve the co-ownership of real estate prescribed under subparagraph 1 (b) of Article 2 of the Act on the Registration of Real Estate under Actual Titleholder's Name (excluding cases of any part exceeding the share of a person himself/herself on the certified copy of register); |
| 5. | Acquisition through the relocation of a building: Provided, That if the value of the relocated building exceeds that of the building in its previous location, this shall not apply to such excess value; |
| 7. | Any other acquisition prescribed by Presidential Decree, such as pseudo acquisition, etc. |
| (2) | The amount of acquisition tax on any of the following acquisitions shall be calculated by applying the base rate for heavy taxation: Provided, That 300/100 of the base rate for heavy taxation and 500/100 of the base rate for heavy taxation shall each apply to any acquired article falling under Article 13 (1) and Article 13 (5), respectively: <Amended on Dec. 27, 2010; Jul. 24, 2015; Dec. 27, 2016; Dec. 31, 2019; Dec. 28, 2021> |
| 1. | Acquisition through repairs (excluding cases falling under Article 11 (3)). In such cases, the tax base shall be governed by Article 10-6 (3); |
| 2. | Increase in the values of ships, vehicles, mechanical equipment, and land under Article 7 (4); in such cases, the tax base shall be governed by Article 10-6 (1); |
| 3. | Acquisition by an oligopolistic stockholder under Article 7 (5). In such cases, the tax base shall be governed by Article 10-6 (4); |
| 4. | Acquisition by leasing and then importing (limited to acquisition by annual installments) objects of taxation (limited to vehicles, machinery equipment, aircraft and ships) of acquisition tax owned by foreigners under Article 7 (6); |
| 5. | Acquisition of construction machinery or vehicles of a lessor under Article 7 (9); |
| 6. | Acquisition of mechanical equipment or vehicles by a person who paid the acquisition price under Article 7 (10): Provided, That this shall apply only to the cases where the title to the mechanical equipment or vehicles so acquired is registered in the name of a mechanical equipment leasing company or transportation company; |
| 7. | Acquisition by the owner of the relevant land under the main clause of Article 7 (14); |
| 8. | Any other acquisition prescribed by Presidential Decree, such as the acquisition, etc. of leisure facilities. |
| Article 16 (Application of Tax Rates) |
| (1) | Where any land or building falls under any of the following cases within five years from the acquisition of such land or building, acquisition tax shall be additionally collected by applying the tax rate stipulated under the provisions cited in each subparagraph: <Amended on Dec. 27, 2010; Mar. 14, 2023> |
| 1. | Real estate for the business purposes of the head or main office under Article 13 (1) (limited to the new construction and extension of a building to be used for the head or main office, and land annexed thereto); |
| 2. | Real estate for the extension or new construction of a factory under Article 13 (1); |
| 3. | golf courses, high-end houses or high-end recreation centers under Article 13 (5). |
| (2) | Where a high-end house, golf course or building for a high-end recreation center is extended, rebuilt or repaired, or an ordinary building is extended, rebuilt or repaired into a high-end house or high-end recreation center, the rate of acquisition tax applicable to the increased value of the building shall be in accordance with Article 13 (5). <Amended on Dec. 27, 2010; Mar. 14, 2023> |
| (3) | As to the extension or new construction of a factory under Article 13 (1), if the owner of an object of taxation for business purposes is not a person who has built a new factory or extended an existing factory, the owner of an object of taxation for business purposes is deemed to have built the new factory or extended the existing factory, and the tax rate stipulated under the same paragraph shall apply accordingly: Provided, That this shall not apply to any object of taxation for business purposes if five years have elapsed from the date of its acquisition to the date on which the new construction or extension of a factory was commenced. |
| (4) | Where the acquired real estate becomes an object of taxation under Article 13 (2) during a period prescribed by Presidential Decree, acquisition tax shall be additionally collected by applying the tax rate under the same paragraph. |
| (5) | Where two or more tax rates are applicable to the same acquired object, the higher tax rate shall apply. |
| (6) | Where the acquired real estate falls under any of the following cases, acquisition tax shall be punitively collected by applying each of the following tax rates, notwithstanding paragraph (5): <Amended on Aug. 12, 2020> |
| 1. | Where paragraph (1) 1 or 2, and paragraph (4) are applicable concurrently: The tax rate under Article 13 (6); |
| Article 17 (Requirement for Tax Exemption) |
| (1) | No acquisition tax shall be imposed if such acquisition is valued at 500,000 won or less. |
| (2) | Where a person who has acquired a piece of land or a building acquires another piece of land or a building adjacent thereto within one year from the date of the original acquisition, the acquisition of land or the building before and after shall each be deemed one acquisition of land or a building, and paragraph (1) shall apply thereto accordingly. |
SECTION 3 Imposition, Collection, etc.
| Article 18 (Methods of Collection) |
Acquisition tax shall be collected by means of tax return and payment.
| Article 19 (Notification, etc.) |
Where any of the following persons has sold an object subject to acquisition tax (including sale in annual installments), he or she shall notify or report to the head of the local government having jurisdiction over the location of such article within 30 days from the date of sale, as prescribed by Presidential Decree: <Amended on Jul. 24, 2015>
| 1. | The State, a local government or a local government association; |
| 2. | The State or a local government-invested institution (including a reinvested institution); |
| 3. | Deleted; <Jul. 24, 2015> |
| 4. | Other institutions and organizations specified by Presidential Decree, from among institutions and organizations equivalent to those under subparagraphs 1 and 2. |
| Article 20 (Tax Returns and Payment) |
| (1) | A person who has acquired an object subject to acquisition tax shall file a return on and pay an amount of tax calculated by applying the tax rates under Articles 11 through 13, 13-2, 13-3, 14, and 15 to the relevant tax base within 60 days (or three months from the last day of the month in which the commencement date of acquisition falls in the case of gratuitous acquisition (excluding inheritance); or six months respectively from the last day of the month in which the commencement date of inheritance falls in the case of inheritance, and from the last day of the month in which the date of adjudication of disappearance falls in the case of disappearance (or nine months each if an heir has his or her domicile in a foreign country)) from the date of acquisition (where he or she has paid the whole amount of a transaction before obtaining permission to enter into a land contract under Article 11 of the Act on Report on Real Estate Transactions, such as cases where he or she acquires land in an area where a land contract is subject to permission under Article 10 (1) of the said Act, referring to the date of such permission, the date of the revocation of designation as an area where a land contract is subject to permission or the date of the reduction of an area where a land contract is subject to permission), as prescribed by Presidential Decree. <Amended on Dec. 31, 2011; Jan. 1, 2014; Jan. 19, 2016; Dec. 27, 2016; Dec. 28, 2021> |
| (2) | When an object of taxation of the acquisition tax becomes subject to any tax rate under Article 13 (1) through (7) after its acquisition, an amount of tax less the already paid amount of tax (excluding additional taxes) from an amount calculated by applying the tax rates under Article 13 (1) through (7) (the tax rate under Article 13-2 (3) in the case of Article 16 (6) 2) shall be returned and paid, as prescribed by Presidential Decree, within 60 days from the date prescribed by Presidential Decree. <Amended on Dec. 27, 2010; Dec. 31, 2018; Aug. 12, 2020> |
| (3) | Notwithstanding paragraph (1), when any object of taxation on which acquisition tax has been tax-free, exempted or reduced pursuant to this Act or other statutes becomes subject to imposition and additional collection of acquisition tax, an amount of tax (referring to an amount of tax less the already paid amount of tax (excluding additional tax) in the case of reduction) calculated by applying the tax rates under Articles 11 through 15 to the relevant tax base shall be returned and paid, as prescribed by Presidential Decree, within 60 days from the date on which the relevant ground arises. <Amended on Dec. 31, 2018> |
| (4) | Where a person intends to register or record (including listing; hereinafter the same shall apply) matters concerning the acquisition or transfer of a property right and any other rights in an official register by the deadline specified in any provision of paragraphs (1) through (3) for filing a tax return and paying the tax, he or she shall file an acquisition tax return and pay the tax by the date he or she submits an application for registration or recording to a registry office. <Amended on Dec. 29, 2015; Dec. 31, 2018> |
| (5) | A creditor who intends to apply for registration by a right of subrogation of a creditor pursuant to Article 28 of the Registration of Real Estate Act (hereafter in this Article and Article 30 referred to as "subrogating creditor") may file a return on acquisition tax on the acquisition of real estate and pay such tax in subrogation of a person liable to pay tax. In such cases, a subrogating creditor may receive a certificate of payment as prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted on Dec. 29, 2020> |
| (6) | Where a subrogating creditor files a return and makes payment pursuant to paragraph (5), the head of a local government shall immediately notify a person liable to pay tax of such fact. <Newly Inserted on Dec. 29, 2020> |
| Article 20-2 Deleted. <Jul. 24, 2015> |
| Article 21 (Additional Collection of Insufficient Amount of Tax and Additional Tax) |
| (1) | In any of the following cases, the amount calculated by adding the amount of additional tax pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the amount of tax calculated pursuant to Articles 10-2 through 10-7, 11 through 13, 13-2, 13-3, 14, and 15 (hereafter in this Chapter referred to as "calculated amount of tax"), or to the amount of tax shortfall shall be collected as the amount of tax by means of ordinary collection: <Amended on Jan. 1, 2013; Dec. 27, 2016; Dec. 31, 2019; Aug. 12, 2020; Dec. 28, 2021> |
| 1. | Where a person liable to pay acquisition tax fails to fulfill his or her duty to file a return or pay tax under Article 20; |
| 2. | Deleted; <Dec. 28, 2021> |
| 3. | Where a household has filed a report on a household owning two houses temporarily under Article 13-2 (1) 2 but fails to become a one-house owner because the existing house prescribed by Presidential Decree has not been disposed of within the period prescribed by Presidential Decree from the date of acquisition. |
| (2) | Where a person liable to pay tax sells an taxable object of acquisition tax without filing a return under Article 20 after he or she has essentially acquired such object, notwithstanding paragraph (1) above and Articles 53 and 55 of the Framework Act on Local Taxes, the amount calculated by adding 80/100 of the calculated amount of tax to the said amount of tax shall be collected as the amount of tax by means of ordinary collection: Provided, That this shall not apply to taxable objects prescribed by Presidential Decree, such as taxable objects not needed to be registered or recorded. <Amended on Jan. 1, 2013; Dec. 27, 2016> |
| (3) | Notwithstanding paragraph (1), where a person liable to pay tax had filed a return on the acquisition tax based on the recognized current price by the filing deadline specified in Article 20 and filed a revised return on the recognized current price before the head of a local government corrects the tax amount, no additional tax under Articles 53 and 54 of the Framework Act on Local Taxes shall be imposed. <Newly Inserted on Dec. 28, 2021> |
| Article 22 (Notification of Registration Data) |
| (1) | Where the head of a registry office discovers that acquisition tax is not paid or insufficiently paid, he or she shall notify the head of a local government having jurisdiction over a place for tax payment thereof, as prescribed by Presidential Decree. |
| (2) | When the head of the registry office has completed the registration or filing procedure, he or she shall provide the head of a local government having jurisdiction over the place for payment of the acquisition tax with a notice on the duplicate of an application for registration or filing wherein the date and receipt number are entered within seven days from the date of registration or filing: Provided, That where the registration or filing affairs are processed by computer systems, the computer-processed registration or filing information shall be notified, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Where the head of a local government that does not have jurisdiction over a principal area where an automobile is used has conducted affairs concerning the registration of automobiles (referring to new registration, registration of change, and registration of transfer) pursuant to Article 5 of the Motor Vehicle Management Act, he or she shall notify the head of a local government having jurisdiction over a principal area where the automobile is used, of matters prescribed by Ordinance of the Ministry of the Interior and Safety, such as the acquisition value of an automobile, by the tenth day of the following month. <Newly Inserted on Jan. 1, 2014; Nov. 19, 2014; Jul. 26, 2017> |
| Article 22-2 (Preparation and Keeping of Accounting Books, etc.) |
| (1) | A corporation liable to pay acquisition tax shall prepare and keep a ledger and documents evidencing the value at the time of acquisition. <Amended on Dec. 28, 2021> |
| (2) | Where a corporation liable to pay acquisition tax fails to perform its duty under paragraph (1), the head of a local government shall add the amount equivalent to 10/100 of the calculated amount of tax or the amount of tax shortfall to the amount of tax required to be collected. |
[This Article Newly Inserted on Jan. 1, 2013]
| Article 22-3 (Data Matching of Electronic Data from Family Relation Registration) |
| (1) | Where it is necessary to perform affairs such as ascertaining the ownership of houses and household members of persons liable to pay acquisition tax, the Minister of the Interior and Safety or the head of a local government may request the Minister of the National Court Administration to provide electronic registration data on family relation registration prescribed in Article 11 (6) of the Act on Registration of Family Relations. In such cases, the Minister of the National Court Administration in receipt of such request shall comply therewith unless there is a compelling reason not to do so. |
| (2) | In order to perform affairs such as ascertaining the number of houses owned by persons liable to pay acquisition tax, the Minister of the Interior and Safety or the head of a local government may request the State agencies or other local governments to provide cooperation, such as provision of information, as prescribed by Presidential Decree. In such cases, a person in receipt of such request shall cooperate therewith, unless there is a compelling reason not to do so. |
| (3) | The Minister of the Interior and Safety may provide the head of a local government with electronic registration data offered pursuant to paragraphs (1) and (2), as prescribed by Presidential Decree. |
[This Article Newly Inserted on Aug. 12, 2014]
| Article 22-4 (Notification of Data Related to Gift Tax) |
The head of a tax office or the commissioner of a regional tax office shall notify data related to the imposition and collection, etc. of gift tax on real estate under the Framework Act on National Taxes or the Inheritance Tax and Gift Tax Act, to the Minister of the Interior and Safety or the head of a local government, as prescribed by Presidential Decree. [This Article Newly Inserted on Dec. 28, 2021]
CHAPTER III REGISTRATION AND LICENSE TAX
SECTION 1 Common Provisions
The terms used in relation to registration and license tax are defined as follows: <Amended on Dec. 27, 2010; Dec. 29, 2015; Dec. 26, 2017; Aug. 27, 2019>
| 1. | The term "registration" means registering or filing matters concerning the creation, alteration or extinguishment of property rights and any other rights in the public register: Provided, That the registration or filing made based on the acquisition stipulated in Chapter II shall be excluded, but any of the following registrations or filings shall be included: |
| (a) | Registration based on the acquisition of mining rights, fishing rights, and aquaculture business rights; |
| (b) | Registration based on the acquisition of objects (limited to vehicles, machinery equipment, aircraft and ships) subject to acquisition tax owned by foreigners, on an annual installment basis, under Article 15 (2) 4; |
| 2. | The term "license" means an act of an administrative agency (including acts deemed to be conducted by legal fiction under relevant provisions of an Act), including the creation of a right, the cancellation of prohibition, or the acceptance of a report with respect to specific business facilities or actions, such as licensing, permission, authorization, registration, designation, examination, inspection, review, prescribed by various statutes. In such cases, the types of licenses shall be divided into classes 1 through 5, as prescribed by Presidential Decree, considering the type, scale, etc, of business. |
| Article 24 (Persons Liable to Pay Tax) |
Any of the following persons shall be liable to pay a registration and license tax:
| 1. | A person who files for registration; |
| 2. | A person who obtains a license (including a person who obtains an altered license). In such cases, a person liable to pay tax shall pay registration and license tax for each type of license he or she obtains. |
| Article 25 (Places for Tax Payment) |
| (1) | The place of payment of registration and license tax on registration or filing shall be specified as follows: <Amended on Dec. 27, 2010; Dec. 31, 2011; Dec. 29, 2015; Aug. 27, 2019> |
| 1. | Registration of real estate: The seat of the real estate; |
| 2. | Registration or filing of a ship: The seat of the port of registry; |
| 3. | Registration of an automobile: The place of registration under the Motor Vehicle Management Act: Provided, That where the place of registration is different from the principal place of use, the principal place of use shall become the place for tax payment; |
| 5. | Registration of aircraft: The seat of aircraft shed; |
| 6. | Registration of a corporation: The seat of the head office, branch office, principal office, sub-office, etc. related to the registration of the corporation; |
| 7. | Registration of a trade name: The seat of the place of business; |
| 8. | Registration of a mining right and mining right by lease: The seat of the mining area; |
| 9. | Registration of a fishing right or aquaculture business right: The seat of the fishing grounds; |
| 10. | Registration of a copyright, publication right, neighboring copyright, computer program copyright, or database producer's right: The domicile of the person who holds a copyright, publication right, neighboring copyright, computer program copyright, or database producer's right; |
| 11. | Registration of a patent right, utility model right, or design right: The domicile of the registrant; |
| 12. | Registration of a trademark or service mark: The seat of the principal office; |
| 13. | Registration of a business license: The seat of the place of business; |
| 14. | Registration of a security right on intellectual property right: The seat of a person who holds the intellectual property right; |
| 15. | Any other registration: The seat of the administrative agency where registration is made; |
| 16. | If registration and license tax cannot be imposed by each local government as the property related to the same registration is located within the jurisdictions of two or more local governments, the place for tax payment shall be the location of the administrative agency where registration is made; |
| 17. | Where two or more mortgages created for securing the same credit are registered, such registration shall be deemed one registration, and thus the place for tax payment shall be the location of the administrative agency where such registration-related property is first registered; |
| 18. | If the place for tax payment under subparagraphs 1 through 14 is unclear, the location of the administrative agency where registration is made shall be the place for tax payment. |
| (2) | The place for payment of registration and license tax on a license shall be as follows: <Amended on Dec. 29, 2015> |
| 1. | A license for which a place of business or office exists for the relevant license: The place where the place of business or office is located; |
| 2. | A license for which no separate place of business or office exists for the relevant license: The address of the person who has obtained the license; |
| 3. | If the place for tax payment under subparagraph 1 or 2 is unclear or if there is no place for tax payment within the Republic of Korea, the seat of the licensing authority shall be deemed the place for tax payment. |
| Article 26 (Non-Taxation) |
| (1) | No registration and license tax shall be imposed on any registration or license the State, a local government, local government association, foreign government or international organization in Korea obtains for its sake: Provided, That registration and license tax shall be imposed on any registration or license obtained by a foreign government which imposes a tax on any registration or license obtained by the government agencies of the Republic of Korea. |
| (2) | No registration and license tax shall be imposed on registration, filing, or license in any of the following cases: <Amended on Dec. 29, 2015> |
| 1. | Registration or filing at the request of a court on the reorganization or special liquidation of a company: Provided, That registration or filing following the payment of capital of or an investment in a corporation, a capital increase, or conversion of investment shall be excluded herefrom; |
| 2. | Registration or filing of a simple change in the indication, restoration or correction of an address, name, resident registration number, lot number, or unit of measurement due to a change in an administrative district, a resident registration number, a lot number by a cad astral authority, a unit of measurement, or an error made by a public officer in charge of registration or filing, or any other similar reason; |
| 3. | Any other registration prescribed by Presidential Decree on land, etc., the category of which is a graveyard; |
| 4. | A license determined by Presidential Decree to be inappropriate for the imposition of registration and license tax, such as a simple change in the indication of a license. |
SECTION 2 Registration and License Tax on Registration
| (1) | The tax base for registration and license tax on the registration of any real estate, ship, aircraft, automobile and construction machinery (hereafter referred to as "registration and license tax" in this Section) shall be the value at the time of registration. |
| (2) | The tax base under paragraph (1) shall be according to the value reported by the registrant, as stipulated by the relevant municipal ordinance: Provided, That where no report is filed or the reported value is lower than the assessed value under Article 4, the assessed value shall be the tax base. |
| (3) | Notwithstanding paragraph (2), in cases of registration caused by acquisition under the items of subparagraph 1 of Article 23, the value at the time of acquisition prescribed in Articles 10-2 through 10-6 shall be the tax base: Provided, That where the value of any asset is changed as at the time of registration due to any cause such as revaluation or depreciation, the changed value shall be the tax base. <Amended on Dec. 27, 2010; Dec. 31, 2019; Dec. 28, 2021> |
| (4) | Where there is no specific amount of credit when determining an amount of tax based on the amount of credit, the value which is the object of such credit or the amount which is the object of restriction of disposition of such credit shall be the amount of such credit. |
| (5) | The scope of the value which is the tax base under paragraphs (1) through (4), and necessary matters for its application shall be prescribed by Presidential Decree. |
| (1) | The amount of registration and license tax on registration shall be calculated by applying any of the following tax rates to the tax base under Article 27: Provided, That the tax rate for other registration or filing shall apply if the tax amount calculated in accordance with any provision of subparagraphs 1 through 5 and 5-2 is smaller than the amount calculated at the tax rate for any other registration or filing under the relevant subparagraph: <Amended on Dec. 27, 2010; Mar. 29, 2011; Dec. 2, 2011; Dec. 31, 2011; Jan. 1, 2013; Mar. 23, 2013; Jan. 1, 2014; Nov. 19, 2014; Jul. 24, 2015; Dec. 29, 2015; Feb. 29, 2016; Dec. 27, 2016; Jul. 26, 2017; Dec. 26, 2017; Aug. 27, 2019> |
| 1. | Registration of real estate: |
| (a) | Registration to preserve ownership: 8/1000 of the value of real estate; |
| (b) | Registration of ownership transfer: |
| (i) | Registration of ownership transfer at a cost: 20/1000 of the value of real estate: Provided, That the amount of the tax to be levied on a house at the tax rate provided for in Article 11 (1) 8 shall be determined by applying the tax rate calculated by multiplying the acquisition tax rate applicable to such house by 50/100; |
| (ii) | Registration of ownership transfer on a gratuitous basis: 15/1000 of the value of real estate: Provided, That in the case of the registration of ownership transfer based on inheritance, 8/1000 of the value of real estate; |
| (c) | Creation and transfer of a real right and leasehold, other than ownership: |
| (i) | Superficies: 2/1000 of the value of real estate: Provided, That in the case of divided superficies, 2/1000 of the value of the relevant land calculated by the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu, as prescribed by the standards determined by the Minister of the Interior and Safety, considering the inhibition rate of use of a building, the inhibition rate of use of underground part, other inhibition rate of use, etc. based on the use of underground or over-the-ground space of the relevant land; |
| (ii) | Mortgage (including cases where superficies or leasehold on a deposit basis is registered): 2/1000 of the amount of claim; |
| (iii) | Easement: 2/1000 of the value of the dominant estate; |
| (iv) | Leasehold on a deposit basis: 2/1000 of the amount of deposit; |
| (v) | Leasehold: 2/1000 of the amount of a monthly rent; |
| (d) | Application for an auction, provisional seizure or injunction, or provisional registration: |
| (i) | Application for an auction: 2/1000 of the amount of claim; |
| (ii) | Provisional seizure (including cases where a right to real estate is registered): 2/1000 of the amount of claim; |
| (iii) | Provisional injunction (including cases where a right to real estate is registered): 2/1000 of the amount of claim; |
| (iv) | Provisional registration (including cases where a right to real estate is registered): 2/1000 of the value of real estate or the amount of claim; |
| (e) | Any other registration: 6,000 won per case; |
| (a) | Registration or filing of ownership: 0.2/1000 of the value of a ship; |
| (b) | Registration or filing of creation of a mortgage or registration or filing of the transfer of a mortgage: 2/1000 of the amount of claim; |
| (c) | Any other registration or filing: 15,000 won per case; |
| 3. | Registration of an automobile: |
| (a) | Registration of ownership: |
| (i) | Passenger automobiles for non-business purposes: 50/1000: Provided, That 20/1000 in the case of compact automobiles; |
| a. | For non-business purposes: 30/1000: Provided, That 20/1000 in the case of compact automobiles; |
| b. | For business purposes: 20/1000; |
| (b) | Registration to create a mortgage or to transfer a mortgage: 2/1000 of the amount of claim; |
| (c) | Registration of the person who paid acquisition price or a transportation company under Article 7 (10): |
| (i) | Where the title is transferred from a transportation company to another transportation company: 15,000 won per case; |
| (ii) | Where the title is transferred from a transportation company to the person who paid acquisition money: 15,000 won per case; |
| (iii) | Where the title is transferred from the person who paid the acquisition price to a transportation company: 15,000 won per case; |
| (d) | Any other registration: 15,000 won per case; |
| 4. | Registration of mechanical equipment: |
| (a) | Registration of ownership: 10/1000; |
| (b) | Registration to create a mortgage or to transfer a mortgage: 2/1000 of the amount of claim; |
| (c) | Registration of the person who paid the acquisition price or the mechanical equipment leasing company under Article 7 (10): |
| (i) | Where the title is transferred from a mechanical equipment leasing company to another mechanical leasing company: 10,000 won per case; |
| (ii) | Where the title is transferred from a mechanical equipment leasing company to the person who paid the acquisition price: 10,000 won per case; |
| (iii) | Where the title is transferred from the person who paid the acquisition price to a mechanical equipment leasing company: 10,000 won per case; |
| (d) | Any other registration: 10,000 won per case; |
| 5. | Registration of factory assets and mining assets: |
| (a) | Registration to create a mortgage or to transfer a mortgage: 1/1000 of the amount of claim; |
| (b) | Any other registration: 9,000 won per case; |
| 5-2. | Registration of a security right on movables, claims, or intellectual property right: |
| (a) | Registration or filing to create a security right or registration or filing to transfer a security right: 1/1000 of the amount of claim; |
| (b) | Any other registration: 9,000 won per case; |
| 6. | Registration of a corporation: |
| (a) | A corporation by the establishment or merger of a commercial company or other profit-making corporations: |
| (i) | Establishment and payment: 4/1000 of the paid amount of stocks, the amount of investment, or the value of investment other than cash (112,500 won when an amount of tax is less than 112,500 won; hereafter the same shall apply in items (a) through (c)); |
| (ii) | Increase of capital or investment: 4/1000 of the paid amount or the value of investment other than cash; |
| (b) | A corporation by the establishment or merger of a non-profit corporation: |
| (i) | Establishment and payment: 2/1000 of the paid gross amount of investment or value of property; |
| (ii) | Increase of the gross amount of investment or gross amount of property: 2/1000 of the paid amount of investment or value of property; |
| (c) | Increase of the capital or of the amount of investment by the property revaluation reserve, and increase of the gross amount of investment or property (excluding capital transfer under the Assets Revaluation Act): 1/1000 of the increased amount; |
| (d) | Relocation of a head or principal office: 112,500 won per case; |
| (e) | Establishment of a branch or sub-office: 40,200 won per case; |
| (f) | Any other registration: 40,200 won per case; |
| 7. | Registration of a trade name, etc.: |
| (a) | Creation or acquisition of a trade name: 78,700 won per case; |
| (b) | Appointment of a manager or extinguishment of a right of representation: 12,000 won per case; |
| (c) | Appointment of a ship manager or extinguishment of a right of representation: 12,000 won per case; |
| 8. | Registration of a mining right: |
| (a) | Creation of a mining right (including where the duration of a mining right is extended before its expiration): 135,000 won per case; |
| (b) | Change of a mining right: |
| (i) | Enlargement, or enlargement and reduction of the mining area: 66,500 won per case; |
| (ii) | Reduction of the mining area: 15,000 won per case; |
| (c) | Transfer of a mining right: |
| (i) | Inheritance: 26,200 won per case; |
| (ii) | Transfer due to any other reason: 90,000 won per case; |
| (d) | Any other registration: 12,000 won per case; |
| 8-2. | Registration of a mining right by lease: |
| (a) | Creation of a mining right by lease (including where the duration of a mining right by lease is extended before its expiration): 135,000 won per case; |
| (b) | Transfer of a mining right by lease: |
| (i) | Inheritance: 26,200 won per case; |
| (ii) | Transfer due to any other reason: 90,000 won per case; |
| (c) | Any other registration: 12,000 won per case; |
| 9. | Registration of a fishing right or an aquaculture business right: |
| (a) | Transfer of a fishing right or an aquaculture business right: |
| (i) | Inheritance: 6,000 won per case; |
| (ii) | Transfer due to any other reason: 40,200 won per case; |
| (b) | Transfer of shares in a fishing right or an aquaculture business right: |
| (i) | Inheritance: 3,000 won per case; |
| (ii) | Transfer due to any other reason: 21,000 won per case; |
| (c) | Any other registration except the creation of a fishing right or an aquaculture business right: 9,000 won per case; |
| 10. | Registration of a copyright, exclusive publication right (including where it is applied mutatis mutandis pursuant to Articles 88 and 96 of the Copyright Act), publication right, neighboring copyright, computer program copyright, or database producer's right (hereafter referred to as "copyright, etc." in this subparagraph): |
| (a) | Inheritance of a copyright, etc.: 6,000 won per case; |
| (b) | Registration of any kind, other than inheritance (excluding registration of a program, exclusive publication right, and publication right) under Article 54 (including where it is applied mutatis mutandis pursuant to Articles 90 and 98) of the Copyright Act: 40,200 won per case; |
| (d) | Any other registration: 3,000 won per case; |
| 11. | Registration of a patent right, utility model right, or design right (hereafter referred to as "patent right, etc." in this subparagraph): |
| (a) | Transfer of a patent right, etc. due to inheritance: 12,000 won per case; |
| (b) | Transfer of a patent right, etc. due to any other reason: 18,000 won per case; |
| 12. | Registration of a trademark or service mark: |
| (i) | Inheritance: 12,000 won per case; |
| (ii) | Transfer due to any other reason: 18,000 won per case; |
| 13. | Registration of any aircraft: |
| (a) | Registration of any aircraft, the maximum takeoff weight of which is at least 5,700 kilograms: 0.1/1000 of the value of the aircraft; |
| (b) | Registration of any type of aircraft not referred to in item (a): 0.2/1000 of the value of the aircraft; |
| 14. | Registration, other than that stipulated under subparagraphs 1 through 7: 12,000 won per case. |
| (2) | The tax rate that shall apply to the registration of either of the following cases shall be 300/100 of the relevant tax rate specified in paragraph (1) 1 or 6 (If the tax amount calculated by applying the tax rate specified in any provision of paragraph (1) 1 (a) through (d) is less than 6,000 won, it shall be deemed 6,000 won, while, if the tax amount calculated by applying the tax rate specified in any provision of paragraph (1) 6 (a) through (c) is less than 112,500 won, it shall be deemed 112,500 won): Provided, That this shall not apply to the types of business specified by Presidential Decree (hereafter referred to as "types of business excluded from heavy taxation in large cities" in this Article) as those for which it is unavoidable to establish business facilities in a large city: <Amended on Dec. 27, 2010; Jul. 24, 2015; Dec. 27, 2016> |
| 1. | Registration upon the incorporation of a corporation (including where capital or amount of investment increased within five years after its incorporation or take-over of a dormant corporation) or opening its branch or sub-office in a large city; |
| 2. | Registration upon the relocation of a head or principal office of a corporation into a large city (including where capital or amount of investment increased within five years after its relocation). In such cases, the relocation is deemed the incorporation of a corporation, and the tax rate shall apply accordingly. |
| (3) | Notwithstanding the proviso to paragraph (2), with the exception of its subparagraphs, where a corporation that has completed corporate registration as a type of business excluded from heavy taxation in large cities, shifts to another type of business, other than the type of business excluded from heavy taxation in large cities, or adds a type of business, other than the type of business excluded from heavy taxation in large cities, within two years from the date of such registration, without good cause, the main clause of paragraph (2) shall apply to relevant parts. <Newly Inserted on Dec. 27, 2010> |
| (4) | Paragraph (2) shall not apply to cases falling under paragraph (1) 6 (f). |
| (5) | The scope and applicable standards of heavy taxation with respect to registration and license tax under paragraph (2), and other necessary matters shall be prescribed by Presidential Decree. |
| (6) | The head of a local government may increase or decrease the tax rates of registration and license tax within 50/100 of the standard rates stipulated under paragraph (1) 1, as stipulated by the relevant municipal ordinance. |
| Article 29 (Two or More Types of Registration of Same Credit) |
The method for assessing registration and license tax when seeking registration or filing of two or more different mortgages to secure the same credit shall be prescribed by Presidential Decree.
| Article 30 (Tax Returns and Payment) |
| (1) | A person who intends to register shall file a tax return and pay an amount of tax calculated by applying the respective tax rates under Article 28 to the tax base under Article 27 to the head of the local government having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, before filing a registration. |
| (2) | When an object subject to registration and license tax becomes subject to the tax rate under Article 28 (2) after its registration, an amount of tax calculated by applying the tax rate under Article 28 (2) minus the already paid amount of tax (excluding additional tax) shall be returned and paid to the head of the local government having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, within 60 days from the date prescribed by Presidential Decree. <Amended on Dec. 31, 2018> |
| (3) | Notwithstanding paragraph (1), when any object of taxation on which registration and license tax has not been imposed, exempted or reduced pursuant to this Act or other statutes becomes subject to imposition and additional collection of the said tax, an amount of tax [referring to the amount of tax minus the amount of tax already paid in the case of reduction (excluding additional tax)] calculated by applying the respective tax rates under Article 28 to the relevant tax base, shall be returned and paid to the head of the local government having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, within 60 days from the date on which the relevant ground arises. <Amended on Dec. 31, 2018> |
| (4) | Where a person has paid the calculated amount of registration and license tax before registering an object (by the deadline for filing a return under the relevant paragraphs in cases referred to in paragraph (2) or (3)) even in a case where he or she has failed to perform his or her duty to file a tax return under paragraphs (1) through (3), he or she shall be deemed to have filed a tax return and have paid the said amount of tax pursuant to paragraphs (1) through (3). In such cases, notwithstanding Article 32, no additional tax under Articles 53 and 54 of the Framework Act on Local Taxes shall be imposed. <Amended on Jan. 1, 2013; Dec. 27, 2016> |
| (5) | A subrogating creditor may file a return on and pay registration and license tax on the registration of real estate, in subrogation of a person liable to pay tax. In such cases, a subrogating creditor may receive a certificate of payment as prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted on Dec. 29, 2020> |
| (6) | Where a subrogating creditor files a return and makes payment pursuant to paragraph (5), the head of a local government shall immediately notify a person liable to pay tax of such fact. <Newly Inserted on Dec. 29, 2020> |
| Article 31 (Special Collection) |
| (1) | With respect to the registration of a patent right, utility model right, design right and trademark right (including the registration of a trademark right pursuant to Article 197 of the Trademark Act as an application for the registration of an international trademark in accordance with Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks), the Commissioner of the Korean Intellectual Property Office shall specially collect an amount of tax calculated pursuant to Article 28 (1) 11 and 12, and notify the head of the local government having jurisdiction over the relevant place for tax payment of the details thereof, in the form prescribed by Ordinance of the Ministry of the Interior and Safety, and pay registration and license tax to the aforesaid head by the end of the month following the month in which the date of registration falls. <Amended on Mar. 23, 2013; Nov. 19, 2014; Feb. 29, 2016; Jul. 26, 2017> |
| (2) | With respect to any registration made under the Copyright Act, the head of the competent registry shall specially collect an amount of tax calculated pursuant to Article 28 (1) 10, and notify the head of the local government having jurisdiction over the relevant place for tax payment of the details thereof, in the form prescribed by Ordinance of the Ministry of the Interior and Safety, and pay registration and license tax to the aforesaid head by the end of the month following the month in which the date of registration falls. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Where a person liable for special collection discovers that the relevant right has not been registered, or registration and license tax is erroneously collected or over-collected, before paying the said specially-collected tax under paragraphs (1) and (2), he or she may directly refund specially-collected registration and license tax. In such cases, additional dues on local tax refunds under Article 62 of the Framework Act on Local Taxes shall not apply. <Amended on Dec. 27, 2016> |
| (4) | Even though a person liable for special collection fails to pay or insufficiently pays the amount of tax collected or to be collected by the deadline under paragraph (1) or (2), no additional tax under Article 56 of the Framework Act on Local Taxes shall be imposed on the person liable for special collection. <Newly Inserted on Jan. 1, 2013; Dec. 27, 2016> |
| Article 32 (Additional Collection of Insufficient Amount of Tax and Additional Tax) |
Where a person liable to pay registration and license tax fails to fulfill his or her duty to file a return or pay tax under Article 30 (1) through (3), the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes9,000 won4,500 won to the amount of tax calculated pursuant to Articles 27 and 28, or to the amount of tax shortfall shall be collected as the amount of tax by means of ordinary collection: <Amended on Jan. 1, 2013; Dec. 27, 2016> | 1. | Deleted; <Jan. 1, 2013> |
| 2. | Deleted. <Jan. 1, 2013> |
| Article 33 (Notification of Registration Data) |
Article 22 shall apply mutatis mutandis to the notification of the data registered on registration and license tax.
SECTION 3 Registration and License Tax on Licenses
| (1) | Tax rates of registration and license tax on a license (hereafter referred to as "registration and license tax" in this Section) shall be determined based on the following classification: <Amended on Jan. 1, 2014>ClassificationSi with a population of at least 500,000 Other Sis GunsClass 167,500 won45,000 won27,000 wonClass 254,000 won34,000 won18,000 wonClass 340,500 won22,500 won12,000 wonClass 427,000 won15,000 won9,000 wonClass 518,000 won7,500 won4,500 won |
| (2) | In applying paragraph (1) to a Special Self-Governing City and a Si combined with functions of rural and urban communities, the Dong area of the Si (excluding any Dong area, for which the application of the tax rate applicable to the Si is stipulated by its municipal ordinance as inappropriate) shall be deemed a Si, and the Eup/Myeon area (including any Dong area, for which the application of the tax rate applicable to the Si is stipulated by its municipal ordinance as inappropriate), a Gun, and "Si with a population of at least 500,000" means a Dong area with a population of at least 500,000. <Amended on Jan. 1, 2013> |
| (3) | For the purpose of paragraph (1), a reference to the Special Metropolitan City or a Metropolitan City shall be deemed a reference to a Si with a population of at least 500,000, and the Gun area of a Metropolitan City shall be deemed a Gun area. |
| (4) | For the purposes of paragraphs (1) through (3), "population" means the number of residents registered pursuant to the Resident Registration Act as of January 1 of each year and the same shall apply hereafter in this Act. |
| (5) | In applying paragraph (1), where two or more local governments are integrated pursuant to Article 5 (1) of the Local Autonomy Act and become a local government corresponding to a Si whose population is at least 500,000, the tax rate before such integration may apply for up to five years from the date such integrated local government is established (the initial date in reckoning shall be January 1 of the year following the year on which the date an integrated local government is established falls), as prescribed by the municipal ordinance of a relevant local government. <Newly Inserted on Dec. 27, 2010; Dec. 27, 2016; Jan. 12, 2021> |
| Article 35 (Tax Returns, Payment, etc.) |
| (1) | A person who intends to obtain a new license or change the license shall file a registration and license tax return and pay tax to the head of the local government having jurisdiction over the place for tax payment under Article 25 (2) before a license certificate is issued to or served on him or her: Provided, That a person who intends to newly obtain a license, the term of validity of which is not specified or exceeds one year, or who intends to obtain the changed license may pay registration and license tax on the relevant license to be paid in the following year in lump sum when he or she obtains the new or changed license notwithstanding Article 34 of the Framework Act on Local Taxes. <Amended on Dec. 29, 2020> |
| (2) | A license, the term of validity of which is not specified or exceeds one year, shall be deemed renewed on January 1 of each year, and thus registration and license tax shall be annually imposed by means of ordinary collection within the period for payment stipulated by the municipal ordinance of the competent local government having jurisdiction over the place for tax payment pursuant to Article 25 (2), whereas registration and license tax shall be imposed only once on a license, the term of validity of which is one year or shorter when filing such license. |
| (3) | With respect to any of the following licenses, registration and license tax shall be imposed only once when such licenses are filed, notwithstanding paragraph (2): |
| 1. | A license for manufacturing, processing or importation respectively obtained for each item; |
| 2. | A license prescribed by Presidential Decree which includes a construction permit or any other permit equivalent thereto. |
| (4) | Where a person liable to pay registration and license tax fails to fulfill his or her duty to file a return or pay tax under paragraph (1), the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the amount of tax calculated pursuant to Articles 34 (1) shall be collected as the amount of tax by means of ordinary collection: Provided, That when he or she has paid registration and license tax by the deadline for payment even in a case where he or she failed to file a return under paragraph (1), no additional tax under Articles 53 or 54 of the Framework Act on Local Taxes shall be imposed on him or her. <Newly Inserted on Jan. 1, 2013; Dec. 27, 2016> |
| Article 36 (Effect of Tax Payment) |
Registration and license tax paid by the ancestor shall be deemed paid by his or her heir, and the aforesaid tax paid by the corporation which ceases to exist due to a merger shall be deemed paid by the corporation surviving the merger or resulting from the consolidation.
| Article 37 (Measures Related to Registration and License Tax Already Paid) |
| (1) | Where a person who has filed a registration and license tax return and paid registration and license tax withdraws an application for license or becomes unable to obtain the relevant license due to other reasons before a license certificate is issued to or served on him or her under Article 35, the head of the competent local government shall refund the registration and license tax reported and paid according to the handling procedures of local tax refunds under Article 60 of the Framework Act on Local Taxes. In such cases, Article 62 of the same Act shall not apply. <Amended on Dec. 27, 2016> |
| (2) | If the validity of a granted license expires due to termination of the period of validity, revocation of the license, or any other reason similar thereto, the registration and license tax already paid shall not be refunded. |
| Article 38 (Verification of Tax Payment upon Granting License) |
| (1) | Where a license-granting agency grants a license or changes a license already granted, it shall issue or deliver the license certificate to the relevant person after verifying if the registration and license tax under Article 35 has been paid. |
| (2) | Matters concerning the method for verification of the payment of registration and license tax under paragraph (1), and other matters shall be prescribed by Presidential Decree. |
| Article 38-2 (Notification regarding License) |
| (1) | When a license-granting agency grants, changes, revokes, or suspends a license, it shall notify the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu of such action before issuing or delivering a license certificate, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 27, 2016; Jul. 26, 2017> |
| (2) | When a license-granting agency processes matters concerning the granting, changing, revoking or suspending a license under paragraph (1) by using a computer, it may notify the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/Gu of such processed data, in lieu of the notification under paragraph (1). <Amended on Dec. 27, 2016> |
[This Article Newly Inserted on Dec. 27, 2010]
| Article 38-3 (Perusal of Documents Related to License) |
Where a tax official requests a related agency to allow the perusal or copying of documents related to the grant, change, revocation or suspension of a license for the purpose of imposition and collection of registration and license tax, the related agency shall comply therewith. <Amended on Jan. 1, 2013>
[This Article Newly Inserted on Dec. 27, 2010]
| Article 39 (Revocation, etc. of Licenses) |
| (1) | The head of a local government may request a license-granting agency to revoke or suspend a license issued to a person who has failed to pay applicable registration and license tax. |
| (2) | A license-granting agency, upon receipt of a request under paragraph (1), shall promptly revoke or suspend the relevant license. |
| (3) | Where a license-granting agency has revoked or suspended a license pursuant to paragraph (2) or due to any other reason, it shall promptly notify the head of the competent local government thereof. |
| Article 40 (Objects of Taxation) |
Any of the following shall be subject to leisure tax:
| 3. | Selling betting tickets, horse racing tickets, etc., paying prize money, etc. to those who correctly choose a winner or winning horse under other Acts, which is prescribed by Presidential Decree. |
| Article 41 (Persons Liable to Pay Tax) |
A person who conducts business subject to taxation provided in Article 40 (hereafter in this Chapter referred to as "bicycle racing, etc.") shall be liable to pay leisure tax. <Amended on Dec. 28, 2021>
| Article 42 (Tax Base and Tax Rate) |
| (1) | The tax base of leisure tax shall be the total sales of the tickets issued such as betting tickets and horse racing tickets. |
| (2) | The tax rate of leisure tax shall be 10/100. |
| Article 43 (Tax Returns and Payment) |
A person liable to pay tax shall file a return and pay the amount of tax obtained by multiplying the tax base under Article 42 (1) by the tax rate under Article 42 (2) (hereafter in this Chapter) referred to as "calculated amount of tax") pro rata to the head of the competent local government as specified in the following by the 10th day of the month following that in which betting tickets, horse racing tickets, etc. are sold falls, as prescribed by Presidential Decree: <Amended on Dec. 28, 2021> | 1. | In cases of betting tickets, horse racing tickets, etc. sold at a place of business for bicycle racing, etc. (hereafter in this Chapter referred to as "bicycle racing track, etc."): The head of a local government in which the relevant bicycle racing track, etc. is located; |
| 2. | In cases of betting tickets, horse racing tickets, etc. sold at an off-track betting facility: The head of a local government in which the relevant bicycle racing track, etc. is located, and the head of a local government in which the relevant off-track betting facility is located; |
| 3. | In cases of betting tickets, horse racing tickets, etc. sold using the information and communications network prescribed by Presidential Decree: The head of a local government in which the relevant bicycle racing, etc. is located and the heads of all local governments (including the local government in which the relevant bicycle racing track, etc. is located). |
| Article 44 (Duties to Keep Account Books) |
A person liable to pay tax shall enter matters concerning the operation of bike racing, etc. in an account book, and report necessary matters to the head of a competent local government, as stipulated by the relevant municipal ordinance.
| Article 45 (Additional Collection of Insufficient Amount of Tax and Additional Tax) |
| (1) | Where a person liable to pay tax fails to fulfill his or her duty to file a return or pay tax under Article 43, the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the calculated amount of tax or to the amount of tax shortfall shall be collected as the amount of tax by means of ordinary collection: <Amended on Jan. 1, 2013; Dec. 27, 2016> |
| 1. | Deleted; <Jan. 1, 2013> |
| 2. | Deleted. <Jan. 1, 2013> |
| (2) | Where a person liable to pay tax fails to fulfill the duty stipulated under Article 44, an amount equivalent to 10/100 of the calculated amount of tax shall be collected by means of ordinary collection, in addition to the amount of tax to be collected. |
| Article 46 (Assistance, etc. with Collection Duties) |
| (1) | The head of a competent local government may order a person liable to pay tax to assist with his or her collection duties, as prescribed by Presidential Decree. |
| (2) | In the cases under paragraph (1), the head of the competent local government may grant subsidies to persons liable to pay tax, as prescribed by Presidential Decree. |
CHAPTER V TOBACCO CONSUMPTION TAX
The terms used in relation to tobacco consumption tax are defined as follows: <Amended on Dec. 29, 2020>
| 1. | The term "tobacco" means any of the following: |
| (b) | Products similar to item (a), manufactured in a state suitable for smoking, sucking, inhaling in the form of steam, chewing, or sniffing, by using tobacco plants other than their leaves, as all or part of the raw material; |
| (c) | Any other product prescribed by Presidential Decree as similar to that specified in item (a); |
| 4. | The term "manufacturer" means any of the following persons: |
| (a) | A person who manufactures tobacco specified in subparagraph 1 (a) after obtaining a license to operate a tobacco manufacturing business pursuant to Article 11 of the Tobacco Business Act; |
| (b) | A person who manufactures tobacco specified in subparagraph 1 (b) or (c) for the purpose of sale; |
| 5. | The term "manufacturing place" means the factory of a manufacturer who manufactures tobacco; |
| 6. | The term "import and sale business entity" means any of the following persons: |
| (a) | A person who has filed for registration of business of importing and selling tobacco pursuant to Article 13 of the Tobacco Business Act and imports and sells tobacco specified in subparagraph 1 (a); |
| (b) | A person who imports and sells tobacco specified in subparagraph 1 (b) or (c); |
| 7. | The term "retailer" means any of the following persons: |
| (b) | A person who sells tobacco specified in subparagraph 1 (b) or (c) to consumers; |
| 8. | Deleted; <Dec. 29, 2020> |
| 9. | Deleted. <Dec. 29, 2020> |
| Article 48 (Objects of Taxation) |
| (1) | The taxable object subject to tobacco consumption tax is tobacco. |
| (2) | Tobacco referred to in paragraph (1) shall be classified as follows: <Amended on Dec. 27, 2010; May 20, 2014> |
| (b) | Class 2 pipe tobacco; |
| (e) | Class 5 electronic tobacco; |
| (f) | Class 6 waterpipe tobacco; |
| (3) | The classification of tobacco under paragraph (2) shall be prescribed by Presidential Decree based on the nature, shape, manufacturing process, etc. of tobacco. |
| Article 49 (Persons Liable to Pay Tax) |
| (1) | A manufacturer shall be liable to pay tobacco consumption tax on tobacco taken out of a manufacturing place. |
| (2) | An import and sale business entity shall be liable to pay tobacco consumption tax on tobacco taken out of a bonded area. |
| (3) | Where a person who enters the Republic of Korea from a foreign country (including cases where a person who enters the Republic of Korea from North Korea through the entry and exit points specified by subparagraph 1 of Article 2 of the Inter-Korean Exchange and Cooperation Act; the same shall apply hereafter in this Chapter; hereafter referred to as "entrant") brings in tobacco as his or her personal effect, consignment, or unaccompanied goods or by a consignment from a foreign country, the person shall be obliged to pay tobacco consumption tax: Provided, That, if any person, other than an entrant or an import and sale business entity, brings in tobacco by mail from a foreign country, the addressee shall be obliged to pay tobacco consumption tax. <Amended on Jul. 24, 2015; Dec. 29, 2015> |
| (4) | Where tobacco is manufactured in or brought into the Republic of Korea in a manner, other than those stipulated under paragraphs (1) through (3), the manufacturer or the person who brings in tobacco shall be liable to pay tobacco consumption tax. |
| (5) | Where duty-free tobacco under Article 54 is taken out and is sold, consumed, or disposed of otherwise without being used for the intended purposes, the person who disposes of tobacco in such a manner shall be obliged to pay tobacco consumption tax, notwithstanding paragraphs (1) through (4). <Amended on Jul. 24, 2015; Dec. 29, 2020> |
| Article 50 (Places for Tax Payment) |
| (1) | In the cases under Article 49 (1) and (2), the place for the payment of tobacco consumption tax shall be the location of the business place of a retailer where tobacco is sold. <Amended on Dec. 29, 2020> |
| (2) | In the cases under Article 49 (3), the place for the payment of tobacco consumption tax shall be the seat of the customs office through which tobacco is brought into the Republic of Korea. <Amended on Dec. 29, 2015> |
| (3) | In the cases under Article 49 (4), the place for the payment of tobacco consumption tax shall be as follows: |
| 1. | Where tobacco is manufactured: The place where tobacco is manufactured; |
| 2. | Where tobacco is brought into the Republic of Korea: The place through which tobacco is brought into the Republic of Korea. |
| (4) | In the cases under Article 49 (5), the place for the payment of tobacco consumption tax shall be the location of the place of business of the person who makes dispositions under the same paragraph, in which case, if the location of the place of business is unknown, the place for the payment of the said tax shall be the place where such dispositions are made. |
Tax bases of tobacco consumption tax shall be the number of cigarettes, weight of tobacco or the volume of nicotine solution. <Amended on Dec. 27, 2010>
| (1) | Tobacco consumption tax rates shall be as follows: <Amended on Dec. 27, 2010; Jan. 1, 2014; May 20, 2014; Dec. 23, 2014; Dec. 27, 2016; Dec. 26, 2017> |
| (a) | Class 1 cigarette: 1,007 won per pack of 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 won 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. 23, 2014> |
| (2) | Tax rates referred to in paragraph (1) may be changed by Presidential Decree by up to 30/100 of such tax rates. |
| Article 53 (Taking out without Paying Tax) |
| (1) | No tobacco consumption tax shall be levied on tobacco in any of the following cases: <Amended on Dec. 29, 2015; Mar. 14, 2023> |
| 1. | Tobacco taken out of a manufacturing place or bonded area for convenience in the supply of tobacco in any of the following cases: |
| (a) | Tax-exempt tobacco under Article 54 (1), which is transferred from a manufacturing place to another manufacturing place; |
| (b) | Tobacco from a foreign country under subparagraph 4 of Article 2 of the Customs Act, which is transferred from a bonded area to another bonded area; |
| (c) | Deleted; <Mar. 14, 2023> |
| 2. | Tobacco taken out to be used as raw material for the production of another tobacco type; |
| 3. | Tobacco taken out to relocate a manufacturing place or for any other reason, as prescribed by Presidential Decree. |
| (2) | With regard to the tobacco brought into the Republic of Korea under paragraph (1), the manufacturing site or bonded area shall be deemed the place through which tobacco is brought and provisions concerning imposition of or exemption from the tobacco consumption tax shall apply by regarding a person who brought the tobacco into the Republic of Korea as the manufacturer or the person who imports and sells the tobacco. <Newly Inserted on Mar. 14, 2023> |
| Article 54 (Tax Exemption) |
| (1) | Tobacco consumption tax shall be exempted where a manufacturer or import and sale business entity provides tobacco for any of the following purposes: <Amended on Jul. 24, 2015; Mar. 14, 2023> |
| 1. | Export (including tobacco samples for negotiations on exportation); |
| 2. | Sale to the following persons within the jurisdictional zone of foreign military forces in the Republic of Korea: |
| (a) | Military personnel of foreign military forces in the Republic of Korea; |
| (b) | Civilians who hold a foreign nationality and work for foreign military forces in the Republic of Korea; |
| (c) | Family members of the persons referred to in item (a) or (b); |
| 4. | Sale to the crew of ocean-going ships or deep-sea fishing vessels; |
| 5. | Sale to passengers of airplanes or passenger ships servicing international lines; |
| 6. | Product development, quality improvement, quality inspesctioin or ingredient analysis of the tobacco, or test analysis or research corresponding thereto; |
| 8. | Other purposes specified by Presidential Decree as those similar to the purposes of providing tobacco under subparagraphs 1 through 7. |
| (2) | Tobacco brought in by an entrant shall be exempted from tobacco consumption tax, if it falls within the scope prescribed by Presidential Decree. <Amended on Jul. 24, 2015> |
| (3) | Tobacco shall be exempted from tobacco consumption tax, if tobacco exported from the Republic of Korea is imported back due to a defect in packing or quality, poor sale, or any other unavoidable cause or event and is taken out from the bonded area in order to bring it into the manufacturing place of the tobacco storage of the import and sale business entity. <Newly Inserted on Jul. 24, 2015> |
| Article 55 (Reporting on Taking out Tobacco) |
When a manufacturer or import and sale business entity takes tobacco out of a manufacturing place or bonded area (including taking-out without paying the tax under Article 53 or for tax exemption under Article 54), he or she shall report such fact to the head of the competent local government, as prescribed by Presidential Decree. <Amended on Dec. 29, 2015>
| Article 56 (Cases Deemed Taking out of Manufacturing Places or Bonded Areas) |
A manufacturer or import and sale business entity shall be deemed to have taken tobacco out of a manufacturing place or bonded area in any of the following cases: <Amended on Mar. 14, 2023>
| 1. | Where tobacco is consumed at the manufacturing place or bonded area; Provided, That consumption for purposes prescribed in Article 54 (1) 6 shall be excluded; |
| 2. | Where tobacco in a manufacturing place is liquidated through public sale, auction, or bankruptcy proceeding, etc. |
| Article 57 (Notification of Reports on Opening and Closure of Business) |
| (1) | In any of the following cases, the Minister of Economy and Finance shall notify the head of the local government having jurisdiction over the manufacturing place of the relevant facts: |
| (2) | In any of the following cases, 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 the relevant import and sale business entity of the relevant facts: |
[This Article Wholly Amended on Dec. 27, 2016]
| Article 58 (Submission of Plan for Use of Tobacco in Stock upon Discontinuation of Business) |
A manufacturer or an import and sale business entity shall submit a plan for the use of tobacco in stock in his or her possession to the head of the local government having jurisdiction over the manufacturing place or the principal place of business (limited to the cases of an importation and distribution business) within three days from the relevant date specified in the following: <Amended on Dec. 29, 2020>
| 1. | A manufacturer: The date of actual suspension or discontinuation of business; |
| 3. | An import and sale business entity specified in subparagraph 6 (b) of Article 47: The date of actual suspension or discontinuation of business. |
[This Article Wholly Amended on Dec. 27, 2016]
| Article 59 (Bookkeeping Duties) |
A manufacturer or import and sale business entity shall enter matters concerning the manufacturing, importation, sale, etc. in an account book and shall keep such book, as prescribed by Presidential Decree. <Amended on Dec. 29, 2020>
| Article 60 (Tax Returns, Payment, etc.) |
| (1) | A manufacturer shall file a return of and pay the amount of tax calculated based on the tax base and tax rate under Articles 51 and 52 (hereafter in this Chapter referred to as "calculated amount of tax") on the tobacco taken out of a manufacturing place from the first day to the last day of each month to the head of the competent local government by the 20th day of the following month, according to pro rata standards prescribed by Presidential Decree. <Amended on Dec. 27, 2010; Dec. 31, 2019> |
| (2) | An import and sale business entity shall file a return of and pay the calculated amount of tax on the tobacco taken out of a bonded area from the first day to the last day of each month to the head of the relevant local government by the 20th day of the following month, as prescribed by Presidential Decree. <Amended on Dec. 27, 2010; Dec. 31, 2019> |
| (3) | Deleted. <Dec. 29, 2020> |
| (4) | Deleted. <Dec. 29, 2020> |
| (5) | A person liable to pay the tax under Article 49 (3) shall file a tobacco consumption tax return and pay tobacco consumption tax to the head of the relevant customs office, as prescribed by Presidential Decree. <Amended on Dec. 29, 2015> |
| (6) | When the head of a customs office imposes customs duties and give notice thereof under Article 39 of the Customs Act, he or she may concurrently impose tobacco consumption tax and give notice thereof. <Newly Inserted on Dec. 29, 2015> |
| (7) | The head of a customs office who collects tobacco consumption tax under paragraph (5) or (6) shall be deemed to collect tobacco consumption tax after being entrusted therewith by the head of the relevant local government, and the head of the customs office shall pay the tobacco consumption tax so collected to the head of the local government having jurisdiction over the seat of the customs office by not later than the tenth day of the following month, along with the details of collection: Provided, That the head of a customs office may use the local tax information and communications network defined in subparagraph 28 of Article 2 of the Framework Act on Local Taxes to collect tobacco consumption tax via electronic payment under subparagraph 30 of the same Article. <Newly Inserted on Dec. 29, 2015; Dec. 29, 2020> |
| (8) | Except as otherwise expressly provided for in this Act, the Customs Act shall apply mutatis mutandis to the collection of tobacco consumption tax under paragraphs (5) and (6). <Newly Inserted on Dec. 29, 2015> |
| Article 61 (Additional Collection of Insufficient Amount of Tax and Additional Tax) |
| (1) | In any of the following cases, the head of a local government shall collect the amount calculated by adding the amount of additional tax (in cases referred to in subparagraph 4 or 5, referring to additional tax under Article 53 or 54 of the Framework Act on Local Taxes) equivalent to 10/100 of the calculated amount of tax or the amount of tax shortfall to the amount of tax to be collected: Provided, That in the cases referred to in subparagraphs 4 and 5, where a person fails to pay the calculated amount of tax or pays less than the calculated amount of tax, the head of the local government shall collect the amount of tax calculated by further adding the amount of additional tax under Article 55 of the Framework Act on Local Taxes thereto: <Amended on Jan. 1, 2013; Dec. 27, 2016; Dec. 29, 2020> |
| 1. | Deleted; <Dec. 27, 2016> |
| 2. | Where a person fails to submit a plan for use pursuant to Article 58; |
| 3. | Where a person fails to perform his or her bookkeeping duties pursuant to Article 59, or makes a false entry; |
| 4. | Where a person fails to file a return pursuant to Article 60, or the amount of tax reported is less than the calculated amount of tax; |
| 5. | Where a person files a falsely calculated amount of tax on tobacco by local government under Article 60. |
| (2) | In any of the following cases, an amount equivalent to 30/100 of the calculated amount of tax or the amount of tax shortfall shall be collected in addition to the amount of tax to be collected: <Amended on Jul. 24, 2015; Dec. 29, 2020> |
| 1. | Where the tobacco taken out pursuant to Article 53 is not used for its intended purpose, but sold, consumed, or otherwise disposed of; |
| 2. | Where tobacco exempt from tobacco consumption tax under Article 54 (1) is not used for its intended purpose specified in the subparagraphs of the same Article but is sold, consumed, or otherwise disposed of; |
| 3. | Where a manufacturer or import and sale business entity fails to file a report pursuant to Article 55; |
| 4. | Where a person receives a deduction from or refund on the amount of tax pursuant to Article 63 by improper means; |
| 5. | Where a person wholly or partially conceals or disguises the fact which serves as the basis of the tax base. |
| (3) | The calculated amount of tax and the amount of tax shortfall under paragraphs (1) and (2) shall be calculated by applying the tax base and tax rate to the quantity of tobacco related to the relevant act. |
[Title Amended on Jul. 1, 2013]
| Article 62 (Occasional Imposition) |
| (1) | In any of the following cases, the head of the competent local government may assess, impose, and collect the amount of tax at any time, based on the relevant evidentiary data, notwithstanding Article 60: |
| 1. | Where a person liable to pay tax under Article 49 (1) and (2) is in a state of business suspension or closure due to a slump in business or other reasons; |
| 2. | Where tobacco consumption tax is collected pursuant to Article 61. |
| (2) | In the cases under Article 49 (4) and (5), the amount of tax shall be assessed, imposed, and collected when the relevant fact is discovered or verified. |
| Article 63 (Deduction from and Refund on Amount of Tax) |
| (1) | In any of the following cases, the relevant amount of tax shall be deducted or refunded: Provided, That no additional tax which has been already paid or to be paid by a taxpayer shall be deducted or refunded: : <Amended on Dec. 27, 2016; Mar. 14, 2023> |
| 1. | Where the tobacco taken out of a manufacturing place or bonded area is lost or damaged due to a natural disaster or any other unavoidable cause; |
| 2. | Where the tobacco taken out of a manufacturing place or bonded area is brought back to a manufacturing place or a tobacco storage of an import and sale business entity due to its poor packaging or quality, slowing sales, or any other unavoidable cause; |
| 3. | Where the amount of tax already filed and paid is overpaid; |
| 4. | Where tobacco consumption tax was paid in advance according to the declaration voluntarily filed before tobacco is taken out from a bonded area pursuant to Article 64 (4) but it later becomes unavailable because of destruction, damage, disuse, or any other subsequent event. |
| (2) | The subject matters and scope of deduction and refund under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | With regard to the tobacco brought pursuant to paragraph (1) 2, the place where the tobacco is brought shall be deemed the manufacturing place or bonded area, and the provisions concerning imposition of or exemption from the tobacco consumption tax shall apply by regarding a person who brings the tobacco as the manufacturer or import and sale business entity. <Newly Inserted on Mar. 14, 2023> |
| Article 64 (Security for Tax Payment) |
| (1) | The head of the local government having jurisdiction over the location of the main office of a manufacturer or import and sale business entity may request the manufacturer or import and sale business entity to provide security, as prescribed by Presidential Decree, for the purpose of securing the payment of tobacco consumption tax. |
| (2) | Where a manufacturer or import and sale business entity requested to provide security pursuant to paragraph (1) fails to provide security or provides insufficient security, the head of the competent local government may prohibit him or her from taking out tobacco or request the head of the relevant customs office to do so. |
| (3) | The head of the relevant customs office requested to prohibit taking out tobacco pursuant to paragraph (2) shall comply therewith. |
| (4) | Notwithstanding Article 60 (2), an import and sale business entity requested to provide an asset as security under paragraph (1) may pay tobacco consumption tax according the declaration voluntarily filed before taking out tobacco from the bonded area without providing any asset as security. In such cases, the duty to pay tobacco consumption tax arises at the time of filing the declaration, notwithstanding Article 34 (1) 4 of the Framework Act on Local Taxes. <Newly Inserted on Dec. 27, 2016> |
CHAPTER VI LOCAL CONSUMPTION TAX
| Article 65 (Objects of Taxation) |
| Article 66 (Persons Liable to Pay Tax) |
Local consumption tax shall be imposed on a person who is obligated to pay valued-added tax pursuant to Article 3 of the Value-Added Tax Act in the Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province having jurisdiction over the address or domicile of a person who consumes goods and services under Article 65. <Amended on Jun. 7, 2013; Dec. 27, 2016>
| Article 67 (Places for Tax Payment) |
| Article 68 (Persons Liable for Special Collection) |
A person liable for special collection is the head of the tax office having jurisdiction over the place for tax payment under Article 67, or the head of the customs office who collects value-added tax on the importation of goods pursuant to Article 58 (2) of the Value-Added Tax Act. <Amended on Jun. 7, 2013>
| Article 69 (Tax Base and Amount of Tax) |
| (1) | The tax base for local consumption tax shall be an amount of tax calculated by subtracting the reduced, exempted or deducted amount of the value-added tax prescribed in the Value-Added Tax Act and other Acts from the amount of the valued-added tax paid under the Value-Added Tax Act plus additional tax. |
| (2) | The amount of local consumption tax shall be calculated by applying 253/1000 to the tax base referred to in paragraph (1). <Amended on Dec. 26, 2013; Dec. 31, 2018; Dec. 31, 2019; Dec. 7, 2021> |
| Article 70 (Tax Returns, Payment, etc.) |
| (1) | Where local consumption tax and value-added tax are returned, paid, corrected or refunded, such tax return, payment, correction or refund shall be made based on the amount of local consumption tax under Article 69 (2) plus the amount of value-added tax under Article 72 of the Value-Added Tax Act, notwithstanding Article 69 (2). <Amended on Jun. 7, 2013> |
| (1) | A person liable for special collection shall pay the collected local consumption tax to a person designated by the Minister of the Interior and Safety (hereinafter referred to as "payment manager"), considering the population, etc. of the area under his or her jurisdiction or the efficiency and expertness of payment management, from among the 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 or the heads of local government associations established under Article 151-2 of the Framework Act on Local Taxes, along with an assessment notice prescribed by Ordinance of the Ministry of the Interior and Safety, by the 20th day of the following month. <Amended on Mar. 23, 2013; Nov. 19, 2014; Dec. 27, 2016; Jul. 26, 2017; Dec. 29, 2020> |
| (2) | Even though a person liable for special collection under paragraph (1) fails to pay or insufficiently pays the amount of tax he or she has collected or is to collect by the deadline under the said paragraph, no additional tax under Article 56 of the Framework Act on Local Taxes shall be imposed on the person liable for special collection. <Newly Inserted on Jan. 1, 2013; Dec. 27, 2016> |
| (3) | A payment manager shall pay the local consumption tax paid pursuant to paragraph (1) within a period prescribed by Presidential Decree according to the following subparagraphs <Amended on Dec. 31, 2019; Dec. 7, 2021; Jun. 9, 2023> |
| 1. | The amount equivalent to 50/253 of the amount of tax calculated pursuant to Article 69 (2) shall be paid pro rata to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, and a Special Self-Governing Province Governor, as prescribed by Presidential Decree, in consideration of consumer spending, etc. in each region; 1. |
| 2. | The amount equivalent to 60/253 of the amount of tax calculated pursuant to Article 69 (2) shall be paid pro rata to the heads of the relevant local governments and to the superintendents of education of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, and a Special Self-Governing Province, as prescribed by Presidential Decree, to compensate any decrease in the acquisition tax, local education tax, local subsidy, local education subsidies, etc., pursuant to the amended provisions of Article 11 (1) 8 of the Local Tax Act (Act No. 12118); |
| 3. | The amount equivalent to 100/253 of the amount of tax calculated pursuant to Article 69 (2) shall be paid as follows: |
| (a) | A payment manager shall pay the amount prescribed by Presidential Decree to the head of an association established pursuant to Article 17 (2) of the Framework Act on the Management of Local Government Funds (hereinafter referred to as the "head of an association"), in order to compensate for expenses incurred in conducting projects, etc. subsidized from the Special Account for Balanced National Development that are transferred from the State to a local government (hereinafter referred to as "transferred projects"); in such cases, the head of an association shall distribute the amount of tax paid pro rata to the heads of the relevant local governments pursuant to Article 18 (1) 5 of the same Act; |
| (b) | In order to compensate for grants-in-aid for adjustment among Sis/Guns under Article 29 of the Local Finance Act, grants-in-aid for autonomous Gus under Article 29-2 of the same Act, and money transferred to the special account for education expenses of a City/Do under Article 11 (2) of the Local Education Subsidy Act and Article 14 (5) of the Special Act on the Establishment of Sejong City, which would decrease due to the compensation for transferred projects of a City/Do under item (a); payments shall be made pro rata to the heads of the relevant local governments and to the superintendents of education of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, and a Special Self-Governing Province, as prescribed by Presidential Decree; |
| (c) | The tax amount, other than that paid under items (a) and (b), shall be paid pro rata to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, and a Special Self-Governing Province Governor, as prescribed by Presidential Decree, in consideration of consumer spending, etc. in each region; |
| 4. | The amount equivalent to 43/253 of the amount of tax calculated pursuant to Article 69 (2) shall be paid as follows: |
| (a) | A payment manager shall pay the amount prescribed by Presidential Decree to the head of an association for compensating for the expenses incurred in conducting transferred projects; in such cases, the head of the association shall distribute the amount of tax paid pro rata to the heads of the relevant local governments pursuant to Article 18 (1) 5 of the Framework Act on the Management of Local Government Funds; |
| (b) | In order to compensate for the grants-in-aid for adjustment among Sis/Guns under Article 29 of the Local Finance Act (in cases of Sejong City and Jeju Special Self-Governing Province, referring to the amount prescribed by Presidential Decree), grants-in-aid for autonomous Gus under Article 29-2 of the same Act, and money transferred to the special account for education expenses of a City/Do under Article 11 (2) of the Local Education Subsidy Act and Article 14 (5) of the Special Act on the Establishment of Sejong City, all of which are calculated by dividing pro rata the amount equivalent to the total cost of transferred projects of a City/Do, compensated for pursuant to item (a); payments shall be made pro rata to the heads of the relevant local governments and to the superintendents of education of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, and a Special Self-Governing Province, as prescribed by Presidential Decree; |
| (c) | 60/100 of the amount of tax excluding that paid under items (a) and (b) shall be paid pro rata to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, and a Special Self-Governing Province Governor, as prescribed by Presidential Decree, in consideration of consumer spending, etc. in each region; and 40/100 of the remainder shall be paid pro rata to a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, and the head of a Si/Gun/Gu, in consideration of consumer spending, population, etc. in each region, as prescribed by Presidential Decree. |
| (4) | Where a person liable for special collection refunds local consumption tax pursuant to Article 70 (1), he or she shall deduct an amount equivalent to the local consumption tax (hereafter referred to as "local consumption tax refund" in this paragraph) out of refunds from an amount to be paid to the payment manager: Provided, That where the local consumption tax refund exceeds the amount to be paid, the over-refunded local consumption tax shall be carried forward to the following month. <Amended on Jan. 1, 2013> |
[It shall remain effective until December 31, 2026 pursuant to Article 2 of the Addenda to the Act No. 16855 (Dec. 31, 2019)]
[It shall remain effective until December 31, 2026 pursuant to Article 2 of the Addenda to the Act No. 18544 (Dec. 7, 2021)]
| Article 72 (Special Cases concerning Imposition, Collection, etc.) |
The imposition and collection of local consumption tax, procedures for raising objections, and other relevant matters shall be dealt with in the same manner as national taxes are dealt with. In such cases, a person liable for special collection under Article 68 shall be deemed a managing authority.
| Article 73 (Mutatis Mutandis Application of the Value-Added Tax Act) |
Except as provided for in this Chapter, the Value-Added Tax Act shall apply mutatis mutandis to matters concerning local consumption tax.
SECTION 1 Common Provisions
The terms used in relation to resident tax are defined as follows: <Amended on Jan. 1, 2014; Dec. 31, 2018; Dec. 29, 2020>
| 1. | The term "per capita portion" means resident tax imposed on an individual who has his or her domicile under the jurisdiction of a local government; |
| 2. | The term "pro rata business place portion" means resident tax imposed on the basis of a place of business located under the jurisdiction of a local government and its total floor area, as the tax base thereof; |
| 3. | The term "employee portion" means resident tax imposed on the basis of the total amount of wages of employees working at a place of business located under the jurisdiction of a local government, as the tax base thereof; |
| 4. | The term "place of business" means a place equipped with human resources and physical equipment where business or business affairs are continuously performed; |
| 5. | The term "business owner" means a person having a place of business under the jurisdiction of any local government; |
| 6. | The term "total floor area of a place of business" means the total floor area of a building used as a place of business prescribed by Presidential Decree; |
| 7. | The term "total amount of employees’ wages" means salaries, wages, bonuses, and other allowances in the nature corresponding thereto paid to employees of the place of business, which are prescribed by Presidential Decree; |
| 8. | The term "employees" means the executive officers, employees, and other workers who work in a place of business or are paid wages from a place of business, who are prescribed by Presidential Decree. |
| Article 75 (Persons Liable to Pay Tax) |
| (1) | A person liable to pay per capita portion shall be an individual who has his or her domicile (in cases of a foreigner, referring to the place of stay under the Immigration Act; hereafter in this Chapter, the same shall apply) under the jurisdiction of a local government, as of the base date of taxation: Provided, That any of the following persons shall be excluded herefrom: <Amended on Dec. 29, 2020> |
| 3. | A member of a household under the Resident Registration Act or an individual equivalent thereto, who is prescribed by Presidential Decree; |
| (2) | A person liable to pay pro rata business place portion shall be any of the following business owners (excluding a person who suspends his or her business continuously for at least one year as of the base date of taxation) as of the base date of taxation: Provided, That where the owner of a building for a place of business is different from a business owner, the owner of the building may be charged with secondary tax liability, as prescribed by Presidential Decree: <Amended on Dec. 31, 2018; Dec. 29, 2020> |
| 1. | An individual who has his or her place of business of at least the scale prescribed by Presidential Decree under the jurisdiction of a local government; |
| 2. | A corporation that has its place of business under the jurisdiction of a local government (including an unincorporated association, foundation, or organization subject to the taxation of corporate tax); hereafter in this Chapter, the same shall apply). |
| (3) | A person liable to pay taxes on the employee portion shall be a business owner who pays wages to employees. <Newly Inserted on Jan. 1, 2014> |
| Article 76 (Places for Tax Payment) |
| (1) | The place for tax payment of per capita portion shall be the current domicile as of the base date of taxation. <Amended on Dec. 29, 2020> |
| (2) | The place for tax payment of pro rata business place portion shall be the current location of a place of business as of the base date of taxation. <Amended on Dec. 29, 2020> |
| (3) | The place for tax payment of employee portion shall be the current location of the place of business (where the place of business is closed, referring to the location of the place of business as of the date of its closure) as of the date wages are paid (where wages are paid at least twice a month, referring to the date wages are paid lastly). <Newly Inserted on Jan. 1, 2014; Dec. 31, 2018; Dec. 29, 2020> |
| Article 77 (Non-Taxation) |
| (1) | No resident tax shall be imposed on any of the following persons: |
| 1. | The State, local governments, and local government associations; |
| 2. | Foreign government agencies, international organizations in Korea, and foreign nongovernmental aid organizations under the Foreign Nongovernmental Aid Organizations Act located in Korea (hereinafter referred to as "foreign aid organization in Korea"), and foreigners working for foreign government agencies or international organizations in Korea: Provided, That in the case of a country imposing a tax of the same nature as resident tax on the government agencies and international organizations of the Republic of Korea, or on Korean nationals working therefor, resident tax shall be imposed on such country, foreigners having the nationality of such country, and property of the government or aid organizations of such country. |
| (2) | Deleted. <Dec. 31, 2019> |
| (3) | Deleted. <Dec. 31, 2018> |
SECTION 2 Per Capita Portion
| (1) | The tax rates of a per capita portion shall be prescribed by the relevant ordinance by the head of a local government, not exceeding 10,000 won. <Amended on Dec. 28, 2021> |
| (2) | Notwithstanding paragraph (1), upon receipt of a request from residents, the tax rate of a per capita portion may be determined by municipal ordinance differently by Eup/Myeon/Dong, not exceeding 15,000 won. <Newly Inserted on Dec. 28, 2021> |
| (3) | Necessary matters concerning requirements, objects, methods, and procedures for requests from residents under paragraph (2) shall be prescribed by municipal ordinance. <Newly Inserted on Dec. 28, 2021> |
[This Article Wholly Amended on Dec. 29, 2020]
| Article 79 (Collection Methods, etc.) |
| (1) | The per capita portion shall be collected by means of ordinary collection by the head of a local government having jurisdiction over the place for tax payment. <Amended on Dec. 29, 2020> |
| (2) | The base date for taxation of the per capita portion shall be July 1 of each year. <Amended on Dec. 31, 2018; Dec. 29, 2020> |
| (3) | The payment period of the per capita portion shall be from August 16 to August 31 of each year. <Amended on Dec. 29, 2020> |
| Article 79-2 (Provision of Taxation Data for Resident Tax) |
| (1) | The Minister of the Interior and Safety or the head of a local government may request the Minister of the National Court Administration to provide electronic registration data prescribed in Article 11 (6) of the Act on Registration of Family Relations, where necessary for ascertaining household members of a person liable to pay per capita portion tax or any other similar data. In such cases, the Minister of the National Court Administration in receipt of such request shall comply therewith unless there is a compelling reason not to do so. <Amended on Dec. 29, 2020> |
| (2) | The Minister of the Interior and Safety may furnish the head of a local government with computerized registration data provided pursuant to paragraph (1), as prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 31, 2019]
SECTION 3 Pro Rata Business Place Portion
The tax base of the pro rata business place portion shall be the place of business and its total floor area, as of the base date of taxation. <Amended on Dec. 29, 2020>
| (1) | The tax rate of the pro rata business place portion shall be as follows: <Amended on Dec. 29, 2020> |
| (a) | Business place the business owner of which is an individual: 50,000 won; |
| (b) | Business site of a corporation the business owner of which is a corporation: |
| (i) | A corporation whose amount of capital or investment does not exceed three billion won: 50,000 won; |
| (ii) | A corporation whose amount of capital or investment is more than three billion won but not more than five billion won: 100,000 won; |
| (iii) | A corporation whose amount of capital or investment exceeds five billion won: 200,000 won; |
| (iv) | Other corporations: 50,000 won; |
| 2. | The tax rate on the total floor area: 250 won per square meter of a place of business: Provided, That in cases of a place of business discharging wastewater or industrial wastes under subparagraph 3 of Article 2 of the Wastes Control Act, or any other pollutants prescribed by Presidential Decree, 500 won per square meter. |
| (2) | The head of a local government may increase or decrease the tax rates prescribed in paragraph (1) 1 and in the main clause of paragraph (1) 2, by up to 50/100, respectively, as prescribed by the relevant ordinance. <Amended on Dec. 29, 2020> |
| (3) | Deleted. <Dec. 29, 2020> |
| Article 82 (Calculation of Tax Amount) |
The amount of a pro rata business place portion shall be the aggregate of the tax amounts calculated respectively based on the tax rates prescribed in Article 81 (1) 1 and 2: Provided, That no tax amount calculated pursuant to Article 81 (1) 2 shall be imposed on a place of business with the total floor area not exceeding 330 square meters. [This Article Wholly Amended on Dec. 29, 2020]
| Article 83 (Methods of Collection, Payment Due Date, etc.) |
| (1) | The pro rata business place portion shall be collected by means of a tax return and payment. <Amended on Dec. 29, 2020> |
| (2) | The base date of taxation for a pro rata business place portion shall be July 1. <Amended on Dec. 29, 2020> |
| (3) | A person liable to pay the pro rata business place portion shall file a tax return and pay tax annually to the head of a local government having jurisdiction over the place for tax payment, as prescribed by Presidential Decree, from August 1 to August 31. <Amended on Dec. 29, 2020> |
| (4) | Notwithstanding paragraph (1) and (3), the head of a local government having jurisdiction over the place for tax payment may send a payment reminder to a person liable to pay the pro rata business place portion (hereafter in this Article referred to as "payment reminder"). <Amended on Dec. 29, 2020> |
| (5) | Where a person liable to pay tax in receipt of a payment reminder under paragraph (4) pays the amount of tax stated in the payment reminder by the deadline specified in paragraph (3), he or she shall be deemed to pay such tax after filing a tax return pursuant to paragraph (3). <Newly Inserted on Dec. 29, 2020> |
| (6) | Where a person liable to pay the pro rata business place portion fails to fulfill his or her duty to file a return or to pay tax under paragraph (3), the head of a local government shall collect the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the amount of tax calculated pursuant to Articles 80 and 81, or to the amount of tax shortfall as the amount of tax by means of ordinary collection: <Amended on Jan. 1, 2013; Dec. 27, 2016; Dec. 29, 2020> |
| 1. | Deleted; <Jan. 1, 2013> |
| 2. | Deleted. <Jan. 1, 2013> |
| Article 84 (Duty to Report) |
| (1) | A person liable to pay the pro rata business place portion or an owner of the building for the place of business shall file a report on necessary matters, as prescribed by the relevant municipal ordinance. <Amended on Dec. 29, 2020> |
| (2) | Where a person liable to pay taxes fails to report necessary matters under paragraph (1), a tax official may investigate such matters ex officio and enter them into a tax ledger. |
SECTION 4 Employee Portion
The tax base of the employee portion shall be the total amount of wages in the relevant month paid to employees.
[This Article Newly Inserted on Jan. 1, 2014]
| (1) | The standard tax rate of the employee portion shall be 5/1000 of the total amount of employees’ wages. |
| (2) | The head of a local government may increase or decrease a tax rate of the employee portion by up to 50/100 of the standard tax rate under paragraph (1), as prescribed by municipal ordinance. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 84-4 (Requirement for Tax Exemption) |
| (1) | If the monthly average total amount of employees’ wages in the relevant place of business for the most recent year from the month in which the duty to pay arose under Article 34 of the Framework Act on Local Taxes is less than the amount calculated by multiplying the amount specified by Presidential Decree by 50, the employee portion shall not be imposed. <Amended on Dec. 29, 2015> |
| (2) | Matters regarding the method for calculating the monthly average total amount of employees’ wages under paragraph (1), etc. shall be prescribed by Presidential Decree. <Amended on Dec. 29, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 84-5 (Support for Employment of Small and Medium Enterprises) |
| (1) | Where the business owner of a small and medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises (hereinafter referred to as "small and medium enterprise") employs additional employees (limited to the cases where the number of employees during the relevant month exceeds 50), the amount calculated by the following formula shall be deducted from the tax base of the employee portion. In such cases, if the average monthly number of employees during the immediately preceding year is not more than 50, the number of employees shall be deemed 50 for the purpose of calculation: <Amended on Dec. 29, 2015; Dec. 27, 2016> |
Amount deducted = (The number of employees in a month a refund is filed - The average monthly number of employees in the immediately preceding business year) x Amount of monthly applicable wages
| (2) | In any of the following cases, the amount of average monthly wages paid by a small or medium enterprise to 50 employees shall be deducted from the tax base for the employee portion for one year from the relevant month specified in either of the following subparagraphs: <Amended on Dec. 29, 2015; Dec. 27, 2016; Dec. 31, 2019> |
| 1. | Where the small and medium enterprise employs more than 50 employees when it establishes a new place of business: The month in which it shall report the employee portion initially; |
| 2. | Where the number of employees exceeds 50 because the small and medium enterprise employs additional employees for the place of business with not more than 50 persons per month for one year before the relevant month (excluding the place of business that had more than 50 employees at least one time during the latest five years from the relevant month): The month in which it shall report the employee portion for the relevant month. |
| (3) | In applying paragraphs (1) and (2), the monthly wages shall be calculated by dividing the total amount of employees’ wages for the relevant month by the number of employees in the relevant month. <Amended on Dec. 27, 2016; Dec. 31, 2019> |
| (4) | In applying paragraph (1), if it is impossible to calculate the average monthly number of employees during the immediately preceding year due to the suspension of business operations, the number of employees for the month in which the number of employees is reported initially shall be deemed the average monthly number of employees during the immediately preceding year. <Amended on Dec. 27, 2016; Dec. 31, 2019> |
| (5) | The criteria for determining the number of employees under paragraphs (1) through (4), etc. shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 29, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 84-6 (Methods of Collection and Period of Payment) |
| (1) | The employee portion shall be collected by means of a tax return and payment. |
| (2) | A person liable to pay taxes on the employee portion shall file a tax return and pay tax monthly to the head of a local government having jurisdiction over a place for tax payment by the tenth day of the following month, as prescribed by Presidential Decree. |
| (3) | Where a person liable to pay taxes on the employee portion fails to fulfill his or her duty to file a return or pay tax under paragraph (2), the head of a local government shall collect the amount calculated by adding an additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to a tax amount calculated pursuant to Articles 84-2 and 84-3 or to such amount of tax shortfall as the tax amount by means of ordinary collection. <Amended on Dec. 27, 2016> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 84-7 (Duty to Report) |
| (1) | A person liable to pay taxes on the employee portion shall report necessary matters, as prescribed by municipal ordinance. |
| (2) | Where a person liable to pay taxes fails to report necessary matters under paragraph (1), a tax official may investigate such matters ex officio and enter them into a tax ledger. |
[This Article Newly Inserted on Jan. 1, 2014]
CHAPTER VIII LOCAL INCOME TAX
SECTION 1 Common Provisions
| (1) | The definitions of terms used in the local income tax shall be as follows: <Amended on Jul. 24, 2015; Dec. 24, 2018; Mar. 14, 2023> |
| 4. | The term "non-resident" means an individual who is not a resident; |
| 5. | The term "Korean corporation" means a corporation that has a head office, a principal office, or the actual place of business management in the Republic of Korea; |
| 6. | The term "non-profit Korean corporation" means any of the following corporations among Korean corporations: |
| (b) | A corporation whose purpose is similar to that provided for in Article 32 of the Civil Act (excluding a corporation that may distribute profits to its stockholders, employees, or investors, other than a cooperative corporation, etc. prescribed by Presidential Decree), which is incorporated pursuant to the Private School Act or other special Acts; |
| 7. | The term "foreign corporation" means a corporation meeting criteria prescribed by Presidential Decree, which is an organization that has its head office or principal office in a foreign country (only applicable to cases where it does not have an actual place of business management in the Republic of Korea); |
| 8. | The term "non-profit foreign corporation" means a foreign government, foreign local government or non-profit foreign corporation (including an organization deemed a corporation) among foreign corporations; |
| 9. | The term "business entity" means a resident who has business income; |
| 10. | The term "place of business" means a place equipped with human resources or physical facilities, in which business or office work is conducted; |
| 11. | The term "business year" means one fiscal period for which corporate income is calculated; |
| 12. | The term "consolidated tax payment method" means a method for reporting and paying corporate local income tax pursuant to Section 7 by calculating at least two Korean corporations as one unit of the tax base and tax amount; |
| 13. | The term "consolidated corporation" means a Korean corporation to which the consolidated tax payment method applies; |
| 14. | The term "consolidated group" means all consolidated corporations; |
| 15. | The term "consolidated parent corporation" means a consolidated corporation that consolidates and controls (referring to consolidation and control pursuant to the Corporate Tax Act; hereinafter the same shall apply) other consolidated corporations, from among consolidated groups, and the term "consolidated subsidiary" means a consolidated corporation that is subject to consolidation and control by the consolidated parent corporation; |
| 16. | The term "consolidated business year" means one fiscal period for which the income of a consolidated group is calculated. |
| (2) | Except as provided in paragraph (1), the definitions of the terms used in this Chapter shall be governed by the provisions of the Income Tax Act and the Corporate Tax Act. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 86 (Persons Liable to Pay Taxes, etc.) |
| (1) | A person liable to pay income tax under the Income Tax Act or corporate tax under the Corporate Tax Act shall be legally obligated to pay local income tax. |
| (2) | The scope of the legal obligations to pay local income tax under paragraph (1) shall be governed by the provisions of the Income Tax Act and the Corporate Tax Act. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 87 (Scope and Classification of Local Income) |
| 1. | Global income: The sum of the following income, excluding income under subparagraphs 2, 2-2 and 3 from personal local income taxable under this Act: |
| (d) | Wage and salary income; |
| 2-2. | Income from financial investment |
| (3) | Corporate local income of a Korean corporation or foreign corporation shall be classified as follows; and the scope of the following income based on the types of corporations shall be governed by Article 4 of the Corporate Tax Act: <Amended on Jul. 24, 2015; Dec. 30, 2017; Dec. 24, 2018; Dec. 31, 2018> |
| 1. | Income for each business year; |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 88 (Taxable Period and Business Year) |
| (1) | The taxable period for local income tax on personal local income (hereinafter referred to as "personal local income tax") shall be a period under Article 5 of the Income Tax Act. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 89 (Places for Tax Payment) |
| (1) | Places for payment of local income tax shall be as follows: <Amended on Mar. 24, 2014; Dec. 29, 2015; Dec. 26, 2017; Dec. 31, 2019> |
| 2. | Corporate local income tax: Places for tax payment under Article 9 of the Corporate Tax Act as at the end of each business year: Provided, That each place of business shall be deemed a place for tax payment, if a corporation or a consolidated corporation has places of business in areas under the jurisdiction of two or more local governments. |
| (2) | If a corporation or a consolidated corporation has its places of business in areas under the jurisdiction of two or more local governments under the proviso to paragraph (1) 2, the corporate local income tax shall be paid, according to the tax returns filed, to the head of each local government having jurisdiction over each place of business pro rata in accordance with the criteria prescribed by Presidential Decree. <Amended on Dec. 29, 2015; Dec. 27, 2016> |
| (3) | Notwithstanding the provisions of paragraphs (1) and (2), the head of each local government having jurisdiction over the seat of the place for tax payment prescribed in the relevant subparagraphs shall impose the following local income tax among the local income tax specially collected pursuant to Articles 103-13, 103-29, and 103-52: <Amended on Mar. 24, 2014; Jul. 24, 2015; Dec. 27, 2016; Dec. 28, 2021; Mar. 14, 2023> |
| 1. | Local income tax on earned income and retirement income: The place of employment of the person liable to pay tax: Provided, That the address of the person who receives retirement income shall be deemed the place for tax payment in the case of retirement income withdrawn in any manner other than annuities from a pension account (including a pension trust or insurance scheme) after retirement; |
| 3. | Local income tax on business income paid by the National Health Insurance Corporation under the National Health Insurance Act: The seat of a business place of a person who receives such income; |
| 4. | Local income tax on income, other than that specified in subparagraphs 1 through 3, where the withholding affairs of income tax and corporate tax on income are collectively processed at the head office or principal office: The place of payment of such income: Provided, That it shall be the corresponding place of payment prescribed in the following with regard to the following local income tax: |
| a. | Where prize money of a certain scale from among prize money prescribed in the Lottery Tickets And Lottery Fund Act is paid in a lump sum by the headquarter or main office, local income tax for the relevant prize money: Place of sale of the relevant lottery tickets; |
| b. | Where refund money of a certain scale from among refund money of the sports promotion voting rights prescribed in Article 27 of the National Sports Promotion Act is paid in a lump sum by the headquarter or main office, local income tax for the relevant refund money: Place of sale of the relevant sports promotion voting rights; |
| c. | Where a person liable for special collection prescribed in the latter part of Article 103-13 (1) restricts withdrawal by an account holder pursuant to paragraph (3) of the Article, local income tax for the relevant income from financial investment: Place of establishment of the relevant account prescribed by Presidential Decree. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 90 (Non-Taxation) |
[This Article Wholly Amended on, Jan. 1, 2014]
SECTION 2 Local Income Tax on Global Income and Retirement Income of Residents
| (1) | The tax base for personal local income tax on the global income of a resident shall be the same amount as the tax base for income tax calculated pursuant to Article 14 (2) through (5) of the Income Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for income tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
| (2) | The tax base for personal local income tax on retirement income of a resident shall be the same amount as the tax base for income tax calculated pursuant to Article 14 (6) of the Income Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for income tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
[This Article Wholly Amended on, Jan. 1, 2014]
| (1) | The standard tax rates of personal local income tax on global income of residents shall be as follows: <Amended on Mar. 24, 2014; Dec. 27, 2016; Dec. 30, 2017; Dec. 29, 2020; Mar. 14, 2023>Tax baseTax rate14 million won or less6/1,000 of tax baseMore than 14 million won and not more than 50 million won 84,000 won + (15/1,000 of the amount exceeding 14 million won) |
More than 50 million won and not more than 88 million won 624,000 won + (24/1,000 of the amount exceeding 50 million won)More than 88 million won and not more than 150 million won 1,536,000 won + (35/1,000 of the amount exceeding 88 million won)More than 150 million won and not more than 300 million won 3,706,000 won + (38/1,000 of the amount exceeding 150 million won)More than 300 million won and not more than 500 million won 9,406,000 won+ (40/1,000 of the amount exceeding 300 million won)More than 500 million won and not more than 1 billion won 17,406,000 won + (42/1,000 of the amount exceeding 500 million won)Morea than 1 billion won38,406,000 won + (45/1,000 of the amount exceeding 1 billion won)
| (2) | The head of each local government may increase or decrease the tax rates of personal local income tax on global income by up to 50/100 of the standard tax rates provided for in paragraph (1), as prescribed by the relevant municipal ordinance. |
| (3) | The calculated amount of personal local income tax on global income of residents shall be the amount obtained by applying tax rates referred to in paragraphs (1) and (2) to the tax base of the relevant year. |
| (4) | The calculated amounts of personal local income tax on retirement income of residents shall be the amounts calculated according to the following order: <Amended on Dec. 29, 2015> |
| 1. | The amount calculated by applying the tax rate under paragraph (1) or (2) to the tax base under Article 91 (2) for the relevant taxable period; |
| 2. | The amount calculated by dividing the amount under subparagraph 1 by 12 and then multiplying the amount by the number of year of continuous service; |
| 3. | Deleted. <Dec. 29, 2015> |
| (5) | Deleted. <Dec. 27, 2016> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 93 (Order of Calculation of Tax and Special Cases) |
| (1) | Except as provided in this Act, personal local income tax on global income and retirement income of residents shall be calculated as follows: <Amended on Dec. 27, 2016; Dec. 26, 2017> |
| 1. | The calculated amount of personal local income tax on global income and retirement income shall be calculated separately pursuant to Article 92 (3) and (4); |
| 2. | The finalized amount of personal local income tax on global income and retirement income shall be calculated respectively by applying a tax credit and a tax reduction or exemption under Article 94 to the tax amount calculated pursuant to subparagraph 1; |
| (2) | Where interest income and dividend income (hereafter referred to as "interest income, etc." in this Article) included in the tax base for personal local income tax on global income of a resident exceed the standard amount of global taxation on interest income, etc. (hereafter referred to as "standard amount of global taxation" in this Article) under Article 14 (3) 6 of the Income Tax Act, the calculated amount of personal local income tax on global income of such resident shall be the larger of the following amounts, and where interest income, etc. does not exceed the standard amount of global taxation, the calculated amount of personal local income tax shall be the amount referred to in subparagraph 2; in such cases, where dividend income under Article 17 (1) 8 of the Income Tax Act exists, the amount of such dividend income shall not be deemed interest income, etc.: <Amended on Jul. 24, 2015; Dec. 27, 2016> |
| 1. | The amount calculated by adding the following tax amounts: |
| (a) | The calculated amount of personal local income tax on the amount calculated by adding up the amount exceeding the standard amount of global taxation of the amounts of interest income, etc. and the amount of global income excluding interest income, etc.; |
| 2. | The amount calculated by adding the following tax amounts: |
| (b) | The calculated amount of personal local income tax on the amount of global income excluding interest income, etc.: Provided, That where the amount of such tax is less than the amount calculated by adding up the tax amount calculated by applying 10/100 of a tax rate referred to in Article 129 (1) 1 (d) of the Income Tax Act on dividend income under Article 17 (1) 8 of the Income Tax Act and the calculated amount of personal local income tax on the amount of global income excluding interest income, etc. and dividend income under Article 17 (1) 8 of the Income Tax Act (hereafter referred to as "compared amount of tax on global income" in this item), the amount of such tax shall be the compared amount of tax on global income. |
| (3) | In respect of excess repayment from a workplace mutual aid association under Article 16 (1) 10 of the Income Tax Act (hereafter referred to as "excess repayment from a workplace mutual aid association" in this Article), the amount calculated by multiplying the tax amount calculated by applying a tax rate under Article 92 to the amount calculated by dividing the amount calculated by deducting the amount referred to in each subparagraph of Article 63 (1) of the Income Tax Act in order from the amount of excess repayment from a workplace mutual aid association by the number of years of payment (where the number of years of payment is less than one year, it shall be regarded as one year; hereinafter the same shall apply) by the number of years of payment: Provided, That the calculation method, etc, for the tax amount on an excess repayment received from a workplace mutual aid association in installments shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2017> |
| (4) | The calculated amount of personal local income tax on global income of a person who is a resident engaging in a real estate business (hereinafter referred to as "real estate business") prescribed by Presidential Decree (hereinafter referred to as "real estate business entity") and whose global income includes a right to purchase a house defined in Article 104 (1) 1 of the Income Tax Act or a profit margin on a property falling under Article 104 (1) 8 or 10 or any subparagraph of Article 104 (7) of the same Act (hereafter in this Article referred to as "profit margin on the purchase and sale of houses, etc.") shall be the greater of the following tax amounts. In such cases, other matters necessary for the calculation of profit margin on the purchase and sale of houses, etc. of a real estate business entity and the calculation of the amount of personal local income tax on global income shall be prescribed by Presidential Decree: <Amended on Jul. 24, 2015; Dec. 30, 2017; Aug. 12, 2020> |
| 1. | The calculated amount of personal local income tax on global income; |
| 2. | The sum of the following tax amounts: |
| (a) | The sum of tax amounts calculated by applying tax rates under Article 103-3 to profit margin on the purchase and sale of houses, etc.; |
| (b) | The tax amount calculated by regarding an amount calculated by deducting the total amount of profit margin on the purchase and sale of houses, etc. in the relevant taxable period from the tax base for personal local income tax on global income as the tax base and applying a tax rate under Article 92 to such amount. |
| (5) | Where a real estate business entity files a preliminary return of profit margin on the purchase and sale of land, etc. under Article 69 (1) of the Income Tax Act, it shall file a return of profit margin and the tax amount on land or buildings (hereafter in this Article referred to as "land, etc.") with the head of a local government having jurisdiction over a place for tax payment from the end of a month to which the date of purchase and sale belongs to the date when two months elapse, as prescribed by Presidential Decree. The same shall also apply where there exists no profit margin on the purchase and sale of land, etc. or it incurs a loss in the purchase and sale of land, etc. <Amended on Dec. 31, 2019> |
| (6) | The calculated amount of tax on profit margin on the purchase and sale of land, etc. of a real estate business entity under paragraph (5) shall be the amount calculated by multiplying the amount calculated by deducting necessary expenses calculated by applying Article 97 of the Income Tax Act mutatis mutandis by tax rates provided for in Article 103-3 in the sale price: Provided, That where a period for possession of land, etc. is less than two years, notwithstanding the provisions of Article 103-3 (1) 2 and 3, the calculated amount of such tax shall be the amount calculated by multiplying the amount calculated by deducting necessary expenses calculated by applying Article 97 of the Income Tax Act mutatis mutandis by tax rates under subparagraph 1 of the said paragraph . <Amended on Mar. 24, 2014; Mar. 14, 2023> |
| (7) | A real estate business entity shall pay the calculated tax amount under paragraph (6) to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing a tax return under paragraph (5), as prescribed by Presidential Decree. In such cases, a person for whom the amount of tax to be paid exceeds one million won is allowed to pay some of the tax on an installment basis within two months after a payment deadline, as prescribed by Presidential Decree. <Amended on Mar. 14, 2023> |
| (8) | Articles 103-6 (2) and 103-9 shall apply mutatis mutandis to the calculation, determination, and correction of the calculated amount of tax on a profit margin on the purchase and sale of land and an additional tax in the application of a conversion value. <Amended on Dec. 30, 2017; Dec. 31, 2019> |
| (9) | Matters necessary for the calculation of profit margin on the purchase and sale of land, etc. and the amount of tax thereon under paragraphs (5) through (8) shall be prescribed by Presidential Decree. |
| (10) | The finalized amount of personal local income tax on global income of a resident who has house rental income subject to separate taxation under Article 14 (3) 7 of the Income Tax Act (hereafter in this Article referred to as "house rental income subject to separate taxation") shall be selected from among the following tax amounts for application: <Newly Inserted on Jul. 24, 2015; Dec. 31, 2018; Dec. 31, 2019> |
| 2. | The amount calculated by adding the following tax amounts: |
| (a) | The amount calculated by multiplying the business income amount related to house rental income subject to separate taxation, by 14/1000: Provided, That where a resident falling under Article 96 (1) of the Restriction of Special Taxation Act leases a rental house under the aforesaid paragraph, the amount shall be the amount calculated by subtracting 10/100 of the amount of tax reduced or exempted pursuant to the same paragraph from the amount calculated by multiplying the amount of business income related to house rental income subject to separate taxation, generated from the relevant rental business, by 14/1000; |
| (b) | The finalized amount of personal local income tax on global income except the amount of item (a). |
| (11) | The amount of business income related to house rental income subject to separate taxation under paragraph (10) 2 (a) shall be the amount calculated by subtracting necessary expenses (referring to 50/100 of the amount of gross earnings) from the amount of gross earnings; but where the amount of global income except house rental income subject to separate taxation during the relevant taxable period is not more than 20 million won, such amount of business income shall be the amount calculated by additionally subtracting two million won from the amount of gross earnings: Provided, That where a resident leases a rental house prescribed by Presidential Decree, the amount of business income generated from the relevant rental business shall be the amount calculated by subtracting necessary expenses (referring to 60/100 of the amount of gross earnings) from the amount of gross earnings; but where the amount of global income except house rental income subject to separate taxation during the relevant taxable period is not more than 20 million won, the amount of business income shall be the amount calculated by additionally subtracting 4 million won from such amount of gross earnings. <Newly Inserted on Jul. 24, 2015; Dec. 31, 2018> |
| (12) | When a business entity falling under any of the following files a tax base return for the taxable period to which the date the relevant ground therefor arises belongs, he or she shall pay the amount classified as follows, for individual local income tax: Provided, That the same shall not apply to 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: <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019; Dec. 29, 2020> |
| 1. | Where the business entity who has the amount of tax reduced or exempted pursuant to the proviso to paragraph (10) 2 (a) fails to rent the relevant rental housing for at least four years or 10 years, in the case of publicly supported private rental housing under subparagraph 4 of Article 2 of the Special Act on Private Rental Housing or long-term general private rental housing under subparagraph 5 of Article 2 of the aforesaid Act): The amount of tax reduced or exempted pursuant to the proviso to paragraph (10) 2 (a); |
| 2. | Where the business entity who has calculated the amount of tax by applying the proviso to paragraph (11) fails to rent the relevant rental housing for at least 10 years: The amount of difference between the amount of tax calculated by not applying the proviso to paragraph (11) and the amount of tax reported at first. |
| (13) | Where a business entity pays individual local income tax pursuant to the subparagraphs of paragraph (12), he or she shall pay individual local income tax by adding 10/100 of the amount added equivalent to interest calculated pursuant to the main clause of Article 64-2 (4) of the Income Tax Act: Provided, That this shall not apply to where there are unavoidable reasons prescribed by Presidential Decree. <Newly Inserted on Dec. 31, 2018> |
| (14) | Necessary matters concerning methods for calculating the finalized amount of tax on global income related to house rental income subject to separate taxation and calculating the amount of business income based on types of rental housing shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 31, 2018> |
| (15) | Where a real estate business entity files a return on a profit margin and tax amount on the purchase and sale of land, etc., (including where no profit margin exists on purchase and sale or where a loss is incurred in purchase and sale) pursuant to paragraph (5), even if such business entity files a return with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return shall not be affected. <Newly Inserted on Dec. 31, 2019> |
| (17) | With regard to the determined tax amount of the personal local income tax for general income of residents with pension income, other than separately taxable pension income perscribed in Article 14 (3) 9 of the Income Tax Act from among pension income prescribed in Article 20-3 (1) 2 and 3 of the Act , any of the following tax amounts shall apply: <Newly Inserted on Mar. 14, 2023> |
| 1. | Determined tax amount of the personal local income tax for general income; |
| 2. | Amount calculated by adding the following tax amounts: |
| b. | Determined tax amount of the personal local income tax for general income other than that prescribed in (a) |
| (18) | Determined tax amount of the personal local income tax for virtual income from assets prescribed in Article 21 (1) 27 of the Income Tax Act shall be the amount calculated by applying 20/1000 to the amount calculated by subtracting 2.5 million won from the relevant other incomes calculated under paragraph (3) of the Act. <Newly Inserted on Dec. 29, 2020; Mar. 14, 2023> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 94 (Tax Credit and Tax Reduction or Exemption) |
Matters concerning tax credit on and tax reduction of or exemption from personal local income tax on global income and retirement income shall be governed by the Restriction of Special Local Taxation Act: Provided, That where credit on or reduction of or exemption from personal local income tax on global income or retirement income exceeds the calculated tax amount, the amount in excess of the calculated tax amount shall be deemed null and void. [This Article Wholly Amended on, Jan. 1, 2014]
| Article 95 (Final Return of Tax Base and Tax Payment) |
| (1) | Where a resident files a final tax base return of global income or retirement income pursuant to the Income Tax Act, he or she shall file a final tax base return of personal local income tax on global income or retirement income with the head of a local government having jurisdiction over a place for tax payment and pay the amount thereof to him or her by the deadline for filing the relevant return, as prescribed by Presidential Decree. In such cases, even if a resident files a return with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return shall not be affected. <Amended on Dec. 31, 2019> |
| (2) | Paragraph (1) shall also apply where there exists no tax base for personal local income tax on global income or retirement income or any loss on global income is incurred during the relevant taxable period: Provided, That this shall not apply to a person who has paid a personal local income tax on retirement income pursuant to Article 103-13. <Amended on Dec. 26, 2017> |
| (3) | Where a person files a final return and pays a tax under paragraph (1), he or she shall pay such tax to the head of a local government having jurisdiction over a place for tax payment after deducting the following tax amounts in the relevant taxable period from the calculated amount of personal local income tax on global income or retirement income in the relevant taxable period: |
| 1. | The calculated tax amount of a preliminary return of profit margin on the purchase and sale of land, etc., or the final or corrected tax amount thereof under Article 93 (5) through (8); |
| 2. | The amount of tax deduction or exemption under Article 94; |
| 5. | The amount of tax collected by a tax association under Article 103-17. |
| (4) | Any resident for whom the amount of tax to be paid pursuant to paragraph (3) exceeds one million won is allowed to pay some of the tax amount on installment basis, as prescribed by Presidential Decree, within two months after a payment deadline. <Newly Inserted on Mar. 14, 2023> |
| (5) | Notwithstanding paragraph (1), the head of a local government having jurisdiction over a place for tax payment may send to a resident prescribed by Presidential Decree, such as a small-scale business entity, a payment reminder prescribed by Ordinance of the Ministry of the Interior and Safety stating the tax base and the amount of tax under paragraph (1) (hereafter in this Article referred to as "payment reminder"). <Newly Inserted on Dec. 31, 2019; Mar. 14, 2023> |
| (6) | Where a person in receipt of a payment reminder under paragraph (5) pays the amount of tax stated in the payment reminder by the filing deadline, he or she shall be deemed to have filed a final return and paid under paragraph (1). <Newly Inserted on Dec. 31, 2019; Mar. 14, 2023> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 96 (Amended Return, etc.) |
| (1) | Where a resident who has filed a final personal local income tax return under Article 95 intends to file an amended return, a request for correction, etc. with regard to the reported content under the Income Tax Act pursuant to Article 45 or 45-2 of the Framework Act on National Taxes, he or she shall file an amended return, a request for correction, etc. under Article 49 or 50 of the Framework Act on Local Taxes with the head of a local government having jurisdiction over a place for tax payment, as prescribed by Presidential Decree. In such cases, even if a resident files an amended return, a request for correction, etc. with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return or request shall not be affected. <Amended on Dec. 27, 2016; Dec. 31, 2019> |
| (2) | Deleted. <Dec. 31, 2019> |
| (3) | A person shall additionally pay an amount of tax that shall be paid due to an amended return under paragraph (1). <Amended on Dec. 27, 2016; Dec. 31, 2019> |
| (4) | Deleted. <Dec. 31, 2019> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 97 (Determination and Correction) |
| (1) | Where a resident fails to file a final tax base return under Article 95 or there exists an error or omission in the reported content, the head of a local government having jurisdiction over a place for tax payment shall determine or correct the tax base and the tax amount in the relevant taxable period. |
| (2) | Where the head of a local government having jurisdiction over a place for tax payment discovers any errors or omissions in his or her determination or correction after he or she has determined or corrected the tax base and the amount of personal local income tax, he or she shall immediately rectify such determination or correction again. |
| (3) | Where the head of a local government having jurisdiction over a place for tax payment determines or corrects the tax base and the amount of personal local income tax pursuant to paragraphs (1) and (2), he or she shall make such determination or correction based on data, books or other evidentiary documents the head of a tax office or the head of a regional tax service having jurisdiction over a place for tax payment has determined or corrected under the Income Tax Act: Provided, That where the head of such local government cannot calculate the amount of income based on books or other evidentiary documents for reasons prescribed by Presidential Decree, he or she may estimate the amount of income, as prescribed by Presidential Decree. |
| (4) | Where the head of a local government has determined or corrected the tax base and the amount of personal local income tax, he or she shall notify the relevant resident of the contents thereof in writing, as prescribed by Presidential Decree. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 98 (Determination of Occasional Imposition) |
| (1) | Where a resident falls under any of the following during the taxable period, the head of a local government having jurisdiction over a place for tax payment may occasionally impose personal local income tax on such resident (hereafter referred to as "occasional imposition" in this Article): |
| 1. | Where the resident is likely to evade personal local income tax because he or she is in a state of the suspension or closure of business for a long period due to the stagnation of trade or for other reasons; |
| 2. | Where there exist other reasonable grounds for fearing that the resident will evade tax. |
| (2) | Paragraph (1) shall apply to a period from the date of commencement of the relevant taxable period to the date when grounds for occasional imposition occur as a period of occasional imposition. In such cases, where a resident fails to file a final tax base return for the immediately preceding taxable period, such as cases where grounds for occasional imposition have occurred before a deadline for filing a tax return under Article 95, the immediately preceding taxable period shall be included in a period of occasional imposition. |
| (4) | Matters necessary for occasional imposition under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 99 (Additional Tax) |
| (1) | Where an additional tax is added to the finalized amount of income tax under Articles 81 and 81-2 through 81-14 of the Income Tax Act, the amount equivalent to 10/100 of the amount to be added shall be added to the finalized amount of personal local income tax: Provided, That, if both the additional tax to personal local income tax, which is equivalent to 10/100 of the additional tax to be added under Article 81-5 of the Income Tax Act and the additional tax under Article 53 or 54 of the Framework Act on Local Taxes are applicable, only the greater additional tax amount shall apply, while, if such additional tax amounts are the same, only the additional tax under Article 53 or 54 of the Framework Act on Local Taxes shall apply. <Amended on Dec. 27, 2016; Dec. 31, 2019; Dec. 28, 2021> |
| (2) | Where a final tax base return of global income is deemed not to be filed pursuant to the latter part, with the exception of the subparagraphs, of Article 70 (4) of the Income Tax Act and thus becomes subject to the imposition of additional tax, a failure shall be deemed to have been made to file a final tax base return of personal local income tax on global income under Article 95 of this Act. <Newly Inserted on Dec. 28, 2021> |
[This Article Wholly Amended on Jul. 24, 2015]
| Article 100 (Collection and Refund) |
| (1) | Where a resident fails to pay all or some of the tax amount he or she is obligated to pay as personal local income tax in the relevant taxable period pursuant to Article 95, the head of a local government having jurisdiction over a place for tax payment shall collect the amount of personal local income tax that has not been paid yet pursuant to the Framework Act on Local Taxes and the Local Tax Collection Act. <Amended on Dec. 27, 2016> |
| (2) | Where a tax amount the head of a local government having jurisdiction over a place for tax payment imposes occasionally pursuant to Article 98 or a specially collected tax amount under Article 103-13 exceeds the total amount of finalized personal local income tax, he or she shall refund such excess or take measures, such as making up for local tax, pursuant to Article 60 of the Framework Act on Local Taxes. <Amended on Dec. 27, 2016> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 101 (Refund Following Retroactive Deductions for Losses) |
| (1) | Where a resident files an application for refund by retroactive deduction of losses pursuant to Article 85-2 of the Income Tax Act, he or she may apply for a refund of the amount calculated as prescribed by Presidential Decree up to the amount of personal local income tax imposed on the business income for the immediately preceding taxable period (hereafter in this Article referred to as "amount of retroactively deducted losses") of the relevant carried forward: Provided, That where a loss carried forward occurs during the taxable period in which December 31, 2021 falls and an application for refund is filed pursuant to Article 8-4 of the Restriction of Special Taxation Act, an application for refund of the retroactively deducted tax amount for loss may be filed within the limit of the personal local income tax imposed on business income in the immediately preceding taxable period and the period prior thereto. <Amended on Dec. 28, 2021> |
| (2) | A person who intends to get a refund on the retroactively deducted tax amount for losses shall file an application for the refund with the head of a local government having jurisdiction over the relevant place for tax payment by the deadline for filing a final tax base return under Article 95, as prescribed by Presidential Decree: Provided, That an application filed by a resident for a refund on the retroactively deducted tax amount for losses under Article 85-2 of the Income Tax Act and Article 8-4 of the Restriction of Special Taxation Act shall be deemed an application for the refund under paragraph (1), and in such cases, the initial date in reckoning surcharges on refunds in paragraph (1) shall be prescribed by Presidential Decree. <Amended on Dec. 29, 2015; Dec. 27, 2016; Dec. 28, 2021> |
| (3) | Where the head of a local government having jurisdiction over a place for tax payment receives an application for refund on personal local income tax pursuant to paragraph (2), he or she shall, without delay, determine the tax amount to be refunded, and refund or make up for the tax amount pursuant to Articles 60 and 62 of the Framework Act on Local Taxes. <Amended on Dec. 27, 2016> |
| (4) | Paragraphs (1) through (3) shall apply only where the relevant resident files a return on the tax base and the tax amount for the taxable period during which the loss has occurred, and where the resident filed the return of the tax base and the tax amount of personal local income tax on the income for the immediately preceding taxable period (including the taxable period prior thereto, when applying the proviso to paragraph (1)) or where the head of the relevant local government imposed the tax for such period. <Amended on Dec. 27, 2016; Dec. 31, 2019; Dec. 28, 2021> |
| (5) | Where a person who gets a refund on personal local income tax pursuant to paragraph (3) falls under any of the following cases, the head of a local government having jurisdiction over a place for tax payment shall collect such tax amount refunded (referring to an amount equivalent to the tax amount excessively refunded in the cases under subparagraphs 1 and 2) as personal local income tax in the taxable period during which the loss brought forward has occurred, as prescribed by Presidential Decree: <Amended on Dec. 28, 2021> |
| 1. | Where the loss brought forward is decreased by correcting the tax base and the amount of personal local income tax on the taxable period during which the loss has occurred; |
| 2. | Where the refunded tax amount is decreased by correcting the tax base and the amount of personal local income tax on global income for the immediately preceding taxable period of the taxable period (including the taxable period prior thereto, if a refund is granted pursuant to the proviso to paragraph (1)) during which the loss has occurred; |
| (6) | Procedures for calculating the tax amount to be refunded and applying for a refund following retroactive deductions for the loss and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 101-2 Deleted. <Jan. 1, 2014> |
| Article 102 (Special Provisions on Taxation on Shared Place of Business) |
| (1) | The amount of tax specially collected on the amount of income that has occurred in the shared place of business under Article 43 of the Income Tax Act and the amount of tax related to the shared place of business, which is an additional tax under Article 99 hereof and Article 56 of the Framework Act on Local Taxes, shall be distributed according to the ratio of distribution of profits and losses of each joint business entity. <Amended on Dec. 27, 2016> |
| (2) | Matters necessary for taxation on the shared place of business, such as filing a return, determination, correction, or investigation of the amount of income on the shared place of business, shall be prescribed by Article 87 of the Income Tax Act. |
[This Article Wholly Amended on, Jan. 1, 2014]
SECTION 2-2 Local Income Tax on Gains from Financial Investment of Residents
| (1) | The tax base of the personal local income tax on gains from financial investment shall be calculated, apart from the tax base of the personal local income tax on general income, retirement income and capital gains. |
| (2) | The tax base of the personal local income tax on gains from financial investment shall be the same amount as the tax base (in cases where special taxation, such as tax reduction and exemption or heavy taxation, related to calculation of the tax base pursuant to the Act On Restriction On Special Cases Concerning Taxation and other Acts applies, referring to the tax base of income tax calculated) of the income tax calculated pursuant to Article 87-4 of the Income Tax Act. |
[This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-2
| (1) | The standard tax rate of personal local income tax on gains from financial investment shall be as shown in the table below.Tax base Tax rate300 million won or less 20/1000 of tax base Exceeding 300 million won6 million won+(25/1000 of the amount exceeding 300 million won) |
| (2) | The head of a local government may add or subtract the tax rate of personal local income tax on gains from financial investment within 50/100 of the standard tax rate prescribed in paragraph (1), as perscribed by Ordinance. |
[This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-3
| Article 102-4 (Order of Calculation of Tax Amount) |
Personal local income tax on gains from financial investment shall be calculated according to the following order, except as otherwise provided for in this Act:
| 1. | Calculate the assessed amount of personal local income tax on gains from financial investment by applying the tax rates prescribed in Article 102-3 to the tax base prescribed in Article 102-2; |
| 2. | Where there is a tax amount deducted, reduced or exempt pursuant to Article 102-5, calculate the determined amount of personal local income tax on gains from financial investment by subtracting such tax amount from assessed tax amount calculated under subparagraph 1; |
[This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-4
| Article 102-5 (Tax Credit and Tax Reduction or Exemption) |
Matters concerning the tax credit and tax reduction or exemption of the personal local income tax on incomes from financial investment shall be prescribed by the Restriction of Special Local Taxation Act: Provided, That If the amount of tax deducted or exempted from personal local income tax on incomes from financial investment exceeds the calculated tax amount, the excess amount shall be deemed zero. [This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-5
| Article 102-6 (Preliminary Reports and Payment) |
| (1) | Where a resident files a preliminary report on incomes from financial investment pursuant to Article 87-21 of the Income Tax Act, the amount of incomes from financial investment or financial investment deficit and personal local income tax amount on incomes from financial investment shall be reported to the head of a local government having the jurisdiction over the place of tax payment, as prescribed by Presidential Decree, until the date when two months are added to a deadline for reporting pursuant to paragraph (2) of the Article. In such cases, even when a resident files a preliminary report on personal local income tax on incomes from financial investment to the head of a local government, other than the head of a local government having jurisdiction over the place of tax payment, the effectiveness of such report shall not be affected. (2) Where a resident has filed a preliminary report on personal local income tax on incomes from financial investment pursuant to paragraph (1), the amount calculated by deducting the following taxes from the calculated tax amount for a preliminary report prescribed by Presidential Decree shall be paid to a local government having jurisdiction over the place of tax payment, as prescribed by Presidential Decree, until a deadline for reporting prescribed in paragraph (1): |
[This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-6
| Article 102-7 (Final Report on Tax Base and Payment) |
| (1) | Where a resident files a final report on the financial investment income tax base pursuant to Article 87-23 (1) of the Income Tax Act, the personal local income tax base and tax amount for incomes from financial investment shall be reported to the head of a local government having the jurisdiction over the place tax payment, as prescribed by Presidential Decree, until the date when two months are added to the relevant deadline for reporting. |
| (2) | No resident who has not filed a final report on the financial investment income tax base pursuant to Article 87-23 (3) of the Income Tax Act shall file a final report on personal local income tax on incomes from financial investment pursuant to paragraph (1). |
| (3) | Where a resident has filed a final report on the personal local income tax for incomes from financial investment pursuant to paragraph (1), he/she shall pay the amount calculated by deducting the following taxes from the calculated amount of personal local income tax on incomes form financial investment to the head of a local government having jurisdiction over the place of tax payment, as prescribed by Presidential Decree, until a deadline for reporting prescribed in paragraph (1): |
| 2. | Amount of tax calculated for a preliminary report pursuant to Article 102-6 or tax amount determined or corrected pursuant to Articles 97 and 102-8; |
| 3. | Amount of tax occasionally imposed pursuant to Articles 98 and 102-8; |
| 4. | Amount of tax specially collected pursuant to Article 103-13 |
[This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-7
| Article 102-8 (Revised Report, Determination, Correction, Occasional Imposition, Collection, Refund, etc.) |
With regard to a revised report, determination, correction, occasional imposition, collection, refund, etc. the provisions of Articles 96 through 98 and Article 100 shall apply mutatis mutandis. [This Article Newly Inserted on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] Article 102-8
SECTION 3 Local Income Tax on Capital Gains of Residents
| (1) | The tax base for personal local income tax on capital gains of a resident shall be calculated separately from the tax base for personal local income tax on global income, retirement income and gains from financial investment. <Amended on Mar. 14, 2023> |
| (2) | The tax base for personal local income tax on capital gains shall be the same amount as the tax base for income tax calculated pursuant to Article 92 of the Income Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for income tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
| (3) | Notwithstanding paragraph (2), the tax base for personal local income tax on capital gains on offshore assets of a resident shall be the same amount as the tax base for income tax calculated pursuant to Articles 118-3, 118-4, and 118-6 through 118-8 of the Income Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for income tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
| (4) | The tax base for personal local income tax on capital gains of a person moving abroad under Article 118-9 of the Income Tax Act shall be the same amount as the tax base for income tax calculated pursuant to Article 118-10 of the same Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for income tax calculated according to such special taxation). <Newly Inserted on Dec. 26, 2017; Dec. 31, 2019; Dec. 29, 2020; Mar. 14, 2023> |
[This Article Wholly Amended on, Jan. 1, 2014]
| Article 103-2 (Order of Computation of Tax Amount) |
Except as otherwise provided for in this Act, personal local income tax on capital gains shall be computed as follows: <Amended on Dec. 27, 2016; Dec. 30, 2017; Mar. 14, 2023>
| 1. | The computed amount of personal local income tax on capital gains shall be computed by applying tax rates under Article 103-3 to the tax base under Article 103; |
| 2. | Where a tax amount is reduced or exempted pursuant to Article 103-4 from the tax amount computed pursuant to subparagraph 1, the finalized amount of personal local income tax on capital gains shall be computed after deducting such tax reduction or exemption; |
| 3. | The total of the finalized personal local income tax on capital gains shall be computed by adding an additional tax under 103-9 (2) hereof and Articles 53 through 55 of the Framework Act on Local Taxes to the finalized amount of personal local income tax computed pursuant to subparagraph 2. |
[This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Mar. 14, 2023]
[Enforcement Date: Jan. 1, 2025] subparagraph 3 of Article 103-2
| Article 103-3 (Tax Rates) |
| (1) | The amount of personal local income tax on a resident's capital gains shall be calculated by applying any of the following standard tax rates to the tax base of capital gains for the relevant taxable period. In such cases, if two or more tax rates, among the following tax rates, are applicable to one asset, the greatest of the amounts of personal local income tax on capital gains as calculated by relevant tax rates shall be determined as the relevant tax amount: <Amended on Mar. 24, 2014; Jul. 24, 2015; Dec. 29, 2015; Dec. 27, 2016; Dec. 30, 2017; Dec. 31, 2019; Aug. 12, 2020; Dec. 29, 2020; Mar. 14, 2023> |
| 2. | Assets provided in Article 94 (1) 1 and 2 of the Income Tax Act, the period of ownership of which is at least one year but less than two years: 40/1000 of the tax base for personal local income tax on capital gains (or 60/1000, in the case of a house, a right to residency as an association member, or a right to purchase a house); |
| 3. | Assets provided for in Article 94 (1) 1 and 2 of the Income Tax Act, the period of ownership of which is less than one year: 50/1000 of the tax base for personal local income tax on capital gains (or 70/1000, in the case of a house, a right to residency as an association member, or a right to purchase a house); |
| 4. | Deleted; <Aug. 12, 2020> |
| 5. | Deleted; <Mar. 24, 2014> |
| 6. | Deleted; <Mar. 24, 2014> |
| 7. | Deleted; <Mar. 24, 2014> |
| 8. | Land for non-business purposes under Article 104-3 of the Income Tax Act (including cases falling under the proviso to subparagraph 3 of Article 5);Tax baseTax rateNot more than 14 million won16/1000 of the tax baseMore than 14 million won but not more than 50 million won224,000 won + (25/1000 of the amount exceeding 14 million won)More than 50 million won but not more than 88 million won1.124 million won + (34/1000 of the amount exceeding 50 million won)More than 88 million won but not more than 150 million won2.42 million won + (45/1000 of the amount exceeding 88 million won)More than 150 million won but not more than 300 million won5.21 million won + (48/1000 of the amount exceeding 150 million won)More than 300 million won but not more than 500 million won12.41 million won + (50/1000 of the amount exceeding 300 million won)More than 500 million won but not more than 1 billion won22.41 million won + (52/1000 of the amount exceeding 500 million won)More than 1 billion won 48.41 million won + (55/1000 of the amount exceeding 1 billion won) |
| 9. | Assets specified by Presidential Decree among the assets under Article 94 (1) 4 (c) or (d) of the Income Tax Act;Tax baseTax rateNot more than 14 million won16/1000 of the tax baseMore than 14 million won but not more than 50 million won224,000 won + (25/1000 of the amount exceeding 14 million won)More than 50 million won but not more than 88 million won1.124 million won + (34/1000 of the amount exceeding 50 million won)More than 88 million won not more than 150 million won2.42 million won + (45/1000 of the amount exceeding 88 million won)More than 150 million won but not more than 300 million won5.21 million won + (48/1000 of the amount exceeding 150 million won)More than 300 million won but not more than 500 million won12.41 million won + (50/1000 of the amount exceeding 300 million won)More than 500 million won but not more than 1 billion won22.41 million won + (52/1000 of the amount exceeding 500 million won)More than 1 billion won 48.41 million won + (55/1000 of the amount exceeding 1 billion won) |
| (i) | Stocks, etc. of any corporation other than small and medium enterprises specified by Presidential Decree (hereafter referred to as "small and medium enterprises" in this Section) which has been held for less than one year: 30/1000 of the tax base of personal local income tax on capital gains; |
| (ii) | Stocks, etc. that do not fall under sub-item (i);Tax baseTax rateNot more than 300 million won20/1000 of the tax baseMore than 300 million won6 million won + (The amount exceeding 300 million won ? 25/1000) |
| (b) | Stocks transferred by any person who is not a majority stockholder: |
| (i) | Stocks, etc. of a small or medium enterprise: 10/1000 of the tax base of personal local income tax on capital gains; |
| (ii) | Stocks, etc. that do not fall under the sub-item (i): 20/1000 of the tax base of personal local income tax on capital gains; |
| (c) | Deleted; <Dec. 30, 2017> |
| 12. | Deleted; <Mar. 14, 2023>; |
| 13. | Deleted; <Mar. 14, 2023>; |
| 14. | Rights to benefit from trusts under Article 94 (1) 6 of the Income Tax Act.Tax baseTax rateNot more than 300 million won20/1000 of the tax baseMore than 300 million won 6 million won + (25/1000 of the amount exceeding 300 million won) |
| (2) | A period of ownership of assets under paragraph (1) 2, 3 and 11 (a) shall be calculated, as prescribed by Article 104 (2) of the Income Tax Act. <Amended on Dec. 27, 2016; Dec. 30, 2017> |
| (3) | The standard tax rates of personal local income tax on a resident's capital gains on assets under subparagraphs 1, 2, and 5 of Article 118-2 of the Income Tax Act shall be the same as the tax rates specified in Article 92 (2): <Amended on Jul. 24, 2015; Dec. 31, 2019> |
| 1. | Deleted; <Dec. 31, 2019> |
| 2. | Deleted; <Dec. 31, 2019> |
| 3. | Deleted. <Dec. 30, 2017> |
| (4) | The head of a local government may increase or decrease tax rates of personal local income tax on capital gains within 50/100 of standard tax rates under paragraph (1), as prescribed by municipal ordinance. |
| (5) | Where a person transfers any of the following real estate, the tax rate calculated by adding 10/1000 to a tax rate under Article 92 (1) (for a transfer under subparagraph 3, the tax rate provided for in paragraph (1) 8) shall apply. In such cases, where the period of ownership of the relevant real estate is less than two years, the greater of the amount of personal local income tax on capital gains as calculated by applying the tax rate provided for in the former part or the amount of personal local income tax on capital gains as calculated by applying the tax rate under paragraph (1) 2 or 3 shall be determined as the calculated amount of personal local income tax on capital gains: <Newly Inserted on Mar. 24, 2014; Jul. 24, 2015; Dec. 30, 2017; Dec. 31, 2019> |
| 1. | Deleted;<Dec. 30, 2017> |
| 2. | Deleted; <Dec. 30, 2017> |
| 3. | Land for non-business purposes under Article 104-3 of the Income Tax Act, which is real estate in a designated area under Article 104-2 (2) of the Income Tax Act: Provided, That excluded herefrom shall be cases where evidential documents verify the fact that a person has entered into a sales contract to transfer the relevant land and has received the down payment before the date of public announcement of the area subject to designation; |
| 4. | Other real estate prescribed by Presidential Decree where necessary for stabilizing the prices of real estate because real estate prices have risen sharply or are likely to rise sharply. |
| (6) | Where a person transfers two or more assets specified in Article 94 (1) 1, 2, and 4 of the Income Tax Act during the relevant taxable period, the calculated amount of personal local income tax on capital gains shall be determined as the greater of the following amounts (where there is an amount of tax deduction or exemption of personal local income tax on capital gains under Article 103-4, referring to the greater of the amount calculated by subtracting the relevant amount of tax deduction or exemption): in such cases, for the calculation of the amount under subparagraph 2, the assets provided for in paragraph (1) 8 and 9 shall be deemed identical assets; and where one parcel of land is divided into a portion of land for business purposes under Article 104-3 of the Income Tax Act and a portion of land for other purposes out of a parcel of land, they shall be deemed separate assets for the calculation of the calculated amount of personal local income tax on capital gains: <Newly Inserted on Jul. 24, 2015; Dec. 30, 2017; Dec. 31, 2019> |
| 1. | The calculated amount of personal local income tax on capital gains as calculated by applying the tax rate under Article 92 (1) to the sum of tax bases of capital gains for the relevant taxable period; |
| 2. | The sum of the calculated amounts of personal local income tax on capital gains on each asset as calculated in accordance with paragraphs (1) through (5) and (10): Provided, That where the tax rates under the same subparagraphs, among the tax rates under each subparagraph of paragraphs (1), (5), and (10), apply to two or more assets, and two or more tax rates are applicable; for the relevant assets, the sum shall be calculated by adding the greater tax amounts of the tax amounts computed by applying the tax rates under each relevant subparagraph of paragraph (1), (5),or (10) to the added-up capital gains tax bases of each asset. |
| (7) | Deleted; <Mar. 14, 2023> |
| (8) | The tax rate on gains on valuation of domestic stocks, etc., which shall be deemed capital gains pursuant to Article 118-9 of the Income Tax Act, shall be listed as the following table. <Amended on Dec. 31, 2018; Dec. 29, 2020; Mar. 14, 2023>Tax baseTax rateNot more than 300 million won20/1000 of the tax baseMore than 300 million won6 million won + (The amount exceeding 300 million won ? 25/1000) |
| (9) | The tax rates specified in paragraph (3) may be increased by applying paragraph (5) mutatis mutandis. <Newly Inserted on Dec. 27, 2016; Dec. 30, 2017> |
| (10) | The tax rate applicable to the transfer of a house falling under any of the following subparagraphs (including land appurtenant to such house; hereafter the same shall apply in this paragraph) shall be determined by adding 20/1000 (or 30/1000 for a house falling under subparagraph 3 or 4) to the tax rate provided for in Article 92 (1). In such cases, the period of ownership of the relevant house is less than two years, the greater of the calculated tax amount of personal local income tax on capital gains as calculated by adding 20/1000 (or 30/1000 for a house falling under subparagraph 3 or 4) to the tax rate provided for in Article 92 (1) or the calculated tax amount of personal local income tax on capital gains as calculated by applying the tax rate provided in paragraph (1) 2 or 3 shall be determined as the calculated tax amount of personal local income tax on capital gains: <Newly Inserted on Dec. 30, 2017; Aug. 12, 2020> |
| 1. | A house located in an area subject to adjustment and identified as one of two houses owned by a household as defined by Presidential Decree; |
| 2. | A house located in an area subject to adjustment and owned by a household that owns one house and either a right to residency as an association member or a right to purchase a house: Provided, That long-term rental housing units, etc. specified by Presidential Decree shall be excluded herefrom; |
| 3. | A house located in an area subject to adjustment and identified as one of three or more houses owned by a household as defined by Presidential Decree; |
| 4. | A house located in an area subject to adjustment and owned by a household that owns houses including the house and a right to residency as an association member or a right to purchase a house where the number of such houses and rights is three or more: Provided, That long-term rental housing units, etc. specified by Presidential Decree shall be excluded herefrom. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-4 (Tax Credit and Tax Reduction or Exemption) |
Matters concerning tax credit on and reduction of or exemption from personal local income tax on capital gains shall be prescribed by the Restriction of Special Local Taxation Act: Provided, that where credit on, or reduction of or exemption from, personal local income tax on capital gains exceeds the calculated tax amount, such excess shall be deemed null and void. [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-5 (Preliminary Tax Base Return and Payment) |
| (1) | Where a resident files a preliminary tax base return of capital gains pursuant to Article 105 of the Income Tax Act, he or she shall report the tax base and the amount of personal local income tax on capital gains to the head of a local government having jurisdiction over a place for tax payment (hereafter in this Section referred to as "preliminary return") by the date calculated by adding two months to the deadline for the relevant return (hereafter in this Article referred to as "deadline for filing a preliminary return"), as prescribed by Presidential Decree. In such cases, even if a resident files a return with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return shall not be affected. <Amended on Dec. 31, 2019> |
| (2) | Paragraph (1) shall also apply where no profit on transfer exists or a loss from transfer occurs. |
| (3) | Where a resident files a preliminary tax return, he or she shall pay the tax amount (hereafter in this Section referred to as "preliminary tax return and payment") calculated by deducting an amount of tax reduced or exempted under the Restriction of Special Local Taxation Act or municipal ordinance and occasionally imposed tax amounts under Articles 98 and 103-9 from the amount of tax calculated for a preliminary return on personal local income tax return on capital gains under Article 103-6 to the head of a local government having jurisdiction over a place for tax payment, as prescribed by Presidential Decree. |
| (4) | Notwithstanding paragraph (1), the head of a local government having jurisdiction over a place for tax payment may send to a resident a payment reminder prescribed by Ordinance of the Ministry of the Interior and Safety stating the tax base and tax amount under paragraph (1) (hereafter in this Article referred to as "payment reminder"). <Newly Inserted on Dec. 31, 2019> |
| (5) | Where a person who has received a payment reminder under paragraph (4) pays the amount of tax stated in the payment reminder by the deadline for filing a preliminary return, he or she shall be deemed to have filed a preliminary tax return under paragraph (1) and paid the relevant tax amount. <Newly Inserted on Dec. 31, 2019> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-6 (Calculation of Tax Amount in Preliminary Tax Return) |
| (1) | A tax amount required to be paid when a resident files a preliminary tax return and makes a payment shall be the amount calculated by applying tax rates referred to in Article 103-3 to the tax base for personal local income tax on capital gains. |
| (2) | Where a resident files preliminary tax returns on assets subject to application of progressive tax rates at least twice during the relevant taxable period and intends to file joint returns with the amount of capital gains he or she has already reported, the tax amount shall be calculated by applying mutatis mutandis the method for calculating a tax amount under Article 107 (2) of the Income Tax Act. In such cases, the applicable tax rate shall be either of the following tax rates: <Amended on Dec. 29, 2015; Dec. 27, 2016; Dec. 30, 2017; Dec. 29, 2020> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-7 (Final Tax Base Return and Payment) |
| (1) | Where a resident files a final tax base return on capital gains pursuant to Article 110 of the Income Tax Act, he or she shall file a final return on tax base for personal local income tax on capital gains with and pay the tax amount to the head of a local government having jurisdiction over a place for tax payment by the date calculated by adding two months to the deadline for filing the relevant return (hereafter in this Article referred to as "deadline for filing a final return), as prescribed by Presidential Decree. In such cases, even if a resident files a return with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return shall not be affected. <Amended on Dec. 31, 2019> |
| (2) | Paragraph (1) shall also apply where no tax base exists or losses occur in the relevant taxable period. |
| (3) | Notwithstanding the provisions of paragraph (1), a person who has filed a preliminary tax return may choose not to file a final tax return on the relevant income: Provided, That this shall not apply to cases prescribed by Presidential Decree, such as cases where he or she files a preliminary tax return on assets subject to application of progressive tax rates at least twice in the relevant taxable period. |
| (4) | A resident shall pay the amount calculated by deducting a tax amount reduced or exempted pursuant to Article 103-4 from the calculated amount of personal local income tax on capital gains in the relevant taxable period to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing a final return, as prescribed by Presidential Decree. <Amended on Dec. 31, 2019> |
| (5) | Where a resident files a final tax return and makes a payment under paragraph (1), when the calculated tax amount in a preliminary tax return under Article 103-6, the finalized or corrected tax amount under Article 103-9, or the occasionally imposed tax amount under Articles 98 and 103-9 exists, he or she shall pay the amount of tax after deducting such amounts. |
| (6) | When a person moving abroad as referred to in Article 118-9 of the Income Tax Act (hereafter referred to as "person moving abroad" in this Article") files a return on the tax base of capital gains in accordance with Article 118-15 (2) of the same Act, the person shall file the return on the tax base and tax amount of personal local income tax on capital gains and shall pay the tax by the deadline set for filing the return, as prescribed by Presidential Decree. <Newly Inserted on Dec. 27, 2016; Dec. 29, 2020; Mar. 14, 2023> |
>
| (7) | Where a person moving abroad who has the payment of income tax deferred under Article 118-16 of the Income Tax Act, offers security for tax payment under Article 65 of the Framework Act on Local Taxes to the head of a local government having jurisdiction over a place for tax payment, the person may have the payment of personal local income tax under this Act deferred. In such case, he or she shall pay an amount equivalent to interest for the period during which the payment of personal local income tax is deferred, in addition to personal local income tax, as prescribed by Presidential Decree. <Newly Inserted on Dec. 27, 2016; Dec. 29, 2020; Mar. 14, 2023> |
| (8) | If a tax amount paid by a person moving abroad was refunded or a tax amount the payment of which has been deferred is canceled under Article 118-17 of the Income Tax Act, the head of the local government having jurisdiction over the place for tax payment shall refund personal local income tax paid by the person or shall cancel the tax amount the payment of which has been deferred. In such cases, the additional payment for local tax refunds under Article 62 of the Framework Act on Local Taxes shall not be added to the amount of refunded local taxes. <Newly Inserted on Dec. 27, 2016; Dec. 29, 2020; Mar. 14, 2023> |
| (9) | Notwithstanding paragraph (1), the head of a local government having jurisdiction over a place for tax payment may send to a resident a payment reminder prescribed by Ordinance of the Ministry of the Interior and Safety stating the tax base and tax amount under paragraph (1) (hereafter in this Article referred to as "payment reminder"). <Newly Inserted on Dec. 31, 2019> |
| (10) | Where a person who has received a payment reminder under paragraph (9) pays the amount of tax stated on the payment reminder by the deadline for filing a final return, he or she shall be deemed to have filed a final return and paid the relevant tax amount under paragraph (1). <Newly Inserted on Dec. 31, 2019> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-8 Deleted;<Mar. 14. 2023> |
[Enforcement Date: Jan. 1, 2025] Article 103-8
| Article 103-9 (Amended Return, Determination, Correction, Occasional Imposition, Collection, Refund, Conversion Value, etc.) |
| (1) | Articles 96 through 98 and 100 shall apply mutatis mutandis to amended return, determination, correction, occasional imposition, collection, and refund of personal local income tax on capital gains. <Amended on Mar. 24, 2014; Dec. 30, 2017> |
| (2) | Where a resident transfers a building within 5 years from the date of acquisition (in cases of extension, referring to the date of acquisition of the extended part) of the building newly constructed or extended (limited to where the total floor area of ??the extended parts exceeds 85 square meters) and where the appraised value or conversion value under Article 97 (1) 1 (b) of the Income Tax Act is the acquisition value, an amount equivalent to 5/1000 of the appraised value or conversion value of the relevant building portion (in cases of extension, limited to the extended part) shall be added to the determined tax amount of personal local income tax on capital gains under subparagraph 2 of Article 103-2. <Newly Inserted on Dec. 30, 2017; Dec. 31, 2019; Dec. 29, 2020> |
| (3) | Paragraph (2) shall also apply where there is no calculated tax mount of personal local income tax on capital gains. <Newly Inserted on Dec. 30, 2017> |
[This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Mar. 24, 2014; Dec. 30, 2017; Dec. 31, 2019]
SECTION 4 Local Income Tax on Income of Non-Residents
| Article 103-10 (Methods of Taxation on Non-Residents) |
| (1) | Personal local income tax imposed on non-residents shall be calculated by classifying into cases where it is imposed on the relevant consolidated income generated in the Republic of Korea, on classified income generated in the Republic of Korea, and separately on such income generated from the Republic of Korea. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-11 (General Taxation on Non-Residents) |
| (2) | The provisions of this Act applicable to tax returns filed and payments made by residents shall apply mutatis mutandis to tax returns filed and payments made by non-residents who calculate the tax base and the amount of personal local income tax pursuant to paragraph (1): Provided, That where the amount of income specially collected pursuant to Article 103-18 is included in the tax base under paragraph (1), such specially collected tax amount shall be deemed the amount of tax deducted pursuant to Article 95 (3) 4. |
| (3) | Notwithstanding paragraph (2), where a member who is a non-resident of an organization, other than an organization deemed a corporation, each of whose member bears tax liability pursuant to the proviso, with the exception of the subparagraphs, of Article 2 (3) of the Income Tax Act or paragraph (4) 1 of the same Article (hereafter in this paragraph referred to as "non-resident member") files a final tax base return on global income with regard to domestic source income (limited to domestic source income of a non-resident whose income is generated only from being a member of the relevant organization) pursuant to Article 121 (5) of the same Act, if one member who is a resident of the relevant organization (hereafter in this paragraph referred to as "representative reporting person") files a final tax base return on global income of non-resident members en bloc in lieu of them pursuant to Article 124 (2) of the same Act, the representative reporting person may file the tax base of local income tax of non-resident members en bloc, as prescribed by Presidential Decree. <Newly Inserted on Dec. 28, 2021> |
| (4) | For the global taxation of domestic source income of non-residents, the provisions of this Act applicable to determination, correction, collection, and refund of personal local income tax for residents shall apply mutatis mutandis to determination, correction, collection, and refund of the domestic source income of non-residents: Provided, That where the amount of income specially collected pursuant to Article 103-18 is included in the tax base under paragraph (1), such specially collected tax amount shall be deemed the amount of tax deducted pursuant to Article 95 (3) 4. <Amended on Dec. 28, 2021> |
| (5) | Except as otherwise provided for in this Act, the provisions on the global taxation on non-residents under the Income Tax Act shall apply mutatis mutandis to global taxation on non-residents. <Amended on Dec. 28, 2021> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-12 (Separate Taxation on Non-Residents) |
| (2) | The tax amount on income generated in the Republic of Korea under paragraph (1) shall be the amount calculated pursuant to Article 103-18. |
| (3) | The provisions on the calculation, etc. of the tax base and the amount of personal local income tax on residents of this Act shall apply mutatis mutandis to the tax base of income generated in the Republic of Korea and the calculation, return, payment, determination, correction, collection, and refund of the tax amount under subparagraphs 7 and 8-2 of Article 119 of the Income tax Act, out of incomes of non-residents generated in the Republic of Korea provided for in Article 121 (3) and (4) of the said Act: Provided, That the deduction for any person other than the non-resident him or herself, as a personal deduction under Article 51 (3) of the Income Tax Act, the special income deduction under Article 52 of the same Act, the tax credit for children under Article 97-2 of the Restriction of Special Local Taxation Act, and the special tax credit under Article 97-4 of the same Act shall not apply. <Amended on Dec. 27, 2016> |
| (4) | Where a non-resident files an income tax return on capital gains on securities and pays such income tax pursuant to Article 126-2 of the Income Tax Act, he or she shall report and pay the amount equivalent to 1/10 of the income tax he or she pays as local income tax to the head of a local government having jurisdiction over a place for tax payment by the deadline for reporting and paying such tax provided for in the said Article. In such cases, matters necessary for reporting and paying local income tax shall be prescribed by Presidential Decree. |
| (5) | Where a non-resident files a personal local income tax return on capital gains on securities pursuant to paragraph (4), even if such non-resident files a return with the head of a local government, other than one having jurisdiction over a place for tax payment, the validity of the return shall not be affected. <Newly Inserted on Dec. 31, 2019> |
| (6) | Except as otherwise provided for in this Act, the provisions on separate taxation for non-residents under the Income Tax Act shall apply mutatis mutandis to separate taxation on non-residents. <Amended on Dec. 31, 2019> |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 5 Special Collection concerning Personal Local Income
| Article 103-13 (Obligations to Perform Special Collection) |
| (1) | Where a person obligated to withhold tax under the Income Tax Act or the Restriction of Special Taxation Act withholds income tax from residents, he or she shall specially collect the amount equivalent to 10/100 of income tax (where special provisions on taxation, such as a tax reduction or exemption or heavy taxation, apply pursuant to the Restriction of Special Taxation Act and other Acts, referring to income tax to which such special provisions on taxation apply) withheld as personal local income tax simultaneously with the withholding of income tax, as prescribed by Presidential Decree. In such cases, a person obligated to withhold tax under the said Act shall be a person liable for special collection of personal local income tax (hereafter referred to as "person liable for special collection" in the Section). |
| (2) | Where a person liable for special collection has specially collected personal local income tax pursuant to paragraph (1), he or she shall pay personal local income tax to the head of a local government having jurisdiction over a place for tax payment by the tenth day of the month immediately following the month to which the date of such collection belongs: Provided, That he/she shall pay the tax according to each of the corresponding subparagraphs in any of the following cases: <Amended on Dec. 29, 2020; Mar. 14, 2023> |
| 1. | Where the income tax withheld pursuant to Article 128 (2) of the Income Tax Act is paid semi-annually, it shall be paid to a local government having jurisdiction over a place for tax payment as of the last day of the last month of the half-year until the 10th day of the month following the last month of the half-year: |
| 2. | In cases of the personal local income tax on incomes from financial investment, where an account is closed during the half-year of the relevant taxable period, it shall be paid to a local government having jurisdiction over a place for tax payment as of the last day of the last month of the half-year until the 10th day of the month following the last month of the half-year: |
| (3) | Where a person liable for special collection specially collects the personal local income tax on incomes from financial investment pursuant to paragraph (1), its withdrawal may be restricted during a period prescribed in each paragraph of Article 148-2 (1) of the Income Tax Act for the amount equivalent to the amount of tax specially collected for each account holder. <Newly Inserted on March 14, 2023> |
| (4) | Where a person who has incomes from financial investment that are exempt from taxation under the Income Tax Act or other Acts has submitted an application for exclusion of withholding tax on incomes from financial investment pursuant to Article 148-2 (5) of the Income Tax Act, he/she shall be deemed to have also applied for exclusion of special collection of the personal local income tax on incomes from the relevant financial investment. <Newly Inserted on March 14, 2023> |
| (5) | Where a person liable for special collection has discovered any error in the amount of the specially collected tax paid for each local government under the proviso to Articles 89 (3) 2, 3 or 4, the excess or deficiency shall be added to or subtracted from the amount of the specially collected tax which shall be paid to the relevant local government, as prescribed by Presidential Decree. In such cases, for amount of the specially collected tax which is paid additionally due to addition or subtraction, the additional tax prescribed in Article 56 of the Framework Act on Local Tax shall not be imposed, and for the amount of tax refunded, the additional dues on refund of the local tax shall not be paid. <Amended on Dec. 27, 2016, Dec. 28, 2021, March 14, 2023> |
| (6) | With regard to special collection of the individual local income tax, the provisions of the Income Tax Act concerning tax withholding shall apply mutatis mutandis,, except as otherwise provided for in this Act. <Amended on March 14, 2023> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-14 (Additional Tax on Non-Performance of Obligations to Perform Special Collection) |
Where a person liable for special collection fails to pay the tax amount he or she has specially collected or should specially collect or underpays such tax amount by the deadline for payment under Article 103-13 (2), the amount calculated pursuant to Article 56 of the Framework Act on Local Taxes as an additional tax shall be imposed on such non-paid tax amount or underpaid tax amount; and in any of the following subparagraphs where a person liable for special collection fails to perform special collection, only the amount of an additional tax shall be imposed against such person: Provided, That where the State, a local government, or any other person prescribed by Presidential Decree is a person liable for special collection, no additional tax under the pretext of non-performance of obligations shall be imposed against such person. <Amended on Dec. 27, 2016; Dec. 31, 2018> | 1. | Where the amount of personal local income subject to special collection, for which special collection has not been performed, has already been included in the amount of tax base for which a person liable to pay tax filed a tax return and payment; |
| 2. | Where the head of a local government having jurisdiction over a person liable to pay tax, directly imposes and collects personal income tax on the amount of personal local income subject to special collection, for which special collection has not been performed, against the person liable to pay tax pursuant to Article 97. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-15 (Refund upon Year-End Tax Adjustment on Special Collection, etc.) |
| (1) | Where a person liable for special collection makes the year-end tax adjustment pursuant to the Income Tax Act, he or she shall calculate personal local income tax by applying 10/100 to the finalized tax amount and then subtracting the local income tax specially levied and already paid during the relevant taxable period therefrom and shall specially collect the difference or refund the difference to the income earner, as prescribed by Presidential Decree: <Amended on Jul. 24, 2015> |
| 1. | Deleted; <Jul. 24, 2015> |
| 2. | Deleted. <Jul. 24, 2015> |
| (2) | Deleted. <Jul. 24, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-16 (Refund on Specially Collected Local Income Tax on Retirement Income, etc.) |
| (1) | Where retirement income of a resident falls under any subparagraph of Article 146 (2) of the Income Tax Act, notwithstanding the provisions of Article 103-13 (1), no personal local income tax on the relevant retirement income shall be specially collected before he or she receives pension, etc. In such cases, where personal local income tax has already been specially collected pursuant to the said provisions, the relevant resident may apply for the refund of the specially collected tax amount. |
| (2) | Matters necessary for the special collection of retirement income, procedures for the refund thereof, etc. under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-17 (Special Collection by Tax Associations) |
| (1) | Where a tax association under Article 149 of the Income Tax Act collects and pays income tax pursuant to Articles 150 and 151 of the said Act, it shall specially collect the amount equivalent to 10/100 of income tax it collects and pays from its members as personal local income tax and pay such amount to the head of a local government having jurisdiction over a place for tax payment by the tenth day of the month immediately following the month to which the date of such collection belongs. |
| (2) | Where the relevant tax association fails to pay or underpays the tax amounts it has collected or should collect by the deadline for payment, the head of a local government having jurisdiction over a place for tax payment shall impose the amount calculated pursuant to Article 56 of the Framework Act on Local Taxes as additional tax. <Amended on Dec. 27, 2016> |
| (3) | The head of a local government having jurisdiction over a place for tax payment may pay subsidies to tax associations that have specially collected and paid personal local income tax pursuant to paragraph (1), as prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-18 (Special Cases of Special Collection concerning Income of Non-Residents Generated in the Republic of Korea) |
| (1) | Where a person liable for withholding under the Income Tax Act withholds tax on the income of non-residents generated in the Republic of Korea, he or she shall specially collect the amount calculated by applying 10/100 of the income tax he or she should withhold as personal local income tax. |
| (2) | Matters necessary for the special collection concerning personal local income of residents shall apply mutatis mutandis to matters concerning special collection of personal local income tax on the income of non-residents generated in the Republic of Korea under paragraph (1). |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 6 Local Income Tax on Income of Korean Corporations in Each Business Year
| Article 103-19 (Tax Base) |
| (1) | The tax base for corporate local income tax on the income of Korean corporations in each business year shall be the same amount as the tax base for corporate tax calculated pursuant to Article 13 of the Corporate Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for corporate tax calculated according to such special taxation). <Amended on Dec. 31, 2019; Dec. 29, 2020> |
| (2) | Notwithstanding paragraph (1), where the corporate tax base on the income of a domestic corporation for each business year includes foreign source income and foreign tax credits are granted under Article 57 of the Corporate Tax Act, the amount calculated by subtracting the amount of foreign corporate tax referred to in paragraph (1) of the same Article (hereinafter referred to as "amount of foreign corporate tax") from the amount referred to in paragraph (1) of this Article shall be the tax base of the corporate local tax. In such cases, if there is any amount of foreign corporate tax included in the deductible expenses pursuant to the proviso to Article 57 (2) of the Corporate Tax Act in the tax base for the relevant business year, the provisions of the former part shall apply after adding such amount to the amount prescribed in paragraph (1) of this Article. <Newly Inserted on Dec. 29, 2020> |
| (3) | Where the amount of foreign corporate tax to be deducted under the former part of paragraph (2) exceeds the amount under paragraph (1) for the relevant business year, such excess may be carried forward to each business year that ends within 15 years from the first day of the business year following the relevant business year and may be subtracted therefrom when calculating the tax base of corporate local income tax for the business year in which it is carried forward. <Newly Inserted on Dec. 29, 2020> |
| (4) | In applying paragraphs (2) and (3), the methods for calculating the subtracted amount and carrying it forward and other necessary matters shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 29, 2020> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-20 (Tax Rates) |
| (1) | Standard tax rates of corporate local income tax on the income of Korean corporations in each business year shall be as specified in the following Table: <Amended on Dec. 26, 2017; Mar. 14, 2023>Tax baseTax rateNot more than 200 million won9/1000 of the tax baseMore than 200 million won but not more than 20 billion won 2 million won + (19/1000 of the amount exceeding 200 million won)More than 20 billion won but not more than 300 billion won 378 million won + (21/1000 of the amount exceeding 20 billion won) More than 300 billion won 6.258 billion won + (24/1000 of the amount exceeding 300 billion won) |
| (2) | The head of a local government may increase or decrease tax rates of corporate local income tax on income in each business year within 50/100 of standard tax rates under paragraph (1), as prescribed by the relevant municipal ordinance. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-21 (Computation of Tax Amount) |
| (1) | The amount of corporate local income tax on the income of a Korean corporation for each business year shall be calculated by applying the tax rate under Article 103-20 to the tax base calculated under Article 103-19 (if there exist an amount of corporate local income tax on capital gains from land, etc. under Article 103-31 and an amount of corporate local income tax calculated by applying special taxation for promoting investment and collaborative cooperation under Article 100-32 of the Restriction of Special Taxation Act, the amount of corporate local income tax shall the sum of such amounts; hereinafter referred to as "calculated amount of corporate local income tax"). <Amended on Jul. 24, 2015; Dec. 30, 2017; Dec. 24, 2018> |
| (2) | Notwithstanding paragraph (1), the amount of corporate local tax on income in each business year of a Korean corporation, the business year of which is less than one year, shall be the tax amount calculated by multiplying the tax amount calculated pursuant to Article 103-20 (1) and (2), deeming the amount calculated by multiplying 12 to the amount calculated by dividing the same amount as the tax base for corporate tax calculated pursuant to Article 13 of the Corporate Tax Act for such business year (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for corporate tax calculated according to such special taxation) by the number of months for the business year tax base, by 12 to be the tax base, by the number computed by dividing the number of months for the business year by 12. In such cases, the number of months shall be calculated, as prescribed by Presidential Decree. <Amended on Dec. 31, 2019> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-22 (Tax Credit and Tax Reduction or Exemption) |
| (1) | Matters concerning a tax credit on and reduction of or exemption from corporate local income tax on the income of a Korean corporation in each business year shall be prescribed by the Restriction of Special Local Taxation Act. In such cases, the tax credit and reduction or exemption shall be deducted from the calculated amount of corporate local income tax (referring to the calculated amount of corporate local income tax, exclusive of the amount of corporate local income tax on capital gains from land, etc. under Article 103-31 and on unappropriated earnings under Article 100-32 (2) of the Restriction of Special Taxation Act; hereafter the same shall apply in this Article). <Amended on Dec. 27, 2016; Dec. 30, 2017; Dec. 24, 2018> |
| (2) | Where a credit on or reduction of or exemption from corporate local income tax on income in each business year under paragraph (1) exceeds the calculated amount of corporate local income tax, such excess shall be deemed null and void. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-23 (Final Return and Payment concerning Tax Base and Tax Amount) |
| (1) | A Korean corporation obliged to file a tax return under Article 60 of the Corporate Tax Act shall report the tax base and amount of corporate local income tax on income in the business year to the head of a local government having jurisdiction over a place for tax payment within four months from the end of a month to which the closing date of each business year belongs, as prescribed by Presidential Decree. |
| (2) | Where a Korean corporation files a tax return under paragraph (1), it shall file such tax return along with the following documents: <Amended on Dec. 29, 2015; Dec. 27, 2016> |
| 1. | A statement of financial position, statement of comprehensive income, statement of appropriation of retained earnings (or statement of disposition of deficit) of an individual Korean corporation prepared by applying financial accounting standards mutatis mutandis; |
| 2. | A statement of tax adjustment prepared as prescribed by Presidential Decree; |
| 3. | A statement of pro rata of corporate local income tax in the form prescribed by Presidential Decree: Provided, That this shall not apply to a corporation which has its place of business only in one Special Self-Governing City or Special Self-Governing Province, or in one Si/Gun/autonomous Gu; |
| 4. | Other documents prescribed by Presidential Decree. |
| (3) | A Korean corporation shall pay the amount calculated by deducting the following corporate local income tax amounts (excluding an additional tax) from the calculated amount of corporate local income tax on income in each business year to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing a tax return under paragraph (1) as corporate local income tax for each business year: Provided, That the tax amount specified in subparagraph 3 shall not be deducted in the cases treated as special cases concerning the calculation of the tax base under Article 104-10 (1) 1 of the Restriction of Special Taxation Act: <Amended on Dec. 27, 2016; Dec. 26, 2017> |
| 1. | The credit on, and reduction of or exemption from tax for the relevant business year under Article 103-22; |
| 2. | The occasionally imposed tax amount for the relevant business year under Article 103-26; |
| 3. | The specially collected tax amount for the relevant business year under Article 103-29; |
| 4. | The tax amount stated in the preliminary tax return for the relevant business year under Article 103-32 (5). |
| (4) | Paragraph (1) shall also apply to a Korean corporation that has no income or any loss during each business year. <Newly Inserted on Jul. 24, 2015> |
| (5) | If a corporation has its places of business in areas under the jurisdiction of two or more local governments and the corporation submit the accompanying documents specified in paragraph (2) to the head of the local government having jurisdiction over the location of its head office, it shall be deemed to have submitted the documents to head of the local government having jurisdiction over each place of business. <Newly Inserted on Dec. 29, 2015> |
| (6) | If a person fails to attach any of the documents specified in paragraph (2) 1 through 3 to a tax return filed under paragraph (1), such tax return shall not be deemed a tax return filed under this Act: Provided, That this shall not apply to a non-profit Korean corporation that does not engage in any profit-making business under Article 4 (3) 1 and 7 of the Corporate Tax Act. <Newly Inserted on Dec. 29, 2015; Dec. 24, 2018> |
| (7) | If the head of a local government having jurisdiction over a place for tax payment finds a defect or an error from a tax return or any other document submitted under paragraph (1) or (2), he or she may request an amendment thereto. <Newly Inserted on Dec. 29, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-24 (Amended Return, etc.) |
| (1) | Where a Korean corporation that has filed a tax return pursuant to Article 103-23 files an amended return to adjust the information for a previously filed return under the Corporate Tax Act pursuant to the Framework Act on National Taxes, it shall also report the relevant matters to the head of a local government having jurisdiction over a place for tax payment, as prescribed by Presidential Decree. |
| (2) | Where a Korean corporation that filed a tax return and paid the tax pursuant to Article 103-23 discovers any error in the tax amount calculated pro rata to each place of payment of corporate local income tax or each local government from the tax return, such corporation may file with the head of the competent local government an amended tax return, a request for correction, etc. or a tax return after the deadline pursuant to Articles 49 through 51 of the Framework Act on Local Taxes before the head of the competent local government gives notice of the imposition of the tax by means of ordinary collection under Article 103-25. <Amended on Dec. 27, 2016; Dec. 26, 2017> |
| (3) | A person shall additionally pay an amount of tax that shall be paid due to an amended tax return or a tax return filed after the deadline pursuant to paragraph (1) or (2). In such cases, the additional tax under Articles 53 through 55 of the Framework Act on Local Taxes shall not be imposed for the amount of tax additionally payable under paragraph (2). <Amended on Dec. 26, 2017> |
| (4) | Where a tax amount shall be refunded according to a request for correction, etc. under paragraph (2), the additional payment on local tax refunds under Article 62 of the Framework Act on Local Taxes shall not be paid. <Amended on Dec. 27, 2016; Dec. 27, 2016; Dec. 26, 2017> |
| (5) | A corporation that has its places of business in areas within jurisdiction of two or more local governments may request the correction, etc. under Article 50 of the Framework Act on Local Taxes collectively to the head of the local government having jurisdiction over its head office or principal place of business as at the end of the relevant business year with regard to the tax base stated on the tax return filed under Article 103-23 of the Act. In such cases, the head of the local government having jurisdiction over its head office or principal place of business shall notify the head of the local government having jurisdiction over any of the rest of its places of business of the details of the request from the corporation. <Newly Inserted on Dec. 27, 2016; Dec. 26, 2017> |
| (6) | If a corporation that has places of business in areas within jurisdiction of two or more local governments does not file a tax return and does not pay the tax to the head of the local government having jurisdiction over each place of business separately pursuant to Article 89 (2) but files a final return (or an amended return) on the tax base and the tax amount collectively with the head of one of such local governments, the latter part of paragraph (3) shall not apply to such corporation, but paragraph (4) shall apply to the corporation. <Newly Inserted on Dec. 27, 2016; Dec. 26, 2017> |
| (7) | Other matters necessary for amended return and payment, or request for correction of corporate local income tax shall be prescribed by Presidential Decree. <Amended on Dec. 27, 2016; Dec. 31, 2019> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-25 (Determination and Correction) |
| (1) | In any of the following cases, the head of the local government having jurisdiction over the place for tax payment shall determine or correct the tax base and the tax amount for the relevant business year: <Amended on Dec. 27, 2016; Dec. 26, 2017> |
| 1. | If a Korean corporation fails to file a return in accordance with Article 103-23; |
| 2. | If an error or omission is found in a return filed by a Korean corporation pursuant to Article 103-23. |
| (2) | Where the head of a local government having jurisdiction over a place for tax payment discovers errors or omissions in his or her determination or correction after he or she has determined or corrected the tax base and the amount of corporate local income tax, he or she shall immediately correct such determination or correction again. |
| (3) | Where the head of a local government having jurisdiction over a place for tax payment determines or corrects the tax base and the amount of corporate local income tax pursuant to paragraphs (1) and (2), he or she shall make such determination or correction based on data, books or other evidentiary documents the head of a tax office or the head of a regional tax service having jurisdiction over a place for tax payment has determined and corrected pursuant to the Corporate Tax Act: Provided, That where he or she cannot calculate the amount of income by means of books or other evidentiary documents for reasons prescribed by Presidential Decree, he or she may estimate the amount of income, as prescribed by Presidential Decree. |
| (4) | Where the head of a local government has determined or corrected the tax base and the amount of corporate local income tax, he or she shall notify the relevant Korean corporation of the content thereof in writing, as prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-26 (Determination of Occasional Imposition) |
| (1) | Where the head of a local government having jurisdiction over a place for tax payment deems that a Korean corporation could evade a corporate local income tax in the business year for reasons prescribed by Presidential Decree (hereafter referred to as "reasons for occasional imposition" in the Article), he or she may occasionally impose a corporate local income tax on such Korean corporation. Even in such cases, the Korean corporation shall file a tax return under Article 103-23 on income in each business year. |
| (2) | Paragraph (1) shall apply, regarding a period from the date of commencement of the business year to the date reasons for occasional imposition arise as the period of occasional imposition: Provided, That where grounds for occasional imposition have arisen before the deadline for filing a tax return under Article 103-23 in the immediately preceding business year (excluding where a Korean corporation has reported the tax base on the immediately preceding business year), a period from the date of commencement of the immediately preceding business year to the date reasons for occasional imposition arise shall be the period of occasional imposition. |
| (3) | Matters necessary for occasional imposition under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-27 (Collection and Refund) |
| (1) | Where a Korean corporation fails to pay all or part of a tax amount it should pay as corporate local income tax for each business year pursuant to Article 103-23, the head of a local government having jurisdiction over a place for tax payment shall collect such unpaid portion of the amount of corporate local income pursuant to the Framework Act on Local Taxes and the Local Tax Collection Act. <Amended on Dec. 27, 2016> |
| (2) | Where a tax amount occasionally imposed pursuant to Article 103-26 or specially collected pursuant to Article 103-29 exceeds the sum of the amounts under subparagraphs 1 through 5 (hereinafter referred to as "total levied amount of corporate local income tax"), the head of the local government having jurisdiction over the place for tax payment shall refund it or appropriate it for local taxes under Article 60 of the Framework Act on Local Taxes: <Amended on Dec. 27, 2016; Dec. 27, 2016> |
| 1. | The amount of corporate local income tax calculated by applying the tax credit and tax reduction or exemption under Article 103-22; |
| 5. | The additional amount equivalent to interest for the extension of the deadline for filing a return of a foreign corporation under Article 103-51. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-28 (Refund on Retroactive Deduction of Losses) |
| (1) | Where a domestic corporation applies for a refund following retroactive deduction of losses pursuant to Article 72 of the Corporate Tax Act, it may apply for a refund of the amount calculated as prescribed by Presidential Decree up to the amount of corporate local income tax assessed on the income of the relevant business year (referring to the amount of corporate local income tax prescribed by Presidential Decree) of the relevant losses for the immediately preceding business year (hereafter in this Article referred to as "retroactively deducted tax amount for loss"): Provided, That where a loss is incurred in the business year in which December 31, 2021 falls and an application for refund is filed pursuant to Article 8-4 of the Restriction of Special Taxation Act, such corporation may apply for the refund of the retroactively deducted tax amount for loss within the limit of the corporate local income tax imposed on income for the immediately preceding business year and the business year prior thereto. <Amended on Dec. 27, 2016; Dec. 28, 2021> |
| (2) | A Korean corporation that intends to get a refund on the retroactively deducted tax amount for losses shall file an application for a refund with the head of a local government having jurisdiction over a place for tax payment by the deadline for filing a tax return under Article 103-23, as prescribed by Presidential Decree: Provided, That an application filed by a Korean corporation for a refund on the retroactively deducted tax amount for losses under Article 72 of the Corporate Income Tax and Article 8-4 of the Restriction of Special Taxation Act with the head of a tax office or the head of a regional tax service having jurisdiction over a place for tax payment shall be deemed an application filed for a refund under this Act, and in such cases the initial date in reckoning of the additional payment on refund shall be prescribed by Presidential Decree. <Amended on Dec. 29, 2015; Dec. 27, 2016; Dec. 28, 2021> |
| (3) | Where the head of a local government having jurisdiction over a place for tax payment receives an application for a refund on corporate local income tax pursuant to paragraph (2), he or she shall without delay determine the tax amount to be refunded and make a refund or appropriation pursuant to Articles 60 and 62 of the Framework Act on Local Taxes: Provided, That where at least two local governments have imposed corporate local income tax pursuant to Article 89 (2), each local government having jurisdiction over a place for tax payment shall make a refund or appropriation, as prescribed by Presidential Decree. <Amended on Dec. 27, 2016> |
| (4) | Paragraphs (1) through (3) shall apply only where the relevant Korean corporation reports the tax base and the amount of corporate local income tax for the business year during which a loss was incurred and reported the tax base and amount of corporate local income tax on the income for the immediately preceding business year (in applying the proviso to paragraph (1), including the business year prior to the immediately preceding business year) or where the head of the relevant local government imposed the tax thereon. <Amended on Dec. 27, 2016; Dec. 26, 2017; Dec. 28, 2021> |
| (5) | Where a Korean corporation that gets a refund on corporate local income tax pursuant to paragraph (3) falls under any of the following cases, the head of a local government having jurisdiction over a place for tax payment shall collect such tax refund (in cases falling under subparagraphs 1 and 2, referring to the amount equivalent to the overpaid tax refund) as corporate local income tax for the business year during which the loss brought forward has occurred, as prescribed by Presidential Decree: <Amended on Dec. 28, 2021> |
| 1. | Where the loss is decreased by correcting the tax base and the amount of corporate local income tax for the business year during which the loss has occurred; |
| 2. | Where the amount of tax to be refunded has decreased as a result of the rectification of the tax base and amount of corporate local income tax for the business year immediately preceding the business year in which the losses were incurred (including the business year prior to the immediately preceding business year, in cases of refunding under the proviso to paragraph (1)); |
| 3. | Where a Korean corporation under paragraph (1) receives a corporate local income tax refund though it does not fall within small and medium enterprises. |
| (6) | The calculation of a tax refund on retroactive deduction for loss and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Dec. 29, 2015]
| Article 103-29 (Responsibility for Special Collection) |
| (1) | Where a withholding agent referred to in Articles 73 and 73-2 of the Corporate Tax Act withholds a corporate tax from a Korean corporation, he or she shall specially collect the amount equivalent to 10/100 of the corporate tax (where special taxation, such as tax reduction or exemption, or heavy taxation, applies pursuant to the Restriction of Special Taxation Act and other Acts, referring to corporate tax to which such special taxation applies) withheld, as corporate local income tax. <Amended on Dec. 24, 2018> |
| (2) | A person who should be held liable for special collection pursuant to paragraph (1) shall be referred to as "person liable for special collection.” |
| (3) | A person liable for special collection shall pay local income tax he or she has specially collected to the competent local government by the tenth day of the month immediately following the month in which the date of such collection falls, as prescribed by Presidential Decree. |
| (4) | Where a person liable for special collection fails to pay or underpays a tax amount he or she has collected or should collect by the deadline for payment under paragraph (3), the amount calculated pursuant to Article 56 of the Framework Act on Local Taxes as an additional tax shall be imposed on such non-paid tax amount or underpaid tax amount; and where a person liable for special collection fails to perform special collection, but a person liable to pay tax has already paid the amount of corporate local income tax, only the amount of additional tax shall be imposed on the person liable for special collection: Provided, That where the State, a local government, or any other person prescribed by Presidential Decree is a person liable for special collection, no additional tax under the pretext of non-performance of obligations shall be imposed on such person. <Amended on Dec. 27, 2016; Dec. 31, 2018> |
| (5) | Except as otherwise provided in this Act, the provisions on withholding under the Corporate Tax Act shall apply mutatis mutandis to the special collection of corporate local income tax. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-30 (Additional Tax) |
| (1) | When the head of a tax office having jurisdiction over a place for tax payment collects an additional tax relating to corporate tax pursuant to Articles 74-2, 75, and 75-2 through 75-9 of the Corporate Tax, the head of a local government having jurisdiction over a place for tax payment shall collect the amount equivalent to 10/100 of the collected amount, as the additional tax relating to corporate local income tax: Provided, That, the head of the competent local government shall collect the additional tax relating to corporate local income tax, which is equivalent to 10/100 of the additional tax to be collected under Article 75-3 of the Corporate Tax Act, or the additional tax under Article 53 or 54 of the Framework Act on Local Taxes, whichever is greater, if both additional taxes are applicable at the same time; and That, if both additional taxes are the same, the head of the competent local government shall collect only the additional tax under Article 53 or 54 of the Framework Act on Local Taxes. <Amended on Dec. 27, 2016; Dec. 24, 2018; Dec. 28, 2021> |
| (2) | Where a corporation has its places of business in two or more areas within jurisdiction of different local governments and thus the heads of the local governments having jurisdiction over each place of business shall impose and collect taxes proportionately under Article 89 (2), the additional tax relating to corporate local income tax to be collected under paragraph (1) shall also be collected pro rata. |
[This Article Wholly Amended on Jul. 24, 2015]
| Article 103-31 (Special Cases concerning Corporate Local Income Tax on Capital Gains from Land, etc. and Unappropriated Earnings of Enterprises) |
| (1) | Where a Korean corporation transfers land or buildings referred to in Article 55-2 of the Corporate Tax Act (including facilities and structures appurtenant to such buildings), or a right to residency as an association member under subparagraph 9 of Article 88 of the Income Tax Act or a right to purchase a house under subparagraph 10 of the same Article as part of a right to acquire a house (hereinafter in this Article and Article 103-49 referred to as "land, etc."), it shall pay the tax amount calculated pursuant to the relevant subparagraph as corporate local income tax on capital gains from land, etc. in addition to corporate local income tax on income in each business year; in such cases, where one asset falls under at least two of the following provisions, the highest tax amount thereof shall apply thereto: <Amended on Mar. 24, 2014; Aug. 12, 2020> |
| 1. | Where the Korean corporation transfers a house (including land appurtenant thereto) prescribed by Presidential Decree or a residential building which is used for recreation, summering, amusement, etc., rather than for regular residence, the tax amount shall be calculated by multiplying capital gains from land, etc. by 20/1000 (or 40/1000 for capital gains on unregistered land, etc.): Provided, That a rural house (including land appurtenant thereto) located in an Eup/Myeon specified in Article 3 (3) or (4) of the Local Autonomy Act, which meets the scope and criteria prescribed by Presidential Decree shall be excluded herefrom; |
| 2. | Where the Korean corporation transfers land for non-business purposes (referring to land for non-business purposes provided for in Article 55-2 (2) and (3) of the Corporate Tax Act), the tax amount shall be calculated by multiplying capital gains from land, etc. by 10/1000 (or 40/1000 for capital gains on unregistered land, etc.); |
| 3. | Where the Korean corporation transfers a right to residency as an association member under subparagraph 9 of Article 88 of the Income Tax Act or a right to purchase a house under subparagraph 10 of the same Article as part of a right to acquire a house, the tax amount shall be calculated by multiplying capital gains from land, etc. by 20/1000. |
| (3) | Capital gains from land, etc. shall be the amount calculated by subtracting the book value of the land, etc. as at the time of transfer from the amount of transfer of land, etc. |
| (4) | The scope of farmland, forest land, and pasture land, criteria for judgment of major business, methods of calculating capital gains where any loss is incurred due to the transfer of land, etc. in the relevant business year, the business year to which profits and losses resulting from the transfer of land, etc. belong, and other matter necessary for applying paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
| (5) | Where a Korean corporation (including consolidated corporations) pays corporate tax on unappropriated earnings under Article 100-32 (2) of the Restriction of Special Taxation Act, the amount equivalent to 10/100 of the tax amount payable shall be paid in addition to the amount of corporate local income tax as calculated by applying the tax rate under Article 103-20 to the tax base under Article 103-19. <Newly Inserted on Jul. 24, 2015; Dec. 30, 2017; Dec. 24, 2018> |
| (6) | Notwithstanding Article 85 (1) 6, the following associations shall be deemed a non-profit domestic corporation in calculating the tax base and amount of corporate local income tax; in such cases, the scope, etc. of business excluded from taxable income shall be governed by Article 104-7 (5) of the Restriction of Special Taxation Act: <Newly Inserted on Dec. 28, 2021> |
[This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Dec. 28, 2021]
| Article 103-32 (Special Taxation on Nonprofit Korean Corporations) |
| (1) | Notwithstanding the provisions of Article 103-23, a nonprofit Korean corporation may choose not to report the tax base on interest income specially collected pursuant to Article 103-29, which are interest, the discounted amount, and profits (excluding profits on non-business proceeds referred to in Article 16 (1) 11 of the Income Tax Act, but including profits on investment trust; hereafter referred to as "interest income" in this Article) under Article 4 (3) 2 of the Corporate Tax Act. In such cases, no interest income on which a tax base return is not filed shall be included when the amount of income for each business year is calculated pursuant to Article 103-19. <Amended on Dec. 24, 2018> |
| (2) | Matters necessary for a return of tax base for corporate local income tax on interest income of a nonprofit Korean corporation and the collection thereof under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | Where a nonprofit Korean corporation pays corporate tax on capital gains on assets pursuant to Article 62-2 (2) of the Corporate Tax Act, it shall pay the amount calculated by applying the tax rate under Article 103-3 to the tax base calculated pursuant to Article 103 as corporate local income tax. In such cases, where tax rate increased pursuant to Article 103-3 (5) is applied, the provisions of Article 103-3 (1) shall not apply. <Amended on Jul. 24, 2015; Mar. 14, 2023> |
| (4) | The provisions concerning the tax base return, payment, determination, correction, and collection of corporate local income tax on income for each business year, to which the date of the transfer of an asset belongs, shall apply mutatis mutandis to the tax base return, payment, determination, correction, and collection of corporate local income tax under paragraph (3), and such corporate local income tax shall be reported, paid, determined, corrected, and collected by adding it to the amount of other corporate local income taxes. <Amended on Jul. 24, 2015> |
| (5) | With regard to the corporate local income tax calculated under paragraph (3), a preliminary tax return on the tax base of capital gains shall be filed and the tax shall be voluntarily paid by applying Articles 103-5 and 103-6 mutatis mutandis. <Newly Inserted on Jul. 24, 2015> |
| (6) | If a nonprofit Korean corporation has filed a preliminary tax return on the tax base of capital gains under paragraph (5), it shall be deemed to have filed a tax return on the tax base under paragraph (4): Provided, That in the case of the proviso to Article 103-7 (3), the corporation shall file a tax return on the tax base under paragraph (4). <Newly Inserted on Jul. 24, 2015> |
| (7) | Except as provided in paragraphs (3) through (6), Article 62-2 of the Corporate Tax Act shall apply mutatis mutandis to special taxation on capital gains on assets of a nonprofit Korean corporation. <Amended on Jul. 24, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 7 Local Income Tax on Income of Korean Corporations in Each Consolidated Business Year
| Article 103-33 (Application, etc. of Methods of Consolidated Tax Payment) |
| (1) | A Korean corporation to which the consolidated tax payment method applies pursuant to Article 76-8 of the Corporate Tax Act may apply the methods of consolidated tax payment to corporate local income tax. |
| (2) | The provisions of Articles 76-8 through 76-12 of the Corporate Tax Act shall apply mutatis mutandis to the application of the consolidated tax payment method, the cancellation and abandonment of the consolidated tax payment method, addition of and exclusion from consolidated subsidiaries. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-34 (Tax Base) |
| (1) | The tax base for corporate local income tax on income in each consolidated business year shall be the same amount as the tax base for corporate tax calculated pursuant to Article 76-13 of the Corporate Tax Act (where special taxation, such as tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, the tax base for corporate tax calculated according to such special taxation). <Amended on Dec. 31, 2019; Dec. 29, 2020> |
| (2) | Notwithstanding paragraph (1), Article 103-19 (2) and (3) shall apply mutatis mutandis to the calculation of the tax base for corporate local income tax for a relevant consolidated business year where the corporate tax base on income for each consolidated business year includes foreign source income and foreign tax credits are granted under Article 57 of the Corporate Tax Act. In such cases, the methods for calculating the subtracted amount and carrying it forward and other necessary matters shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 29, 2020; Dec. 28, 2021> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-35 (Calculated Amount of Consolidated Tax) |
| (1) | The calculated amount of consolidated corporate local income tax on income in each consolidated business year shall be the amount calculated by applying tax rates under Article 103-20 to the tax base under Article 103-34. |
| (2) | Where a consolidated corporation transfers land, etc. referred to in Article 103-31 (1) (including where Article 76-14 (1) 3 of the Corporate Tax Act shall apply to a consolidated corporation who acquires such land, etc. from another consolidated corporation) or where a consolidated corporation has unappropriated earnings under Article 103-31 (5), the consolidated tax amount payable by such consolidated corporation shall be calculated by aggregating the amounts of corporate local income tax on capital gains from such land, etc. or on such unappropriated earnings. <Amended on Dec. 30, 2017> |
| (3) | Article 103-21 (2) shall apply mutatis mutandis where corporate local income tax on income in each consolidated business year is calculated. |
| (4) | Methods of the calculation of the amount belonging to each consolidated corporation (hereafter referred to as "calculated amount of corporate local income tax of each consolidated corporation" in this Chapter) of the calculated consolidated tax amounts shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-36 (Tax Credit and Tax Reduction or Exemption) |
| (1) | Matters concerning credit on and reduction of or exemption from corporate local income tax on income in the consolidated business year of a consolidated corporation shall be governed by the Restriction of Special Local Taxation Act. In such cases, the tax credit and reduction or exemption shall be deducted from the calculated amount of consolidated corporate local income tax. |
| (2) | When applying paragraph (1), the amount of a tax deduction and a tax reduction or exemption for each consolidated corporation shall be the amount calculated by applying tax credit and tax reduction or exemption under the Restriction of Special Local Taxation Act by regarding the calculated amount of corporate local income tax of each consolidated corporation as the calculated amount of corporate local income tax referred to in Article 103-21. |
| (3) | When calculating the tax credit and tax reduction or exemption for each consolidated corporation, matters necessary for the calculation, etc. of the tax amount shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-37 (Consolidated Tax Base Return and Payment of Consolidated Corporate Local Income Tax Amount) |
| (1) | A consolidated parent corporation shall report the tax base for corporate local income tax on income for each consolidated business year under Article 103-34 and the calculated amount of corporate local income tax of each consolidated corporation on income for each consolidated business year under Article 103-35 (4) to the head of a local government having jurisdiction over a place for tax payment of each consolidated corporation in the tax return form prescribed by Presidential Decree within five months from the end of the month to which the expiry date of each consolidated business year belongs, along with the following documents. In such cases, Article 103-23 (4) shall apply mutatis mutandis. <Amended on Jul. 24, 2015; Dec. 29, 2015> |
| 1. | Documents specified in Article 103-23 (2) 1 through 3 for each consolidated corporation; |
| 2. | Documents specified by Presidential Decree as those accompanying a statement of tax adjustment. |
| (2) | The calculated amount of corporate local income tax for each consolidated corporation in each local government shall be prescribed by Article 89 (2). |
| (3) | Where business places of a consolidated corporation are located in at least two local governments, it shall report to the head of a local government having jurisdiction over a place for tax payment under Article 89 (1), respectively. |
| (4) | A consolidated parent corporation shall pay the amount after deducting the tax amount deducted and reduced or exempted pursuant to Article 103-36 and the tax amount specially collected pursuant to Article 103-29 from the calculated amount of corporate local income tax of each consolidated corporation to the head of a local government having jurisdiction over a place for tax payment under Article 89 (1) by the deadline for filing a tax return under paragraph (1). |
| (5) | Where a consolidated parent corporation reports and pays local income tax pursuant to paragraph (1), each consolidated subsidiary shall pay the amount equivalent to local income tax calculated for each consolidate corporation pursuant to Article 89 (2) to the consolidated parent corporation: Provided, That where the amount equivalent to the relevant local income tax is a negative number, a consolidated parent corporation shall pay the amount minus the negative mark to a consolidated subsidiary. <Amended on Mar. 14, 2023> |
| (6) | If the accompanying documents under paragraph (1) have been submitted to the head of the local government having jurisdiction over the location of the head office of the consolidated parent corporation, the corporation shall be deemed to have also submitted them to the head of the local government having jurisdiction over the place for tax payment for each consolidated corporation. <Newly Inserted on Dec. 29, 2015> |
| (7) | If a person fails to attach any of the documents specified in paragraph (1) 1 to a tax return filed under paragraph (1), such tax return shall not be deemed to be a tax return under this Act. <Newly Inserted on Dec. 29, 2015> |
| (8) | If the head of a local government having jurisdiction over a place for tax payment finds a defect or an error from a tax return or any other document submitted under paragraph (1) or (3), he or she may request an amendment thereto. <Newly Inserted on Dec. 29, 2015> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-38 (Modified Tax Return, Determination, Correction, Collection, etc.) |
Articles 103-24, 103-25, and 103-27 shall apply mutatis mutandis to the modified tax return, determination, correction, collection, and refund of corporate local income tax on income for each consolidated business year. <Amended on Jul. 24, 2015> [This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Jul. 24, 2015]
| Article 103-39 (Additional Tax) |
A consolidated corporation shall pay the amount calculated by applying Article 103-30 mutatis mutandis in addition to the amount of corporate local income tax on income in each consolidated business year. [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-40 (Application of Provisions Related to Small and Medium Enterprises) |
When calculating the amount of corporate local income tax on income in each consolidated business year, Article 76-22 of the Corporate Tax Act shall apply mutatis mutandis to the application of the provisions related to small and medium enterprises. [This Article Newly Inserted on Jan. 1, 2014]
SECTION 8 Local Income Tax on Income from Liquidation of Korean Corporations
| Article 103-41 (Tax Base) |
The tax base for corporate local income tax on income from liquidation of a Korean corporation shall be the same amount as the amount of income from liquidation upon dissolution under Article 79 of the Corporate Tax Act (where special taxation related to the calculation of the amount of income from liquidation applies under the Restriction of Special Taxation Act and other Acts, referring to the amount of income from liquidation upon dissolution calculated according to such special taxation). <Amended on Dec. 31, 2019> [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-42 (Tax Rates) |
The amount of corporate local income tax on income from liquidation of a Korean corporation shall be the amount calculated by applying tax rates under 103-20 to the tax base under Article 103-41. [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-43 (Tax Return on Tax Base and Payment of Tax Amount) |
| (1) | A Korean corporation obliged to file a final tax return or an interim tax return under Article 84 or 85 of the Corporate Tax Act shall report the tax base and the amount of corporate local income tax on income from liquidation to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing the relevant tax return, as prescribed by Presidential Decree. <Amended on Jul. 24, 2015> |
| (2) | A Korean corporation that has filed a final return under paragraph (1) shall pay a corporate local income tax on income from liquidation to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing the relevant final return. |
[This Article Newly Inserted on Jan. 1, 2014]
[Title Amended on Jul. 24, 2015]
| Article 103-44 (Determination and Correction) |
| (1) | Where a Korean corporation fails to file a tax return under Article 103-43 or there is any error or omission in the reported matters, the head of a local government having jurisdiction over a place for tax payment shall determine or correct the tax base and the tax amount on the relevant income from liquidation. |
| (2) | Where the head of a local government having jurisdiction over a place for tax payment discovers errors or omissions in his or her determination or correction after he or she has determined or corrected the tax base and the amount of corporate local income tax on income from liquidation, he or she shall immediately correct such errors or omissions again. |
| (3) | Where the head of a local government having jurisdiction over a place for tax payment has determined or corrected the tax base and the amount of corporate local income tax on income from liquidation, he or she shall notify the relevant Korean corporation or liquidator of the details thereof: Provided, That where he or she cannot notify such corporation or liquidator of the details thereof, public announcement may take the place of such notification. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-45 (Collection) |
| (1) | Where a Korean corporation fails to pay all or some of a corporate local income tax on income from liquidation he or she should pay pursuant to Article 103-43, the head of a local government having jurisdiction over a place for tax payment shall collect such unpaid corporate local income tax pursuant to the Framework Act on Local Taxes and the Local Tax Collection Act. <Amended on Dec. 27, 2016> |
| (2) | Where the amount of corporate local income tax paid by a Korean corporation pursuant to Article 103-43 or collected by the head of a local government having jurisdiction over a place for tax payment pursuant to paragraph (1) is less than the amount of corporate local income tax he or she has determined or corrected, he or she shall collect corporate local income tax equivalent to such shortfall. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-46 (Special Taxation on Income from Liquidation) |
| (1) | Where the head of a local government having jurisdiction over a place for tax payment collects corporate local income tax on income from liquidation, he or she shall not collect an additional charge or an increased additional charge under Article 30 or 31 of the Local Tax Collection Act. <Amended on Jul. 24, 2015; Dec. 27, 2016> |
| (2) | Where there are organizational changes under the subparagraphs of Article 78 of the Corporate Tax Act in a Korean corporation, the head of a local government having jurisdiction over a place for tax payment shall not impose a corporate local income tax on income from liquidation. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-46 (Special Taxation on Income from Liquidation) |
| (1) | Where the head of a local government having jurisdiction over a place for tax payment collects corporate local income tax on income from liquidation, he or she shall not collect penalty taxes for delayed payment under Article 55 (1) 3 or 4 of the Framework Act on Local Taxes. <Amended on Jul. 24, 2015; Dec. 27, 2016; Dec. 29, 2020> |
| (2) | Where there are organizational changes under the subparagraphs of Article 78 of the Corporate Tax Act in a Korean corporation, the head of a local government having jurisdiction over a place for tax payment shall not impose a corporate local income tax on income from liquidation. |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 9 Local Income Tax on Income of Foreign Corporation in Each Business Year
| Article 103-47 (Tax Base) |
| (1) | The tax base for corporate local income tax on income in each business year of a foreign corporation that has a place of business in the Republic of Korea and a foreign corporation that has income under subparagraph 3 of Article 93 of the Corporate Tax Act shall be the same amount as the tax base for corporate tax calculated pursuant to Article 91 (1) of the Corporate Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for corporate tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
| (2) | The tax base for corporate local income tax on income in each business year of a foreign corporation that does not fall under paragraph (1) shall be the same amount as the tax base for corporate tax calculated pursuant to Article 91 (2) of the Corporate Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies under the Restriction of Special Taxation Act and other Acts, referring to the tax base for corporate tax calculated according to such special taxation). <Amended on Dec. 31, 2019> |
| (5) | Matters concerning the calculation of the amount of income of a foreign corporation generated in the Republic of Korea, classification of incomes generated in the Republic of Korea, and places of business of a foreign corporation in the Republic of Korea shall be governed by Articles 92 through 94 of the Corporate Tax Act. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-48 (Tax Rates) |
Corporate local income tax on income in each business year of a foreign corporation that has income generated in the Republic of Korea under subparagraph 7 of Article 93 of the Corporate Tax Act, which is a foreign corporation under Article 103-47 (1) and a foreign corporation under paragraphs (2) and (3) of the said Article, shall be the amount calculated by applying tax rates under Article 103-20 to the amount of the tax base under Article 103-47 (where there is the amount of corporate local income tax on capital gains from land, etc. under Article 103-49, referring to the amount including such tax amount). [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-49 (Special Taxation on Capital Gains from Land, etc. of Foreign Corporations) |
Article 103-31 shall apply mutatis mutandis to the payment of corporate local income tax on capital gains from land, etc. of a foreign corporation referred to in Article 103-47 (1) and a foreign corporation referred to in paragraph (2) of the said Article. In such cases, capital gains from land, etc. of a foreign corporation referred to in Article 103-47 (2) shall be the amount calculated by applying mutatis mutandis Article 92 (3) of the Corporate Tax Act. [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-50 (Special Taxation on Business Places of Foreign Corporations in Republic of Korea) |
A business place of a foreign corporation (excluding a nonprofit foreign corporation) in the Republic of Korea shall pay 1/10 of the tax amount it is required to calculate and additionally pay pursuant to Article 96 of the Corporate Tax Act in addition to corporate local income tax under Article 103-48. [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-51 (Reporting, Payment, Determination, Correction, Collection, and Special Cases) |
| (1) | Except as otherwise expressly provided for in this Section, Section 6 hereof and Article 97 of the Corporate Tax Act shall apply mutatis mutandis to a return, payment, determination, correction, and collection of corporate local income tax on income for each business year of a foreign corporation specified in Article 103-47 (1) or a foreign corporation falling under Article 103-47 (2) or (3), which has domestic source income accrued from transfer of real estate, etc. under subparagraph 7 of Article 93 of the Corporate Tax Act. In such cases, when applying mutatis mutandis Article 103-23 (3), if the amount of withheld income under Article 98 (1) 5 and (8) of the Corporate Tax Act is included in the tax base for corporate local income tax on income for each business year of a foreign corporation specified in Article 103-47 (1) or a foreign corporation falling under Article 103-47 (2) or (3), which has domestic source income accrued from transfer of real estate, etc. under subparagraph 7 of Article 93 of the Corporate Tax Act, the amount of special collection equivalent to 10/100 of such withheld tax amount shall be deemed the tax amount deducted pursuant to Article 103-23 (3) 3. <Amended on Dec. 29, 2020> |
| (2) | Where a foreign corporation required to report the tax base for corporate local income tax on income in each business year pursuant to paragraph (1) fails to file a tax return by the deadline for filing a tax return for reasons prescribed by Presidential Decree, notwithstanding paragraph (1), it may extend the deadline for filing a tax return after obtaining approval from the head of a local government having jurisdiction over a place for tax payment, as prescribed by Presidential Decree. |
| (3) | Where a foreign corporation that has obtained approval for extending a deadline for filing a tax return pursuant to paragraph (2) pays the tax amount it has reported, it shall pay the tax amount including the amount calculated by applying an interest rate prescribed by Presidential Decree considering the interest rates of financial companies, etc. to the number of days so extended. |
| (4) | The number of days extended when calculating the amount to be added pursuant to paragraph (3) shall be the number of days from the date immediately following the deadline for filing a tax return under Article 103-23 to the date a foreign corporation obtains approval for extension: Provided, That where the foreign corporation files a tax return and pays the tax amount by the extended deadline, it shall be the number of days until such date. |
| (5) | A foreign corporation required to file a tax return and pay the amount of tax on capital gains, etc. on securities pursuant to Article 98-2 of the Corporate Tax Act shall report and pay the amount equivalent to 10/100 of the amount that it should report and pay, to the head of a local government having jurisdiction over a place for tax payment within one month from a deadline for filing a tax return and payment of the tax amount provided for in the said Article. |
| (6) | A foreign corporation from which income referred to in subparagraph 6 of Article 93 of the Corporate Tax Act is specially collected may file a tax return and pay the tax amount calculated by applying Article 103-48 to the tax base calculated pursuant to Article 99 (1) of the said Act, to the head of a local government having jurisdiction over the place for tax payment of a person liable for special collection within four months from the expiry date of a period for providing services. In such cases, where the specially collected income is included in the tax base, the specially collected tax amount shall be deducted as the tax amount already paid. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-52 (Special Cases of Special Collection or Collection from Foreign Corporations) |
| (1) | Where a corporate tax on the domestic source income of a foreign corporation is withheld pursuant to Articles 98 through 98-7 of the Corporate Tax Act, the amount equivalent to 10/100 of the corporate tax withheld shall be specially collected as corporate local income tax. In such cases, a person liable for withholding under the Corporate Tax Act shall be regarded as a person liable for special collection of corporate local income tax. <Amended on Dec. 29, 2020> |
| (2) | Article 103-29 (3) and (4) shall apply mutatis mutandis to the payment, etc. of a person liable for special collection under paragraph (1), and Articles 98 through 98-7 of the Corporate Tax Act shall apply mutatis mutandis to other matters not provided for in this Act concerning special cases of special collection or collection from foreign corporations. <Amended on Dec. 29, 2020> |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 10 Special Taxation on Partnership Enterprises
| Article 103-53 (Partnership Enterprises' and Business Partners' Obligations to Pay Taxes) |
| (2) | Procedures for reporting and paying corporate local income tax on income from quasi-liquidation and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-54 (Distribution of Partnership Enterprises) |
| (1) | The following amounts related to a partnership enterprise shall be distributed to business partners according to the ratio of distribution of profits and losses among business partners at the expiry date of each tax year: Provided, That the amount referred to in subparagraph 4 shall be distributed to business partners who are Korean corporations or foreign corporations: <Amended on Dec. 31, 2019> |
| 2. | The amount of tax specially collected pursuant to Article 103-29 on income generated in a partnership enterprise; |
| 4. | Corporate local income tax on capital gains from land, etc. under Article 103-31. |
| (2) | Where a business partner reports and pays local income tax for the tax year to which the expiry date of the tax year of a partnership enterprise belongs, he or she shall deduct amounts referred to in paragraph (2) 1 and 2 out of the amounts distributed pursuant to paragraph (2) from local income tax levied on the relevant business partner and add amounts referred to in paragraph (2) 3 and 4 to local income tax of the relevant business partner. |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-55 (Transfer of Equity Stakes in Partnership Enterprises) |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-56 (Special Collection from Business Partners Who Are Non-Residents or Foreign Corporations) |
Where a partnership enterprise withholds income tax or corporate tax on the income distributed to business partners who are non-residents or foreign corporations pursuant to Article 100-24 (1) of the Restriction of Special Taxation Act, it shall specially collect the amount equivalent to 10/100 of income tax or corporate tax to withhold as local income tax and shall pay the amount to the head of the local government having jurisdiction over the place for tax payment by the deadline for filing a tax return under Article 100-23 (1) of the Act. <Amended on Jul. 24, 2015> [This Article Newly Inserted on Jan. 1, 2014]
| Article 103-57 (Additional Tax on Partnership Enterprises) |
[This Article Newly Inserted on Jan. 1, 2014]
SECTION 11 Local Income Tax on Income for Each Business Year from Trust Property Subject to Corporate Taxation
| Article 103-58 (Corporate Local Income Tax on Trust Property Subject to Corporate Taxation) |
| (1) | The provisions of this Chapter shall prevail over those of Chapter I or VI with respect to trust property deemed a Korean corporation pursuant to Article 5 (2) of the Corporate Tax Act (hereinafter referred to as "trust property subject to corporate taxation") and a trustee who pays its corporate tax (hereinafter referred to as "trustee of corporate tax"). |
| (2) | The business year of corporate local income tax on the trust property subject to taxation shall be the period for filing a return by the trustee of corporate tax pursuant to Article 75-12 (3) of the Corporate Tax Act. |
| (3) | The place of payment of corporate local income tax on the trust property subject to corporate taxation shall be the place of payment of the trustee of corporate tax. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), Articles 75-11 through 75-18 of the Corporate Tax Act shall apply mutatis mutandis to the application of the methods of corporate local income taxation on trust property subject to corporate taxation, secondary liability to pay tax, etc. |
[This Article Wholly Amended on Dec. 29, 2020]
SECTION 11 Supplementary Provisions
| Article 103-59 (Notification of Tax Amount, etc. Related to Local Income Tax) |
| (1) | The head of a tax office or the head of a regional tax service (hereafter referred to as "head of a tax office, etc." in this Article) shall notify the head of a local government prescribed by Presidential Decree of data on the imposition and collection of income tax by a deadline based on the following classification, as prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Nov. 19, 2014; Dec. 29, 2015; Jul. 26, 2017; Dec. 31, 2019; Dec. 28, 2021; Mar. 14, 2023> |
| 1. | Where the head of a tax office, etc. receives a return of the income tax base and the income tax amount (excluding a return filed after the deadline) under the Framework Act on National Taxes or the Income Tax Act: The 15th day of the month immediately following the month in which the day he or she receives a tax return falls: Provided, That in any of the following cases, the period prescribed in the relevant item shall apply: |
| 2. | Where the head of a tax office, etc. determines or corrects the income tax base and the income tax amount pursuant to the Framework Act on National Taxes or the Income Tax Act: The 15th day of the month immediately following the month in which the date he or she determines or corrects the income tax base and the income tax amount falls; |
| 3. | Where the head of a tax office, etc. is paid income tax withheld pursuant to Income Tax Act: The 15th day of the month immediately following the month to which the paid date belongs: Provided, That he or she may omit the notification on the withheld tax amount he or she has been paid according to a notice of tax payment under subparagraph 4; |
| 4. | Where the head of a tax office, etc. gives notice on tax payment in order to collect income tax withheld or to be withheld from a person responsible for withholding under the Income Tax Act because the person responsible for withholding fails to pay income tax withheld or to be withheld by the deadline for the payment thereof or pays the less amount thereof: The 15th day of the month immediately following the month to which the date he or she gives such notice belongs; |
| 5. | Where the head of a tax office, etc. refunds income tax pursuant to the Framework Act on National Taxes or the Income Tax Act: The 15th day of the month immediately following the month to which the date he or she refunds income tax belongs: Provided, That where he or she refunds income tax according to a final return of the tax base under Articles 70, 71, 74, 87-23 and 110 of the Income Tax Act, two months from the first day of the month immediately following the month to which the date he or she receives such final return falls. |
| (2) | The head of a tax office, etc. shall notify the head of a local government prescribed by Presidential Decree of data on the imposition and collection of corporate tax by a deadline based on the following classification, as prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Nov. 19, 2014; Dec. 27, 2016; Jul. 26, 2017; Dec. 28, 2021> |
| 1. | Where the head of a tax office, etc. receives a return or amended return of the corporate tax base and the corporate tax amount pursuant to the Framework Act on National Taxes or the Corporate Tax Act: Two months from the first day of the month immediately following the month in which the date he or she receives a return falls; |
| 2. | Where the head of a tax office, etc. determines or corrects the corporate tax base and the corporate tax amount pursuant to the Framework Act on National Taxes or the Corporate Tax Act: The 15th day of the month immediately following the month in which the date he or she makes such determination or correction falls; |
| 3. | Where the head of a tax office, etc. is paid corporate tax withheld pursuant to Corporate Tax Act: The 15th day of the month immediately following the month in which the paid date falls: Provided, That he or she may omit the notification on the withheld tax amount he or she has been paid according to a notice of tax payment under subparagraph 4; |
| 4. | Where the head of a tax office, etc. gives notice on tax payment in order to collect corporate tax withheld or to be withheld from a person responsible for withholding under the Corporate Tax Act because the person responsible for withholding fails to pay corporate tax withheld or to be withheld by the deadline for the payment thereof or pays the less amount thereof: The 15th day of the month immediately following the month in which the date he or she gives such notice falls; |
| 5. | Where the head of a tax office, etc. refunds corporate tax pursuant to the Framework Act on National Taxes or the Corporate Tax Act: The 15th day of the month immediately following the month in which the date he or she refunds corporate tax falls; |
| (3) | Upon receipt of the notice under paragraph (1) 5 or (2) 5, the head of a local government shall calculate local income tax again according to the same tax base as that of the relevant income or corporate tax and shall pay an amount refundable out of local income tax, if such amount is refundable as a result of the calculation. <Amended on Dec. 26, 2017; Dec. 28, 2021> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-60 (Exemption from Collection of Small Amount) |
Where the amount of tax to be collected as local income tax is less than 2,000 won per notice for payment of tax, the head of a local government shall not collect such local income tax. <Amended on Dec. 31, 2018>
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-61 (Special Cases of Application of Additional Tax) |
| (2) | With regard to the income generated during the taxable period of 2021 and the taxable period of 2022, where a resident who has filed a final return on the tax base of global income under Article 70 (3) of the Income Tax Act by the filing deadline provided in paragraph (1) of the same Article or a resident who has filed a final return on the tax base of retirement income under 71 (3) of the same Act by the filing deadline provided in paragraph (1) of the same Article fails to fulfill his or her duty to file a return under Article 95, if he or she files a revised return on personal local income tax on global income or retirement income pursuant to Article 96 within one month after the relevant filing deadline expires, or files a return after such deadline pursuant to Article 51 of the Framework Act on Local Taxes; no additional tax under Article 53 or 54 of the same Act shall be imposed. <Newly Inserted on Dec. 31, 2019; Dec. 28, 2021> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 103-62 (Special Cases on Settlement of Specially Collected Corporate Local Income Tax) |
| (1) | If the place for tax payment for corporate local income tax specially collected under this Act (hereinafter referred to "place of special collection") at the time the specially collected tax amount is deducted under Article 103-23 (3) 3 is different from the place for tax payment at the time the final return is filed (hereinafter referred to as "filing place"), the specially collected tax amount shall be deemed corporate local income tax paid to the head of the local government having jurisdiction over the filing place. |
| (2) | In the case of paragraph (1), the head of the local government having jurisdiction over the place of special collection shall make a correction to reduce the specially collected tax amount and shall pay the specially collected tax amount to the head of the local government having jurisdiction over the location of the head office or principal place of business of the relevant corporation (referring to the location of the head office or principal place of business of the consolidated parent corporation in the case of a consolidated corporation; hereafter referred to as "location of the head office" in this Article). |
| (3) | Upon receipt of the specially collected tax amount under paragraph (2), the head of the local government having jurisdiction over the location of the head office shall distribute the settled amount as prescribed by Presidential Decree to the local government having jurisdiction over the filing place, based on the details stated by the reporting corporation in the tax return on pro ratadistribution under Article 89 (2), and shall notify the details thereof. In such cases, the head of the local government having jurisdiction over the filing place shall collect the distributed amount, deeming it the corporate local income tax paid by the person liable to pay tax. |
| (4) | If the refundable tax amount, out of the specially collected tax amount under Article 103-29, exceeds the total levied amount of corporate local income tax when the settled amount is distributed under paragraph (3), the head of the local government having jurisdiction over the domicile of the head office shall refund the refundable tax amount to the person liable to pay tax or appropriate the amount for local taxes, as prescribed by Presidential Decree. In such cases, if there are two or more cases of delinquent charges, the amount shall be appropriated for the charges of which the prescriptive period expires first, out of delinquent charges owed to the local government having jurisdiction over the filing place. <Amended on Dec. 27, 2016> |
| (5) | The heads of local governments may enter into an agreement among local governments for the settlement under paragraphs (1) through (4). In such cases, the written agreement shall stipulate matters concerning the details and scope of settlement and the method, procedure, etc. therefor. |
| (6) | The appropriation and refund under the Framework Act on Local Taxes shall apply after the settlement in accordance with the procedure under paragraphs (2) through (5) is completed. |
[This Article Newly Inserted on Dec. 29, 2015]
| Article 103-63 (Additional and Payment of Corporate Local Income Tax) |
| (1) | If special taxation concerning the calculation of tax base under the Restriction of Special Taxation Act or other Acts is applicable to the calculation of the tax base for corporate tax or income tax and corporate tax or income tax (including the additional amount equivalent to interest) shall be additionally paid, the amount equivalent to 10/100 of the additionally paid tax amount shall be additionally paid as local income tax, and matters regarding the persons subject to the additional payment and the calculation of a tax amount shall be prescribed by Presidential Decree. |
| (2) | Where the expenses and paid interest not related to business under Articles 27 and 28 of the Corporate Tax Act are not included in deductible expenses and an amount shall be paid in addition to corporate tax at the date of transfer, the amount equivalent to 10/100 of the payable tax amount shall be paid additionally as corporate local income tax. |
| (3) | If corporate tax is paid additionally pursuant to Article 73-2 of the Corporate Tax Act, in a case falling under cases prescribed by Presidential Decree, where the relevant bonds, etc. are sold during the period in which interest accruing from bonds, etc., a discounted amount, and profits from investment trust are calculated under Article 46 (1) of the Income Tax Act, the amount equivalent to 10/100 of the amount of the tax to be paid additionally shall be paid additionally as corporate local income tax; and matters necessary to calculate the amount of such tax shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 31, 2018> |
[This Article Newly Inserted on Dec. 29, 2015]
| Article 103-64 (Special Cases concerning Correction of False Accounting Entries) |
| (1) | If a Korean corporation has its tax base or tax amount corrected on the ground that the tax base and the tax amount were overstated due to its wrong accounting entries that meet all the criteria provided for in Article 58-3 (1) of the Corporate Tax Act, the overpaid tax amount shall not be refunded but shall be subtracted from the amount of corporate local income tax payable for each business year subsequent to the business year in which such correction is made. In such cases, the amount to be subtracted in each business year shall not exceed 20/100 of the overpaid tax amount (referring to the amount of the balance after subtraction under paragraph (2)); and the balance of the overpaid tax amount after subtraction shall be carried over to subsequent business years for subtraction. <Amended on Dec. 26, 2017; Dec. 31, 2018> |
| (2) | If a payable tax amount accrues from an amended tax return filed under Article 49 of the Framework Act on Local Taxes in the business year preceding the business year in which a correction was made in connection with wrong accounting entries made by a Korean corporation, 20/100 of the overpaid tax amount referred to in paragraph (1) shall be subtracted first from the payable tax amount in applying paragraph (1). <Amended on Dec. 27, 2016; Dec. 27, 2016; Dec. 26, 2017> |
| (3) | Where a Korean corporation which has an overpaid tax amount subtracted under paragraph (1) or (2) dissolves, the balance of the overpaid tax amount shall be disposed of as follows: <Newly Inserted on Dec. 26, 2017> |
| 1. | Where a corporation dissolves due to a merger or division: The balance of the overpaid tax amount shall be transferred to the merging corporation of the new corporation incorporated after the merger (including the counterpart corporation of a division and merger) for successive subtraction under paragraph (1); |
| 2. | Where a corporation dissolves by any method other than the methods referred to in subparagraph 1: The head of the local government having jurisdiction over the place for tax payment shall immediately refund the amount left over after subtracting the amount of corporate local income tax payable for the liquidation income under Article 103-41 from the balance of the overpaid tax amount. |
| (4) | The methods and procedures for subtracting an overpaid tax amount under paragraphs (1) through (2) shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2017> |
[This Article Newly Inserted on Dec. 27, 2016]
| Article 103-65 (Special Cases concerning Calculation of Tax Amount for Disaster Losses) |
| (1) | Where a domestic corporation has received tax credit for disaster losses pursuant to Article 58 of the Corporate Tax Act, the amount calculated by multiplying the amount of corporate local income tax prescribed in each of the following subparagraphs by asset loss ratio prescribed in Article 58 of the Act shall be subtracted from the corporate local income tax: |
| 1. | Amount of the corporate local income tax which was not imposed as of the date when a disaster occurs and the amount of the corporate local income tax which was not paid as the corporate local income tax which was imposed: |
| 2. | Amount of the corporate local income tax for incomes on the business year to which the date when a disaster occurs belongs. |
| (2) | Any domestic corporation which intends to have its tax amount deducted pursuant to paragraph (1) shall file an application with the head of a local government having jurisdiction over a place for tax payment, as prescribed by Presidential Decree. |
| (3) | Matters necessary for an application for and determination on reduction of tax amount of the corporate local income tax prescribed in paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Mar. 14, 2023]
SECTION 1 Common Provisions
| Article 104 (Definitions) |
The terms used in relation to property tax are defined as follows: <Amended on Jun. 3, 2014>
| 2. | The term "building" means a building stipulated in subparagraph 4 of Article 6; |
| 3. | The term "housing" means housing stipulated in subparagraph 1 of Article 2 of the Housing Act. In such cases, housing shall be excluded from the scope of land and buildings; |
| 4. | The term "aircraft" means aircraft stipulated in subparagraph 9 of Article 6; |
| 5. | The term "ship" means any ship stipulated in subparagraph 10 of Article 6; |
| 6. | Deleted. <Dec. 27, 2010> |
| Article 105 (Objects of Taxation) |
Objects of taxation of the property tax are land, buildings, housing, aircraft, and ships (hereafter referred to as "property" in this Chapter).
| Article 106 (Classification of Land and Houses Subject to Taxation) |
| (1) | Objects of taxation of the property tax on land shall be classified into objects of general aggregate taxation, objects of special aggregate taxation, and objects of separate taxation as follows: <Amended on Dec. 27, 2010; Dec. 29, 2015; Dec. 27, 2016; Dec. 26, 2017; Dec. 3, 2019> |
| 1. | Objects of general aggregate taxation: The land owned by a person liable to pay tax as of the tax base date, excluding land subject to special aggregate taxation or separate taxation: |
| (a) | Deleted; <Dec. 3, 2019> |
| (b) | Deleted; <Dec. 3, 2019.> |
| 2. | Objects of special aggregate taxation: Any of the following land owned by a person liable to pay tax as of the tax base date: |
| (a) | The land annexed to buildings prescribed by Presidential Decree, such as land annexed to a building to be used as a factory; |
| (b) | The land prescribed by Presidential Decree to be used for business or economic purposes as vacant land or by installing facilities, etc. necessary for the use of the relevant land, such as land for garages, land for bonded warehouses, land for examinations, research or tests, or land for logistics complex facilities; |
| (c) | Appurtenant land prescribed by Presidential Decree as land appurtenant to a demolished or destroyed building or house; |
| 3. | Objects of separate taxation: Land specified in any of the following items as the land that needs the protection and assistance of the State or on which a heavier tax shall be levied among the lands owned by a person liable to pay tax as at the tax base date: |
| (a) | Land prescribed by Presidential Decree as a factory site, field, rice field, orchard or a stock farm site; |
| (b) | Forests prescribed by Presidential Decree as those necessary for the protection and afforestation of forests, and those owned by a clan; |
| (c) | Land prescribed by Presidential Decree as a site for a golf course under Article 13 (5) and for a high-end recreation center under the same paragraph; |
| (e) | Land specified by Presidential Decree as that for a special purpose project for the support of the State or a local government; |
| (f) | Land specified by Presidential Decree as that for infrastructure for the supply of energy and resources, broadcasting, telecommunications, transportation, etc.; |
| (g) | Land specified by Presidential Decree as that for a development project for the efficient use of the national land; |
| (h) | Land specified by Presidential Decree on any other reasonable ground for separate taxation in consideration of the development of local economy, the level of public interest, etc. |
| (2) | The method for classifying the scope of housing with respect to a building, etc. used both for residential and non-residential purposes, and the calculation of the scope of land annexed to the housing shall be as follows: <Amended on Dec. 28, 2021> |
| 1. | Where one building is used both for residential and non-residential purposes, only the portion used for a residential purpose shall be deemed housing. In such cases, the land annexed to a building shall be classified into the land annexed to housing and the land annexed to the building pro rata to the rate of areas used for a residential and non-residential purposes in the building; |
| 2. | Where a block of land of a building is used both for residential and non-residential purposes, such building is deemed housing if the area used for residential purposes is at least 50/100 of the total area; |
| 2-2. | Where the area used for residential purposes in a building without obtaining permission, etc. or approval for use (including approval for temporary use; hereafter in this paragraph, the same shall apply) is at least 50/100 of the total area of the building (including the area for which permission, etc. or approval for use has been obtained), the whole building shall not be deemed housing, and the land appurtenant thereto shall be the land falling under paragraph (1) 1; |
| 3. | Presidential Decree shall govern matters concerning the calculation of the scope of the land annexed to housing where the boundary of the land annexed to housing is unclear. |
| (3) | Where an object subject to property tax is not registered in the public register, such as the land cadastre or building ledger, or the current status of registration of such object in the public register is different from the de facto current status thereof, property tax shall be imposed according to the de facto current status: Provided, That in 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, property tax shall be imposed according to the current status registered in the public register. <Newly Inserted on Dec. 28, 2021> |
[Title Amended on Jul. 1, 2014]
| Article 106-2 (Feasibility Assessment, etc. of Land Subject to Separate Taxation) |
| (1) | Where the Minister of the Interior and Safety intends to reduce or rearrange land subject to separate taxation under Article 106 (1) 3 (hereafter in this Article referred to as "land subject to separate taxation") or expand or add land subject to separate taxation, he or she may assess the feasibility of separate taxation in consideration of the purpose of separate taxation, fairness of taxation, financial conditions of local governments, whether such measure overlaps with other supportive measures, and other similar factors. |
| (2) | Where intending to expand or add land subject to separate taxation on the basis of the result of the assessment of feasibility under paragraph (1), it shall undergo deliberation of the Local Finance Management Committee under Article 27-2 of the Local Finance Act. <Amended on Aug. 16, 2023 |
| (3) | The subjects of feasibility assessment under paragraph (1), the assessment criteria including the necessity to apply separate taxation, the procedures for requesting the expansion and addition of separate taxation, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 31, 2019]
| Article 107 (Persons Liable to Pay Tax) |
| (1) | A person who virtually owns property as of the property tax base date is liable to pay property tax: Provided, That in any of the following cases, a person referred to in the relevant subparagraph shall be deemed a person liable to pay property tax: <Amended on Jan. 1, 2014> |
| 1. | In the case of co-owned property: For the portion corresponding to an equity stake (where there is no indication of the equity stake, the equity stake shall be deemed equal), a person who holds the equity stake; |
| 2. | Where the owner of a building of a house is different from the owner of land attached to the house: For the portion calculated pro rata in the ratio of the calculated amount of tax on the house to the assessed value of the building and land attached to the house under Article 4 (1) and (2), the owner thereof; |
| 3. | Deleted. <Dec. 29, 2020> |
| (2) | Notwithstanding the provisions of paragraph (1), any of the following persons as of the tax base date for property tax is liable to pay property tax: <Amended on Jan. 1, 2013; Mar. 23, 2013; Nov. 19, 2014; Feb. 8, 2017; Jul. 26, 2017; Dec. 31, 2018; Dec. 29, 2020; Dec. 28, 2021> |
| 1. | Where the de facto owner is unascertainable as the owner on the pubic register has failed to report a change in ownership occurring due to reasons, such as purchase and sale: The owner on the public register; |
| 2. | In cases of property for which the inheritance has been commenced, when registration of inheritance is not filed and the de facto owner is not reported: The principal heir prescribed by Ordinance of the Ministry of the Interior and Safety; |
| 3. | With regard to property actually owned by a clan, but registered in the names of individuals, etc. on the public register, when a report that such property is owned by a clan is not filed: The owner on the public register; |
| 4. | Where a sales contract to sell property subject to imposition of property tax in annual installments is concluded with the State, local governments and local government associations, and the right to use such property is granted for no consideration: The vendee; |
| 5. | In cases of trust property registered in the name of a trustee under Article 2 of the Trust Act (hereafter in this Chapter referred to as "trustee"): The truster under the same Article, notwithstanding paragraph (1) (in cases of trust property that a local-based housing association defined in subparagraph 11 (a) of Article 2 of the Housing Act or a workplace-based housing association defined in item (b) of the same subparagraph purchases with money paid by its members and owns, referring to the relevant local-based housing association or workplace-based housing association; hereafter in this Chapter referred to as "truster"); in such cases, the truster is deemed to have owned the relevant trust property; |
| 6. | Where the specific land is designated not as the replotted land but as the development recompense land or reserve land in a replotting plan based on the execution of an urban development project in the replotting method to be performed under the Urban Development Act, and an improvement project under the Act on the Improvement of Urban Areas and Residential Environments (limited to a redevelopment project): The project operator; |
| 7. | Where a person rents and imports aircraft or a ship owned by a foreigner: the person who imports such airplane or ship; |
| 8. | In cases of property that belongs to a bankruptcy estate from the declaration of bankruptcy under the Debtor Rehabilitation and Bankruptcy Act to the decision to terminate the bankruptcy: The owner on the public register. |
| (3) | Where the de facto owner is unascertainable as the reversion of ownership is unclear as of the tax base date of property tax, its user is liable to pay property tax. |
| Article 108 (Places for Tax Payment) |
Property tax shall be imposed by the local government having jurisdiction over the following places for tax payment: <Amended on Mar. 29, 2016>
| 1. | Land: The location of the land; |
| 2. | A building: The location of the building; |
| 3. | Housing: The location of the houses; |
| 4. | A ship: The location of the port of registry under the Ship Act: Provided, That where no port of registry exists, it refers to the location of the regular mooring place (where the regular mooring place is not fixed, the domicile of the ship owner); |
| 5. | Aircraft: The location of the aircraft station entered on the original aircraft register under the Aviation Safety Act (where no registration is filed under the Aviation Act, the domicile of the owner). |
| Article 109 (Non-Taxation) |
| (1) | No property tax may be imposed on any property which belongs to the State, local governments, local government associations, foreign governments, or international organizations in Korea: Provided, That property tax shall be imposed on any of the following: |
| 1. | Property of a foreign government which imposes a tax on any property of the government agencies of the Republic of Korea; |
| 2. | Property, the tax liability for which rests on a vendee under Article 107 (2) 4. |
| (2) | No property tax shall be imposed on any property used by the State, a local government or a local government association, for any official or public purpose for at least one year (including cases where it is proved that the property is to be used for at least one year by a written contract, etc.): Provided, That where property tax shall be imposed in any of the following cases: <Amended on Dec. 31, 2018> |
| 1. | Where the property is used in return for payment; |
| 2. | Where the property is used in advance before the property is acquired, in which case an agreement on the transfer of ownership in return for payment has been made. |
| (3) | No property tax shall be imposed on any of the following property (excluding objects of taxation referred to in Article 13 (5)): Provided, That property tax shall be imposed on the property where it is used for a for-profit business prescribed by Presidential Decree, or where the relevant property is used for consideration (excluding any property under subparagraphs 3 and 5), and on part of the property where a part of the relevant property is not directly used for its proper purpose: <Amended on Dec. 27, 2010> |
| 1. | Roads, rivers, embankments, conduits, reserving ponds, and graves prescribed by Presidential Decree; |
| 2. | Forest protection zones under Article 7 of the Forest Protection Act and other land having reasonable grounds for not imposing property tax for public interest, which are prescribed by Presidential Decree; |
| 3. | Buildings constructed for a temporary use which fall short of one year as at the base date of property tax; |
| 4. | Ships used for rescue in times of emergency, for ferries with no charge, for composition of a floating bridge or for barges belonging to the mother ship; |
| 5. | Buildings or houses (limited to building parts under Article 2 (1) 2 of the Building Act) prescribed by Presidential Decree on which it is inappropriate to impose property tax, such as buildings ordered to be removed by an administrative agency. |
SECTION 2 Tax Base and Tax Rate
| (1) | The tax base for property tax on land, buildings and housing shall be the prices calculated by multiplying the assessed values under Article 4 (1) and (2) by the fair market price rates prescribed by Presidential Decree within the extent stipulated as follows, considering the trends in the real estate market, regional financial conditions, and other relevant matters: <Amended on Mar. 14, 2023> |
| 1. | Land and buildings: From 50/100 to 90/100 of the current price base; |
| 2. | Housing: From 40/100 to 80/100 of the current price base: Provided, That 30/100 to 70/100 of the current price base in cases of one house per household prescribed in Article 111-2. |
| (2) | The tax base for property tax on ships and aircraft shall be the assessed values under Article 4 (2). |
| (3) | Where the tax base of a house calculated pursuant to paragraph (1) is bigger than the upper limit of the tax base prescribed in the following calculation method, notwithstanding the provisions of paragraph (1), the tax base of the relevant house shall be deemed the upper limit of the tax base. <Newly Inserted on Mar. 14, 2023> |
Upper limit of tax base= Equivalent amount of tax base of the relevant houses in the preceding year prescribed by Presidential Decree + (tax base calculated based on the current price base as of the tax base date × upper limit rate of tax base
Upper limit rate of tax base= Rate prescribed by Presidential Decree within 5/100, based on the consumer price index, housing price fluctuation rate, condition of local finance. etc.
| (1) | The amount of property tax shall be calculated by applying the following standard tax rates to the tax bases computed under Article 110: <Amended on Dec. 27, 2010; Dec. 27, 2016; Dec. 31, 2019> |
| (a) | Objects of general aggregate taxation;Tax baseTax rateNot more than 50 million won |
More than 50 million won but not more than 100 million won
More than 100 million won2/1000 x the tax base
100,000 won + 3/1000 of the amount exceeding 50 million won
250,000 won + 5/1000 of the amount exceeding 100 million won
| (b) | Objects of special aggregate taxation;Tax baseTax rateNot more than 200 million won |
More than 200 million won but not more than 1 billion won
More than 1 billion won2/1000 x the tax base
400,000 won + 3/1000 of the amount exceeding 200 million won
2,800,000 won + 4/1000 of the amount exceeding 1 billion won
| (c) | Objects of separate taxation: |
| (i) | A field, rice field, orchard and stock farm site falling under Article 106 (1) 3 (a) and forest falling under item (b) of the same subparagraph: 0.7/1000 of the tax base; |
| (ii) | Land for a golf course and land for a high-end recreation center falling under Article 106 (1) 3 (c): 40/1000 of the tax base; |
| (iii) | Any other land: 2/1000 of the tax base; |
| (a) | A golf course and a building for a high-end recreation center referred to in Article 13 (5): 40/1000 of the tax base; |
| (b) | A building used as a factory prescribed by Presidential Decree within a residential area designated pursuant to the National Land Planning and Utilization Act and other relevant statutes or an area designated by municipal ordinance of the relevant local government in the area within the jurisdiction of the Special Metropolitan City a Metropolitan City (excluding Gun areas), a Special Self-Governing city (excluding Eup and Myeon areas), or a Si (excluding Eup and Myeon areas): 5/1000 of the tax base; |
| (c) | Any other building: 2.5/1000 of the tax base; |
| (a) | Deleted; <Mar. 14, 2023> |
| (b) | Any other housing;Tax baseTax rateNot more than 60 million won |
More than 60 million won but not more than 150 million won
More than 150 million won but not more than 300 million won
More than 300 million won1/1000 x the tax base
60,000 won + (1.5/1000 of the amount exceeding 60 million won)
195,000 won + (2.5/1000 of the amount exceeding 150 million won)
570,000 won + (4/1000 of the amount exceeding 300 million won)
| (a) | A high-end ship referred to in Article 13 (5) 5: 50/1000 of the tax base; |
| (b) | Any other ship: 3/1000 of the tax base; |
| 5. | Aircraft: 3/1000 of the tax base. |
| (3) | Where the head of a local government deems it unavoidable to adjust property tax rates due to special financial demand or the occurrence of a disaster, etc., he or she may increase or decrease them within the extent of 50/100 of the standard tax rates under paragraph (1), as stipulated by the relevant municipal ordinance: Provided, That the increased or decreased tax rate shall apply only in the pertinent year. |
| Article 111-2 (Special Cases on Tax Rates on One House Per Household) |
| (1) | Notwithstanding Article 111 (1) 3 (b), the following tax rates shall apply to one house per household prescribed by Presidential Decree (limited to houses the assessed value of which under Article 4 (1) is not more than 900 million won). <Amended on Jul. 8, 2021>Tax baseTax rateNot more than 60 million won |
More than 60 million won but not more than 150 million won
More than 150 million won but not more than 300 million won
More than 300 million won0.5/1000
30,000 won + (1/1000 of the amount exceeding 60 million won)
120,000 won + (2/1000 of the amount exceeding 150 million won)
420,000 won + (3.5/1000 of the amount exceeding 300 million won)
| (2) | When determining whether a house is one house per household under paragraph (1), a house entrusted under the Trust Act shall be added to the number of houses for the relevant truster. |
| (3) | Notwithstanding paragraph (1), paragraph (1) shall not apply where the amount of tax increased or reduced by the head of a local government as prescribed by the relevant ordinance pursuant to Article 111 (3), is less than the amount of tax applied by the tax rates under paragraph (1). |
[This Article Newly Inserted on Dec. 29, 2020]
| Article 112 (Property Tax on Urban Areas) |
| (1) | The head of a local government may impose an amount of tax calculated by adding the amount of tax under subparagraph 1 to that under subparagraph 2 as the amount of property tax on land, a building or housing unit (hereafter referred to as "land, etc." in this Article) prescribed by Presidential Decree in an area publicly announced following a resolution by the relevant local council (hereafter referred to as "area subject to application of property tax on urban areas" in this Article), among the urban areas under subparagraph 1 of Article 6 of the National Land Planning and Utilization Act, as stipulated by the relevant municipal ordinance: <Amended on Dec. 27, 2010; Jan. 1, 2013; Dec. 29, 2020> |
| 2. | An amount of tax calculated by applying 1.4/1000 to the tax base on land, etc. under Article 110. |
| (2) | The head of a local government may separately set a tax rate under paragraph (1) 2 for the year concerned within the extent not exceeding 2.3/1000, as stipulated by the relevant municipal ordinance. |
| (3) | Notwithstanding paragraph (1), a site for public facilities, the topographic maps of which is publicly announced pursuant to the National Land Planning and Utilization Act, from among any land in an area subject to application of property tax for urban areas, or any land on which a ground structure, golf course, recreation park or other user facilities do not exist, from among land designated as a development restricted zone, shall be excluded from objects of taxation under paragraph (1) 2. <Amended on Dec. 27, 2010; Jan. 1, 2013> |
[Title Amended on Jul. 1, 2013]
| Article 113 (Application of Tax Rates) |
| (1) | The rates of property tax on land shall be applied as stipulated in the following: Provided, That where property tax is reduced in accordance with this Act or any other relevant statute or regulation, the tax rates obtained after deducting, from the following tax bases, the amount obtained by multiplying the reduction ratio (in cases of non-taxation or tax exemption, it shall be deemed 100/100) to the tax base of land subject to reduction shall apply: <Amended on Dec. 3, 2019> |
| 1. | Objects of general aggregate taxation: Apply the tax rate under Article 111 (1) 1 (a) to the tax base which is the aggregate prices of land owned by a person liable to pay tax which is located within the jurisdiction of the relevant local government and which is subject to general aggregate taxation; |
| 2. | Objects of special aggregate taxation: Apply the tax rate under Article 111 (1) 1 (b) to the tax base which is the aggregate prices of the land owned by a person liable to pay tax which is located within the jurisdiction of the relevant local government and which is subject to special aggregate taxation; |
| 3. | Objects of separate taxation: Apply the tax rate under Article 111 (1) 1 (c) to the tax base which is the prices of the relevant land subject to separate taxation. |
| (2) | The tax rates stipulated in Article 111 (1) 3 or Article 111-2 (1) shall apply to property tax on housing for each housing. In such cases, matters concerning the standards for classification of housing and other relevant matters shall be prescribed by Presidential Decree. <Amended on Dec. 29, 2020> |
| (3) | Where the house is co-owned by two or more persons, or the owner of land is different from that of the building, the tax rates stipulated in Article 111 (1) 3 or Article 111-2 (1) shall apply to the tax base which adds up the prices of land and the building concerned, in applying the tax rates to the relevant housing. <Amended on Dec. 29, 2020> |
| (4) | Deleted. <Dec. 27, 2016> |
| (5) | Where two or more local governments are integrated pursuant to Article 5 (1) of the Local Autonomy Act, paragraph (1) 1 and 2 may apply to the area under the jurisdiction of each local government before such integration for up to five years, as prescribed by municipal ordinance of the integrated local government. <Newly Inserted on Dec. 27, 2010; Dec. 27, 2016; Jan. 12, 2021> |
SECTION 3 (Aircraft Ground Handling Services)
| Article 114 (Tax Base Date) |
The tax base date of property tax shall be the 1st day of June of each year.
| Article 115 (Payment Period) |
| (1) | The period for payment of property tax shall be as follows: <Amended on Dec. 27, 2010; Jan. 1, 2013; Dec. 26, 2017> |
| 1. | Land: From 16th to 30th day of September of each year; |
| 2. | Building: From 16th to 31st day of July of each year; |
| 3. | Housing: The payment period of a half of the amount of tax to be imposed and collected in the relevant year shall be from 16th to 31st day of July of each year, and the remaining one half from 16th to 30th day of September of each year: Provided, That where the amount of tax to be imposed in the relevant year is not more than 200,000 won, the amount of tax may be imposed and collected at the same time during the payment period from 16th to 31st day of July, as stipulated by the relevant municipal ordinance: |
| 4. | Ships: From 16th to 31st day of July of each year; |
| 5. | Aircraft: From 16th to 31st day of July of each year. |
| (2) | Notwithstanding paragraph (1), where grounds for changing an already-imposed amount of tax or occasional imposition of the tax arise due to omission of objects of taxation, illegality, error or other grounds, the head of a local government may occasionally impose and collect the tax. |
| Article 116 (Collection Methods, etc.) |
| (1) | Property tax shall be calculated by the head of the competent local government, and imposed and collected by means of ordinary collection. |
| (2) | Where the head of the competent local government intends to collect property tax, he or she shall issue a tax payment notice stating the tax base and amount of tax as classified into land, building, housing, ship and aircraft no later than five days prior to the commencement of the payment period. |
| (3) | Matters concerning the general aggregating method, special aggregation method by objects of taxation of property tax, calculation of the amount of tax, and other imposition procedures, methods of collection, etc. 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 117 (Payment in Kind) |
Where an amount of property tax to be paid exceeds 10 million won, the head of a local government may, upon receipt of the application of a person liable to pay tax, permit him or her to pay in kind only for the real estate located in the jurisdiction of the local government, as prescribed by Presidential Decree.
| Article 118 (Payment in Installments) |
Where an amount of property tax to be paid exceeds 2.5 million won, the head of a local government may permit some amount of such tax to be paid in installments within two months from the date on which the payment deadline falls, as prescribed by Presidential Decree. <Amended on Dec. 26, 2017; Dec. 31, 2019>
| Article 118-2 (Deferral of Payment) |
| (1) | Where a taxpayer who satisfies all of the following subparagraphs applies for deferral of payment of the amount of property tax (including the local tax imposed together in order to collect the relevant property tax; hereinafter referred to as the “housing property tax”) imposed on one house per household pursuant to Article 111-2 until three days prior to the expiration of a deadline for payment, the head of a local government may grant it. In such cases, a taxpayer who has applied for dererral of payment shall provide collateral equivalent to the housing property tax to be deferred: |
| 1. | He/she shall be owner of one house household prescribed in Article 111-2 as of the tax base date: |
| 2. | He/she shall be 60 years of age or older as of the tax base date or own the relevant house for at least 5 years; |
| 3. | He/she shall satifsy any of the following standards for imcome: |
| a. | The total amount of salary in the immediately preceding taxable period must be 70 million won or less (limited to those who have only earned income in the immediately preceding taxable period or who have global income that is not added to the earned income and comprehensive income tax base): |
| b. | The amount of comprehensive income added to the comprehensive income tax base for the immediately preceding tax period must be 60 million won or less (limited to those whose total amount of salary in the immediately preceding taxable period does not exceed 70 million won). |
| 4. | The amount of property tax paid on houses subject to payment deferral in the relevant year must exceed one million won; |
| 5. | Neither local tax nor national tax shall be in arrears. |
| (2) | When the head of a local government has received an application prescribed in paragraph (1), he/she shall notify a taxpayer of whether to permit the deferral of payment until the expiration date of a deadline for payment, as prescribed by Presidential Decree. |
| (3) | If a taxpayer whose payment of housing property tax has been deferred pursuant to paragraph (1) falls under any of the followings, the head of a local government shall cancel the permission for deferral of payment: |
| 1. | Where the relevant house is transferred or donated to a third party; |
| 2. | Where inheritance begins upon death; |
| 3. | Where a requirement prescribed in paragraph (1) 1 is not met; |
| 4. | Where the order of a local governemnt necessary for the changing or keeping collateral fails to be observed; |
| 6. | Where he/she wans to pay the amount of tax deferred. |
| (4) | Where the head of a local government revokes permission for deferral of payment of the housing property tax pursuan to paragraph (3), he/she shall notify a taxpayer (where a taxpayer dies, it refers to his or her heir or manager of inherited property; hereinafter the same shall apply in this Article) of such fact without delay. |
| (5) | Where the head of a local government revokes permission for deferal of payment of housing property tax pursuant to paragraph (3), he/she shall collect from the relevant taxpayer the amount of deferred tax payment and an additional amount equivalent to the interest, as prescribed by Presidential Decree: Provided, That the heir or the manager of inherited property shall pay the amount of deferred tax payment and an additional amount equivalent to the interest within the limit of property received following inheritance. |
| (6) | The head of a local government shall not impose an additional tax for payment deferral prescribed in Article 55 of the Framework Act on Local Tax during the period from the date when permissionn for payment deferral is granted pursuant to paragraph (1) until the date when the amount of tax collected pursuant to paragraph (5) is nofiied. |
| (7) | Matters concerning procedures, etc. necessary for payment deferral, other than matters prescribed in paragraphs (1) through (6), shall be precribed by Presidential Decree. |
[This Article Newly Inserted on Mar. 14, 2023]
| Article 119 (Non-Collection of Small Amount) |
No property tax shall be collected where the amount of property tax to be collected per payment notice is less than 2,000 won.
| Article 119-2 (Duty of Payment of Tax in Kind of Trustee of Trust Property) |
| (1) | Where a trustor of trust property fails to pay any of the following property tax, additional charges, or expenses for disposition on delinquency (hereafter in this Article referred to as "property tax, etc.") and proceeds from the disposition of other property of the trustor fall short of the amount to be collected, the trustee of such trust property shall be liable to pay property tax, etc. of the trustor by means of the trust property: |
| 1. | Property tax or additional charges (limited to additional charges on property tax) for which the statutory date arrives pursuant to Article 71 (1) of the Framework Act on Local Taxes on or after the date of creating the trust and which have been incurred in relation to the trust property: Provided, That where any property tax is imposed by aggregating land different from the trust property pursuant to Article 113 (1) 1 and 2, it shall be limited to the proportion of the trust property that is calculated by dividing pro rata the property tax, etc. incurred in relation to the trust property by the assessed value of the trust property and other land under Article 4; |
| 2. | Expenses for disposition on delinquency incurred while executing the disposition on delinquency against the amount referred to in subparagraph 1. |
| (2) | The head of a local government who intends to collect property tax, etc. of a person liable to pay tax from a trustee pursuant to paragraph (1) shall give a payment notice stating the following to the trustee: |
| 1. | The tax base, tax amount, and basis for calculation of the property tax, etc.; |
| 2. | The payment deadline of the property tax, etc.; |
| 3. | Matters necessary for collecting the property tax, etc. |
| (3) | Even if a person liable to pay tax renounces or transfers the right to benefit from trust or transfers trust property after a notice is given under paragraph (2), it shall not affect the liability for tax payment to the extent notified under paragraph (2). |
| (4) | If the trustee of trust property is changed, the new trustee shall succeed to the liability for tax payment, the notice of which is given to the old trustee pursuant to paragraph (2). |
| (5) | The head a local government may collect property tax, etc. of a person liable to pay tax from the present trustee of the trust property pursuant to paragraph (1) based on the date trust is created for the original trustee. |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for applying the duty of payment of tax in kind shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Dec. 29, 2020]
| Article 119-3 (Special Taxation for Confucian Schools and Religious Organizations) |
| (1) | Notwithstanding Article 113 (1), in cases of land owned by an individual Confucian school or an individual religious organization prescribed by Presidential Decree (hereafter in this Article referred to as "individual organization") and registered not for tax evasion in the name of a Confucian school foundation established under the Confucian School Property Act to which the individual organization belongs or in the name of a religious organization prescribed by Presidential Decree (hereafter in this Article, referred to as "Confucian school foundation, etc."), property tax may be levied on such land based on the value of the land summed by individual organization as the tax base. |
| (2) | Where an individual organization or a Confucian school foundation, etc. intends to pay property tax on land summed by individual organization pursuant to paragraph (1), it shall file an application with the head of the local government having jurisdiction over the location of such land, as prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 31, 2019]
| Article 120 (Duty to Report) |
| (1) | Any of the following persons shall report to the head of the local government having jurisdiction over the location of property within 15 days of the tax base date, along with evidentiary materials substantiating the relevant fact: <Amended on Dec. 28, 2021> |
| 1. | Where the reasons for changes in the ownership of the property or for changes in the property subject to taxation have occurred, but where it is not registered or recorded by the tax base date, the owner of the property on the public register; |
| 2. | Where the registration of the property for which the inheritance has commenced is not made, the principal heir under Article 107 (2) 2; |
| 3. | The owner on the public register of the property actually owned by a clan, but registered in the name of an individual on the public register; |
| 4. | The trustee of the trust property registered or recorded in the name of the trustee; |
| 5. | A member of a household, where the household intends to be subject to the application of the tax rate under Article 111-2 (1) even though it owns at least two houses; |
| 6. | Where the current status on the public register is different from the de facto current status, or where the de facto current status is changed, the de facto owner of the relevant property. |
| (2) | Reporting procedures and methods under paragraph (1) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Where a report filed under paragraph (1) is incorrect, or no report is filed, the head of a local government may conduct an ex officio investigation and register the outcome of such investigation in the tax ledger. |
| Article 121 (Keeping Property Tax Ledgers, etc.) |
| (1) | Local governments shall keep a property tax ledger and record necessary matters therein. In such cases, it shall be deemed to keep a tax ledger if relevant matters are computerized. <Amended on Dec. 29, 2015> |
| (2) | The property tax ledger shall be prepared by subclassifying into the tax ledger of land, buildings, housing, ships and aircraft. |
| Article 122 (Ceiling of Tax Burden) |
Where the amount of property tax calculated on the property concerned (referring to the amount of each tax set forth in the subparagraphs of Article 112 (1) and in Article 112 (2)) exceeds 150/100 of the 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, the amount equivalent to 150/100 shall be the amount to be collected in the year concerned: Provided, That this shall not apply to housing: <Amended on Dec. 31, 2011; Dec. 27, 2016; Dec. 28, 2021; Mar. 14, 2023> | 1. | Deleted. <Amended on Mar. 14, 2023> |
| 2. | Deleted. <Amended on Mar. 14, 2023> |
| 3. | Deleted. <Amended on Mar. 14, 2023> |
| Article 123 (Establishment, etc. of Organization Exclusively Responsible for Real Estate Taxation Data Analysis) |
| (1) | An organization exclusively responsible for taxation data analysis of real estate (hereafter in this Article referred to as "exclusive organization") shall be established under the control of the Ministry of the Interior and Safety in order to collect, process, and provide the data on taxation required for the taxation of property tax and comprehensive real estate holding tax and other basic data for taxation, etc. |
| (2) | The Minister of the Interior and Safety may request the head of a relevant central administrative agency, the Minister of National Court Administration, or the head of a local government (hereafter in this paragraph referred to as the "head of a relevant institution") to submit the following data, in order to collect taxation data, necessary for the imposition of property tax or comprehensive real estate holding tax, such as for determining whether a household owns one, house and to reform the property tax system; and the head of a relevant institution in receipt of such request shall comply therewith, unless there is a compelling reason not to do so: |
| 3. | Taxation data on property tax and comprehensive real estate holding tax; |
| 4. | Data necessary for the selection of persons subject to the application of special cases concerning the tax rate of one house for one household under Article 111-2; and in cases of filing for or obtaining authorization, permission, patent, registry, registration, reporting, etc., the data related thereto; |
| 5. | Real estate-related data held by the relevant central administrative agencies and local governments as necessary for the restructuring of the property tax system. |
| (3) | Matters necessary for organizing and operating an exclusive organization under paragraph (1) and requesting, handling, analyzing, and notifying taxation data under paragraph (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Dec. 29, 2020]
CHAPTER X MOTOR VEHICLE TAX
SECTION 1 Motor Vehicle Tax on Possession of Automobile
| Article 124 (Definition of Automobile) |
| Article 125 (Persons Liable to Pay Tax) |
| (1) | The motor vehicle tax for the possession of an automobile (hereafter referred to as "motor vehicle tax" in this Section) shall be imposed on a person who possesses an automobile registered or reported in the jurisdiction of a local government. |
| (2) | Where the inheritance of an automobile has commenced as of the tax base date, but the transfer of the ownership thereof has yet to be registered in the name of the de facto owner, the motor vehicle tax thereon shall be paid according to the following order: |
| 1. | A person who holds the largest share of the inheritance under the Civil Act; |
| (3) | With respect to any automobile, the purchase price of which is paid after being sold at a public auction as of the tax base date, but the transfer of the ownership of such automobile has yet to be registered in the name of the purchaser, the purchaser shall be liable to pay motor vehicle tax. |
| Article 126 (Non-Taxation) |
No motor vehicle tax shall be imposed on a person who owns any of the following automobiles:
| 1. | An automobile provided by the State or a local government for the purposes of national defense, convoy, security, traffic patrol, or firefighting; |
| 2. | An automobile provided by the State or a local government for the purposes of transporting patients, cleaning, garbage removal, or road construction; |
| 3. | Other automobiles prescribed by Presidential Decree, such as automobiles used by foreign diplomatic agencies in Korea. |
| Article 127 (Tax Bases and Tax Rates) |
| (1) | The standard tax rates of motor vehicle tax shall be classified as follows: <Amended on Dec. 2, 2011> |
| 1. | Passenger automobiles: |
The amount of tax calculated by multiplying engine displacement by the amount of tax per cubic centimeter (cc) according to the following table shall be the annual amount of tax per automobile:For business useFor non-business useEngine displacementAmount of tax per cc Engine displacementAmount of tax per cc1,000 cc or less18 won1,000 cc or less 80 won1,600 cc or less18 won1,600 cc or less140 won2,000 cc or less
2,500 cc or less
More than 2,500 cc19 won
19 won
24 wonMore than 1,600 cc 200 won
| 2. | Among passenger automobiles for non-business use under subparagraph 1, for an automobile, the age of which prescribed by Presidential Decree (hereafter referred to as "age of automobile" in this subparagraph) is at least three years, notwithstanding the provisions of subparagraph 1, the sum of the first term portion (January to June) and the second term portion (July to December) of the motor vehicle tax calculated according to the following formula shall be the annual motor vehicle tax amount. In such cases, for the age of an automobile exceeds 12 years, its age shall be deemed 12 years: |
Amount of tax for each term portion per automobile = A/2 - (A/2 × 5/100) (n-2)
A: Annual amount of tax under subparagraph 1
n: Age of automobile (2≤n≤12)
| 3. | Any other passenger automobile: |
The following amount of tax shall be the annual amount of tax per automobile:For business useFor non-business use20,000 won100,000 won
The following amount of tax shall be the annual amount of tax per automobile:ClassificationFor business useFor non-business useExpress bus
Large chartered bus
Small chartered bus
Large general bus
Small general bus100,000 won
70,000 won
50,000 won
42,000 won
25,000 won-
-
-
115,000 won
65,000 won
The following amount of tax shall be the annual amount of tax per automobile: Provided, That for a freight automobile exceeding 10,000 kilograms in payload weight, the annual amount of tax per freight automobile shall be the amount calculated by adding 10,000 won in the case of the freight automobile for business use, and 30,000 won in the case of the freight automobile for non-business use, every time it exceeds 10,000 kilograms, to the amount of tax which is applied for a freight automobile not more than 10,000 kilograms in payload weight:ClassificationFor business useFor non-business use1,000kg or less
2,000kg or less
3,000kg or less
4,000kg or less
5,000kg or less
8,000kg or less
10,000kg or less6,600 won
9,600 won
13,500 won
18,000 won
22,500 won
36,000 won
45,000 won 28,500 won
34,500 won
48,000 won
63,000 won
79,500 won
130,500 won
157,500 won
The following amount of tax shall be the annual amount of tax per automobile:ClassificationFor business useFor non-business useLarge special automobile
Small special automobile36,000 won
13,500 won157,500 won
58,500 won
| 7. | Compact automobiles with three or less wheels: |
The following amount of tax shall be the annual amount of tax per automobile:For business useFor non-business use3,300 won18,000 won
| (2) | Matters necessary for the classification, etc. of automobiles provided for in each subparagraph of paragraph (1) into those for business and those not for business and of kinds shall be prescribed by Presidential Decree. |
| (3) | Notwithstanding the provisions of paragraph (1), the head of a local government may raise the rate of motor vehicle tax within 50/100 of the standard tax rates under paragraph (1), as stipulated by the relevant municipal ordinance in consideration of the engine displacement, etc. of automobiles. |
| Article 128 (Payment Period and Collection Methods) |
| (1) | The amount of tax divided into one half of the annual motor vehicle tax amount per automobile (the amount of tax of each period portion calculated pursuant to Article 127 (1) 2 in the case of non-business passenger automobiles) shall be collected from an owner of automobile by the local government having jurisdiction over its seat as of the 1st day of the month in which the payment period falls, within the following periods: Provided, That if a person liable to pay tax applies for the payment of the annual amount of tax in quarterly installments (one half of the amount of tax for each term in the case of non-business passenger automobiles), one half of the amount of tax for the first quarter and one half of the amount of tax for the second quarter may be collected from March 16 to March 31 and from September 16 to September 30, respectively. In such cases, the amount of tax to be collected by the local government within each payment period shall be the amount remaining after deducting the amount of tax already collected in installments:ClassificationPeriodPayment PeriodPortion for the 1st termFrom Jan. to Jun.From Jun. 16 to Jun. 30Portion for the 2nd termFrom Jul. to Dec.From Dec. 16 to Dec. 31 |
| (2) | The head of a local government shall issue a tax payment notice not later than five days prior to the commencement of tax payment period, in every tax payment period under paragraph (1): Provided, That in any of the following cases, the head of a local government may occasionally impose automobile tax, notwithstanding paragraph (1): <Amended on Jul. 24, 2015; Dec. 27, 2016> |
| 1. | Where an automobile is newly registered or the registration of any automobile is canceled; |
| 2. | Where an automobile subject to taxation becomes subject to non-taxation or tax reduction and exemption, or an automobile subject to non-taxation or tax reduction and exemption becomes subject to taxation; |
| 3. | Where an automobile for business use becomes one for non-business use, or an automobile for non-business use becomes one for business use; |
| 4. | Where automobile tax is imposed and collected on a daily basis on an automobile acquired by succession; |
| 5. | Deleted. <Dec. 27, 2016> |
| (3) | Notwithstanding paragraphs (1) and (2), if a person liable to pay tax intends to pay the annual amount of tax in lump sum, he or she may file a return and pay the amount after deducting the amount calculated by the following formula up to 10/100 of the annual amount of tax (referring to the amount of tax for the period after the deadline for payment in lump sum) as the annual amount of tax within the following periods, as prescribed by Presidential Decree: <Amended on Dec. 31, 2019>Period for filing returns and payment of annual tax amountFormulaFrom Jan. 16 to Jan. 31Annual amount of tax x Number of days from the day following the deadline for payment of annual amount of tax to December 31/365 (in the case of a leap year, 366) x Interest rate prescribed by Presidential Decree considering deposit interest rates, etc. of financial companies, etc. From Mar. 16 to Mar. 31From Jun. 16 to Jun. 30 From Sep. 16 to Sep. 30 Annual amount of tax for the 2nd term x Number of days from the day following the deadline for payment of annual amount of tax to December 31/164 x Interest rate prescribed by Presidential Decree considering deposit interest rates, etc. of financial companies, etc. |
| 1. | Where the person files a return on and pays it in January: From January 16 to January 31; |
| 2. | Where the person files a return on and pays it during the payment period of the first term portion: From June 16 to June 30; |
| 3. | Where the person files a return on and pays it during the period of installment payment under the proviso to paragraph (1): From March 16 to March 31 or from September 16 to September 31. |
| (4) | Notwithstanding paragraphs (1) and (2), where the annual amount of motor vehicle tax does not exceed 100,000 won, it may be imposed and collected in full at the time the portion for the first term is imposed. In such cases, the amount remaining after deducting the amount calculated by the following formula up to 10/100 of the amount of tax for the second term shall be the annual amount of tax. <Amended on Dec. 31, 2019>FormulaAnnual amount of tax x Number of days from the day following the deadline for payment of annual amount of tax until December 31/365 (in the case of a leap year, 366) x Interest rate prescribed by Presidential Decree considering deposit interest rates, etc. of financial companies, etc. |
| (5) | Where a person registers the transfer of an automobile or cancels the registration of an automobile, the transferor or the person canceling the registration may file a return and pay the amount of tax for the relevant term on a daily basis on the date of registration, based on the date of registration of transfer or the date of cancellation of registration, as prescribed by Presidential Decree, notwithstanding paragraphs (1) and (2). <Newly Inserted on Jan. 1, 2013; Jul. 24, 2015; Dec. 27, 2016> |
| Article 129 (Obligation to Pay Tax for Acquisition by Succession) |
Where a person who has acquired an automobile by succession through purchase and sale, donation, etc. registers the ownership transfer of the automobile during the taxation period under Article 128 (1), automobile tax shall be imposed on and collected from the transferor and the transferee according to the period of possession after calculating motor vehicle tax on a daily basis, notwithstanding the same paragraph.
| Article 130 (Calculation of Amount of Tax Imposed Occasionally) |
| (1) | Where an automobile is newly registered or the registration of an automobile is canceled, a local government shall respectively collect the amount of motor vehicle tax for the term during which the date of acquisition or the date of disuse falls, calculated on a daily basis as prescribed by Presidential Decree. |
| (2) | Where an automobile subject to taxation becomes subject to non-taxation or tax reduction or exemption, or an automobile subject to non-taxation or tax reduction or exemption becomes subject to taxation and any automobile for business use becomes one for non-business use, or any automobile for non-business use becomes one for business use, the amount of tax calculated on a daily basis, as prescribed by Presidential Decree, shall be collected as the amount of motor vehicle tax portion for the relevant term. |
| (3) | Where motor vehicle tax is calculated on a daily basis according to the period of ownership under Article 129, an amount calculated on a daily basis, as prescribed by Presidential Decree, based on the date on which the transfer of ownership is registered shall be collected: Provided, That if the transferor or transferee requests calculation on a daily basis, attaching documents verifying the fact that a change in the ownership occurs to an application prescribed by Ordinance of the Ministry of the Interior and Safety, automobile tax shall be calculated on a daily basis based on the date of transfer verified by the documents, and where a transferor or ancestor pays the annual amount of tax in lump sum, a transferee (only applicable where the transferor gives his or her consent) or inheritor shall be deemed to have paid the annual amount of tax. <Amended on Mar. 23, 2013; Jan. 1, 2014; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | No motor vehicle tax shall be collected where the amount of tax calculated pursuant to paragraphs (1) through (3) is less than 2,000 won. |
| Article 131 (Seizure of Vehicle Registration Plates) |
| (1) | If any person fails to fulfill the obligation to pay motor vehicle tax, the head of the relevant Si/Gun shall request the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor not to issue a registration certificate for the relevant automobile or to seize the vehicle registration plate of the relevant automobile, as prescribed by Presidential Decree: Provided, That a Special Self-Governing City Mayor or a Special Self-Governing Province Governor or the head of a Si/Gun/Gu to whom the authority for the registration of automobiles is delegated may determine not to issue a registration certificate for the automobile at issue or may seize the vehicle registration plate of the automobile at issue. <Amended on Dec. 27, 2016; Dec. 26, 2017> |
| (2) | Where it is deemed that a person liable to pay tax is impractical to maintain livelihood if his or her vehicle registration plate is seized pursuant to paragraph (1), because the person liable to pay tax uses the relevant automobile for the purpose of directly maintaining livelihood, the competent Special Self-Governing City Mayor, Special Self-Governing Province Governor or head of a Si/Gun/Gu may return the vehicle registration plate to the person liable to pay tax and temporarily cancel the seizure of the vehicle registration plate or may request the relevant Special Metropolitan City Mayor, Metropolitan City Mayor or the Do Governor to return the vehicle registration plate and temporarily cancel the seizure thereof. <Newly Inserted on Dec. 31, 2018> |
| (3) | When the head of a Si/Gun makes a request under paragraphs (1) and (2), a Do Governor shall comply therewith. <Amended on Dec. 27, 2016; Dec. 31, 2018> |
| (4) | Matters concerning the method for seizing the vehicle registration plate, the period and requirements for temporary cancellation of the seizure thereof and other relevant matters shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2017; Dec. 31, 2018> |
[Title Amended on Dec. 26, 2017]
| Article 132 (Presentation of Tax Payment Certificate, etc.) |
Any of the following persons shall submit or present a certificate of payment of motor vehicle tax, such as receipt of motor vehicle tax, for the relevant motor vehicle to the competent registry: Provided, That the foregoing shall not apply where it is possible to verify the payment of motor vehicle tax by inquiring into administrative information available for sharing under Article 36 (1) of the Electronic Government Act: <Amended on Jul. 24, 2015>
| Article 133 (Disposition on Default) |
Where impositions by a local government on automobiles stipulated under Articles 127 through 130 are not paid or the amount paid falls short of the impositions, the disposition on default may be immediately taken to the relevant automobile without any procedures for demanding payment.
| Article 134 (Exclusion from Tax Exemption Provisions) |
SECTION 2Motor Vehicle Tax on Driving of Automobiles
| Article 135 (Persons Liable to Pay Tax) |
Automobile tax on driving an automobile (hereafter referred to as "motor vehicle tax" in this Section) shall be imposed on a person liable to pay traffic, energy and environment tax (referring to any person liable to pay tax under Articles 3 and 11 of the Traffic, Energy and Environment Tax Act) on gasoline, diesel, and alternative fuel similar thereto (hereafter referred to as "taxable goods" in this Section) by a local government having jurisdiction over a place for payment of automobile tax on non-business passenger automobiles prescribed in Section 1 of this Chapter. <Amended on Jan. 1, 2014>
| (1) | The motor vehicle tax rate shall be 360/1000 of the amount of traffic, energy and environment tax on taxable goods. |
| (2) | The tax rate under paragraph (1) may be adjusted, as prescribed by Presidential Decree, within the extent of 30/100 of the relevant tax rate, if necessary, to reflect changes, etc. in traffic, energy and environment tax rate. |
| Article 137 (Tax Returns, Payment, etc.) |
| (1) | A person liable to pay motor vehicle tax shall file a return on the tax base and the amount of motor vehicle tax on taxable goods under Article 8 of the Traffic, Energy and Environment Tax Act to the head of a local government having jurisdiction over a place for payment of traffic, energy and environment tax and shall pay the traffic, energy and environment tax by a due date for paying traffic, energy and environment tax, as prescribed by Presidential Decree. In such cases, the head of a local government having jurisdiction over a place of payment of traffic, energy and environment tax shall become the person liable for special collection of motor vehicle tax to be imposed by each local government (hereafter referred to as "person liable for special collection" in this Section). <Amended on Oct. 15, 2014> |
| (2) | Where a person liable to pay tax fails to fulfill his or her duty to file a return or pay tax under paragraph (1), the relevant person liable for special collection shall collect the amount by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the amount of tax calculated pursuant to Article 136 or to the tax shortfall as the amount of tax by means of ordinary collection: <Amended on Jan. 1, 2013; Dec. 27, 2016> |
| 1. | Deleted; <Jan. 1, 2013> |
| 2. | Deleted. <Jan. 1, 2013> |
| (3) | A person liable for special collection shall pay the collected motor vehicle tax (including interest thereon) to each local government by the 25th day of the following month according to the pro rata standards and methods prescribed by Presidential Decree, in consideration of the amount of motor vehicle tax collected by each local government under Section 1 of this Chapter and other relevant matters. In such cases, the person liable for special collection may deduct expenses, etc. incurred in handling administrative affairs with respect to the collection and payment from the amount of tax to be paid to the relevant local government, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | The additional tax under Article 56 of the Framework Act on Local Taxes shall not be imposed on a person liable for special collection, even if the person liable for special collection fails to pay, or insufficiently pays, the amount of tax he or she has collected or is to collect by the deadline under paragraph (3). <Newly Inserted on Jan. 1, 2013; Oct. 15, 2014; Dec. 27, 2016> |
| (5) | A person who intends to take out any taxable goods before an import declaration is accepted pursuant to the Customs Act shall provide a person liable for special collection with security equivalent to the relevant amount of motor vehicle tax. |
| Article 137-2 (Security for Tax Payment, etc.) |
| (2) | If a person liable to pay tax fails to provide security under paragraph (1) or if the security provided is insufficient, the person liable for special collection may prohibit the person liable to pay tax from taking out taxable goods from a manufacturing place or bonded area or may request the head of the relevant customs office to prohibit such person from taking out the goods. |
| (3) | Upon receipt of a request to prohibit taking out taxable goods under paragraph (2), the head of a customs office shall comply therewith. |
[This Article Newly Inserted on Oct. 15, 2014]
| Article 138 (Special Cases concerning Raising Objections, etc.) |
| (1) | Where a person intends to raise an objection, etc. against the imposition or collection of motor vehicle tax, the person liable for special collection shall be deemed the relevant disposition agency. <Amended on Oct. 15, 2014> |
| (2) | Where a local tax refund of motor vehicle tax is made, a person liable for special collection shall refund the relevant amount, and deduct such amount from the amount of tax to be paid to the relevant local government. |
| Article 139 (Mutatis Mutandis Application of the Traffic, Energy and Environment Tax Act) |
| Article 140 (Notification of Amount of Tax) |
Where the head of a tax office or the head of a customs office has determined or corrected an amount of traffic, energy and environment tax, or has received a return or payment thereof, he or she shall notify the head of a local government having jurisdiction over a place for the payment of traffic, energy and environment tax of such amount of tax by the end of the following month, as prescribed by Presidential Decree.
CHAPTER XI LOCAL RESOURCE AND FACILITY TAX
SECTION 1 Common Provisions
Local resource and facility tax shall be imposed in order to secure financial resources necessary for local development projects and for projects to improve the living environment of residents, such as protection and conservation of local resources, environmental protection and improvement, and installation of safety and convenience facilities, and to cover all expenses required for firefighting affairs.
[This Article Wholly Amended on Dec. 31, 2019]
| Article 142 (Subject to Taxation) |
| (1) | Local resource and facility tax is classified into three categories: local resource and facility tax for specific resources which is imposed to secure financial resources for projects to improve the living environment of residents and local development projects, local resource and facility tax for specific facilities, and local resource and facility tax for firefighting which is imposed to cover all expenses required for firefighting affairs. |
| (2) | The subjects to local resource and facility tax classified under paragraph (1) shall be as follows: |
| 1. | Local resource and facility tax for specific resources: The following items: |
| (a) | Water used for power generation (excluding water for pumped storage hydropower generation), prescribed by Presidential Decree (hereafter in this Chapter referred to as "water for power generation"); |
| (b) | Underground water (including spring water) prescribed by Presidential Decree (hereafter in this Chapter referred to as "underground water"); |
| (c) | Underground resources prescribed by Presidential Decree (hereafter in this Chapter referred to as "underground resources"); |
| 2. | Local resource and facility tax for specified facilities: The following items: |
| (a) | Containers using wharves handling containers, prescribed by Presidential Decree (hereafter in this Chapter referred to as "containers"); |
| (b) | Nuclear power generation prescribed by Presidential Decree (hereafter in this Chapter referred to as "nuclear power generation"); |
| (c) | Thermal power generation prescribed by Presidential Decree (hereafter in this Chapter referred to as "thermal power generation"); |
| 3. | Local resource and facility tax for firefighting: Buildings (including the building portions of houses; hereafter in this Chapter the same shall apply) and ships (excluding where the relevant local government having jurisdiction over a place for tax payment has no fireboat; hereafter in this Chapter the same shall apply) of persons who benefit from firefighting facilities. |
[This Article Wholly Amended on Dec. 31, 2019]
| Article 143 (Persons Liable to Pay Tax) |
A person liable to pay local resource and facility tax shall be as follows:
| 1. | A person liable to pay local resource and facility tax for specific resources: The following persons: |
| (a) | Water for power generation: A person who directly produces hydroelectric power (excluding pumped storage hydropower generation) using flowing water; |
| (b) | Underground water: A person who pumps up underground water to use it; |
| (c) | Underground resources: A person who mines underground resources; |
| 2. | A person liable to pay local resource and facility tax for specific facilities: The following persons: |
| (a) | Containers: A person who causes containers to enter or depart from ports using wharves where containers are handled; |
| (b) | Nuclear power generation: A person who generates power by harnessing the nuclear power; |
| (c) | Thermal power generation: A person who generates power by burning fuel; |
| 3. | A person liable to pay local resource and facility tax for firefighting: The owner of a building or a ship. |
[This Article Wholly Amended on Dec. 31, 2019]
| Article 144 (Places of Tax Payment) |
Local resource and facility tax shall be imposed by the head of a local government having jurisdiction over a place for tax payment stipulated as follows:
| 1. | Local resource and facility tax for specific resources: The following places of tax payment: |
| (a) | Water for power generation: The location of the relevant electric power station; |
| (b) | Underground water: The location of the relevant water-pumping hole; |
| (c) | Underground resources: The location of the relevant land for which the mining right is registered: Provided, That where such land extends over the boundaries of two or more local governments, local resource and facility tax shall be divided pro rata based on the area of such land; |
| 2. | Local resource and facility tax for specific facilities: The following places of tax payment: |
| (a) | Containers: The location of the relevant wharf where containers are handled; |
| (b) | Nuclear power generation: The location of the relevant nuclear power station; |
| (c) | Thermal power generation: The location of the relevant thermal power station; |
| 3. | Local resource and facility tax for firefighting: The following places of tax payment: |
| (a) | Buildings: The location of the relevant building; |
| (b) | Ships: The location of the relevant port of registry under the Ship Act: Provided, That where no port of registry exists, it refers to the location of the regular mooring place (where the regular mooring place is not fixed, the domicile of the ship owner). |
[This Article Wholly Amended on Dec. 31, 2019]
| Article 145 (Non-Taxation) |
| (1) | Neither local resource and facility tax for specific resources nor local resource and facility tax for specified facilities shall be imposed in any of the following cases: <Amended on Dec. 31, 2019> |
| 1. | In cases of direct development and use by the State, a local government, or a local government association; |
| 2. | In cases of free provision to the State, a local government, or a local government association for no consideration. |
| (2) | No local resource and facility tax for firefighting shall be imposed on a building or a ship exempt from property tax under Article 109. <Amended on Dec. 31, 2019> |
SECTION 2 Tax Base and Tax Rate
| Article 146 (Tax Bases and Tax Rates) |
| (1) | The tax bases and standard tax rates of local resource and facility tax for specific resources shall be as follows: <Amended on Mar. 29, 2011; Dec. 31, 2014; Dec. 31, 2019> |
| 1. | Water used for power generation: Two won per ten cubic meters of water used for power generation; |
| (a) | Water pumped to be sold as potable water: 200 won per cubic meter; |
| (b) | Hot spring water pumped to be used for bathing: 100 won per cubic meter; |
| (c) | Water, other than hot spring water, pumped to be used for any purpose, other than those referred to in items (a) and (b), or to be used for bathing water: 20 won per cubic meter; |
| 3. | Underground resources: 5/1000 of the value of mined minerals; |
| 4. | Deleted; <Dec. 31, 2019> |
| 5. | Deleted; <Dec. 31, 2019> |
| 6. | Deleted. <Dec. 31, 2019> |
| (2) | The tax base and tax rates of local resource and facility tax for specific facilities shall be as follows: <Newly Inserted on Dec. 31, 2019> |
| 1. | Container: 15,000 won per 1 TEU of container; |
| 2. | Nuclear power generation: 1 won per kilowatt-hour (kWh) of electricity; |
| 3. | Thermal power generation: 0.3 won per kilowatt-hour (kWh) of electricity. |
| (3) | The tax base and tax rates of local resource and facility tax for firefighting shall be as follows: <Amended on Dec. 27, 2010; Jan. 1, 2014; Dec. 31, 2019> |
| 1. | The tax amount shall be calculated by applying the following standard tax rates to the tax base which is the value or the assessed value of the relevant building or ship;Tax baseTax rate6 million won or less4/10000More than 6 million won but not more than 13 million won2,400 won + (5/10000 of the amount exceeding 6 million won)More than 13 million won but not more than 26 million won5,900 won + (6/10000 of the amount exceeding 13 million won)More than 26 million won but not more than 39 million won13,700 won + (8/10000 of the amount exceeding 26 million won)More than 39 million won but not more than 64 million won24,100 won + (10/10000 of the amount exceeding 39 million won)More than 64 million won49,100 won + (12/10000 of the amount exceeding 64 million won) |
| 2. | For 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, 200/100 of the amount calculated pursuant to subparagraph 1 shall be the tax amount; |
| 2-2. | For large buildings vulnerable to fire prescribed by Presidential Decree, such as large-scale marts, multiplex theaters (excluding theaters under subparagraph 2), department stores, hotels, buildings with at least 11 stories, 300/100 of the amount calculated pursuant to subparagraph 1 shall be the tax amount; |
| 3. | Deleted. <Dec. 31, 2019> |
| (4) | The scope of a building or ship under paragraph (3) shall be such building or ship as prescribed in subparagraphs 2, 3, or 5 of Article 104, and the appropriate tax base shall be the value or the assessed value under Article 110: Provided, That the tax base of the building portion of the housing shall be the value calculated by multiplying the value calculated by the head of a local government applying mutatis mutandis Article 4 (2) by the fair market price rate under Article 110 (1) 2. <Amended on Dec. 27, 2010; Dec. 31, 2019> |
| (5) | The head of a local government may adjust the tax rates of local resource and facility tax by up to 50/100 of the standard tax rates under paragraphs (1) through (3), as prescribed by the relevant municipal ordinance: Provided, That this shall not apply to the tax rate under paragraph (2) 2 and 3. <Amended on Mar. 29, 2011; Dec. 31, 2019> |
SECTION 3 Imposition and Collection
| Article 147 (Imposition and Collection) |
| (1) | The payment periods and methods for collection of local resource and facility tax for specific resources and for specific facilities shall be as follows: <Amended on Jan. 1, 2013; Dec. 27, 2016; Dec. 31, 2019> |
| 1. | Local resource and facility tax for specific resources and for specific facilities shall be collected by means of a tax return and payment: Provided, That local resource and facility tax on underground water under Article 146 (1) 2 may be collected by means of ordinary collection, as prescribed by the relevant municipal ordinance; |
| 2. | Where a person liable to pay tax files a return on and pays the local resource and facility tax pursuant to the main clause of paragraph (1), he or she shall file a return and pay the amount calculated pursuant to Article 146 (hereafter in this Article referred to as "calculated amount of tax") to the head of a local government having jurisdiction over the place for tax payment, as prescribed by the relevant municipal ordinance; |
| 3. | Where a person liable to pay tax fails to fulfill his or her duty to file a return or pay tax under subparagraph 2, the head of a local government shall collect the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the calculated amount of tax or to the tax shortfall from him or her as the amount of tax by means of ordinary collection: |
| (a) | Deleted; <Jan. 1, 2013> |
| (b) | Deleted. <Jan. 1, 2013> |
| (2) | Articles 114, 115, 118 (only applicable to where property tax is paid in installments pursuant to the same Article), and 122 (limited to the main clause, with the exception of the subparagraphs, of Article 122) concerning property tax shall apply mutatis mutandis to local resource and facility tax for firefighting. <Amended on Dec. 27, 2010; Dec. 31, 2018; Dec. 31, 2019; Dec. 28, 2021> |
| (3) | The head of the relevant local government shall calculate the amount of local resource and facility tax for firefighting, and impose and collect such tax by means of ordinary collection. <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019> |
| (4) | Where the head of the relevant local government intends to collect local resource and facility tax for firefighting, he or she shall issue a tax payment notice stating the tax base and the amount of tax as classified into buildings or ships, at least five days before the commencement of the payment period. <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019> |
| (5) | Deleted. <Dec. 31, 2019> |
| (6) | Necessary matters concerning the area subject to taxation of local resource and facility tax, imposing such tax and collecting such tax shall be prescribed by ordinance of the relevant local government. <Amended on Dec. 31, 2018> |
| (7) | In the cases under paragraph (6), any municipal ordinance stipulating matters concerning the imposition and collection of local resource and facility tax on containers may include matters concerning the designation, etc. of the person liable for special collection. <Amended on Dec. 31, 2018> |
| (8) | Deleted. <Dec. 31, 2019> |
| Article 147 (Imposition and Collection) |
| (1) | The payment periods and methods for collection of local resource and facility tax for specific resources and for specific facilities shall be as follows: <Amended on Jan. 1, 2013; Dec. 27, 2016; Dec. 31, 2019> |
| 1. | Local resource and facility tax for specific resources and for specific facilities shall be collected by means of a tax return and payment: Provided, That local resource and facility tax on underground water under Article 146 (1) 2 may be collected by means of ordinary collection, as prescribed by the relevant municipal ordinance; |
| 2. | Where a person liable to pay tax files a return on and pays the local resource and facility tax pursuant to the main clause of paragraph (1), he or she shall file a return and pay the amount calculated pursuant to Article 146 (hereafter in this Article referred to as "calculated amount of tax") to the head of a local government having jurisdiction over the place for tax payment, as prescribed by the relevant municipal ordinance; |
| 3. | Where a person liable to pay tax fails to fulfill his or her duty to file a return or pay tax under subparagraph 2, the head of a local government shall collect the amount calculated by adding the amount of additional tax calculated pursuant to Articles 53 through 55 of the Framework Act on Local Taxes to the calculated amount of tax or to the tax shortfall from him or her as the amount of tax by means of ordinary collection: |
| (a) | Deleted; <Jan. 1, 2013> |
| (b) | Deleted. <Jan. 1, 2013> |
| (2) | Articles 114, 115, 118 (only applicable to where property tax is paid in installments pursuant to the same Article), and 122 (limited to the main clause, with the exception of the subparagraphs, of Article 122) concerning property tax shall apply mutatis mutandis to local resource and facility tax for firefighting. <Amended on Dec. 27, 2010; Dec. 31, 2018; Dec. 31, 2019; Dec. 28, 2021> |
| (3) | The head of the relevant local government shall calculate the amount of local resource and facility tax for firefighting, and impose and collect such tax by means of ordinary collection. <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019> |
| (4) | Where the head of the relevant local government intends to collect local resource and facility tax for firefighting, he or she shall issue a tax payment notice stating the tax base and the amount of tax as classified into buildings or ships, at least five days before the commencement of the payment period. <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019> |
| (5) | Deleted. <Dec. 31, 2019> |
| (6) | Necessary matters concerning the area subject to taxation of local resource and facility tax, imposing such tax and collecting such tax shall be prescribed by ordinance of the relevant local government. <Amended on Dec. 31, 2018> |
| (7) | In the cases under paragraph (6), any municipal ordinance stipulating matters concerning the imposition and collection of local resource and facility tax on containers may include matters concerning the designation, etc. of the person liable for special collection. <Amended on Dec. 31, 2018> |
| (8) | Deleted. <Dec. 31, 2019> |
| Article 148 (Non-Collection of Small Amount) |
No local resource and facility tax shall be collected where the amount of tax to be collected per payment notice is less than 2,000 won.
CHAPTER XII LOCAL EDUCATION TAX
Local education tax shall be imposed in order to secure financial resources to fund the expansion of local education necessary for improving its quality.
| Article 150 (Persons Liable to Pay Tax) |
A person liable to pay local education tax shall be as follows: <Amended on Dec. 27, 2010; Dec. 29, 2020>
| 1. | A person liable to pay acquisition tax on the acquisition of real estate, mechanical equipment (excluding an automobile falling under Article 124), aircraft, and ships; |
| 2. | A person liable to pay registration and license tax on registration (excluding registration and license tax on an automobile falling under Article 124); |
| 3. | A person liable to pay leisure tax; |
| 4. | A person liable to pay tobacco consumption tax; |
| 5. | A person liable to pay a per capita portion or pro rata business place portion of resident tax; |
| 6. | A person liable to pay property tax (excluding the amount of property tax under Article 112 (1) 2 and (2)); |
| 7. | A person liable to pay motor vehicle tax on a non-business passenger automobile under Article 127 (1) 1 or 3 [excluding the State, a local government, and educational foundation which manages a school pursuant to the Elementary and Secondary Education Act (limited to automobiles directly used for the proper business)]. |
| Article 151 (Tax Bases and Tax Rates) |
| (1) | The amount of local education tax shall be calculated as follows: <Amended on Dec. 27, 2010; Jan. 1, 2013; Jan. 1, 2014; Dec. 23, 2014; Jul. 24, 2015; Aug. 12, 2020; Dec. 29, 2020; Dec. 28, 2021> |
| 1. | On acquired articles (excluding cases falling under Article 15 (2)): 20/100 of the amount calculated (in cases falling under Article 11 (1) 8, the amount calculated by applying a tax rate calculated by multiplying the relevant tax rate by 50/100) by applying the tax rates derived by subtracting 20/1000 of the tax rates stipulated under Articles 11 (1) 1 through 7 and 12 (referring to the separated finalized tax rate by the relevant municipal ordinance pursuant to Article 14, if any; hereinafter the same shall apply) from said tax rates to the tax base under Article 10-2 through 10-6: Provided, That where any of the following cases arises, the amount of tax shall be as follows: |
| (a) | Cases falling under Article 13 (2), (3), (6), or (7): 300/100 of the amount of local education tax calculated, as provided for in the main clause of this subparagraph: Provided, That where a corporation acquires a house under Article 11 (1) 8, item (b) shall apply; |
| (b) | Cases falling under Article 13-2: 20/100 of the amount calculated by applying the tax rate determined by subtracting the base rate for heavy taxation from the tax rate under Article 11 (1) 7 (b); |
| (i) | Where a statute concerning the reduction or exemption of local taxes specifies the reduction or exemption rate of acquisition tax: The amount remaining after reducing or exempting the amount of local education tax as calculated by the formula prescribed in the main clause of this subparagraph at the relevant reduction and exemption rate of acquisition tax; |
| (ii) | Where a statute concerning the reduction or exemption of local taxes specifies the reduction or exemption rate of acquisition tax and provides that the tax rate under the main clause of Article 13 (2) or 13 (3) of this Act shall not apply: The amount remaining after reducing or exempting the amount of local education tax as calculated by the formula prescribed in the main clause of this subparagraph at the relevant reduction or exemption rate of acquisition tax; |
| (iii) | Where a statute concerning the reduction or exemption of local taxes specifies an acquisition tax rate different from the rate specified in this Act, other than those specified in sub-items (i) and (ii): The amount of local education tax as calculated by the formula specified in the main clause of this subparagraph, notwithstanding the relevant acquisition tax rate: Provided, That, if the specified tax rate is 20/1000, acquired articles shall be excluded from taxable objects; |
| (d) | Where items (a) and (b) (i) are concurrently applicable: The amount remaining after reducing or exempting the amount of local education tax as calculated by applying item (a) at the relevant reduction or exemption rate of acquisition tax; |
| 2. | 20/100 of the amount of registration and license tax on registration payable under this Act and statutes on local tax reduction and exemption; |
| 3. | 40/100 of the amount of leisure tax payable under this Act and statutes on local tax reduction and exemption; |
| 4. | 4,399/10000 of the amount of tobacco consumption tax payable under this Act and statutes on local tax reduction and exemption; |
| 5. | 10/100 of the amount (limited to the amount of tax imposed pursuant to Article 81 (1) 1) of a per capita portion or a pro rata business place portion of resident tax payable under this Act and statutes on local tax reduction and exemption: Provided, That the tax amount shall be 25/100 of the aforementioned amount in the case of a Si with a population of at least 500,000; |
| 6. | 20/100 of the amount of property tax (excluding the amount of property tax computed under Article 112 (1) 2 and paragraph (2) of the same Article) payable under this Act and statutes on local tax reduction and exemption; |
| 7. | 30/100 of the amount of motor vehicle tax payable under this Act and statutes on local tax reduction and exemption. |
| (2) | The head of a local government may increase or decrease the rate of local education tax within 50/100 of the standard tax rates provided for in paragraph (1) (excluding subparagraph 3 of the same paragraph), as stipulated by the ordinance of the relevant local government, where necessary for raising funds to invest in local education. |
| (3) | In applying paragraph (1) 5 to a Si combined with functions of rural and urban communities, "Si with a population of at least 500,000" means a Dong area with a population of at least 500,000, and the tax rate applicable to Eup/Myeon areas within such Si shall be 10/100. |
| (4) | In applying paragraph (1) 5, where two or more local governments are integrated pursuant to Article 5 (1) of the Local Autonomy Act and become a local government corresponding to a Si with a population of at least 500,000, the tax rate before such integration may apply for up to five years, as prescribed by the ordinance of the relevant local government. <Newly Inserted on Dec. 27, 2010; Dec. 27, 2016; Jan. 12, 2021> |
[The amended provisions of paragraph (1) 4 of this Article remains effective until December 31, 2024 pursuant to Article 1-2 of the Addenda to Act No. 10221 (March 31, 2010)]
| Article 152 (Tax Returns, Payment, Imposition and Collection) |
| (1) | When a person liable to pay local education tax files an acquisition tax return and pay the tax, registration and license tax on registration, leisure tax, tobacco consumption tax, or pro rata business place portion of resident tax under this Act, he or she shall also file a return and pay local education tax thereon. In such cases, where the head of a local government having jurisdiction over the location of the main office of a person (limited to manufacturers or import and sale business entities) liable to pay tobacco consumption tax requests the provision of security pursuant to Article 64 (1), he or she may also request the provision of security for local education tax on a tobacco consumption tax portion. <Amended on Dec. 29, 2020> |
| (2) | When the head of a local government imposes the per capita portion or pro rata business place portion of resident tax, property tax, and motor vehicle tax upon a person liable to pay and collects them under this Act or the head of a customs office imposes tobacco consumption tax upon a person liable to pay and collects under Article 60 (6), he or she shall additionally impose and collect local education tax proportionate to such taxes. <Amended on Dec. 29, 2015; Dec. 29, 2020> |
| (3) | Matters concerning the imposition and collection of local education tax, including notice of tax payment, etc., shall be prescribed by Presidential Decree. |
| Article 153 (Additional Collection of Insufficient Amount of Tax and Additional Tax) |
| (1) | Even though a person liable to file a local education tax return and pay tax pursuant to Article 152 (1) fails to fulfill his or her duty to file a return, the head of a local government shall not impose on the person an additional tax under Article 53 or 54 of the Framework Act on Local Taxes. <Amended on Dec. 27, 2016> |
| (2) | Where a person liable to file a local education tax return and pay tax pursuant to Article 152 (1) fails to fulfill his or her duty to pay tax, the head of a local government shall collect the amount calculated by adding the amount of additional tax calculated pursuant to Article 55 of the Framework Act on Local Taxes to the amount of tax calculated pursuant to Article 151 (1) or to the tax shortfall from him or her as the amount of tax by means of ordinary collection. <Amended on Dec. 27, 2016> |
[This Article Wholly Amended on, Jan. 1, 2013]
Local tax refunds on local education tax shall be refunded by the head of the relevant local government or a public official to whom his or her authority is delegated in the same manner as the amount of tax constituting the tax base for local education tax for each tax item is refunded.
ADDENDA <Act No. 10221, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Article 1-2 (Time Limit on Application)
The amended provisions of Article 151 (1) 4 shall be effective until December 31, 2021. <Amended on Jan. 1, 2013; Dec. 29, 2015; Dec. 31, 2018> [This Article Newly Inserted on Dec. 27, 2010]
Article 2 (General Applicability)
This Act shall apply beginning with the first tax liability which arises after this Act enters into force.
Article 3 (Applicability concerning Timing for Establishing Secondary Tax Liability of Investors)
Cases where a person who was not an oligopolistic stockholder becomes an oligopolistic stockholder as at the time subparagraph 2 of Article 47 of the Framework Act on Local Taxes enters into force shall be subject to application of Article 7 (5) by deeming that the person acquires all stocks or shares of the relevant corporation held by the relevant oligopolistic stockholder on the date on which such person first acquires the stocks and shares of the corporation since January 1, 2008. Article 4 (Special Cases concerning Taxation on Automobiles, Formerly Called Freight Automobiles, but Now Classified as Passenger Automobiles)
| (1) | Notwithstanding the amended provisions of Articles 12 (1) 2 and 127 (1), the amount of acquisition tax and motor vehicle tax following the possession of an automobile newly classified as a passenger automobile from a used-to-be freight automobile on or after January 1, 2006 according to classification standards of automobiles under the Motor Vehicle Management Act (excluding an automobile classified as a passenger automobile on or before December 31, 2005; hereafter the same shall apply in this Article) shall be that calculated by applying the tax rate for freight automobiles. <Amended on Dec. 27, 2010.12> |
| (2) | Notwithstanding the amended provisions of subparagraph 7 of Article 150 and Article 151 (1) 7, no local education tax shall be imposed on an automobile newly classified as a passenger automobile from a freight automobile on or after January 1, 2006, according to classification standards of automobiles under the Motor Vehicle Management Act. <Newly Inserted on Dec. 27, 2010> |
Article 5 (General Transitional Measures)
Local taxes imposed, reduced or exempted or to be imposed, reduced or exempted pursuant to the former provisions as at the time this Act enters into force shall be governed by the former provisions.
Article 6 (Transitional Measures concerning Registration Tax, etc.)
A person who acquired any object of taxation subject to acquisition tax stipulated in this Act prior to this Act entering into force, and registers or records such object after this Act enters into force shall be liable to pay registration tax and local education tax pursuant to the former provisions.
Article 6-2 (Transitional Measures concerning Property Tax, etc.)
| (1) | When calculating the upper limit of the burden of property tax in the year of 2011 pursuant to the amended provisions of Article 122, the amount of tax calculated under the amended provisions of Article 112 (1) 1 and the amount of tax calculated under the amended provisions of Article 112 (1) 2 and (2) shall be calculated separately; and the amended provisions of Article 122 shall apply to the amount of tax calculated under the amended provisions of Article 112 (1) 1 on the basis of the amount corresponding to the amount of property tax in the year of 2010 pursuant to the former Local Tax Act, and to the amount of tax calculated under the amended provisions of Article 112 (1) 2 and (2) on the basis of the amount corresponding to the amount of urban planning tax in the year of 2010 pursuant to the former Local Tax Act. |
| (2) | An area publicly notified as an area on which urban planning tax is to be imposed pursuant to the former Local Tax Act before this Act enters into force shall be deemed publicly notified as an area subject to special provisions on taxation of property tax under the amended provisions of Article 112 (1). |
[This Article Newly Inserted on Dec. 27, 2010]
Article 7 Omitted.
Article 8 (Relationship with other Statutes)
A citation of the former Local Tax Act or any of the provisions thereof in other statutes as at the time this Act enters into force shall be deemed a citation of the corresponding provisions of this Act, if any, in lieu of the former provisions.
ADDENDA <Act No. 10252, Apr. 12, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 10340, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force 30 days after the date of its promulgation. (Proviso Omitted.)
Article 2 (General Applicability)
This Act shall begin to apply where an obligation to pay a tax arises after this Act enters into force.
Article 3 (Applicability to Order of Priority in Collecting Charges, etc.)
The amended provisions of Article 33 (1) shall begin to apply to payments for delinquent taxes collected after this Act enters into force. Article 4 (Applicability to Non-Taxation of Acquisition Tax on Divided Ownership Interest in Co-Owned Property)
The amended provisions of subparagraph 4-2 of Article 110 shall begin to apply where the transfer of a share of ownership of real estate is registered after this Act enters into force. Article 5 (Applicability to Tax Rates for Registration of Divided Ownership Interest in Co-Owned Property)
The amended provisions of Article 131 (1) 5-2 shall begin to apply where the transfer of a share of ownership of real estate is registered after this Act enters into force. Article 6 (Applicability to Heavy Taxation on Corporate Registration, etc. in Large Cities)
The amended provisions of Article 138 (2) 1 shall begin to apply to any corporation that registers a change of its type of business to any type of business other than the types of business subject to heavy taxation for large cities or any corporation that additionally registers any type of business other than the types of business subject to heavy taxation for large cities after this Act enters into force. Article 7 (Applicability to Tax Base of Income Tax)
The amended provisions of subparagraph 3 of Article 176-8 shall begin to apply to preliminary tax returns filed pursuant to Article 105 of the Income Tax Act for the tax base on capital gains from a sale or transfer on or after January 1, 2010. Article 8 (Applicability to Tax Rates of Urban Planning Tax and Common Facility Tax)
The amended provisions of Articles 237 (1) and 240 (1) 1 shall begin to apply to the taxes imposed and collected after this Act enters into force. Article 9 (General Transitional Measures)
Former provisions shall apply to local taxes that were imposed, reduced or exempted or that shall be imposed, reduced or exempted under former provisions as at the time this Act enters into force.
Article 10 (Transitional Measures concerning Tax Reduction or Exemption for Supporting Childbirth and Child Care)
The reduction or exemption of acquisition tax and registration tax which has been already granted for an automobile to support childbirth and child care under any municipal ordinance on the reduction or exemption of local taxes as at the time this Act enters into force shall be deemed the reduction or exemption of such taxes granted according to an application filed pursuant to the amended provisions of Article 273-3.
ADDENDA <Act No. 10361, Jun. 8, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10416, Dec. 27, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Article 2 (General Applicability)
This Act shall apply beginning with the first tax liability arising after this Act enters into force.
Article 3 (Applicability concerning Exemption of Acquisition Tax due to Multi-Family Housing Repair)
The amended provisions of Article 9 (6) shall apply, beginning with the first acquisition made after this Act enters into force. Article 4 (Applicability concerning Acquisition due to Transfer of Shares to Dissolve Co-Ownership of Real Estate)
The amended provisions of Articles 11 (1) 5 and 15 (1) 4 shall apply, beginning with the first acquisition due to the transfer of shares after this Act enters into force. Article 5 (Applicability concerning Heavy Taxation, etc. on Acquisition of Real Estate in Large Cities)
The amended provisions of Article 13 (2) through (4) and (7) shall apply, beginning with the first acquisition of real estate made after this Act enters into force. Article 6 (Applicability concerning Special Case of Tax Rate for Acquisition Tax)
| (1) | The amended provisions of Article 15 (2) 4 shall apply, beginning with the first imports after this Act enters into force. |
| (2) | The amended provisions of Article 15 (2) 5 and 6 shall apply, beginning with the first acquisition of construction machinery, machinery equipment or vehicles after this Act enters into force. |
Article 7 (Applicability concerning Payment of Acquisition Tax on Installment Basis)
The amended provisions of Article 20-2 shall apply, beginning with the first acquisition of a house, vehicle or machinery equipment by an individual after this Act enters into force. Article 8 (Applicability concerning Registration and License Tax for Objects of Taxation of Acquisition Tax Owned by Foreigners)
The amended provisions of subparagraph 1 of Article 23 shall apply to the registration of objects of taxation of acquisition tax first imported after this Act enters into force. Article 9 (Applicability concerning Tax Rates for Registration and License Tax)
| (1) | The amended provisions of Article 28 (1) 1 (b) shall apply, beginning with the first registration after this Act enters into force. |
| (2) | The amended provisions of the proviso to Article 28 (1) 1 (c) (ⅰ) shall apply, beginning with the first registration of divided superficies after this Act enters into force. |
| (3) | The amended provisions of Article 28 (1) 3 and 4 shall apply, beginning with the first registration of a vehicle or machinery equipment after this Act enters into force. |
| (4) | The amended provisions of the proviso to the part other than the subparagraphs of Article 28 (2) and paragraph (3) shall apply beginning with the first case in which a corporation that has made registration under Article 28 (2) 1 and 2 shifts to a type of business, other than the type of business excluded from heavy taxation in large cities, or adds a type of business, other than the type of business excluded from heavy taxation in large cities after this Act enters into force. |
Article 10 (Applicability concerning Taxation of Tobacco Consumption Tax on Electronic Tobacco)
The amended provisions of Articles 48 (2) 1 (e), 51 and 52 (1) 1 (e) shall apply to electronic tobacco first taken out of a manufacturing site or bonded area or brought into the Republic of Korea after this Act enters into force. Article 11 (Applicability concerning Standard Tax Rate of Local Resource and Facility Tax Appropriated for Firefighting Facilities)
The amended provisions of Article 146 (2) 1 shall apply, beginning with the first imposition and collection after this Act enters into force. Article 12 (Special Case for Taxation of Registration and License Tax on Leasing of Automobile Newly Classified as Passenger Automobile from Freight Automobile)
Notwithstanding the amended provisions of Article 28 (1) 3 (a) (ⅰ), the amount of registration and license tax on the registration (excluding any registration made due to acquisition) of an automobile (excluding any automobile classified as a passenger automobile before December 31, 2005) newly classified as a passenger automobile from a freight automobile on or after January 1, 2006, according to classification standards of automobiles under the Motor Vehicle Management Act shall be the amount calculated by applying the tax rate for freight automobiles. Article 13 (General Transitional Measures)
Any local tax that has been imposed or reduced or exempted, or to be imposed or reduced or exempted, pursuant to the former Local Tax (referring to the Local Tax Act that is in force until December 31, 2010 before being amended by Act No. 10221 and this Act; hereinafter the same shall apply) shall be governed by the former Local Tax Act. Article 14 (Transitional Measures concerning Collection under Heavy Taxation on Registration of Corporation, etc. within Large Cities)
Notwithstanding the amended provisions of Articles 13 and 28 (2) and (3), the application of tax rates under heavy taxation due to cases in which a corporation to which the tax rate under Articles 131 and 137 of the Local Tax Act pursuant to the proviso to the part other than the subparagraphs of Article 138 (1) of the same Act has applied, shifts to or adds a type of business, other than the type of business excluded from heavy taxation in large cities, or due to grounds, such as the violation of responsibility to direct use real estate for the type of business excluded from heavy taxation in large cities, before December 31, 2010, shall be governed by Article 138 of the former Local Tax Act. Article 15 (Transitional Measures concerning Acquisition Tax and Registration Tax on Lease and Importation of Ships, etc. Owned by Foreigners)
Where leasing a vehicle, machinery equipment, aircraft or ship owned by a foreigner in annual installments and then importing it before December 31, 2010, acquisition tax and registration tax shall be imposed and collected on such acquisition and registration pursuant to the former Local Tax Act, notwithstanding the amended provisions of Article 15 (2) 4 and subparagraph 1 of Article 23. Article 16 Omitted.
ADDENDA <Act No. 10469, Mar. 29, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 142 (1) 1, subparagraph 6 of Article 143, subparagraph 1 (f) of Article 144, and Article 146 (1) 6 and (4) shall enter into force on January 1, 2014. Article 2 (Applicability concerning Registration and License Tax)
The amended provisions of Article 28 (1) 13 shall apply, beginning with the first registration made after this Act enters into force. Article 3 (Applicability concerning Filing and Payment of Local Income Tax Returns by Consolidated Corporations, etc.)
The amended provisions of the proviso to Article 87 (1) 2, Articles 87 (2), and 91 (1) and (6) shall apply, beginning with the first filing and payment made after this Act enters into force. Article 4 (Applicability concerning Local Resource and Facility Tax)
The amended provisions of Article 142 (1) 1, subparagraph 6 of Article 143, subparagraph 1 (f) of Article 144, and Article 146 (1) 6 and (4) shall apply, beginning with the first power generation made on or after January 1, 2014.
ADDENDA <Act No. 10924, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 11108, Dec. 2, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters concerning the Free Trade Agreement between the Republic of Korea and the United States of America come into effect.
Article 2 (General Transitional Measures)
The former provisions shall apply to motor vehicle tax which has been or is to be imposed pursuant to the former provisions as at the time this Act enters into force.
ADDENDA <Act No. 11110, Dec. 2, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters concerning the Free Trade Agreement between the Republic of Korea and the United States of America come into effect. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 11124, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2012. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 11137, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 93 (3) and (4) and 97 shall enter into force three months after the date of its promulgation, and the amended provisions of Articles 25 (1) 14 and 18 and 28 (1) 5-2 shall enter into force on June 11, 2012. Articles 2 (Applicability concerning Acquisition Tax Return and Payment thereof)
The amended provisions of Articles 13 (5) 3 and 4 and 20 (1) shall apply, beginning with the first acquisition after this Act enters into force. Article 3 (Applicability concerning Notification of Amount of Tax Related to Local Income Tax)
| (1) | The amended provisions of Article 97 (1) and (2) shall apply, beginning with the first case where a return (including an amended tax return) on corporate tax is received, where the amount of corporate tax is determined or corrected, where the payment of withheld tax is received, where a tax payment notice on withheld corporate tax is issued, or where corporate tax is refunded after this Act enters into force. |
| (2) | The amended provisions of Article 97 (3) and (4) shall apply, beginning with the first case where a return (including a preliminary return and a final return) on a pro rata income tax portion is received or a notice of imposition thereof is issued, where the payment of withheld income tax is received or a notice of withheld income tax payment is issued, or where income tax is refunded after this Act enters into force. |
Article 4 (Applicability concerning Ceiling of Property Tax Burden)
The amended provisions of Article 122 shall apply, beginning with the first case where the liability for tax payment is constituted after this Act enters into force.
ADDENDA <Act No. 11617, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Article 2 (General Applicability)
This Act shall apply from a local tax that constitutes liability for payment after this Act enters into force.
Article 3 (Special Cases on Application to Rates of Registration and License Taxes of Special Self-Governing City)
The amended provisions of Article 34 (2) shall apply from a registration and license tax that constitutes liability for taxation after July 1, 2012.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11873, Jun. 7, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2013.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 12118, Dec. 26, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 69 (2) and 71 (3) shall enter into force on January 1, 2014. Article 2 (Applicability concerning Tax Rates on Acquisition of Houses through Transactions with Compensation)
| (1) | The amended provisions of Articles 11 and 13 shall apply, beginning with the first house acquired after August 28, 2013. |
Article 3 (Applicability concerning Local Consumption Tax)
The amended provisions of Article 69 (2) shall apply, beginning with local consumption tax paid or refunded in the first taxable period which begins pursuant to the Value-Added Tax Act.
ADDENDA <Act No. 12153, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014: Provided, That the amended provisions of Articles 92 (2) and 103-3 (4) shall enter into force on January 1, 2020, the amended provisions of Article 103-20 (2) shall enter into force on January 1, 2017, the amended provisions of Article 123 shall enter into force three months after the date of its promulgation, and the amended provisions of Article 103-29 shall enter into force on January 1, 2015. <Amended on Mar. 24, 2014; Dec. 27, 2016> Article 2 (General Applicability)
This Act shall apply, beginning with the first income that constitutes an obligation to pay tax after this Act enters into force: Provided, That for local income tax referred to in Chapter VIII (excluding the amended provisions of Article 103-29), this Act shall apply, beginning with the first income that constitutes an obligation to pay tax because the first taxable period begins after this Act enters into force. <Amended on Mar. 24, 2014> Article 3 (Applicability concerning Expansion of Scope of Repairs)
The amended provisions of subparagraph 6 of Article 6 shall apply, beginning with cases where a facility under the amended provisions of subparagraph 6 (b) of Article 6 is repaired after this Act enters into force. Article 4 (Applicability concerning Yacht Club Membership)
The amended provisions of Articles 7 (1), 8 (1) 9 and 12 (1) 7 shall apply, beginning with cases where a person acquires yacht club membership after this Act enters into force. Article 5 (Applicability concerning Joint Liability for Taxation of Oligopolistic Stockholders)
The amended provisions of Article 7 (5) shall apply, beginning with a person who becomes an oligopolistic stockholder after this Act enters into force. Article 6 (Applicability concerning Legal Fiction of Donation of Acquisition of Real Estate of Spouses, Lineal Ascendants or Descendants)
The amended provisions of Article 7 (11) and (12) shall apply, beginning with cases where a person acquires real estate of his or her spouse or lineal ascendant or descendant after this Act enters into force. Article 7 (Applicability concerning Re-division of Inherited Property)
The amended provisions of Article 7 (13) shall apply, beginning with cases where co-heirs redivide the determined inherited property by agreement after this Act enters into force. Article 8 (Applicability concerning Persons Who Apply for Permission for Entering into Land Contract)
The amended provisions of Article 20 (1) shall also apply to a person who has applied for permission for entering into a land contract before this Act enters into force. Article 9 (Applicability concerning Disposition for Failure to Pay Tax on Trust Property)
The amended provisions of Article 119-2 shall apply, beginning with cases where a trustee who becomes obligated to pay tax after this Act enters into force fails to pay a property tax on trust property. Article 10 (Applicability concerning Obligations to Pay Motor Vehicle Tax on Driving)
Article 11 (Applicability concerning Tax Base and Tax Rates)
The amended provisions of Article 151 (1) shall apply, beginning with the first portion a person acquires after August 28, 2013. Article 12 (Special Cases concerning Application of Tax Rates of Registration and License Tax)
Notwithstanding municipal ordinance of the relevant local government under the former Articles 28 (1) and 34 (1), tax rates under the amended provisions of Articles 28 (1) and 34 (1) shall apply to tax rates of registration and license tax until municipal ordinance of the relevant local government are amended. Article 13 (Special Cases concerning Personal Local Income Tax Return, etc.)
| (1) | A person who intends to file a preliminary return of the profit margin on the sale and purchase of land, etc. under Article 93 (5), a final return of the tax base under the amended provisions of Article 95, an amended return under the amended provisions of Article 96 (including where it is applied mutatis mutandis pursuant to the amended provisions of Article 103-9), a return on a shared workplace under the amended provisions of Article 102 (2), a preliminary return of the tax base under the amended provisions of Article 103-5, a final return of the tax base under the amended provisions of Article 103-7, and a return on capital gains on securities under the amended provisions of Articles 103-12 (4) from the date this Act enters into force until 12/31/2016, notwithstanding the amended provisions of Articles 93 (5), 95, 96, 102 (2), 103-5, 103-7 and 103-12 (4), shall file a tax return with the head of a tax office or the head of a regional tax service having jurisdiction over a place for tax payment and pay the tax amount to the head of a local government having jurisdiction over a place for tax payment. <Amended on Dec. 27, 2016> |
| (2) | Notwithstanding the amended provisions of Articles 97 and 98, the head of a tax office or the head of a regional tax service having jurisdiction over a place for tax payment shall conduct affairs concerning determination and correction under the amended provisions of Article 97 (including where it is applied mutatis mutandis pursuant to the amended provisions of Article 103-9) and determination of occasional imposition under the amended provisions of Article 98 (including where it is applied mutatis mutandis pursuant to the amended provisions of Article 103-9) from the date this Act enters into force until December 31, 2019. <Amended on Dec. 27, 2016> |
| (3) | Matters necessary for filing tax returns under paragraph (1) and conducting affairs under paragraph (2) shall be prescribed by Presidential Decree. |
| (4) | Paragraphs (1) and (2) shall apply, beginning with the first income that constitutes an obligation to pay tax after this Act enters into force. |
Article 14 (Postponement of Application of Tax Rates of Personal Local Income Tax on Capital Gains)
Tax rates provided for in Article 103-3 (1) 4 through 9 shall not apply to income generated by transferring assets falling under paragraph (1) 4 through 9 of the said Article by no later than December 31, 2014, but tax rates under paragraph (1) 1 of the said Article shall apply thereto (tax rates under paragraph (1) 2 or (3) of the said Article shall apply to assets which have been held for less than two years). Article 15 (General Transitional Measures)
The former provisions shall apply to local taxes which have been or should be imposed, or reduced or exempted pursuant to the former provisions as at the time this Act enters into force.
Article 16 (Transitional Measures concerning Changes in Tax Rates Following Transfer of Trust Property)
Notwithstanding the amended provisions of Articles 11 (1) 4 and 12 (1) 1 (a) (v), the former provisions shall apply where real estate or a ship which is trust property is transferred from a trustee to a beneficiary before this Act enters into force. Article 17 (Transitional Measures concerning Changes in Persons Liable to Pay Property Tax on Trust Property)
| (1) | Where a person becomes obligated to pay property tax before this Act enters into force, the former provisions shall apply notwithstanding the amended provisions of Article 107 (2) 5. |
Article 18 (Relationship with other Statutes)
Where the former Local Tax Act or the provisions thereof is cited by other statutes as at the time this Act enters into force, if the provisions corresponding thereto exists in this Act, the relevant provisions of this Act shall be deemed cited in lieu of the former provisions. Article 19 Omitted.
ADDENDA <Act No. 12505, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
| (1) | This Act shall apply, beginning with any income generated after this Act enters into force. |
| (2) | The amended provisions on personal local income tax on capital gains in this Act shall apply, beginning with assets transferred after this Act enters into force. |
Article 3 (Applicability concerning Standard Tax Rates of Personal Local Income Tax)
The amended provisions of Article 92 (1) shall apply, beginning with the first income generated in the taxable period to which the enforcement date of this Act belongs. Article 4 (Applicability concerning Tax Rates of Personal Local Income Tax on Capital Gains)
The amended provisions of Article 103-3 (1) 2 and 3 shall apply, beginning with assets transferred after January 1, 2014: Provided, That tax rates under the amended provisions of Article 92 (1) shall apply to assets to which tax rates under Article 92 (1) are applied, pursuant to the amended provisions of Article 103-3 (1) 2. Article 5 (Applicability concerning Special Taxation on Capital Gains from Land, etc.)
The amended provisions of Article 103-31 (1) shall apply to the transfers that take place during the business years that begin on or after January 1, 2014: Provided, That the amended provisions of Article 103-31 shall not apply where an asset acquired during the period from March 16, 2009 to December 31, 2012 is transferred or where a small or medium enterprise under Article 25 (1) 1 of the Corporate Tax Act transfers a residential house or a piece of land for non-business purposes (excluding unregistered land, etc.) by December 31, 2015. <Amended on Jul. 24, 2015; Dec. 27, 2016> Article 6 (Special Cases on Tax Rates of Personal Local Income Tax on Capital Gains)
The tax rates under Article 103-3 (1) 1 (or the tax rate under paragraph (1) 2 or 3, where the period of owning an asset is shorter than two years) shall apply to the income accruing from the transfer of an asset referred to in Article 103-3 (1) 8 or 9 (excluding real estate located in a designated area under Article 103-3 (5)) by not later than December 31, 2015 or from the transfer of such asset acquired during the period from March 16, 2009 to December 31, 2012. <Amended on Jul. 24, 2015; Dec. 27, 2016>
ADDENDA <Act No. 12602, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation.
Article 2 (Applicability to Levying on Waterpipe Tobacco and Snus)
The amended provisions of Articles 48 (2) 1 (f), 48 (2) 4, 52 (1) 1 (f), and 52 (1) 4 shall apply, beginning with the first tax liability arising after this Act enters into force.
ADDENDA <Act No. 12738, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 12801, Oct. 15, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Security, etc. for Payment of Motor Vehicle Tax for Operation of Automobiles)
The amended provisions of Article 137-2 shall apply beginning with the first tax liability arising after this Act enters into force.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of an Act that was promulgated but has not entered into force before this Decree enters into force, among the Acts amended under Article 6 of the Addenda, shall enter into force on the enforcement date of the relevant Act. Articles 2 through 7 Omitted.
ADDENDA <Act No. 12855, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 (Applicability to Imposition of Tobacco Consumption Tax, etc.)
The amended provisions of Article 52 (1) shall apply beginning with the first case where tobacco is taken out from the manufacturing place or bonded area or brought into the Republic of Korea after this Act enters into force. Article 3 (Applicability to Tax Rate of Local Education Tax)
The amended provisions of Article 151 (1) 4 shall apply beginning with the first the case where tobacco is taken out from the manufacturing place or bonded area or brought into the Republic of Korea after this Act enters into force.
ADDENDA <Act No. 12954, Dec. 31, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 (Applicability to Tax Rates of Local Resource and Facility Tax, etc.)
| (1) | The amended provisions of Article 146 (1) 5 and 6 shall apply beginning with the first power generated after this Act enters into force. |
| (2) | The Government shall formulate a plan for budgetary subsidization necessary for the radiation emergency planning zones expanded under the partial amendment (Act No. 12665) to the Act on Measures for the Protection of Nuclear Facilities, etc. and Prevention of Radiation Disasters. |
ADDENDA <Act No. 13425, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13427, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 103-3 (1) 12 and (3) 1 and 3 shall enter into force on January 1, 2016, and the amended provisions of Articles 93 (10) and (11), 128 (2) and (5), and 132 shall enter into force on January 1, 2017. <Amended on Dec. 29, 2015> Article 2 (General Applicability)
This Act shall apply beginning with the first tax liability arising after this Act enters into force: Provided, That this shall not apply to the matters provided otherwise by Articles 3 through 10 of the Addenda. Article 3 (Applicability to Imposition of Acquisition Tax Following Change of Conditions)
The amended proviso to Article 9 (2) shall also apply to the real estate and infrastructure facilities that was acquired on condition of attribution or donation to the State or other entity before this Act enters into force but concerning which the condition is changed to be sold or transferred as a gift or not to perform the attribution or donation to the State or other entity after this Act enters into force. Article 4 (Applicability to Place for Tax Payment for Special Collection of Corporate Local Income Tax)
The amended provisions of Article 89 (3) 2 shall apply beginning with taxes paid or to be paid on or after January 1, 2015: Provided, That former provisions shall apply to corporate local income tax paid on or before the enforcement date of this Act under former provisions. Article 5 (Applicability to House Rental Income subject to Separate Taxation)
The amended provisions of Article 93 (10) and (11) shall apply beginning with the income that accrues on or after January 1, 2019. <Amended on Dec. 26, 2017> Article 6 (Applicability to Additional Tax to Personal Local Income Tax)
The amended provisions of Articles 99 and 103-8 shall apply beginning with the tax returns filed on or after May 1, 2015. Article 7 (Applicability to Application of Tax Rates of Personal Local Income Tax on Capital Gains)
The amended provisions of the main body of Article 103-3 (1) and Article 103-3 (5) and (6) shall apply beginning with the assets transferred after this Act enters into force. Article 8 (Applicability to Personal Local Income Tax on Capital Gains on Derivatives)
The amended provisions of Article 103-3 (1) 12 and (3) 3 shall apply beginning with the first transaction or act made or conducted on or after January 1, 2016. Article 9 (Applicability to Imposition of Motor Vehicle Tax before Transfer of Automobile or Cancellation of Registration)
The amended provisions of Articles 128 (2) and (5) and 132 shall apply beginning with the cases where an automobile is transferred or the registration of an automobile is canceled after this Act enters into force. Article 10 (Special Cases concerning Application of Special Exception to Taxation on Capital Gains)
The amended provisions of Articles 5 and 6 of the Addenda to the partial amendment (Act No. 12505) to the Local Tax Act shall also apply to the transfers made on or after January 1, 2015 but by not later than the enforcement date of this Act. Article 11 (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 Act enters into force.
ADDENDA <Act No. 13636, Dec. 29, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2016. (Proviso Omitted.)
Article 2 (General Applicability)
This Act shall apply beginning with the first tax liability arising after this Act enters into force.
Article 3 (Applicability to Attribution or Donation to the State, etc.)
The amended proviso to Article 9 (2) and Article 9 (2) 2 shall apply beginning with the property acquired after this Act enters into force. Article 4 (Applicability to Heavy Taxation on Acquisition in Over-Concentration Control Regions)
The amended proviso to Article 13 (7) shall apply beginning with property acquired after this Act enters into force. Article 5 (Applicability to Special Cases on Tax Rates upon Merger of Corporations)
The amended provisions of Article 15 (1) 3 shall apply beginning with the property acquired by a merger of corporations after this Act enters into force. Article 6 (Applicability to Refund Following Retroactive Deductions for Losses)
The amended proviso to Article 101 (2) and the amended proviso to Article 103-28 (2) shall apply beginning with applications filed for retroactive deduction for losses after this Act enters into force. Article 7 (Applicability to Personal Local Income Tax on Capital Gains)
The amended provisions of Article 103-3 (1) 8, 9, and 11 (b) and Article 103-6 (2) shall apply beginning with the transfers made after this Act enters into force. Article 8 (Applicability to Tax Returns on Tax Base and Tax Amount of Corporate Local Income Tax)
The amended provisions of Article 103-23 (2) 3 and (5) through (7) and Article 103-37 (1) and (6) through (8) shall apply beginning with the tax returns filed after this Act enters into force. Article 9 (Special Cases on Personal Local Income Tax Act on Retirement Income) Notwithstanding the amended provisions of Article 92 (4) of this Act and Article 48 (1) and (2) of the Income Tax Act, the amount of personal local income tax on retirement income shall be calculated by the formula applicable to the taxable period relevant to the retirement date on the following table for the purpose of calculating personal local income tax for retirement income where a person retires during the period from January 1, 2016 to December 31, 2019:Taxable period relevant to the retirement dateCalculated amount of retirement incomeFrom Jan. 1, 2016 to Dec. 31, 2016Calculated amount of retirement income under former provisions x 80% + Calculated amount of retirement income x 20%From Jan. 1, 2017 to Dec. 31, 2017Calculated amount of retirement income under former provisions x 60% + Calculated amount of retirement income x 40%From Jan. 1, 2018 to Dec. 31, 2018Calculated amount of retirement income under former provisions x 40% + Calculated amount of retirement income x 60%From Jan. 1, 2019 to Dec. 31, 2019Calculated amount of retirement income under former provisions x 20% + Calculated amount of retirement income x 80% Article 10 (Special Cases on Settlement of Specially Collected Amount of Corporate Local Income Tax)
The amended provisions of Article 103-62 shall also apply to the cases where a tax amount specially collected on or after January 1, 2015 is settled or refunded after this Act enters into force. Article 11 (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 Act enters into force.
Article 12 Omitted.
ADDENDA <Act No. 13796, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14033, Feb. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 14116, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso omitted.)
Articles 2 through 55 Omitted.
ADDENDA <Act No. 14474, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 14475, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2017: Provided, That the amended provisions of Articles 103-3 (8) and 103-7 (6) through (8), and the amended proviso to the main text of Article 103-23 (3) shall enter into force on January 1, 2018, while the amended provisions of Articles 1 and 13 of the Addenda to the partial amendment (Act No. 12153) to the Local Tax Act and the amended provisions of Articles 5 and 6 of the Addenda to the partial amendment (Act No. 12505) to the Local Tax Act shall enter into force on the date of its promulgation. Article 2 (General Applicability)
This Act shall apply to the cases where the duty to pay a tax arises after this Act enters into force.
Article 3 (Applicability to Tax Rates Applicable to Acquisition of Houses for Welfare of Older Persons for Sale)
The amended provisions of Article 11 (1) 8 shall also apply to those acquired during the period from July 24, 2015 to the day immediately before the enforcement date of this Act. Article 4 (Applicability to Decrease of Flexible Tax Rate for Personal Local Income Tax on Transfer of Derivatives, etc.)
The amended provisions of the latter part of the main text of Article 103-3 (1) and of Article 103-3 (7) shall also apply to those transferred during the period from January 1, 2016 to the day immediately before the enforcement date of this Act. Article 5 (Applicability to Special Cases concerning Personal Local Income Tax on Capital Gains from Domestic Stocks, etc. upon Departure of Residents)
The amended provisions of Articles 103-3 (8) and 103-7 (6) through (8) shall apply where a resident departs from the Republic of Korea on or after January 1, 2018. Article 6 (Applicability to Amended Corporate Local Income Tax Return)
| (1) | The amended provisions of Article 103-24 (4) and (5) shall apply where an amended return is filed or a correction or such is requested after this Act enters into force. |
| (2) | The amended provisions of Article 103-24 (6) shall apply where an amended return is filed or a correction or such is requested with regard to taxes reported and paid after this Act enters into force. |
Article 7 (Applicability to Special Cases concerning Correction of Tax Base and Tax Amount of Korean Corporations Which Made False Accounting Entries and Refund thereof)
The amended provisions of Articles 103-64 and 103-65 shall apply where a correction is requested or a determined amount is refunded after this Act enters into force. Article 8 (Applicability to Special Cases concerning Local Income Tax on Capital Gains)
The amended provisions of Articles 5 and 6 of the Addenda to the partial amendment (Act No. 12505) to the Local Tax Act shall also apply to the transfers made during the period from January 1, 2016 to the day immediately before the enforcement date of this Act. Article 9 (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 Act enters into force.
ADDENDA <Act No. 14476, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14567, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 40 Omitted.
ADDENDA <Act No. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That, among the Acts amended by Article 5 of the Addenda, the amendment to an Act which was promulgated before this Act enters into force but whose enforcement date has yet to arrive shall enter into force on the enforcement date of the relevant Act. Articles 2 through 5 Omitted.
ADDENDA <Act No. 15292, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018: Provided, That the amended provisions of Article 5 of the Addenda to the partial amendment (Act No. 13427) to the Local Tax Act shall enter into force of the date of its promulgation. Article 2 (General Applicability)
This Act shall begin to apply where the obligation to pay a tax arises after this Act enters into force.
Article 3 (Applicability to Electronic Tobacco Using Tobacco Leaves or Solid Tobacco Products)
The amended provisions of Article 52 shall begin to apply to products released from a factory or products for which an import declaration is filed after this Act enters into force. Article 4 (Applicability to Tax Base of Personal Local Income Tax on Capital Gains of Persons Moving Abroad)
The amended provisions of Article 103 (4) shall begin to apply where a resident departs from the Republic of Korea after this Act enters into force. Article 5 (Applicability to Tax Credit for Corporate Local Income Tax)
The amended provisions of Article 103-23 (3) 4 shall begin to apply final tax returns filed after this Act enters into force. Article 6 (Applicability to Amended Tax Return, etc. of Corporations)
The amended provisions of Article 103-24 (2), (3) and (6) shall begin to apply to amended tax returns or tax returns after the deadline filed after this Act enters into force. Article 7 (Applicability to Retroactive Deduction of Losses for Corporate Local Income Tax)
The amended provisions of Article 103-28 (4) shall begin to apply to final tax returns filed after this Act enters into force. Article 8 (Transitional Measures concerning Correction, etc. of Amount of Corporate Local Income Tax due to Wrong Accounting Entries)
Notwithstanding the amended provisions of Articles 103-25 (1) 2, 103-64 and 103-65, the former provisions of Article 103-25 (1) 2, 103-64 or 103-65 shall apply to requests filed for correction pursuant to such former provisions before this Act enters into force.
ADDENDA <Act No. 15335, Dec. 30, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018: Provided, That the amended provisions enumerated in the following subparagraphs shall enter into force on the date specified in the relevant subparagraph, respectively: <Amended on Act Dec. 31, 2018>
| 1. | The amended provisions of Article 103-3 (5) 1 and 2, (6) 2 and (10): April 1, 2018; |
| 2. | Article 103-3 (1) 11 (a) (ii): January 1, 2020 (limited to stocks, etc. of small and medium enterprises specified in Article 103-3 (1) 11 (a) (i)). |
Article 2 (General Applicability)
This Act shall begin to apply where an obligation to pay tax arises after this Act enters into force.
Article 3 (Applicability to Tax Rates, etc. on Capital Gains from Offshore Assets)
The amended provisions of Article 103-3 (3) 3 and (9) shall begin to apply to final tax returns filed after this Act enters into force.
ADDENDA <Act No. 16008, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019. (Proviso Omitted)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 16113, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019.
Article 2 (Applicability to Local Consumption Tax)
The amended provision of Article 69 (2) shall begin to apply from the first portion for which local consumption tax is paid pursuant to the Value-Added Tax Act after this Act enters into force.
ADDENDA <Act No. 16194, Dec. 31, 2018>
Article 1 (Enforcement Decree)
This Act shall enter into force on January 1, 2019: Provided, That the amended provision of Article 131 (2) shall enter into force on July 1, 2019, and the amended provision of Article 103-3 (8) (limited to stocks, etc. of small and medium-sized enterprises provided for in Article 103-3 (1) 11 (a) i)) shall enter into force on January 1, 2020. Article 2 (General Applicability)
This Act shall begin to apply from the first portion for which tax liability is incurred after this Act enters into force.
Article 3 (Applicability to Extension of Deadline for Filing Acquisition Tax Return and Payment thereof)
| (1) | The amended provision of the proviso to Article 13 (5) 3 shall also apply to where a person uses a residential building for which 30 days have not passed since the date he or she acquired the residential building as at the time this Act enters into force, for any purpose other than a residential purpose, or where the person commences construction work to alter the building not to use it as a high-end house, after this Act enters into force. |
| (2) | The amended provision of the proviso to Article 13 (5) 4 shall also apply to where a person uses a building for a high-end recreation center for which 30 days have not passed since the date he or she acquired the building for a high-end recreation center as at the time this Act enters into force, for any purpose other than the original purpose of a high-end recreation center, or where the person commences construction work to alter the building not to use it as a high-end recreation center, after this Act enters into force. |
| (3) | The amended provision to Article 20 (2) shall also apply to where a tax return and payment is filed pursuant to the aforesaid paragraph after this Act enters into force, for an object of taxation for which 30 days have not passed from the date prescribed by Presidential Decree under the aforesaid paragraph as at the time this Act enters into force. |
| (4) | The amended provision to Article 20 (3) shall also apply to where a tax return and payment is filed pursuant to the aforesaid paragraph after this Act enters into force, for an object of taxation subject to imposition or additional collection of acquisition tax pursuant to the aforesaid paragraph as at the time this Act enters into force, for which 30 days have not passed from the date a ground for such imposition or additional collection arises. |
Article 4 (Applicability to Reporting and Payment of Registration and License Tax)
| (1) | The amended provision to Article 30 (2) shall also apply to where a tax return and payment is filed pursuant to the aforesaid paragraph after this Act enters into force, for an object of taxation for which 30 days have not passed from the date prescribed by Presidential Decree under the aforesaid paragraph as at the time this Act enters into force. |
| (2) | The amended provision to Article 30 (3) shall also apply to where a tax return and payment is filed pursuant to the aforesaid paragraph after this Act enters into force, for an object of taxation subject to imposition or additional collection of registration and license tax pursuant to the aforesaid paragraph as at the time this Act enters into force, for which 30 days have not passed from the date a ground for such imposition or additional collection arises. |
Article 5 (Applicability to House Rental Income Subject to Separate Taxation)
The amended provisions to Article 93 (10) through (14) shall begin to apply from the first portion of house rental income generated after January 1, 2019. Article 6 (Applicability to Personal Local Income Tax on Capital Gains from Domestic Stocks at Time of Departure of Residents from Republic of Korea)
The amended provision of Article 103-3 (8) shall begin to apply from the first cases that a resident departs from the Republic of Korea after this Act enters into force. Article 7 (Applicability to Exemption from Collection of Small Amount of Local Income Tax)
The amended provision of Article 103-60 shall begin to apply from the first portions of tax payment notices given after this Act enters into force. Article 8 (Applicability to Additional Payment of Corporate Local Income Tax)
The amended provision of Article 103-63 (3) shall begin to apply from the first portions of bonds, etc. sold after July 1, 2019. Article 9 (Applicability to Temporary Cancellation of Seizure of Vehicle Registration Plates)
The amended provision of Article 131 (2) shall also apply to a person liable to pay tax whose vehicle registration plate is being seized as at the time this Act enters into force. Article 10 (General Transitional Measures)
The former provisions shall apply to local tax which was imposed or reduced or exempted or which should be imposed or reduced or exempted pursuant to the former provisions as at the time this Act enters into force.
ADDENDA <Act No. 16568, Aug. 27, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 16 Omitted.
ADDENDA <Act No. 16663, Dec. 3, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Act shall begin to apply to the tax liability arising on or after the date this Act enters into force.
ADDENDA <Act No. 16855, Dec. 31, 2019>
Article 1 (Enforcement Date)
This Act 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. | Amended provisions of Articles 89 (1) 1, 91, 93 (10) and (12), 103 (2) through (4), 103-19, 103-21 (2), 103-34, 103-41, and 103-47 (1) through (3): The date of the promulgation; |
| 2. | The amended provisions of Articles 128 (3) and (4), and 141 through 147, and Article 17 and 18 of the Addenda: January 1, 2021. |
Article 2 (Effective Period of Payment of Local Consumption Tax)
The amended provisions of Article 71 (3) 3 (a) and (b) shall remain valid until December 31, 2026 from the enforcement date of this Act. <Amended on Dec. 7, 2021> Article 3 (General Applicability)
This Act shall begin to apply to the tax liability arising on or after the date this Act enters into force.
Article 4 (Applicability to Local Consumption Tax)
The amended provisions of Articles 69 and 71 shall begin to apply to the payment or refund made under the Value-Added Tax Act after this Act enters into force. Article 5 (Applicability to Calculation of Amount of Personal Local Income Tax on House Rental Income Subject to Separate Taxation)
The amended provisions of Article 93 (10) and (12) shall begin to apply to the portion of income accruing in the taxable period to which the enforcement date under subparagraph 1 of Article 1 the Addenda belongs. Article 6 (Applicability to Jurisdiction of Return, etc. on Personal Local Income Tax)
| (2) | The amended provisions of the latter part of Article 96 (1) shall begin to apply to a return or request for correction, filed or made on or after the date this Act enters into force. |
Article 7 (Applicability to Final Return of Tax Base and Tax Amount of Personal Local Income Tax and Payment Thereof)
The amended provisions of Articles 95 (4) and (5) and 103-7 (9) and (10) shall begin to apply to the portion for which the period for the final return on the tax base of personal local income tax on global income, retirement income, or capital gains arrives on or after the date this Act enters into force. Article 8 (Applicability to Application of Additional Tax)
The amended provisions of proviso to Article 99 shall begin to apply to the portion for which the filing period of a final return on the tax base of global income arrives on or after the date this Act enters into force. Article 9 (Applicability to Refund Following Retroactive Deductions for Losses)
The amended provisions of Article 101 (4) shall begin to apply to the portion for which the final return on the tax base of global income is filed on or after the date this Act enters into force. Article 10 (Applicability to Exclusion from Heavy Taxation of Personal Local Income Tax on Capital Gains from Land Transferred on or before Public Announcement Date of Designated Areas)
The amended provisions of Articles 103-3 (1) and 103-3 (5) shall begin to apply to the portion for which a sales contract for transferring land is concluded and a down payment is made on or after the date this Act enters into force. Article 11 (Applicability to Extension of Deadline for Filing Return of Personal Local Income Tax on Capital Gains)
The amended provisions of the former part of paragraph (1) and paragraph (4) of Article 103-7 shall begin to apply to the portion for which the final return on the tax base for personal local income tax on capital gains is filed on or after the date this Act enters into force. Article 12 (Applicability to Notification of Amount, etc. of Tax Related to Local Income Tax)
The amended provisions of Article 103-59 (1) 1 (a) shall begin to apply to a return filed on or after the date this Act enters into force. Article 13 (Applicability to Special Case in Application of Additional Tax)
The amended provisions of Article 103-61 (2) shall begin to apply to an amended tax return or a tax return after the deadline filed on or after the date this Act enters into force. Article 14 (Transitional Measures concerning Acquisition Tax Rate for Acquisition of Housing through Transactions for Consideration)
Notwithstanding the amended provisions of Article 11 (1) 8 (b), the previous provisions of Article 11 (1) 8 shall apply where a person who has concluded a sales contract on one housing the acquisition value of which was more than 750 million won but less than 900 million won before this Act enters into force, acquires the relevant housing within three months (or three years in cases of a person who has concluded a parceling-out contract of multi-family housing) after this Act enters into force. Article 15 (Transitional Measures concerning Return and Payment, etc. of Tobacco Consumption Tax)
Notwithstanding the amended provisions of Article 60 (1) through (4), the previous provisions shall apply to tobacco brought out of the place of manufacturing or a bonded area before this Act enters into force. Article 16 (Transitional Measures concerning Additional Taxes in Application of Conversion Value)
Notwithstanding the amended provisions of Article 103-9 (2), the previous provisions shall apply where the fact that a sales contract was concluded and the down payment was made before this Act enters into force is verified by evidential documents. Article 17 Omitted.
.
x Act".
:
.
y
"
Article 18 (Relationships to Other Acts)
[Enforcement Date: Jan. 1, 2021] Article 18
ADDENDA <Act No. 17473, Aug. 12, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 103-3 (10) 2 and 4 and 103-31 (1) shall enter into force on January 1, 2021, and the amended provisions of Articles 93 (4) and 103-3 (1), and the amended provisions, with the exception of the subparagraphs, of Article 103-3 (10) shall enter into force on June 1, 2021. Article 2 (General Applicability)
This Act shall begin to apply to the tax liability arising on or after the date this Act enters into force.
Article 3 (Applicability to Determination of Number of Houses)
The amended provisions of subparagraphs 2 through 4 of Article 13-3 shall begin to apply to where right to residency as an association member, right to purchase a house, or officetel is acquired on or after the date this Act enters into force. Article 4 (Applicability to Local Income Tax on Capital Gains, etc.)
| (1) | The amended provisions of Articles 93 (4) and 103-3 (1) and the amended provisions, with the exception of the subparagraphs, of Article 103-3 (10) shall begin to apply to transfer made on or after June 1, 2021. |
| (2) | The amended provisions of Article 103-4 (10) 2 and 4 shall begin to apply to a newly acquired right to purchase a house on or after January, 1, 2021. |
Article 5 (Applicability to Special Taxation of Local Income Tax on Capital Gains from Land, etc.)
The amended provisions of Article 103-31 (1) shall begin to apply to transfer made on or after January 1, 2021. Article 6 (Transitional Measures concerning Heavy Taxation on Acquisition of Housing, etc. by Corporations)
In applying the amended provisions of Articles 13 (2) and 13-2, where one household possessing one or more housing in the Republic of Korea has concluded a sales contract and on housing (including a multi-family housing parceling-out contract) on or before July 10, 2020, the previous provisions shall apply to the acquisition of the relevant housing by the party who has entered into such contract: Provided, That this shall apply only where evidencing documents verify the fact, etc. that the down payment on the relevant contract has been made. Article 7 (Applicability to Determination of Number of Houses)
Notwithstanding Article 3 of the Addenda, the amended provisions of subparagraphs 2 through 4 of Article 13-3 shall not apply where a sales contract contract (including an officetel parceling-out contract) is concluded before this Act enters into force.
ADDENDA <Act No. 17651, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Articles 2 through 32 Omitted.
ADDENDA <Act No. 17757, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Articles 2 through 42 Omitted.
ADDENDA <Act No. 17769, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021: Provided, That the amended provisions of Articles 93 (12), 111-2, 112, 113, and 123 shall enter into force on the date of the promulgation; those of Article 71 (1), one year after the date of the promulgation; those of Article 93 (17), on January 1, 2023; and those of Article 103-46 (1), on January 1, 2024. <Amended on Dec. 28, 2021> Article 2 (Applicability to Special Cases concerning Tax Rate of Property Tax on One House for One Household)
The amended provisions of Articles 111-2, 112, and 113 shall apply only to the liability to pay tax constituted by the date on which three years elapse from the enforcement date of the same amended provisions. Article 3 (General Applicability)
This Act shall begin to apply to the liability to pay tax constituted on or after the date this Act enters into force.
Article 4 (Applicability to Corporate Local Income Taxation, etc. on Trust Property Subject to Corporate Taxation)
The amended provisions of Articles 87 (1) and 103-58 shall begin to apply to a trust contract concluded on or after the date this Act enters into force. Article 5 (Applicability to Special Cases concerning Calculation of Tax Amount on House Rental Income)
| (1) | The amended provisions of the proviso, with the exception of the subparagraphs, of Article 93 (12) shall begin to apply to the cancellation of registration on or after August 18, 2020. |
| (2) | The amended provisions of Article 93 (12) 1 and 2 shall begin to apply to private rental housing of which registration is filed on or after August 18, 2020. |
Article 6 (Applicability to Taxation on Virtual Assets)
The amended provisions of Article 93 (17) shall begin to apply to the transfer or loan of virtual assets that is made on or after the enforcement date specified in the proviso to the Addenda. Article 7 (Applicability to Personal Local Income Tax on Capital Gains)
The amended provisions of Articles 103-3 (1) 8, 9, 14, and 103-6 (2) 4 shall begin to apply to transfers made on or after the date this Act enters into force. Article 8 (Applicability to Provision of Security for Tax Payment by Person Moving Abroad)
The amended provisions of Article 103-7 (7) shall begin to apply to where a resident departs from the Republic of Korea on or after this Act enters into force. Article 9 (Applicability to Place for Tax Payment for Special Collection of Local Income Tax)
The amended provisions of proviso to Article 103-13 (2) shall begin to apply to the payment made on or after the date this Act enters into force. Article 10 (Applicability to Tax Bases for Corporate Local Income Tax)
The amended provisions of Articles 103-19 (2) through (4) and 103-34 (2) shall begin to apply to a tax base return (excluding a revised return) of corporate local income tax filed on or after the date this Act enters into force: Provided, That in applying the amended provisions of Article 103-19 (3), 15 years shall be deemed 10 years for the amount of foreign tax included in the tax base of the business year that began before December 31, 2019. Article 11 (Applicability to Persons Liable to Pay Property Tax on Trust Property)
The amended provisions of Articles 106 (3), 107, and 119-2 shall begin to apply to where the liability to pay the tax arises on or after the date this Act enters into force. Article 12 (Special Cases concerning Imposition of Additional Taxes on Pro Rata Business Place Portion of Resident Tax)
Article 13 (Special Cases concerning Refund of Foreign Tax Paid Previously)
| (1) | Where a domestic corporation with foreign source income generated in the business year which commenced from January 1, 2014 to Dec. 31, 2019 selects a method of subtracting the foreign corporate tax amount from the the calculated tax amount for the relevant business year pursuant to Article 57 (1) 1 of the previous Corporate Tax Act (referring to the same Act before amended by the Act No. 17652) and the tax base for corporate local income tax for the relevant business year includes any foreign corporate tax, the difference between the corporate local income tax already paid for the relevant business year and the corporate local income tax for the relevant business year calculated by subtracting the foreign corporate tax from the tax base for corporate local income tax for the relevant business year may be refunded pursuant to Article 60 of the Local Tax Act. In such cases, where the amount of foreign corporate tax exceeds the tax base for corporate local income tax for the relevant business year, the excess amount may be carried forward to each business year that ends within 10 years from the first day of the business year following the relevant business year and may be subtracted when calculating the tax base for corporate local income tax for the business year in which it is carried forward. |
| (2) | Even if the period for a request for correction prescribed in Article 50 (1) of the Framework Act on Local Taxes expires before this Act enters into force, a domestic corporation that intends to obtain a refund under paragraph (1) may request the head of a local government having jurisdiction over the place for tax payment to make a correction by June 30, 2021. In such cases, the head of the local government requested to make a correction shall take measures under Article 50 (3) of the Framework Act on Local Taxes. |
| (3) | Where necessary for a refund under paragraph (1), the head of a local government having jurisdiction over the place for tax payment may require the relevant domestic corporation to submit data concerning the payment of tax paid in a foreign country for the relevant business year. |
Article 14 (Transitional Measures concerning Special Cases concerning Calculation of Tax Amount on House Rental Income)
Notwithstanding the amended provisions of Article 93 (12) 1 and 2, the previous provisions shall apply to the private rental housing of which registration was filed for before August 18, 2020. Article 15 (Transitional Measures concerning Additional Tax in Application of Appraised Value)
Notwithstanding the amended provisions of Article 103-9 (2), the previous provisions shall apply where the fact is verified by evidential documents that a sales contract was concluded and down payment was paid before this Act enters into force. Article 16 (Transitional Measures concerning Changes in Persons Liable to Pay Property Tax on Trust Property)
| (1) | Where a person becomes liable to pay property tax before this Act enters into force, the previous provisions shall apply notwithstanding the amended provisions of Article 107 (2) 5. |
Article 17 Omitted.
;
ADDENDA <Act No. 17893, Jan. 12, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 23 Omitted.
ADDENDA <Act No. 18294, Jul. 8, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability)
This Act shall begin to apply to the tax liability arising as of June 1, 2021.
Article 3 (Effective Period)
ADDENDA <Act No. 18544, Dec. 7, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022.
Article 2 (Effective Period of Local Consumption Tax)
The amended provisions of Article 71 (3) 4 (a) and (b) shall remain valid until December 31, 2026 from the enforcement date of this Act. Article 3 (Applicability to Local Consumption Tax)
The amended provision of Articles 69 and 71 shall begin to apply to the payment or refund made pursuant to the Value-Added Tax Act after this Act enters into force. Article 4 (Special Cases concerning Amounts of Local Consumption Tax)
Notwithstanding the amended provisions of Articles 69 (2) and 71 (3), the amount of local consumption tax from January 1, 2022 to December 31, 2022 shall be calculated by applying 237/1000 to the tax base under Article 69 (1). In such cases, 50/253 in the amended provisions of Article 71 (3) 1 shall be 50/237; 60/253 in the amended provisions of subparagraph 2 of the same paragraph shall be 60/237; 100/253 in the amended provisions of subparagraph 3 of the same paragraph shall be 100/237; 43/253 in the amended provisions of subparagraph 4 of the same paragraph shall be 27/237. Article 5 Omitted.
ADDENDA <Act No. 18655, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022: Provided, That the following amended provisions shall enter into force on the dates specified as follows:
| 1. | The amended provisions of Articles 10, 10-2 through 10-7, 11 (1) and (3), 12 (1), 15 (2) 1 through 3, 20 (1), 21 (1) and (3), 22-4, 27 (3), and 151 (1) 1: January 1, 2023; |
| 2. | The amended provisions of Article 146 (2) 3: January 1, 2024; |
Article 2 (General Applicability)
This Act shall begin to apply to the tax liability arising on or after the date this Act enters into force.
Article 3 (Applicability to Non-Taxation of Acquisition Tax on Inherited Vehicles)
The amended provisions of Article 9 (7) 2 shall also apply to where a registration for deletion is filed pursuant to the same subparagraph on or after the date this Act enters into force, for a vehicle for which three months have not passed since the commencement date of inheritance as at the time this Act enters into force. Article 4 (Applicability to Filing Tax Base Return of Local Income Tax by Non-Residents)
The amended provisions of Article 103-11 (3) shall begin to apply to filing a tax base return of local income tax on or after the date this Act enters into force. Article 5 (Applicability to Special Cases concerning Initial Date in Reckoning Extinctive Prescription of Right to Claim Refund of Local Income Tax)
The amended provisions of Article 103-59 (4) shall begin to apply to where the head of a tax office, etc. refunds income tax or corporate tax and notifies the head of a local government of such refund pursuant to Article 103-59 (1) 5 or (2) 5 on or after the date this Act enters into force. Article 6 (Applicability to Special Case concerning Application of Additional Tax)
The amended provisions of Article 103-61 (2) shall begin to apply to a report on modification filed on or after the date this Act enters into force or to a report filed after the deadline. Article 7 (Transitional Measures concerning Imposition of Property Tax on Buildings Constructed without Permission, etc.)
With regard to a building for which permission, etc. or approval for use (including approval for temporary use) has not been obtained but on which property tax was imposed as it is deemed housing in the year immediately before this Act enters into force; property tax shall be imposed on such building for a period when it is continuously used for residential purposes by deeming it as housing, notwithstanding the amended provisions of Article 106 (2) 2-2 and paragraph (3) of the same Article. Article 8 Omitted.
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022: Provided, That the following amended provisions shall enter into force on the dates specified as follows:
ADDENDA <Act No. 18957, Jun. 10, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
Articles 12 (Amendment of other Acts)
“Article 30 (3) of the Water Leisure Safety Act” among Article 8 (1) 5 shall be “Article 3 of the Act on Registration and Inspection of Water Leisure Equipment.” “Article 30 of the Water Leisure Safety Act” among Article 12 (1) 1 (a) shall be “Article 3 of the Act on Registration and Inspection of Water Leisure Equipment.” Article 13 Omitted.
ADDENDA <Act No. 19230. Mar. 14, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of each of the following subparagraphs shall enter into force from the date classified as follows:
| 1. | Amended provisions of Article 8 (1) 5: Jun. 11, 2023; |
| 3. | Amended provisions of Article 87 (1), Article 89 (3) 4, Article 93 (18), Articles 102-2 through Article 102-8, Article 103 (1), subparagraph 3 of Article 103-2, subpargraphs 12 and 13 of Article 103-3 (1), 103-3 (7), Article 103-8, Article 103-13 (2) through (6), Article 103-59 (1) 1 (a) and (b) and 5: January 1, 2025. |
Article 2 (General Applicability)
This Act shall begin to apply to cases where tax liability arises on or after the date this Act enters into force: Provided, That the amended provisions of the latter part of Article 7 (4), Article 7 (16), Article 92 (1), Article 93 (17), Article 103-3 (1) 8 and 9 and Article 103-20 (1) shall begin to apply to cases where tax liability arises after January 1, 2023. Article 3 (Applicability concerning Acquisition of Real Estate, etc. by Oligopolistic Shareholders )
The amended provisions of the former part of Article 7 (5) shall begin to appply to the acquisition of stocks or shares of a corporation after this Act enters into force. Article 4 (Applicability concerning Tax Rates for Real Estate Acquisition Following Corporate Merger or Division)
The amended provisions of Article 11 (5) shall begin to apply to the acquisition of real eatate following corporate merger or division after this Act enters into force. Article 5 (Applicability concerning Deduction and Refund of Additional Tax Added to Tobacco Consumption Tax)
The amended provisions of the proviso to Article 63 (1) shall also apply to the additional tax which was paid or is to be paid by a taxpayer before this Act enters into force. Article 6 (Applicability concerning Local Income Tax Amount of Consolidated Corporation)
The amended provisions of Article 85 (1) 15 and the proviso to Article 103-37 (5) shall begin to apply to a business year that commences after January 1, 2024. Article 7 (Applicability concerning Installment Payment of Personal Local Income Tax)
The amended provisions of the latter part of Article 93 (7) and Article 95 (4) shall begin to apply to a report (excluding revised report) on trading profit rates of land, etc. or final report on comprehensive income or retirement income (excluding revised report) after January 1, 2023. Article 8 (Applicability concerning Disaster Loss Tax Deduction of Corporate Local Income Tax)
The amended provisions of Article 103-65 shall begin to apply to a report (excluding revised report) on tax based rate of the corporate local income tax after January 1, 2023. Article 9 (Applicability concerning Special Cases on Imposition of Additional Tax on Resident Tax Business Division)
The amended provisions of Article 12 of the Addenda to a partially amended Local Tax Act (No. 17769) shall begin to apply, beginning on January 1, 2023. Article 10 (Transitional Measures concerning Collection of Tobacco Consumption Tax on Cigaretts Taken out with Arrear of Tax)
Where cigaretts which fell under the previous provisions of subparagraph 1 (c) of Article 53 and were taken out before this Act enters into force are intended to be taken out in another manufacturing site or bonded area after this Act enters into force, the previous provisions shall govern, notwithstanding the amended provisions of Article 53 (1) 1 (c). Article 11 (Transitional Measures concerning Change of Personal Local Income Tax Rate on Comprehensive Income)
With regard to tax rates (including cases where the personal local tax rates are applied pursuant to Article 92 (4), 93 (3), 93 (4) 2 (b), 103-3 (1) 1, (3) and (5), (6) 1 and (10)) of the personal local income tax on comprehensive income in the taxable year which commences before January 1, 2023, the previous provisions shall govern, notwithstanding the amended provisions of Article 92 (1) Article 12 (Transitional Measures concerning Tax Calculation following Transfer of Stocks, Derivatives, etc.)
Where stocks and derivatives, etc. are transferred before January 1, 2025, with regard to the tax calculation of the personal local income tax on income accuring from transfer, the previous provisions shall govern, notwithstanding the amended provisions of Article 103 (1), subparagraph 3 of Article 103-2, Article 103-3 (1) 12 and 13, 103-3 (7) and 103-8. Article 13 (Transitional Measures concerning Change of Personal Local Income Tax Rate on Incomes Accruing from Transfer)
With regard to the personal local income tax rate on incomes accruing from transfer before January 1, 2023, the previous provisions shall govern, notwithstanding the amended provisions of Article 103-3 (1) 8 and 9. Article 14 (Transitional Measures concerning Change of Corporate Local Income Tax Rate on Incomes of Business year)
With regard to the tax rate of the corporate local income tax on incomes of the business year of a domestic corporation which commences before January 1, 2023, the previous provisions shall govern, notwithstanding the amended provisions of Article 103-20 (1) and the proviso to Article 2 of the Addenda. Article 15 (Transitional Measures concerning Abolition of Housing Tax Burden Ceiling System)
With regard to a house on which the housing tax was imposed before the enforcement of the amended provisions of Article 122, the previous provisions shall govern until December 31, 2028, notwithstanding the amended provisions of Article 122. Article 16 (Amendment of other Acts)
| (2) | Part of the Comprehensive Real Estate Tax Act shall be amended as follows: |
The proviso to subparagraph 3 of Article 2 is deleted.
ADDENDA <Act No. 19430. Jun. 9, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation. <Proviso Omitted>
Articles 2 through 20 Omitted.
Article 21 (Amendment of other Acts)
“National balanced development special accounting” in the former part of Article 71 (3) 3 (a) shall be “regional balanced development special accounting.” Article 22 Omitted.
ADDENDA <Act No. 19634, Aug. 16, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
Article 7 (Amendment of other Acts)
“Local Financial Burden Deliberation Committee” shall be “Local Finance Management Committee.”