ENFORCEMENT DECREE OF THE LOCAL TAX ACT
Wholly Amended by Presidential Decree No. 22395, Sep. 20, 2010
Amended by Presidential Decree No. 22424, Oct. 1, 2010
Presidential Decree No. 22449, Oct. 14, 2010
Presidential Decree No. 22467, Nov. 2, 2010
Presidential Decree No. 22586, Dec. 30, 2010
Presidential Decree No. 22605, Dec. 31, 2010
Presidential Decree No. 22880, Apr. 6, 2011
Presidential Decree No. 22942, May 30, 2011
Presidential Decree No. 23482, Dec. 31, 2011
Presidential Decree No. 23535, Jan. 25, 2012
Presidential Decree No. 23711, Apr. 10, 2012
Presidential Decree No. 23718, Apr. 10, 2012
Presidential Decree No. 23947, Jul. 10, 2012
Presidential Decree No. 23966, Jul. 20, 2012
Presidential Decree No. 23993, Jul. 26, 2012
Presidential Decree No. 24296, Jan. 1, 2013
Presidential Decree No. 24425, Mar. 23, 2013
Presidential Decree No. 24502, Apr. 22, 2013
Presidential Decree No. 24563, May 31, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 24890, Dec. 4, 2013
Presidential Decree No. 25085, Jan. 1, 2014
Presidential Decree No. 25249, Mar. 11, 2014
Presidential Decree No. 25252, Mar. 14, 2014
Presidential Decree No. 25279, Mar. 24, 2014
Presidential Decree No. 25317, Apr. 22, 2014
Presidential Decree No. 25448, Jul. 7, 2014
Presidential Decree No. 25456, Jul. 14, 2014
Presidential Decree No. 25485, Jul. 18, 2014
Presidential Decree No. 25545, Aug. 12, 2014
Presidential Decree No. 25700, Nov. 4, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25910, Dec. 30, 2014
Presidential Decree No. 26302, jun. 1, 2015
Presidential Decree No. 26290, jun. 1, 2015
Presidential Decree No. 26369, jun. 30, 2015
Presidential Decree No. 26438, Jul. 24, 2015
Presidential Decree No. 26431, Jul. 24, 2015
Presidential Decree No. 26763, Dec. 28, 2015
Presidential Decree No. 26836, Dec. 31, 2015
Presidential Decree No. 26858, Jan. 6, 2016
Presidential Decree No. 26916, Jan. 19, 2016
Presidential Decree No. 26928, Jan. 22, 2016
Presidential Decree No. 27102, Apr. 26, 2016
Presidential Decree No. 27245, jun. 21, 2016
Presidential Decree No. 27431, Aug. 2, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27473, Aug. 31, 2016
Presidential Decree No. 27472, Aug. 31, 2016
Presidential Decree No. 27471, Aug. 31, 2016
Presidential Decree No. 27621, Nov. 29, 2016
Presidential Decree No. 27619, Nov. 29, 2016
Presidential Decree No. 27710, Dec. 30, 2016
Presidential Decree No. 27793, Jan. 17, 2017
Presidential Decree No. 27959, Mar. 27, 2017
Presidential Decree No. 27958, Mar. 27, 2017
Presidential Decree No. 27972, Mar. 29, 2017
Presidential Decree No. 27971, Mar. 29, 2017
Presidential Decree No. 28211, Jul. 26, 2017
Presidential Decree No. 28366, Oct. 17, 2017
Presidential Decree No. 28524, Dec. 29, 2017
Presidential Decree No. 28583, Jan. 16, 2018
Presidential Decree No. 28586, Jan. 16, 2018
Presidential Decree No. 28627, Feb. 9, 2018
Presidential Decree No. 28686, Feb. 27, 2018
Presidential Decree No. 28714, Mar. 27, 2018
CHAPTER I GENERAL PROVISIONS
The purpose of this Decree is to provide for the matters mandated by the Local Tax Act and other matters necessary for the enforcement thereof.
| Article 2 (Standard Market Prices for Land and Houses) |
| Article 3 (Calculated Values of Multi-Family Housing Prices not Publicly Announced) |
"Standards prescribed by Presidential Decree" in the proviso to Article 4 (1) of the Act means standards prescribed by the Minister of the Interior and Safety, considering characteristics by region, complex, area, and floor, transaction prices, and other relevant matters. In such cases, the Minister of the Interior and Safety shall hear from the relevant experts in advance. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
| Article 4 (Determination, etc. of Standard Market Prices for Buildings, etc.) |
| (1) | "Standards prescribed by Presidential Decree" in Article 4 (2) of the Act means standards prescribed by the Minister of the Interior and Safety according to the following methods, considering specific characteristics by taxable objects: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (a) | Indices by the structure, uses, and location of the building; |
| (b) | A residual value rate determined by the number of elapsed years of the building; |
| (c) | A markup and markdown rate based on the size and shape of the building, on whether special auxiliary facilities, etc. are deployed, and on other circumstances; |
| 2. | Ships: Apply the following items to the sum of values calculated by applying the relevant tonnage in turn to the standard price differentiated according to the classification of tonnage, considering the type, use and building cost of a ship: |
| (a) | A residual value rate determined by the number of years elapsed of a ship; |
| (b) | A markup and markdown rate based on whether a rapid cooling system, etc. exists; |
| 3. | Vehicles: Apply the residual value rate determined by the number of years elapsed of a vehicle to the standard price determined based on the manufacturer's price (referring to the import price, where such vehicle is imported), transaction price, etc. of the vehicle according to its type, passenger capacity, maximum loading capacity, and the year of production; |
| 4. | Mechanical equipment: Apply the residual value rate determined by the number of years elapsed of mechanical equipment to the standard price determined based on the manufacturer's price (referring to the import price, where such mechanical equipment is imported), transaction price, etc. of the vehicle based on its type, tonnage, type, and the year of production; |
| 5. | Standing timber: Apply the volume and the number of the standing timber to the standard value determined based on the transaction prices, etc. by type and age of the standing timber; |
| 6. | Aircraft: Apply the residual value rate determined by the number of years elapsed of the aircraft to the standard price determined based on the manufacturer's price (referring to the import price, where such aircraft is imported), transaction price, etc. of the aircraft based on its type, type, manufacturer, passenger capacity, maximum takeoff weight, and the year of production; |
| 7. | Mining rights: Subtract the acquisition cost of machinery and facilities, and the relocation cost, etc. of mechanical facilities of the relevant mine from the standard price determined based on the volume of a mineral deposit in the mine, the net import price of the mineral per ton, expenses to be incurred in the establishment of a mining right, costs spent on mining facilities and the transaction price of a neighboring mine, etc.; |
| 8. | Fishing rights: The consideration of the type of fishing, the location of a fishing ground, fishing gear or devices, fishing methods, catches, farmed fish, the valid period of a fishing permit, etc. shall be given to the standard price determined based on transaction prices in a neighboring fishing ground of the same type, installation costs of fishing gear, etc; |
| 9. | Golf club membership, riding club membership, condominium membership, sports complex membership, and yacht club membership: The consideration of the standard market price, etc. under the Income Tax Act shall be given to the standard price determined based on the sale and transaction prices; |
| 10. | Facilities fixed to the ground, or installed underground or in any other structure: Calculation of their value based on the use, structure, scale, etc. of such facilities based on the standard price determined in consideration of costs required for the new construction of such facilities by type, and then application of the residual value rate determined by the number of years elapsed of the facilities to the value so calculated; |
| 11. | Facilities annexed to a building: Calculation of their value considering the use, shape, performance, scale, etc. of such facilities based on the standard price determined based on the manufacturer's price (referring to the import price, where such facilities are imported), transaction price, installation costs, etc. by type, and then application of the residual value rate determined by the number of years elapsed of the facilities to the value so calculated. |
| (2) | In applying the standard market price of facilities annexed to a building under paragraph (1) 11 (hereafter referred to as "facilities" in this paragraph), where such facilities are annexed to a building used for both residential and non-residential purposes, the standard market price under paragraph (1) 11 shall be applied proportionally according to the ratio of residential occupation and non-residential occupation in the total floor area of the building. |
| (3) | The standard market prices of buildings, ships, aircraft, and other taxable objects under Article 4 (2) of the Act shall be calculated 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 referred to as "the head of the relevant Si/Gun/Gu") as of January 1 of each year according to the standards prescribed by the Minister of the Interior and Safety under paragraph (1) and determined directly by the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or determined by the head of the relevant Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor) with approval thereof from the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor (hereafter referred to as "Do Governor" in this Article): Provided, That, if it is deemed unreasonable to apply the already-determined standard market prices due to price fluctuations or any other reason, the competent Do Governor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor may determine to change the relevant standard market prices with approval thereof from the Minister of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | If a Do Governor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor deems necessary in approving standard market prices or in determining to change standard market prices under paragraph (3), he/she may consult with the head of the competent regional tax office thereon. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (5) | Where the Minister of the Interior and Safety deems it necessary to adjust the standard market prices determined under the main sentence of paragraph (3), he/she may establish standards for adjustment after consulting with the Commissioner of the National Tax Service thereon and may notify the competent Do Governor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor thereof. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (6) | A Do Governor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor shall notify the head of the competent district court of the standard market prices approved or changed under paragraph (3). <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (7) | The standard market prices determined under the main sentence of paragraph (3) shall be publicly announced by the head of the relevant Si/Gun/Gu, while the standard market prices changed under the proviso to the same paragraph shall be publicly announced by the competent Do Governor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor so that the general public can inspect them. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (8) | When the Minister of the Interior and Safety intends to determine or approve standards for standard market prices under paragraph (1), (3) or (5), he/she shall hear opinions of relevant experts. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (9) | "A related specialized institution specified by Presidential Decree" in Article 4 (3) of the Act means any of the following institutions or organizations: <Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27472, Aug. 31, 2016; Presidential Decree No. 27473, Aug. 31, 2016; Presidential Decree No. 27958, Mar. 27, 2017> |
| 2. | The Korea Appraisal Board under the Korea Appraisal Board Act; |
| (10) | When the Minister of the Interior and Safety intends to authorize an institution referred to in paragraph (9) 2 or 3 to conduct a survey or research in order to determine standards for standard market prices for taxable objects specified in paragraph (1) (excluding subparagraph 1), he/she shall require such institution to conduct the survey or research jointly with the institution referred to in paragraph (9) 1. <Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
CHAPTER II ACQUISITION TAX
SECTION 1 Common Provisions
| Article 5 (Scope of Facilities) |
| (1) | Leisure facilities, storage facilities, docking facilities, berthing facilities, conduit facilities, water supply/drainage facilities, and energy supply facilities referred to in subparagraphs 4 and 6 (b) of Article 6 of the Act mean the following facilities: <Amended by Presidential Decree No. 25058, Jan. 1, 2014> |
| 1. | Leisure facilities: A swimming pool, ice rink, golf driving range (limited to a golf driving range with at least 20 stroke places which is reported as a golf driving range business under the Installation and Utilization of Sports Facilities Act), observatory, outdoor stand, or outdoor amusement facilities in resorts (including those installed inside or on the rooftop of a building, and similar to outdoor amusement facilities in resorts); |
| 2. | Storage facilities: Outdoor storage facilities, such as a water tank, oil reservoir, silo, and storage tank (including those which temporarily function as a storage and are closely connected with other facilities); |
| 3. | Docking facilities and berthing facilities: Docks and ship ways; |
| 4. | Conduit facilities (including coupling facilities): Oil pipelines, gas pipes, or heat transmission pipes; |
| 5. | Water supply and drainage facilities: Water pipes (including coupling facilities), water supply and drainage facilities, and cover facilities; |
| 6. | Energy supply facilities: Oil filling or gas charging facilities, or power transmission pylons (excluding those for transmitting less than 200,000 volts and those relocated or installed at the request of residents under Article 72 of the Electric Utility Act). |
| (2) | "Other structures or facilities prescribed by Presidential Decree" in subparagraph 4 or 6 (b) of Article 6 of the Act means piers (including structures similar thereto), mechanical or pre-fabricated steel-frame parking facilities, automatic washing or cleaning facilities for vehicles, mechanical equipment, etc., broadcasting relay towers (excluding relay towers for overseas broadcasting and social education broadcasting required by the State pursuant to Article 54 (1) 5 of the Broadcasting Act), and towers for radio communications base stations, respectively. <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25545, Aug. 12, 2014> |
| Article 6 (Types and Scope of Facilities) |
"Facilities prescribed by Presidential Decree" in subparagraph 6 (c) of Article 6 of the Act means the following facilities: <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25545, Aug. 12, 2014> | 1. | Lifts (elevators, escalators, and other lift equipment); |
| 2. | Power generators generating at least 20 kilowatts per hour; |
| 3. | Hot water or heat supply facilities for heating or bathing; |
| 4. | Air-conditioners of at least 7,560 kilo-calories per hour (limited to centrally controlled air-conditioners); |
| 6. | Telephone switchboards; |
| 7. | Intelligent building systems installed for automatic control of the heating, cooling, water supply and drainage, fire and burglar prevention facilities; |
| 8. | Power transmission and distribution facilities installed within a building or structure. |
| Article 7 (Scope of Vehicles Equipped with Motors) |
| (1) | "All vehicles equipped with a motor" in subparagraph 7 of Article 6 of the Act means all kits manufactured for traveling on land using a motor (excluding two-wheel automobiles with an engine displacement of 50 cc or less). <Amended by Presidential Decree No. 23482, Dec. 31, 2011> |
| Article 8 (Scope of Resort Facilities Similar to Condominium) |
| Article 9 Deleted. <by Presidential Decree No. 22586, Dec. 30, 2010> |
| Article 10 (Registration in Property Tax Ledger) |
The head of a Si/Gun/Gu who has imposed acquisition tax on the change of land category pursuant to Article 7 (4) of the Act shall record the changes of land category in the property tax ledger, and notify interested parties thereof. <Amended by Presidential Decree No. 27710, Dec. 30, 2010>
| Article 11 (Acquisition, etc. of Oligopolistic Stockholders) |
| (1) | Where a stockholder or partner with limited liability who is not an oligopolistic stockholder (referring to an oligopolistic stockholder under subparagraph 2 of Article 46 of the Framework Act on Local Taxes; hereinafter the same shall apply) of a corporation becomes an oligopolistic stockholder for the first time by acquiring stocks or equities (hereinafter referred to as "stocks, etc.") of any other stockholder or partner with limited liability or by increasing capital, such stockholder or partner with limited liability shall be deemed to have acquired all stocks, etc. of the corporation which he/she owns as the relevant oligopolistic stockholder as of the date on which he/she becomes the relevant oligopolistic stockholder for the first time, and acquisition tax shall be imposed on him/her pursuant to Article 7 (5) of the Act. <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 27958, Mar. 27, 2017> |
| (2) | Where the ratio of stocks, etc. issued by a corporation and held by a stockholder or limited partner who has already become an oligopolistic stockholder to the total amount of stocks, etc. of the corporation (hereafter referred to as "ratio of stocks, etc." in this Article) increases when the oligopolistic stockholder acquires stocks, etc. of the corporation additionally, acquisition tax shall be imposed on the increase under Article 7 (5) of the Act, regarding the increase as acquisition: Provided, That no acquisition tax shall be imposed if the ratio of stocks, etc. after such increase is not higher than the highest ratio of stocks, etc. held by the oligopolistic stockholder previously. <Amended by Presidential Decree No. 26836, Dec. 31, 2015> |
| (3) | Where a person who lost the status as an oligopolistic stockholder due to the transfer of stocks, etc., capital increase in the relevant corporation or any other event and consequently became a non-oligopolistic stockholder or a limited partner becomes an oligopolistic stockholder again by acquiring stocks, etc. of the relevant corporation, acquisition tax shall be imposed in the same manner prescribed in paragraph (2) on such person for the increase in stocks, etc., only where the ratio of stocks, etc. held by the person as at the time the person becomes an oligopolistic stockholder again is higher than the ratio of stocks previously held by the same person as an oligopolistic stockholder, deeming that the person has acquired stocks, etc. only by the increased number of stocks, etc. <Amended by Presidential Decree No. 28524, Dec. 29, 2017> |
| (4) | The head of a Si/Gun/Gu who has verified the data on acquisition taxation for an oligopolistic stockholder under Article 7 (5) of the Act shall, if the object of taxation of the oligopolistic stockholder is in a different Special Self-Governing City, Do, or Special Self-Governing Province, Si/Gun/Gu (referring to an autonomous Gu; hereinafter referred to as "Si/Gun/Gu"), without delay, notify the head of the Si/Gun/Gu having jurisdiction over the object of taxation, of the ratio of the stocks, etc. of the oligopolistic stockholder, the object of taxation, the details of the price, and other materials necessary for levying acquisition tax. <Amended by Presidential Decree No. 27710, Dec. 30, 2010> |
| Article 11-2 (Scope of Transferable Status of Trustor Without Change in Ownership) |
| 2. | Where there is no actual change in the ownership of trust property, even after the status as a trustor has been transferred in a case similar to those referred to in subparagraph 1. |
[This Article Wholly Amended by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 12 (Proportion Distribution Standards for Acquisition Tax) |
Where one and the same article acquired under Article 8 (3) of the Act is located in an area which falls within the jurisdiction of two or more Sis/Guns/Gus, the tax base for computing acquisition tax to be paid to each Si/Gun/Gu shall be calculated by dividing the value of such acquisition as at the time of acquisition by the ratio of the standard market price of the acquired article to the portion located in each Si/Gun/Gu. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
| Article 12-2 (Limits of Exemption from Acquisition Tax on Improvement of Multi-Family Housing) |
"Housing unit with a value not higher than the price prescribed by Presidential Decree" in Article 9 (6) of the Act means a house the standard market price of which is not more than 900 million won at the time of acquisition resulting from improvement. <Amended by Presidential Decree No. 24296, Jan. 1, 2013> [This Article Newly Inserted by Presidential Decree No. 22586, Dec. 30, 2010]
| Article 12-3 (Scope of Vehicles Eligible for Exemption from Acquisition Tax) |
| (2) | A person who wishes to be exempt from the tax under Article 9 (7) of the Act shall apply for the exemption to the head of the relevant Si/Gun/Gu with documents that prove the grounds therefor. |
[This Article Newly Inserted by Presidential Decree No. 27710, Dec. 30, 2016]
SECTION 2 Tax Bases and Tax Rates
| Article 13 (Imposition on Current State as at Time of Acquisition) |
Unless otherwise specifically provided for in this Decree, acquisition tax shall be imposed on any real estate, vehicle, mechanical equipment, or aircraft based on the de facto status as at the time of acquisition of the relevant article: Provided, That where the de facto status as at the time of acquisition is unclear, acquisition tax shall be imposed based on the status registered on the tax ledger.
| Article 14 Deleted. <by Presidential Decree No. 27444, Aug. 11, 2016> |
| Article 15 (Change of Types of Ships, Vehicles, etc.) |
Changes in the types of ships, vehicles and mechanical equipment pursuant to the former part of Article 10 (3) of the Act means changes in the material, use, engine, passenger capacity or maximum carrying capacity of a ship, or changes in the motor, passenger capacity, maximum loading capacity or car-body of a vehicle or mechanical equipment.
| Article 16 (Tax Base for Expansion, etc.) |
"Standard market price prescribed by Presidential Decree" in the latter part of Article 10 (3) of the Act means the value classified as follows: <Amended by Presidential Decree No. 27710, Dec. 30, 2016> | 1. | Where a person liable to pay acquisition tax or a person who has traded the acquired article with the said person has related books or other evidentiary documents: The value calculated based on the said books or documents; |
| 2. | Where the related books and other evidentiary documents referred to in subparagraph 1 are not retained, or the amount of acquisition expenses falls short of the value computed by the head of the relevant Si/Gun/Gu, based on material costs, labor costs, and any other expenses, etc. incurred for acquisition which are deemed generally incurred in acquiring an article similar to the relevant acquired article: The value computed by the head of the relevant Si/Gun/Gu; |
| 3. | Where land category is changed, notwithstanding subparagraphs 1 and 2: The value under Article 17. |
| Article 17 (Tax Base for Change of Land Categories) |
The tax base for change of land categories, among the tax bases under the former part of Article 10 (3) of the Act, shall be the value calculated by subtracting the value under subparagraph 2 from the value under subparagraph 1 as at the time the land category is actually changed: Provided, That where expenses incurred in changing land category is proven by a court ruling or accounting books of a corporation under Article 18 (3), such expenses shall be the tax base: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 27471, Aug. 31, 2016; Presidential Decree No. 27710, Dec. 30, 2016> | 1. | The standard market price of the land after the change of its category (referring to the value determined by the head of a Si/Gun/Gu by using the standard comparison table of land prices provided by the Minister of Land, Infrastructure and Transport pursuant to the Act on the Public Announcement of Real Estate Values, based on the values of neighboring similar land, where the reference date of public announcement of the officially assessed individual price of the relevant land is earlier than the date of acquisition due to the change of the land category); |
| 2. | The standard market price of the land before the change of its category (referring to the standard market price under Article 4 (1) of the Act publicly announced as at the commencement date of construction for the change of the land category). |
| Article 18 (Scope, etc. of Acquisition Prices) |
| (1) | An acquisition price or amount of annual installments provided for in any subparagraph of Article 10 (5) shall be the sum of direct costs paid or to be paid by parties to transactions or third parties before the acquisition of the relevant article and any of the following indirect costs: Provided, That where a certain amount of the acquisition price is discounted by paying it in a lump sum, etc., such discounted amount shall be the acquisition price or amount of annual installments: <Amended by Presidential Decree No. 22942, May 30, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26369, Jun. 30, 2015; Presidential Decree No. 27102, Apr. 26, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Interest on borrowed money appropriated for construction funds, or financial costs similar thereto; |
| 2. | Amounts equivalent to interest under a contract in installments or annual installments and late payment charges: Provided, That where a person, other than a corporation, acquires relevant articles, such acquired amount shall be excluded from the acquisition price; |
| 3. | Expenses to be borne compulsorily pursuant to the relevant statutes, such as farmland preservation charges under the Farmland Act, expenses incurred in creating substitute forest resources under the Mountainous Districts Management Act, and any other charges; |
| 4. | Service charges and fees paid in return for the provision of services necessary for acquisition; |
| 5. | Conditional charges to be borne by an acquirer under agreements between parties and the amount of receivables acquired, in addition to the acquisition price; |
| 6. | A loss incurred in selling national housing bonds purchased in accordance with Article 8 of the Housing and Urban Fund Act in order to acquire real estate but sold before acquiring the relevant real estate. If such bonds are transferred to any person other than a financial company, etc. specified by Ordinance of the Ministry of the Interior and Safety (hereafter referred to as "financial company, etc." in this Article) in such cases, the loss shall be limited to a loss incurred in the sale when such bonds are transferred to a financial company on the same day; |
| 7. | Expenses equivalent to those under subparagraphs 1 through 6. |
| (2) | Notwithstanding the provisions of paragraph (1), none of the following expenses shall be included in acquisition prices: |
| 1. | Sales expenses, such as advertising expenses for the sale of articles to be acquired, and expenses incidental thereto; |
| 3. | Expenses incurred in providing compensation for a right different from acquired articles, such as moving expenses, compensation for obstructions, etc.; |
| 5. | Expenses equivalent to those under subparagraphs 1 through 4. |
| (3) | "Whichever prescribed by Presidential Decree" in Article 10 (5) 3 of the Act means any of the following cases: <Amended by Presidential Decree No. 24296, Jan. 1, 2013; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27472, Aug. 31, 2016; Presidential Decree No. 27710, Dec. 30, 2016> |
| 1. | Court rulings: Court rulings which become final and conclusive by civil or criminal procedures (excluding those made by compromise, renunciation, admission and consent, or constructive admission); |
| 2. | Books of accounts of a corporation: Ledgers, supplementary books of accounts, slips for receipts and disbursements, and financial reports prepared by a corporation on the basis of objective evidentiary documents, such as details of financial transactions of a financial company or appraisal reports under Article 6 of the Act on Appraisal and Certified Appraisers: Provided, That, if the acquisition value of a used motor vehicle or a used machine in the descriptions of the books of accounts of a corporation is lower than the standard market price specified by Article 4 (2) of the Act, the acquisition value shall be excluded from the corporation's books of accounts in which the acquisition values are proved by objective evidentiary documents (excluding cases where the head of the relevant Si/Gun/Gu recognizes that the value of a used motor vehicle or a used machine has decreased to an amount lower than the standard market price due to a natural disaster, fire, traffic accident, or any other cause). |
| (4) | If the sum of the amounts paid or to be paid (hereafter referred to as "actually paid amount" in this paragraph) in order to acquire a parcel of real estate is less than the sale or supply price (referring to the sale or supply price agreed between the seller or supplier and the person who made the initial sale or supply contract), where a person to whom another person transferred his/her right to acquire the parcel of real estate acquires the parcel of real estate by the method referred to in any subparagraph of Article 10 (5) of the Act, the acquisition value calculated in accordance with paragraph (1) or (2) on the basis of the actually paid amount of the person who acquires the parcel of real estate shall be regarded as the tax base: Provided, That this shall not apply to acquisition through a transaction with a related person defined by Article 101 (1) of the Income Tax Act or Article 52 (1) of the Corporate Tax Act. <Newly Inserted by Presidential Decree No. 27102, Apr. 26, 2016> |
| (5) | "Price of acquisition calculated, as prescribed by Presidential Decree" in Article 10 (6) of the Act means the sum of the following amounts: <Amended by Presidential Decree No. 22942, May 30, 2011; Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 26369, Jun. 30, 2015; Presidential Decree No. 27102, Apr. 26, 2016> |
| 1. | An amount evidenced by the accounting books of a corporation under paragraph (3) 2; |
| 3. | A loss incurred in selling national housing bonds purchased in accordance with Article 8 of the Housing and Urban Fund Act in order to acquire real estate but sold before acquiring the relevant real estate. If such bonds are transferred to any person other than a financial company, etc. in such cases, the loss shall be limited to a loss incurred in the sale when such bonds are transferred to a financial company on the same day. |
| Article 19 (Blanket Acquisition of Land, etc.) |
| (1) | Where the acquisition prices of land and a building, etc. are not divided due to the blanket acquisition thereof, the respective acquisition price shall be determined by the amount calculated by dividing the blanket acquisition price by the rate of the standard market price of the land or building, etc. |
| (2) | Notwithstanding paragraph (1), where a house, a building, and the land appurtenant thereto are acquired in a package, the acquisition price for the portion of the house and the acquisition price for the rest of the property, exclusive of the house, shall be calculated separately by the following formulas: Provided, That if the acquisition price for the portion of the house and the acquisition price for the rest of the property, exclusive of the house, are identifiable separately in the cases of acquisition under Article 19 (5) 1 through 4 of the Act, such identifiable prices shall apply as acquisition prices: <Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015> |
| Total acquisition price ? [Standard market price for the portion of the house among the buildings (referring to the standard market price under Article 4 (2) of the Act; hereafter the same shall apply in this paragraph) + Standard market price for the portion of the house out of the land appurtenant thereto (referring to the standard market price for land under Article 4 (1) of the Act; hereafter the same shall apply in this paragraph)]/Standard market price for all the buildings and the land appurtenant thereto |
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| Total acquisition price ? [(Standard market price for the rest of buildings, exclusive of the house) + (Standard market price for the land appurtenant to the buildings, exclusive of the land appurtenant to the house)]/Standard market price for all buildings and the land appurtenant thereto |
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| (3) | Notwithstanding paragraphs (1) and (2), where a person acquires a house and non-residential buildings at the same time as a result of new construction or extension, the acquisition price for the portion of the house and the acquisition price for the portion of the non-residential buildings shall be separately calculated by the following formulas: <Newly Inserted by Presidential Decree No. 27710, Dec. 30, 2016> |
| Total Acquisition price ? Total floor area of the house, among the buildings/Total floor area of all buildings |
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| 2. | Portion of non-residential buildings: |
| Total Acquisition price ? Total floor area of non-residential buildings/Total floor area of all buildings |
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| (4) | In the cases falling under paragraph (1), if taxable objects have no standard market prices, the respective acquisition price shall be determined by the amount calculated by dividing the appraised value of land and a building, etc. by the rate determined by the head of the relevant Si/Gun/Gu. <Amended by Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 20 (Timing, etc. of Acquisition) |
| (1) | In the case of acquisition by gratuitous succession, the acquisition shall be deemed to take effect on the contract date (referring to the commencement date of inheritance or bequest, in the case of acquisition by inheritance or bequest): Provided, That where the cancellation of the relevant contract is evidenced by any of the following documents without registering the relevant acquired articles, such articles shall be deemed not acquired: <Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | A protocol of compromise or a protocol of recognition and acceptance (limited to cases where the relevant protocol demonstrates that the contract was cancelled within 60 days); |
| 2. | A notarial deed (including privately certificates authenticated by a notary, but limited to those notarized within 60 days from the acquisition date); |
| 3. | A report on the cancellation of a contract in the form prescribed by Ordinance of the Ministry of the Interior and Safety (limited to those submitted within 60 days from the acquisition date). |
| (2) | In the case of acquisition by succession for value, the acquisition shall be deemed to take effect on the date stipulated in the following: <Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 27793, Jan. 17, 2017; Presidential Decree No. 28211, Jul. 26, 2017> |
| 2. | In the case of acquisition by succession for value which does not fall under subparagraph 1: The date on which the remainder shall be paid as specified in the contract (referring to the date on which 60 days have elapsed from the contract date where the payment date of the remainder is not specified in the contract): Provided, That where the cancellation of the relevant contract is evidenced by any of the following documents without registering the relevant acquired articles, such articles shall be deemed not acquired: |
| (a) | A protocol of compromise or a protocol of recognition and acceptance (limited to cases where the relevant protocol demonstrates that the contract was cancelled within 60 days from the acquisition date); |
| (b) | A notarial deed (including privately certificates authenticated by a notary, but limited to those notarized within 60 days from the acquisition date); |
| (c) | A report on the cancellation of a contract in the form prescribed by Ordinance of the Ministry of the Interior and Safety (limited to those submitted within 60 days from the acquisition date); |
| (d) | A report on the cancellation, etc. of a contract for a real estate transaction under statutes concerning the reporting of transactions of real estate (limited to cases where such report is submitted to the registering authority within 60 days from the acquisition date). |
| (3) | In the case of a vehicle, mechanical equipment, aircraft, or custom-built ship, the date on which it is handed over to the actual end user after completion of its manufacture, assembly, or building, etc., or the payment date of the remainder as specified in the contract, whichever comes first shall be deemed the initial date of acquisition by succession. |
| (4) | With respect to acquisition by importation, the date on which the relevant article is brought into the Republic of Korea (referring to the issuance date of the import declaration certificate in the case of articles passing through a bonded area) shall be deemed the date of acquisition: Provided, That where an actual end user of a vehicle, mechanical equipment, aircraft or ship exists, the date on which the actual end user acquires either of them, or the payment date of the remainder as specified in the contract, whichever comes first shall be deemed the initial date of acquisition by succession; where an imported article is not brought into the Republic of Korea, or is directly used in a foreign country without having passed through a bonded area, for the convenience of the acquirer, the registration date of the imported article is deemed the date of its acquisition. |
| (5) | Anything acquired in annual installments (excluding those, the total acquisition value of which is subject to Article 17 of the Act) shall be deemed acquired on the date of actual payment of its annual installments. |
| (6) | Where a building is acquired through construction or repair, the date on which approval for use is granted (referring to the approval date of temporary use where approval for temporary use has been obtained before the approval for use is granted; referring to the date on which the building becomes ready for actual use in the case of buildings for which it is impossible to obtain approval for use or approval for temporary use), or the date of actual use, whichever comes first shall be deemed the date of its acquisition: Provided, That where a person acquires a house built as part of an urban development project undertaken pursuant to the Urban Development Act or an improvement project under the Act on the Improvement of Urban Areas and Residential Environments (limited to a redevelopment project or an urban environment improvement project) through the disposal of land replotted under Article 40 of the Urban Development Act or the transfer of ownership under Article 86 of the Act on the Improvement of Urban Areas and Residential Environments, the day immediately following the date of public announcement of the disposal of replotted land or the date of public notification of the transfer of ownership or the date of de facto commencement of use, whichever comes earlier, shall be deemed the date of acquisition. <Amended by Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 28627, Feb. 9, 2018> |
| (7) | Where a housing association, established pursuant to Article 11 of the Housing Act, acquires any parcel of land that does not belong to its members, while implementing a housing construction project, out of the land acquired from its members, such land shall be deemed to be acquired on the date on which it passes an inspection for use under Article 49 of the Housing Act; whereas, if a reconstruction association, established under Article 35 (3) of the Act on the Improvement of Urban Areas and Residential Environments or a small-scale reconstruction association, established pursuant to Article 23 (2) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement acquires any parcel of land that does not belong to its members, while implementing a reconstruction project or a small-scale reconstruction project, out of the land acquired from its members, such land shall be deemed to be acquired on the day immediately following the date of public notification of the transfer of ownership under Article 86 (2) of the Act on the Improvement of Urban Areas and Residential Environments or Article 40 (2) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement. <Amended by Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 27444, Aug. 11, 2016; Presidential Decree No. 28627, Feb. 9, 2018> |
| (8) | Where any land is originally acquired through landfill, reclamation, etc. pursuant to the relevant statutes, the date on which the completion of its construction is authorized shall be deemed the date of its acquisition: Provided, That where a consent to or permission for its use is granted or it is actually used before the date on which the completion of its construction is authorized, whichever comes first between the date on which such consent or permission is granted and the date of actual use shall be deemed the date of its acquisition. <Amended by Presidential Decree No. 25545, Aug. 12, 2014> |
| (9) | In the case of acquisition of a vehicle, mechanical equipment or ship by the change of its type, the date of its actual change or the date of change specified in the public register, whichever comes first shall be deemed the date of its acquisition. |
| (10) | With respect to the acquisition of land due to the change of its land category, such land shall be deemed to have been acquired on the date its land category is actually changed, or on the date of change specified in the public register, whichever comes first: Provided, That with respect to any part used before the date on which the land category is changed, the date of its actual use shall be deemed the date of its acquisition. |
| (11) | Deleted. <by Presidential Decree No. 28524, Dec. 29, 2017> |
| (12) | Where an asset is acquired by a division of property under Article 839-2 or 843 of the Civil Act, the date of registration or recordation of the acquired asset shall be deemed the date of acquisition. <Newly Inserted by Presidential Decree No. 26431, Jul. 24, 2015> |
| (13) | Where registration is completed prior to the date of acquisition provided for in paragraph (1), (2), or (5), the date of such registration shall be deemed the date of acquisition. <Amended by Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 26431, Jul. 24, 2015> |
| Article 21 (Scope of Farmland) |
Farmland prescribed in each item of Article 11 (1) 1 of the Act and in each item of subparagraph 7 of the same paragraph means the following: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 24296, Jan. 1, 2013> | 1. | Land, the registered category of which is a rice paddy, dry field, or orchard on the public register as at the time of its acquisition, and which is actually used for cultivating agricultural produce or perennials. In such cases, any land occupied by a farming shed, manure barn, water pumping place, pond, swamp, farm road, or waterway, etc. directly necessary for the management of farmland shall be included; |
| 2. | Land the category of which on the public register at the time of acquisition is a rice field, dry field, orchard or stock farm, which is land actually used as a cattle shed and its incidental facilities used for stock farming, grassland and forage crop field. |
| Article 22 (Scope of Non-Profit Business Entities) |
"Non-profit business entity prescribed by Presidential Decree" in the proviso to Article 11 (1) 2 of the Act means any of the following persons: <Amended by Presidential Decree No. 25058, Jan. 1, 2014> | 1. | Organizations for religious worship purposes; |
| 4. | Organizations for social welfare business, such as nursing homes for the aged, child care centers, homes for single mothers and their children, and treatment and protection establishments for persons suffering from Hansen's disease, and the Korean Hansen Welfare Association; |
| Article 23 (Scope of Passenger Automobiles for Non-Business Use, etc.) |
| (3) | Automobiles for business use referred to in Article 12 (1) 2 (b) of the Act mean automobiles provided for business use under Article 122 (1) (excluding mechanical equipment). <Newly Inserted by Presidential Decree No. 25545, Aug. 12, 2014> |
| (4) | "Automobiles prescribed by Presidential Decree" in Article 12 (1) 2 (b) (iii) of the Act means two-wheeled automobiles with an engine displacement of up to 125 cc. <Amended by Presidential Decree No. 25545, Aug. 12, 2014> |
| (5) | Deleted. <by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 24 Deleted. <by Presidential Decree No. 22586, Dec. 30, 2010> |
| Article 25 (Real Estate for Business Purposes of Head or Main Office) |
"Real estate for business purposes of the head or main office prescribed by Presidential Decree" in Article 13 (1) of the Act means real estate used as the head or main office of a corporation, and real estate as such head or main office's subsidiary facilities (excluding welfare facilities, such as a dormitory, a training camp, a company house, training facilities, sports facilities, and reserve forces' armory and magazine). <Amended by Presidential Decree No. 27619, Nov. 29, 2016>
| Article 26 (Exception from Heavy Taxation on Corporations in Large Cities) |
| (1) | "Types of businesses prescribed by Presidential Decree" in the proviso to Article 13 (2) of the Act, with the exception of the subparagraphs of the same paragraph, means the following types of businesses: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 23947, Jul. 10, 2012; Presidential Decree No. 24296, Jan. 1, 2013; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 24502, Apr. 22, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26369, Jun. 30, 2015; Presidential Decree No. 26763, Dec. 28, 2015; Presidential Decree No. 27444, Aug. 11, 2016; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28524, Dec. 29, 2017; Presidential Decree No. 28627, Feb. 9, 2018> |
| 3. | Overseas construction business reported under the Overseas Construction Promotion Act (limited to real estate for an office used directly for overseas construction business where there exist actual achievement of overseas construction in the relevant year), and housing construction business projects registered with the Ministry of Land, Infrastructure and Transport under Article 4 of the Housing Act (limited to real estate on which housing construction commences within three years after it has been acquired for the housing construction); |
| 8. | Any business operated by a Government-invested corporation or Government-funded corporation (limited to a corporation in which the State or a local government has directly invested or funded at least 20/100 of paid-in capital or underlying property); |
| 10. | The manufacturing industry operated by an individual (referring to the manufacturing industry under Article 19 (1) 3 of the Income Tax Act): Provided, That this is limited to an enterprise converted into a corporation, as prescribed by Ordinance of the Ministry of the Interior and Safety, and where the value of real estate acquired by an enterprise's conversion into a corporation (referring to the standard market price under Article 4 of the Act) exceeds the value of real estate before the enterprise's conversion into the corporation, the main sentence other than each subparagraph of Article 13 (2) of the Act shall apply to the excess value and real estate acquired after the enterprise's conversion into the corporation; |
| 14. | The broadcasting business, CATV relay broadcasting business, CATV music broadcasting business, electric sign board broadcasting business, and signal transmission network business under subparagraphs 2, 5, 8, 11 and 13 of Article 2 of the Broadcasting Act; |
| 15. | Business of operating science museum facilities under the Act on the Establishment, Operation and Promotion of Science Museums; |
| 17. | Business that a small and medium business start-up investment company registered pursuant to Article 10 of the Support for Small and Medium Enterprise Establishment Act performs to provide assistance in starting a small and medium-sized business: Provided, That this shall be limited to cases where the registration is completed under the said Act within one month after the establishment of a corporation; |
| 22. | Business that the Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act performs for housing construction business; |
| 24. | Business operating indoor stadiums, stadiums and baseball parks that conform to the Korea Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act; |
| 32. | Business carried on by the Electric Constructors' Financial Cooperative established under Electric Constructors' Financial Cooperative Act for the electric construction business; |
| (2) | "Residential real estate prescribed by Presidential Decree" in the proviso to the part other than the subparagraphs of Article 13 (2) of the Act means multi-family housing, the building's total floor area (referring to the area for exclusive use) per one parcel (referring to the part divided for an independent and separate use of a household; hereinafter the same shall apply) of which is not more than 60 square meters, and the annexed land thereto. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| (3) | "Type of business prescribed by Presidential Decree" in the proviso to part other than the subparagraphs of Article 13 (3) 1 of the Act means housing construction business projects under paragraph (1) 3 and, notwithstanding each item of Article 13 (3) 1 of the Act, the period, during which real estate shall be used directly or real estate shall not be used or jointly used for another type of business or other purposes, shall be three years. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| (4) | "Type of business prescribed by Presidential Decree, in which lease is deemed unavoidable" in Article 13 (4) of the Act means any of the following types of business: <Newly Inserted by Presidential Decree No. 22586, Dec. 30, 2010> |
| 1. | Telecommunications business under paragraph (1) 4 (limited to cases where a telecommunications service provider under the Telecommunications Business Act leases telecommunications facilities or facilities pursuant to Article 41 of the same Act in order to jointly use them with another telecommunications service provider); |
| 2. | Distribution industry, agricultural and fishery product wholesale markets, agricultural and fishery product joint wholesale markets, integrated distribution centers of agricultural and fishery products, distribution subsidiaries and livestock markets (limited to leased parts, where whole or some of stores, etc., the lease of which is permitted pursuant to related statutes, including the Distribution Industry Development Act, are leased) under paragraph (1) 6. |
| Article 27 (Scope of and Application Criteria for Heavy Taxation on Acquisition of Real Estate in Large Cities) |
| (1) | "Dormant corporation prescribed by Presidential Decree" in Article 13 (2) 1 of the Act means any of the following corporations: <Amended by Presidential Decree No. 24638, Jun. 28, 2013> |
| 1. | A corporation dissolved pursuant to the Commercial Act (hereinafter referred to as "dissolved corporation"); |
| 2. | A corporation deemed dissolved pursuant to the Commercial Act (hereinafter referred to as "corporation deemed dissolved"); |
| 5. | A closed corporation that has re-obtained business registration within one year before the date of acquisition of a corporation; |
| 6. | A corporation which has no business performance for at least two years before the date of acquisition of a corporation, and has replaced at least 50/100 of the executive officers of the acquired corporation within one year before or after the date of acquisition. |
| (2) | The acquisition of a dormant corporation under Article 13 (2) 1 of the Act shall be deemed to be completed when a person becomes an oligopolistic stockholder of a corporation referred to in any subparagraph of paragraph (1). <Amended by Presidential Decree No. 28524, Dec. 29, 2017> |
| (3) | The acquisition of real estate due to the foundation of a corporation or the establishment of a branch or sub-office of a corporation in a large city, or to the transfer of the head office, main office, branch, or sub-office of a corporation into a large city under Article 13 (2) 1 of the Act means the acquisition of real estate (excluding the acquisition of real estate simply for the purpose of securing or exercising claims; hereafter the same shall apply in this Article) acquired by the relevant corporation, or the office or the place of business prescribed by Ordinance of the Ministry of the Interior and Safety (hereafter referred to as "office, etc." in this paragraph) to use directly for the purpose of the head office, main office, branch or sub-office of such corporation before such foundation, establishment, or transfer; and the acquisition of real estate since such foundation, establishment, or transfer under the same subparagraph means the acquisition of each and every of real estate for business or non-business purposes within five years after the foundation, establishment, or transfer of a corporation, or office, etc. In such cases, the acquisition of real estate includes such acquisition of real estate resulting from the new construction or enlargement of a factory, the acquisition of a factory by succession, the transfer of a factory within the relevant large city, and changes in the type of business of a factory. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | In applying Article 13 (2) 1 of the Act, where a domestic corporation that has been operating its business in a large city for at least five consecutive years establishes another corporation through the division of the domestic corporation (limited to cases meeting the requirements under Article 46 (2) 1 (a) through (c) of the Corporate Tax Act), as of the date of registration of division, such domestic corporation shall not be deemed subject to heavy taxation. <Amended by Presidential Decree No. 24296, Jan. 1, 2013> |
| (5) | In applying Article 13 (2) 1 of the Act, where a corporation for which five years have elapsed after its establishment in a large city (hereafter referred to as "existing corporation" in this paragraph) merges with another existing corporation, such corporation shall not be deemed subject to heavy taxation; where, after an existing corporation merges with a corporation for which five years have yet to elapse after its establishment in a large city, the corporation other than the existing corporation survives or another corporation is newly established after the merger, the portion equivalent to the asset ratio of the existing corporation that exists as at the time of the merger shall not be deemed subject to heavy taxation. In such cases, when assets are appraised, the asset ratio shall be a ratio computed based on the appraised value; and when assets are not appraised, the asset ratio shall be a ratio computed based on the book value as at the time of such merger. |
| Article 28 (Scope of Villas, etc. and Application Standards) |
| (1) | Cases where part of a villa, etc. is acquired by division under the former part other than each subparagraph of Article 13 (5) of the Act means cases where two or more persons acquire by division, or one or more persons acquire at different times any villa, golf course, high-end house, high-end recreation center or high-end ship. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| (2) | "Houses in agricultural and fishery areas and land annexed thereto which fall under scopes and standards prescribed by Presidential Decree" in the former part of Article 13 (5) 1 of the Act means houses in agricultural or fishery areas and land annexed thereto which meet the following requirements: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28524, Dec. 29, 2017> |
| 1. | The site area shall be not more than 660 square meters and the total floor area of a building shall be not more than 150 square meters; |
| 2. | The value of a building (referring to the value computed by applying mutatis mutandis Article 4 (1) 1; hereafter the same shall apply in this Article) shall be not more than 65 million won; |
| 3. | The houses shall not be located in any of the following areas: |
| (3) | Among the villas under the latter part of Article 13 (5) 1 of the Act, a villa owned by an individual means a villa used by the principal or his/her family; a villa owned by a corporation or organization means a villa used by its executive officers and employees; and an officetel or similar building constructed to be used both for residential and non-residential purposes, which may not be verified by a business registration certificate, etc. as having been used as a place of business, shall be deemed a villa. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| (4) | Residential buildings which are deemed high-end houses and land annexed thereto under Article 13 (5) 3 of the Act shall constitute any of the following: Provided, That buildings for residential purposes and land annexed thereto, or multi-family housing and land annexed thereto under subparagraphs 1, 2, 2-2, and 4 shall be deemed high-end houses only when their standard market prices as at the time of acquisition pursuant to Article 4 (1) of the Act exceed 600 million won: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 23482, Dec. 31, 2011> |
| 1. | A residential building on one parcel, the total floor area of which (excluding the area of its parking lot) exceeds 331 square meters, and the value of which exceeds 90 million won, and land annexed thereto; |
| 2. | A residential building on one parcel, the site area of which exceeds 662 square meters and the value of which exceeds 90 million won, and land annexed thereto; |
| 2-2. | A residential building on one parcel, in which an elevator (excluding a small elevator with the loading capacity of not more than 200kg) is installed, and land annexed thereto (excluding collective housing and land annexed thereto); |
| 3. | A residential building on one parcel, in which an escalator or a swimming pool of not less than 67 square meters, is installed or both are installed, and land annexed thereto (excluding collective housing and the land annexed thereto); |
| 4. | Collective housing on one parcel (including multi-household housing which is built for the purpose of enabling many households to reside in one building; and, in such cases, a section partitioned for one household to independently reside shall be deemed respectively a building on one parcel), the total floor area (excluding the area set side for public use) of the building of which exceeds 245 square meters (274 square meters in the case of a multi-story house, but excluding any the area of one story of which exceeds 245 square meters), and land annexed thereto. |
| (5) | "Buildings prescribed by Presidential Decree and land annexed thereto" in the main sentence of Article 13 (5) 4 of the Act means buildings used for any of the following purposes and land annexed thereto. In such cases, where a high-end recreation center is established in part of such building, land equivalent to the ratio of the total floor area of a building for the high-end recreation center to the total floor area of such building, among land annexed to the relevant building, shall be deemed the annexed land: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 24296, Jan. 1, 2013; Presidential Decree No. 25910, Dec. 30, 2014; Presidential Decree No. 28524, Dec. 29, 2017> |
| 1. | Casinos where the parties concerned bet goods and decide a gain and loss of goods on the fortuitous results (excluding casinos for exclusive use by foreigners permitted under the Tourism Promotion Act); |
| 2. | Places where automatic gambling apparatus (referring to pachinko machines, slot machines, arcade equipment, etc.) are installed for speculation or gambling; |
| 3. | Beauty parlors where bathing rooms, etc. other than hairdressing and facial salons are annexed and which levy specified charges for the use of the facilities; |
| 4. | Places of business specified in either of the following items for an entertainment bar business subject to business license under Article 37 of the Food Sanitation Act (limited to places of business with an area of 100 square meters, including the common use area therein): |
| (a) | Places of business (cabarets, nightclubs, disco clubs, etc.) that have a dancing space for customers separated from guest seating; |
| (b) | Places of business (room-salons, high-end private bars, etc.) where the area of guest rooms which are separately and semi-permanently partitioned is not less than 50/100 of the exclusive area of a place of business, or the number of guest rooms is five, or more, in the case of employing hostesses (including temporarily employed persons, irrespective of gender). |
| (6) | "Ships which exceed standards prescribed by Presidential Decree" in Article 13 (5) 5 of the Act means ships, the standard market price of which exceeds 300 million won: Provided, That ships acquired for the purpose of an experiment or practical training shall be excluded. <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 29 (Scope of One House per Household) |
| (1) | "One house per household prescribed by Presidential Decree" in Article 15 (1) 2 (a) of the Act means a case where one household (the spouse of an heir, an unmarried lineal descendant of less than 30 years of age of an heir, or a parent of an heir who is unmarried and less than 30 years of age shall be deemed to belong to the heir's household, even if the spouse or such lineal descendant or parent is not registered in the resident registration card for the household) composed of the head of the household and his/her family members (excluding cohabitants) registered in the resident registration card for the household under the Resident Registration Act (hereafter referred to as "resident registration card for each household" in this Article) owns one house (referring to a building used as a residential house (referring to a house referred to in Article 11 (1) 8 of the Act) and the land appurtenant thereto, but excluding a high-end house under Article 28 (4)) within the Republic of Korea. <Amended by Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28524, Dec. 29, 2017> |
| (2) | For the purpose of applying paragraph (1), if two or more persons jointly own one house, each co-owner shall be deemed to own one house, and a person who owns only the land appurtenant to a house shall also be deemed to own a house. <Newly Inserted by Presidential Decree No. 26431, Jul. 24, 2015> |
| (3) | For the purpose of applying paragraph (1) or (2), if two or more persons jointly inherit one house, the heir who has the greatest share in the inheritance shall be deemed the owner of the house. If two or more heirs have the greatest share respectively, the owner of the house shall be determined in the following order among the heirs with the greatest share: <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| 1. | The person who resides in the house; |
| Article 29-2 (Tax Base of Partitioned Property) |
For the application of Article 15 (1) 4 of the Act, the standard market price for a whole subdivision of which a person acquires sole ownership, out of subdivisions of partitioned property, shall be deemed the tax base, where a person acquires sole ownership of a subdivision of partitioned property after co-owned property is partitioned. [This Article Newly Inserted by Presidential Decree No. 28524, Dec. 29, 2017]
| Article 30 (Special Cases of Tax Rates) |
| (1) | "Any other acquisition prescribed by Presidential Decree, such as pseudo acquisition, etc." in Article 15 (1) 7 of the Act means the acquisition of standing trees in order to cut them and produce timber. <Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015> |
| (2) | "Any other acquisition prescribed by Presidential Decree, such as the acquisition, etc. of leisure facilities" in Article 15 (2) 7 of the Act means any of the following acquisition: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 26836, Dec. 31, 2015> |
| 1. | Acquisition of facilities stipulated under Article 5; |
| 2. | Acquisition of the land, the category of which on the cadastral records is a graveyard and is used for a grave and a site for its attached facilities; |
| 5. | Acquisition of a building after construction thereof, for which the liability to pay registration and license tax is established with regard to making registration of preservation of ownership or registration of transfer of ownership under Article 28 (1) 1 (a) or (b) of the Act and then the timing of acquisition under Article 20 arrives. |
| Article 31 (Period for Additional Collection of Heavy Taxation of Acquisition of Real Estate in Large Cities) |
"Period prescribed by Presidential Decree" in Article 16 (4) of the Act means a period within five years from the date on which the relevant real estate is acquired.
SECTION 3 Imposition and Collection
| Article 32 (Sale Notification, etc.) |
| (1) | A sale notification or report under Article 19 of the Act shall be made to the head of a Si/Gun/Gu having jurisdiction over the location of the article according to a form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on a detailed statement of changes in stocks, etc. of a corporation under Article 161 (6) of the Enforcement Decree of the Corporate Tax Act, or to provide the head of the Si/Gun related data specifying details thereon in order to impose acquisition tax on an oligopolistic shareholder, the head of the competent tax office shall comply therewith in the absence of special circumstances. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on an application for business registration of a branch or sub-office of a corporation under Article 11 of the Enforcement Decree of the Value-Added Tax Act, or to provide related data specifying details thereon in order to impose heavy acquisition tax pursuant to Article 13 (2) of the Act, the head of the competent tax office shall comply therewith in the absence of special circumstances. <Amended by Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 33 (Tax Returns and Payment) |
| (1) | A person who intends to file an acquisition tax return in accordance with Article 20 (1) through (3) of the Act shall file the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, with the head of a Si/Gun/Gu having jurisdiction over the place for tax payment, stating an acquired article, the date of acquisition, or the purpose, etc. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | Deleted. <by Presidential Decree No. 23482, Dec. 31, 2011> |
| (3) | If a saving depository of a local government, or an agency that acts on behalf of a local tax receiver (referring to any financial institution, etc. that is commissioned to perform a part of saving depository affairs of a local government under Article 49 (1) and (2) of the Enforcement Decree of the Local Accounting Act; hereinafter the same shall apply) receives the payment of acquisition tax, it shall issue to the taxpayer one copy of a receipt for the taxpayer's records, one copy of notice of payment certificate of acquisition tax (for the registry office's notification to the relevant Si/Gun/Gu), and one copy of a document confirming acquisition tax payment, respectively, and, without delay, serve the revenue collector of the relevant Si/Gun/Gu with one copy of notice of payment certificate of acquisition tax (for the relevant Si/Gun's records): Provided, That where the payment of acquisition tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act, the foregoing may be substituted by issuing to the taxpayer a notice of the payment certificate of acquisition tax for the taxpayer's records. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 27621, Nov. 29, 2016; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 34 (Tax Return and Payment for Property Subject to Heavy Taxation) |
"Date prescribed by Presidential Decree" in Article 20 (2) of the Act means as follows: <Amended by Presidential Decree No. 22586, Dec. 30, 2010> | 1. | Where a person acquires real estate for business purposes to build a head office or main office under Article 13 (1) of the Act: The date when the real estate is used as an office for the first time; |
| 2. | Where a person acquires an object of taxation for business purposes to build a new factory or extend an existing one under Article 13 (1) of the Act, or acquires real estate after a new factory is built or an existing one is extended under paragraph (2) 2 of the same Article: The date on which the production facilities are installed: Provided, That where permission for business, authorization, etc. is obtained before the said date, it refers to the date on which permission for business, authorization, etc. is obtained; |
| 3. | Where the acquisition of real estate under Article 13 (2) 1 of the Act constitutes any of the following: The date on which the relevant office or place of business is established: |
| (a) | Where a corporation is established in a large city; |
| (b) | Where a branch or sub-office of a corporation is established in a large city; |
| (c) | Where a head or main office, branch, or sub-office is transferred into a large city from the outside of the large city; |
| 4. | Where real estate is acquired for the purposes of direct use for types of business excluded from heavy taxation in large cities pursuant to the proviso to the part other than the subparagraphs of Article 13 (2) of the Act, or real estate for the residence of employees is acquired for direct use by a corporation to parcel out or lease to employees, and then any ground under the subparagraphs of Article 13 (3) of the Act arises and such real estate becomes subject to the main sentence of the part other than the subparagraphs of Article 13 (2) of the Act: The date on which such ground arises; |
| 5. | Where a person acquires a villa, a golf course, a high-end house, a high-end recreation center, or a high-end ship under Article 13 (5) of the Act: The date specified in the following: |
| (a) | Where a building becomes a villa or high-end house by extending or rebuilding an existing building: The date on which a written approval for use for such extension or rebuilding is issued: Provided, That where a building becomes a villa or high-end house due to other grounds, the date on which such grounds arise; |
| (b) | A golf course: The date on which the golf course is registered as a sports facilities business (including the registration on its changes) under the Installation and Utilization of Sports Facilities Act: Provided, That where a golf course is actually used prior to its registration, the date on which the golf course is actually used with regard to such use; |
| (c) | Where a building becomes a high-end recreation center pursuant to the relevant statutes after a written approval for use of the building is issued: The date on which permission for business, authorization, etc. for the relevant type of business is obtained: Provided, That where a building becomes a high-end recreation center without obtaining permission for business, authorization, etc., the date refers to the date on which the high-end recreation center actually starts its operation; |
| (d) | Where a ship becomes a high-end ship by changing its type: The date on which the type of the ship is actually changed. |
| Article 35 (Payment Deadline for Acquisition Tax at the Time of Registration) |
Where registration under Article 20 (4) of the Act is made, the payment deadline for acquisition tax shall be the date on which an application for registration is filed with a registration office.
| Article 35-2 Deleted. <by Presidential Decree No. 26431, Jul. 24, 2015> |
| Article 36 (Acquisition Tax Payment Verification, etc.) |
| (1) | When a taxpayer intends to make registration of an object subject to acquisition tax, he/she shall attach to an application for registration one copy of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment: Provided, That the foregoing shall not apply where the payment of acquisition tax can be confirmed by electronic means between administrative agencies under Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Notwithstanding paragraph (1), when a taxpayer intends to make registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, he/she shall attach to an application for registration, data which are electronically converted images of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming acquisition tax payment: Provided, That this shall not apply where administrative agencies may electronically verify the payment of acquisition tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 24296, Jan. 1, 2013; Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | When a taxpayer intends to apply for registration following the acquisition of a ship, he/she shall attach to an application for registration one copy of notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment. In such cases, a registry office shall verify the certificate of the ship’s nationality through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, and, if an applicant does not consent to the verification, it shall require the applicant to attach a copy of the nationality certificate of such ship. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (4) | When completing registration, a registry office shall, without fail, place a stamp in the amount field provided in the document confirming acquisition tax payment pursuant to paragraphs (1) through (3), and shall verify matters stated in a document on registration by comparing the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) attached and the document on registration, affix a receipt seal to the notice of certificate of acquisition tax payment with a receipt number, and then serve a revenue collector of the Si/Gun/Gu having jurisdiction over the place for tax payment, with the notice of certificate of acquisition tax payment within seven days. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (5) | Notwithstanding paragraph (4), where a registry office intends to serve a revenue collector of a Si/Gun/Gu with a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu), when the revenue collector of the Si/Gun/Gu can verify information corresponding to the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, the registry office may provide such information by electronic means. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (6) | When the head of a Si/Gun/Gu has received a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) or information corresponding thereto under paragraph (4) or (5), he/she shall prepare an acquisition tax return and receipt-handling record and verify whether any acquisition tax has been paid excessively or erroneously or omitted. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Wholly Amended by Presidential Decree No. 22586, Dec. 30, 2010]
| Article 36-2 (Handling of Receipt for Payment of Acquisition Tax Following Commission Registration) |
| (1) | Where a State agency or local government intends to commission a registry office to make a registration or provisional registration, it shall require a taxpayer who has to pay acquisition tax to submit one copy of a notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming acquisition tax payment under Article 33 (3) and shall serve the registry office with a commission document, along with such documents: Provided, That the foregoing shall not apply where the payment of acquisition tax can be confirmed by electronic means between administrative agencies under Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), where a State agency or local government intends to commission a registry office to make a registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, it shall attach data submitted by a taxpayer who has to pay acquisition tax, which is electronically converted to images of the notice of certificate of acquisition tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming acquisition tax payment: Provided, That this shall not apply where administrative agencies may electronically verify the payment of acquisition tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Newly Inserted by Presidential Decree No. 22586, Dec. 30, 2010]
| Article 37 (Property Exempt from Heavy Additional Tax) |
"Objects of taxation prescribed by Presidential Decree, such as taxable objects not needed to be registered or recorded" in the proviso to Article 21 (2) of the Act means any of the following: <Amended by Presidential Decree No. 25252, Mar. 14, 2014> | 1. | Deleted; <by Presidential Decree No. 24296, Jan. 1, 2013> |
| 2. | Objects of taxation not needed to be registered (excluding golf course membership, riding club membership, condominium membership, sports complex membership, and yacht club membership), among objects of taxation subject to acquisition tax; |
| 3. | Objects of taxation which are deemed acquired, such as the change in land category, changes in vehicle types, mechanical equipment, or a ship, and the acquisition of stocks, etc. |
| Article 38 (Notification of Non-Payment of Acquisition Tax and Underpayment of Tax) |
Where the head of a registry office discovers that acquisition tax has not been paid or has not been fully paid after completing registration, he/she shall notify the head of the Si/Gun/Gu having jurisdiction over the place for tax payment thereof by the tenth day of the following month. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
CHAPTER III REGISTRATION AND LICENSE TAX
SECTION 1 Common Provisions
| Article 39 (Types of Licenses and Classification) |
The types of licenses and classification thereof under subparagraph 2 of Article 23 of the Act are as specified in the attached Table.
| Article 40 (Non-Taxation) |
| (1) | "Any other registration prescribed by Presidential Decree on land, etc., the category of which is a graveyard" in Article 26 (2) 3 of the Act means registration with regard to land, the category of which is a graveyard provided in the cadastral record, as land used for a grave space and a site for its attached facilities. |
| (2) | "License prescribed by Presidential Decree" in Article 26 (2) 4 of the Act means any of the following licenses: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 26858, Jan. 6, 2016> |
| 1. | A license for revision, which fails to correspond to any of the following in terms of details of revision: |
| (a) | Where a licensee is changed (excluding where the name of the representative is simply changed without change of the business entity); |
| (b) | Where the classification of a license under Article 39 for the relevant license is changed to the upper class; |
| 2. | A license that corresponds to any of the following, which is held by any person who commences the business of rendering medical service or the business of treating animals in accordance with the Medical Service Act and the Veterinarians Act: |
| (b) | A license for the diagnosis and treatment of animals, which is granted to any veterinarian who is commissioned to work as a public veterinarian in accordance with the Veterinarians Act; |
| 4. | A license for the type of the relevant business that is closed after filing a closure report under the Value-Added Tax Act, as of January 1 of each year; |
| 5. | A license for the type of the relevant business, the actual suspension of which for at least one year is verified, as of January 1 of each year; |
| 6. | A license required for the management of community property of an organization that consists only of residents for promoting welfare, etc. of village residents. |
SECTION 2 Registration and License Tax on Registration
The definitions of terms used in this Section shall be as follows:
| 1. | "Real estate" means land and buildings stipulated in subparagraphs 3 and 4 of Article 6 of the Act; |
| 3. | "One case" means each case to be registered. This shall also apply where one registers several cases to be registered in a batch of applications according to the relevant statutes, including the Registration of Real Estate Act. |
| Article 42 (Application of Tax Base) |
| (1) | Where a changed value due to the revaluation of property, depreciation and any other reason under the proviso to Article 27 (3) of the Act becomes a tax base, a value proved by the account book of a corporation, the settlement of accounts, etc. as of the date of registration shall be determined as the tax base. |
| (2) | Where a tax base for any land or building is not classified due to the gross valuation of the land and building, an amount calculated by dividing the gross-valued individual housing price by the rate of value of the land or building shall be determined as the tax base for the land or building, respectively. |
| Article 42-2 (Passenger Automobiles for Non-Business Purposes, etc.) |
| (1) | "Automobile" in the part other than the items of Article 28 (1) 3 of the Act shall not include a two-wheel automobile with an engine displacement of 125 cc or less. |
[This Article Newly Inserted by Presidential Decree No. 22942, May 30, 2011]
| Article 43 (Tax Rates for Corporate Registration) |
| (1) | A non-profit corporation referred to in Article 28 (1) 6 of the Act means any of the following: <Newly Inserted by Presidential Decree No. 26431, Jul. 24, 2015> |
| 3. | A corporation established under any other Special Act for a purpose similar to the purposes referred to in Article 32 of the Civil Act (excluding corporations that may distribute profits to stockholders, partners, members, or investors). |
| (2) | Where a corporation transfers its head or main office, the corporation shall pay its respective registration and license tax on the registration stipulated under Section 2 of Chapter Ⅲ of the Act (hereafter referred to as "registration and license tax" in this Section) in regard to the former location according to Article 28 (1) 6 (f) of the Act, and in regard to the new location according to item (d) of the same subparagraph. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| (3) | Where a corporation establishes a branch or sub-office, the corporation shall pay its respective registration and license tax in regard to the location of its head or main office according to Article 28 (1) 6 (f) of the Act, and in regard to the location of the branch or sub-office according to item (e) of the same subparagraph. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| (4) | Where registration falls under Article 28 (1) 6 (f) of the Act and the same matters as matters set forth in such registration are to be registered in regard to a head office and a branch office, or to a main office and a sub-office, each respective registration shall be deemed one case. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| Article 44 (Exception to Heavy Taxation on Corporations in Large Cities) |
"Types of business prescribed by Presidential Decree" in the proviso to Article 28 (2) of the Act means the types of business falling under any subparagraph of Article 26 (1).
| Article 45 (Scope of and Criteria for Application of Heavy Taxation on Corporations in Large Cities) |
| (1) | Where an increase in capital or investment arises to meet the minimum requirements for a license or registration due to amendments to the relevant statutes with respect to the registration of corporations under Article 28 (2) 1 of the Act, the amount of such increase shall not be deemed subject to heavy taxation. |
| (2) | In applying Article 28 (2) of the Act, where a domestic corporation in a large city which has operated its business for at least five consecutive years as of the registration date of division incorporates a corporation by division (only applicable to cases meeting the requirements under Article 46 (2) 1 (a) through (c) of the Corporate Tax Act), such corporation shall not be deemed subject to heavy taxation. <Amended by Presidential Decree No. 24296, Jan. 1, 2013> |
| (3) | In applying Article 28 (2) of the Act, where a corporation for which five years have elapsed after its incorporation in a large city (hereafter referred to as "existing corporation" in this paragraph) merges with another existing corporation, such corporation shall not be deemed subject to heavy taxation; where a corporation, other than an existing corporation, becomes a corporation surviving a merger, or a new corporation is incorporated after an existing corporation merges with a corporation for which five years have yet to elapse after its incorporation in a large city, the portion equivalent to the asset ratio of such existing corporation as at the time of the merger shall not be deemed subject to heavy taxation. In such cases, the asset ratio shall be a ratio calculated, if assets are appraised, based on the appraised value, or a ratio calculated, if assets are not appraised, based on the book value of assets as at the time of the merger. |
| (4) | Deleted. <by Presidential Decree No. 27710, Dec. 30, 2016> |
| (5) | In applying Article 28 (2) of the Act, where any of the following applies to a corporation and the tax base for the registration and license tax on registration under each subparagraph of Article 28 (2) of the Act is not classified, the registration and license tax shall be proportionally distributed and imposed by calculating, based on the following formula as in items (a) and (b), the ratio between the turnover of the type of business under each subparagraph of Article 26 (1) (hereafter referred to as "type of business excluded from heavy taxation in large cities" in this paragraph) and the turnover of other types of business (hereafter referred to as "type of business subject to heavy taxation in large cities" in this paragraph) in the total turnover of the immediately preceding business year (where no turnover exists in the immediately preceding business year, referring to the relevant business year; where no turnover exists in the relevant business year, referring to the next business year): Provided, That where no turnover exists in the following business year, it refers to the value of tangible fixed assets: <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| 1. | Where the corporation concurrently operates the type of business excluded from heavy taxation in large cities and the type of business subject to heavy taxation in large cities; |
| 2. | Where the corporation converts the type of business excluded from heavy taxation in large cities to the type of business subject to heavy taxation in large cities; |
| 3. | Where the corporation adds the type of business subject to heavy taxation in large cities to the type of business excluded from heavy taxation in large cities: |
<Formula to calculate the ratio between the turnover of the type of business excluded from heavy taxation in large cities and the turnover of the type of business subject to heavy taxation in large cities>
| (a) | Ratio of the turnover of the type of business subject to heavy taxation of the relevant corporation (percent): |
Ratio of the
turnover of the
type of
business
subject to
heavy
taxation of
the relevant
corporation
(percent) | = | Calculated turnover of the type of
business subject to heavy
taxation of the relevant
corporation* | ×
| 100
| (Calculated turnover of the type of
business excluded from heavy
taxation of the relevant
corporation**) + (Calculated
turnover of the type of business
subject to heavy taxation of the
relevant corporation*) |
|
* Calculated turnover of the type of business subject to heavy taxation of the relevant corporation = (Turnover of the type of business subject to heavy taxation on relevant corporation ? 365 days) / Operating days of the type of business subject to heavy taxation of the relevant corporation;
** Calculated turnover of the type of business excluded from heavy taxation of the relevant corporation = (Turnover of the type of business excluded from heavy taxation of the relevant corporation ? 365 days) / Operating days of the type of business excluded from heavy taxation of the relevant corporation;
| (b) | Ratio of the turnover of the type of business excluded from heavy taxation of the relevant corporation (percent): |
Ratio of the turnover
of the type of
business excluded
from heavy
taxation of the
relevant
corporation
(percent) | = | 100 | - | Ratio of the turnover of
the type of business
subject to
heavy taxation of the
relevant corporation
(percent) |
|
| Article 46 (Method of Collection Where Objects for Mortgage of Registration of Same Bonds are Different) |
| (1) | Where the objects of the mortgage for the same bonds are different, and thus two or more registrations are required, and if the registry office has received an application for registration thereon, it shall impose registration and license tax regarding the amount calculated by deducting the amount which served as a basis for computing the already-paid registration and license tax paid from the total amount of the bonds as the amount of such bonds. |
| (2) | If registration or filing stipulated in paragraph (1) includes those falling under Article 28 (1) 5 of the Act and other matters, registration and license tax on the registration or filing falling under Article 28 (1) 5 of the Act shall be imposed in preference to the other matters. |
| Article 47 (Method of Collection of Tax for Registration of Additional Collateral for Security for Claim) |
The registration and license tax on the registration or recordation of an additional collateral for security for a claim shall be imposed according to Article 28 (1) 1 (e), 2 (c), 3 (d), 5 (b), 8 (d), 9 (c), and 10 (d) of the Act. <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 26431, Jul. 24, 2015>
| Article 48 (Tax Returns, Payment Deadline, etc.) |
| (1) | "Before filing a registration" in Article 30 (1) of the Act means by the date on which an application for registration is filed with the registry office: Provided, That it refers to the deadline for paying a patent fee, a registration fee, and a service charge payable under the Patent Act, the Utility Model Act, the Design Protection Act, and the Trademark Act, in the case of the registration and license tax on the registration of a patent right, utility model right, design right or trademark right. |
| (2) | "Date prescribed by Presidential Decree" in Article 30 (2) of the Act means the date in the following classifications: <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
| 1. | In any of the following cases, the date on which the relevant office or place of business is actually established: |
| (c) | Where a head or main office of a corporation located outside of a large city under Article 28 (2) 2 of the Act is relocated into a large city; |
| (3) | A person who intends to file a registration and license tax return under Article 30 (1) through (3) of the Act shall file the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety with the head of the Si/Gun/Gu having jurisdiction over the place for tax payment. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | Deleted. <by Presidential Decree No. 23482, Dec. 31, 2011> |
| (5) | When a saving depository of a local government or an agency collecting local taxes on behalf of the local government receives the payment of registration and license tax, it shall issue to the taxpayer one copy of a receipt for the taxpayer's records, one copy of notice of payment of registration and license tax (for the registry office's notification to the relevant Si/Gun/Gu), and one copy of a document confirming payment of registration and license tax, and, without delay, serve the revenue collector of the relevant Si/Gun/Gu with one copy of notice of payment of registration and license tax (for the relevant Si/Gun/Gu's records): Provided, That where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act, the foregoing may be substituted by issuing a receipt for the taxpayer's records to the taxpayer. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 49 (Payment Verification, etc. of Registration and License Tax) |
| (1) | Where a taxpayer intends to make a registration, he/she shall attach to an application for registration one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming payment of registration and license tax: Provided, That the foregoing shall not apply where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), when a taxpayer intends to make a registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, he/she shall attach to an application for registration, data which is electronically converted to images of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming payment of registration and license tax: Provided, That this shall not apply where administrative agencies may electronically verify the payment of registration and license tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | When a taxpayer intends to apply for registration following the acquisition of a ship, he/she shall attach to an application for registration one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of a document confirming payment of registration and license tax referred to in paragraph (1). In such cases, a registry office shall verify the certificate of the relevant ship’s nationality through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, and, if an applicant does not consent to the verification, it shall require the applicant to attach a copy of the certificate of such ship’s nationality. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (4) | When completing registration, a registry office shall, without fail, place a stamp in the amount field provided in the document confirming payment of registration and license tax pursuant to paragraphs (1) through (3), and shall verify matters stated in a document on registration by comparing the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) attached and the document on registration, affix a receipt seal to the notice of certificate of registration and license tax payment with a receipt number, and then serve a revenue collector of the Si/Gun/Gu having jurisdiction over the place for tax payment, with the notice of certificate of registration and license tax payment within seven days: Provided, That in the case of registration of mining rights and mining concession rights, the service of notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) may be omitted, and the current state of registration of mining rights and mining concession rights for each quarter may be notified to the head of the relevant Si/Gun/Gu by the 10th day of the month following the last day of the relevant quarter. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 27710, Dec. 30, 2016> |
| (5) | Notwithstanding the provisions of the main sentence of paragraph (4), where a registry office intends to serve a revenue collector of a Si/Gun/Gu with a notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu), when the revenue collector of a Si/Gun/Gu can verify information corresponding to the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, the registry office may provide such information by electronic means. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (6) | When the head of a Si/Gun/Gu has received a notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) or information corresponding thereto under the main sentence of paragraph (4) and paragraph (5), he/she shall prepare a registration and license tax return and receipt-handling record and verify whether any registration and license tax has been paid excessively or erroneously or omitted. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Wholly Amended by Presidential Decree No. 22586, Dec. 30, 2010]
| Article 49-2 (Handling of Payment Receipts of Registration and License Tax following Commission Registration) |
| (1) | Where a State agency or local government intends to commission a registry office to make a registration or provisional registration, it shall order a taxpayer obligated to pay registration and license tax to submit one copy of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and one copy of the document confirming payment of registration and license tax under Article 48 (5) and shall serve the registry office with a commission document, along with such documents: Provided, That the foregoing shall not apply where the payment of registration and license tax can be confirmed by electronic means between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Notwithstanding the provisions of paragraph (1), where a State agency or local government intends to commission registration using the electronic data processing system under Article 24 (1) 2 of the Registration of Real Estate Act, it shall attach data submitted by a taxpayer who has to pay acquisition tax, which is electronically converted to images of the notice of certificate of registration and license tax payment (for the registry office's notification to the relevant Si/Gun/Gu) and the document confirming payment of registration and license tax: Provided, That this shall not apply where administrative agencies may electronically verify the payment of registration and license tax between administrative agencies pursuant to Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Newly Inserted by Presidential Decree No. 22586, Dec. 30, 2010]
| Article 50 (Notification, etc. of Non-Payment of Registration and License Tax and Underpaid Tax) |
| (1) | Where the head of a registry office discovers that acquisition tax has not been paid or has been underpaid after completing the registration, he/she shall notify the head of the Si/Gun/Gu having jurisdiction over the place for tax payment thereof by the tenth day of the following month. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Where the head of a Si/Gun/Gu requests the head of a competent tax office for perusal of data on an application for business registration of a branch or sub-office of a corporation under Article 11 of the Enforcement Decree of the Value-Added Tax Act, or to provide related data specifying details thereon in order to impose a heavy registration and license tax on the registration, etc. of a corporation in a large city pursuant to Article 28 (2) of the Act, the head of the competent tax office shall comply therewith, except under special circumstances. <Amended by Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 27710, Dec. 30, 2016> |
SECTION 3 Registration and License Tax on Licenses
| Article 51 (Scope of Licenses Similar to Construction Permits) |
"License prescribed by Presidential Decree" in Article 35 (3) 2 of the Act means a license for any of the following: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 23711, Apr. 10, 2012; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25910, Dec. 30, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 26916, Jan. 19, 2016; Presidential Decree No. 27971, Mar. 29, 2017; Presidential Decree No. 28366, Oct. 17, 2017> | 1. | Excavation of buried cultural assets; |
| 2. | Taking cultural property out of the Republic of Korea; |
| 4. | Conversion of farmland and change of the purpose of conversion of farmland under the Farmland Act; |
| 5. | Change of the form or quality of land; |
| 6. | Creation of private graveyards (excluding graveyards created by a foundation); |
| 7. | Construction of a private road; |
| 8. | Type-approval for measuring instruments and inspection of specific instruments using heat; |
| 11. | Type-approval for construction machinery; |
| 12. | Permission for installation outside of bonded areas; |
| 13. | Reclamation of public water; |
| 14. | Creation of grassland and its conversion; |
| 15. | Permits for or reporting on the installation of livestock excreta dis- charge facilities; |
| 18. | Reporting on works generating disperse dusts; |
| 22. | Type-approval and official approval for ships and materials used for such ships; |
| 24. | Digging and picking forest produce; |
| 25. | Registration of manufacturers, etc. for self-authentication of motor vehicles under Article 30 of the Motor Vehicle Management Act (limited to registration of manufacturers, etc. for self-authentication of motor vehicles for private use); |
| 26. | Manufacture of speculating apparatus and inspection of speculating apparatus by imported item; |
| 27. | Construction and reconstruction of toll roads; |
| 28. | Development and utilization of underground water; |
| 29. | Extraction of aggregate; |
| 30. | Type-approval for environment measuring instruments; |
| 31. | Building and substantial repair; |
| 32. | Permission to install structures, or report on erecting structures; |
| 33. | Permission to export or import guns, swords, gunpowder, gas sprayers, electric shock machines, or crossbows; |
| 34. | Permission to pile up goods for at least one month in green belt, management zones or natural environment conservation zones, among permission for development acts; |
| 35. | Construction or building of temporary structures; |
| 40. | Permission to possess swords, explosives, gas sprayers, electroshock weapons, or crossbows; |
| Article 52 (Verification of Tax Payment at Time of Granting Licenses) |
| (1) | When an agency that has the authority to grant license grants or changes a license, it shall verify that registration and license tax on the license (hereafter referred to as "registration and license tax" in this Section) has been paid, enter the place for payment of registration and license tax, the amount of payment, the date of payment, and the classification of the license in a remarks column of the license register, and then issue to or serve with the applicant a license certificate. |
| (2) | Deleted. <by Presidential Decree No. 23482, Dec. 31, 2011> |
| Article 53 (Notification regarding Licenses) |
| (1) | and (2) Deleted. <by Presidential Decree No. 22586, Dec. 30, 2010> |
| (3) | Where the head of a Si/Gun/Gu imposes no registration and license tax on any of the grounds specified in Article 40 (2) 5, he/she shall notify the license-granting agency thereof. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 54 Deleted. <by Presidential Decree No. 22586, Dec. 30, 2010> |
| Article 55 (Keeping Tax Ledgers) |
The head of a Si/Gun/Gu shall keep a tax ledger of registration and license tax and record necessary matters in the tax ledger. In such cases, where the relevant matters are electronically processed, the tax ledger shall be deemed kept. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
| Article 56 (Objects of Taxation) |
| Article 57 (Standard for Proportional Distribution) |
Where a leisure tax return is filed and leisure tax is paid according to Article 43 of the Act, it shall be calculated pursuant to the following classifications and paid accordingly: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> | 1. | All amounts of tax on betting tickets, horse racing tickets, etc. directly sold at the place of business subject to taxation under Article 40 of the Act (hereafter referred to as "bicycle racing track, etc." in this Chapter) shall be returned and paid to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc.; |
| 2. | 50/100 of the amount of tax on betting tickets, horse racing tickets, etc. sold in an outdoor ticket booth shall be returned and paid respectively to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc., and to the head of the Si/Gun/Gu having jurisdiction over the location of the outdoor ticket booth: Provided, That where the bicycle racing track, etc. is newly constructed, 80/100 of the amount of tax shall be returned and paid to the head of the Si/Gun/Gu having jurisdiction over the location of the bicycle racing track, etc., by the period designated by Ordinance of the Ministry of the Interior and Safety, and the remaining 20/100 of the amount of tax shall be returned and paid to the head of a Si/Gun having jurisdiction over the location of the outdoor ticket booth. |
| Article 58 (Tax Returns and Payment) |
| (1) | A person who intends to file a leisure tax return in accordance with Article 43 of the Act shall file a return using the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety with the head of the Si/Gun/Gu having jurisdiction over the place where the bicycle racing track, etc., and the outdoor ticket booth are located. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person who intends to pay leisure tax in accordance with Article 43 of the Act shall pay the amount of leisure tax calculated in the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 59 (Orders, etc. for Necessary Matters for Tax Collection) |
| (1) | The head of a Si/Gun/Gu may order a person liable to pay tax to execute necessary matters concerning tax collection under Article 46 of the Act. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Where a person liable to pay tax pays leisure tax, the head of a Si/Gun/Gu may grant subsidies equivalent to the expenses incurred in collecting and paying leisure tax, to the person liable to pay tax. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where a person liable to pay tax violates an order issued under paragraph (1), all or part of subsidies may not be granted. |
CHAPTER V TOBACCO CONSUMPTION TAX
| Article 60 (Classification of Tobacco) |
The classification of tobacco under Article 48 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 25485, Jul. 18, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28714, Mar. 27, 2018> | 1. | Cigarette: Tobacco produced conveniently to be smoked in a way that the leaf tobacco added with an aromatic essence, etc. is cut to a regular width, and then is wrapped in a tobacco paper by a cigarette manufacturing machine, and others similar thereto that may be consumed for smoking; |
| 2. | Pipe tobacco: Tobacco produced to be smoked in a pipe in a way that the high-end special leaf tobacco added with a strong aromatic essence is specially processed, such as compression, heat-processing, etc., and then cut to a relatively wide size; |
| 3. | Cigars: Tobacco produced in a way that tobacco leaves of a main tobacco taste are wrapped in a middle cover of leaves, which is further wrapped in an outer cover of leaves in order to smoothen and solidify the cigar's shape; |
| 4. | Cut tobacco: Tobacco produced for a smoker to use a pipe or to wrap in a tobacco paper in a way that a low-quality leaf tobacco added with a light aromatic essence or a relatively high-quality leaf tobacco added with an aromatic essence is cut into thin shreds; |
| 5. | Electronic tobacco: Tobacco produced to give the effect of smoking in a way that a person inhales a solution containing nicotine, tobacco leaves or a solid tobacco product through his/her respiratory system, using an electronic device; |
| 5-2. | Waterpipe tobacco: Tobacco using an instrument in which the smoke passes through water before inhalation; |
| 6. | Chewing tobacco: Tobacco processed to give the effect of smoking in a way that a person chews it in his/her mouth; |
| 7. | Snuffing tobacco: Powdered tobacco produced to give the effect of smoking in a way that a person snuffs it around his/her nose; |
| 8. | Snus: Tobacco produced in the form of candy or other similar forms containing powdered tobacco and nicotine packed after special processing to give the effect of smoking in a way that a person sucks or holds it in the mouth. |
| Article 61 (Adjusted Tax Rates) |
The tax rates of tobacco consumption tax adjusted pursuant to Article 52 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25485, Jul. 18, 2014; Presidential Decree No. 25910, Dec. 30, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28714, Mar. 27, 2018> | (a) | Class 1 cigarette: 1,007 won per 20 cigarettes; |
| (b) | Class 2 pipe tobacco: 36 won per gram; |
| (c) | Class 3 cigars: 103 won per gram; |
| (d) | Class 4 cut tobacco: 36 won per gram; |
| (e) | Class 5 electronic tobacco: |
| (i) | Where a nicotine solution is used: 628 per milliliter of the nicotine solution; |
| (ii) | Where tobacco leaves or a solid tobacco product is used: |
| a. | Cigarette type: 897 won per 20 cigarettes; |
| b. | Other types: 88 won per gram; |
| (f) | Class 6 waterpipe tobacco: 715 won per gram; |
| 2. | Chewing or holding tobacco: 364 won per gram; |
| 3. | Snuffing tobacco: 26 won per gram; |
| 4. | Deleted. <by Presidential Decree No. 25910, Dec. 30, 2014> |
| Article 62 (Taking out without Paying Tax) |
"Taken out to relocate a manufacturing place or for any other reason, as prescribed by Presidential Decree" in subparagraph 3 of Article 53 of the Act means any of the following: <Amended by Presidential Decree No. 26836, Dec. 31, 2015> | 1. | Taking out tobacco to relocate a manufacturing place; |
| 2. | Taking out tobacco to be exported from a manufacturing place to another place; |
| 3. | Taking out tobacco from a manufacturing place or the import distributor's tobacco storage to a discarding place to discard it. |
| Article 63 (Tax Exemption) |
| 1. | To supply to naval cadets who participate in an overseas shipboard exercise and to soldiers on board; |
| 2. | To supply to soldiers stationed in a foreign country. |
[This Article Wholly Amended by Presidential Decree No. 26431, Jul. 24, 2015]
| Article 64 (Scope of Tax Exemption for Tobacco Brought in by Entrants) |
| (1) | "Tobacco brought in by an entrant" in Article 54 (2) of the Act means tobacco brought in as a traveler's personal effect or unaccompanied goods or by a consignment. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| (2) | "Tobacco ......, within the scope prescribed by Presidential Decree" in Article 54 (2) of the Act means the following: <Amended by Presidential Decree No. 28714, Mar. 27, 2018> |
| Type of Tobacco | Quantity | | Cigarette | 200 cigarettes | | Cigar | 50 cigars | | Electronic tobacco | 20 millimeters of a nicotine solution | | 200 cigarettes in cigarette type | | 110 gram in any other type | | Other tobacco | 250 grams |
|
| Article 64-2 (Confirmation of Bringing-in of Tax-Free Tobacco Imported Back) |
A person who is exempt from tobacco consumption tax under Article 54 (3) of the Act shall submit a written confirmation in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor or the head of the relevant Si/Gun (hereafter referred to as "the head of the relevant Si/Gun") having jurisdiction over the manufacturing place or principal place of business by not later than the day immediately after the date of bringing-in, along with documents evidencing the bringing-in of tobacco into the manufacturing place or the tobacco storage of the import distributor. <Amended by Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 26431, Jul. 24, 2015]
| Article 65 (Reporting on Taking out Tobacco) |
| (1) | A report on taking out tobacco under Article 55 of the Act shall be filed with the head of a Si/Gun having jurisdiction over the place of manufacturing or the location of the principal office, in the form prescribed by Ordinance of the Ministry of the Interior and Safety by the next day of the date on which such tobacco is taken out. <Amended by Presidential Decree No. 23711, Apr. 10, 2012; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A report on taking out tobacco under paragraph (1) shall be filed in a manner that taking out taxable tobacco, tobacco with unpaid taxes, and duty-free tobacco can be classified. |
| (3) | Reports referred to in paragraphs (1) and (2) may be filed in each batch of report forms during a fixed period for convenience of business, as prescribed Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 66 (Matters Subject to Notification) |
| (1) | Pursuant to Article 57 (1) of the Act, the Minister of Strategy and Finance shall notify the head of the local government having jurisdiction over a manufacturing place of the following matters: |
| (a) | Name or trade name and address; |
| (b) | Names and address of the representative and the manager; |
| (c) | Types of tobacco produced; |
| (e) | Date of commencement of business; |
| (f) | The lot number of the relevant tobacco warehouse and the information about the current owner and the person having the right to use it; |
| (g) | Details of changes (limited to cases of permission for a change); |
| (h) | Other information for reference; |
| (a) | Names or trade names and addresses of the transferor and the transferee (limited to cases of transfer); |
| (b) | Names and addresses of the transferor and the transferee, or the heir and the decedent, or the representatives and managers of the merged corporation and the surviving (established) corporation after the merger; |
| (c) | Date of transfer, acquisition, commencement of inheritance, or merger; |
| (d) | Reasons for transfer, acquisition, or merger; |
| (e) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Date of revocation of a license; |
| (d) | Grounds for revocation of a license; |
| (e) | Other information for reference. |
| (2) | Pursuant to Article 57 (2) of the Act, the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor shall notify the head of the local government having jurisdiction over the principal place of business of an importer and distributor of the following matters: |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Types of imported tobacco; |
| (d) | Name of the manufacturer (supplier); |
| (e) | Details of changes (limited to an amendment to registration); |
| (f) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Date of revocation of registration; |
| (d) | Grounds for revocation of registration; |
| (e) | Other information for reference; |
| (a) | Name or trade name and address; |
| (b) | Names and addresses of the representative and the manager; |
| (c) | Period of suspension of business operations or of closure of business; |
| (d) | Reasons for suspension of business operations or of closure of business; |
| (e) | Other information for reference. |
[This Article Wholly Amended by Presidential Decree No. 27710, Dec. 30, 2016]
| Article 67 Deleted. <by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 68 (Bookkeeping Duties) |
| (1) | Matters to be entered in an account book by a tobacco manufacturer pursuant to Article 59 of the Act shall be as follows: <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| 1. | Types of raw material of purchased tobacco, and the quantity and value per type (where the raw material is tobacco, the quantity and value for each type of tobacco; hereafter the same shall apply in this Article), the date of purchase, and the name (in cases of a corporation, the title of the corporation and the name of its representative) and address of the seller; |
| 2. | Quantity and price of each type of raw material used for manufacturing tobacco, and the date the material is used; |
| 3. | Quantity of each type of tobacco sold to wholesalers and retailers in the Special Metropolitan City and each Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province, Si, or Gun (hereafter referred to as "Si/Gun" in this Chapter); |
| 4. | Quantity of each type of tobacco manufactured and its manufacturing date; |
| 5. | Quantity of each type of tobacco kept; |
| 6. | Quantity and price of each type of tobacco (they shall be divided into duty-free tobacco, tobacco with unpaid taxes, and taxable tobacco) taken out or brought in (including tobacco brought in under Article 63 (1) 2 of the Act), the date tobacco is taken out or brought in, the name (in cases of a corporation, the title of the corporation and the name of its representative) and address of a person who brings in tobacco. |
| (2) | Matters to be entered in an account book by an import distributor pursuant to Article 59 of the Act shall be as follows: Provided, That the import distributors prescribed by Ordinance of the Ministry of the Interior and Safety may choose not to record the matters referred to in subparagraph 2: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Quantity of each type of tobacco taken out of a bonded area; |
| 2. | Quantity of tobacco sold to wholesalers and retailers per Si/Gun and type; |
| 3. | Quantity of stored tobacco per place of storage and per type; |
| 4. | Quantity of each type of tobacco damaged or lost or destroyed; |
| 5. | Quantity of each type of tobacco consumed within a bonded area; |
| 6. | Quantity of tobacco in stock and the quantity of used tobacco necessary for verifying, etc. the quantity of tobacco. |
| Article 69 (Tax Returns and Payment, Standard for Proportional Distribution, etc.) |
| (1) | A manufacturer who intends to file a return of and pay tobacco consumption tax under Article 60 (1) of the Act shall file with the head of the competent Si/Gun a tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, clearly stating the following matters, and pay the calculated amount of tax in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Amount of tax calculated according to the tax base and tax rate for each type of tobacco sold in the relevant Si/Gun in the preceding month; |
| 2. | Total amount of tax calculated by subtracting the deducted or refunded amount of tax pursuant to Article 63 of the Act from the amount of tax calculated according to the tax base and tax rate for each type of tobacco taken out of the place of manufacturing in the preceding month, and then adding the additional tax under Article 61 of the Act thereto; |
| 3. | Total amount of tax calculated according to the tax base and tax rate for each type of tobacco sold to actual retailers in the entire Si/Gun area (referring to Si/Gun area; hereinafter the same shall apply) in the preceding month; |
| 4. | Amount of tax to be actually received by the relevant Si/Gun according to the following formula: |
Amount of
tax to be
actually
received by
the relevant
Si/Gun | = | Amount of
tax
calculated
under
subparagraph 1 | × | Total amount of
tax calculated under
subparagraph 2 | Total amount of
tax calculated under
subparagraph 3 |
|
| (2) | An import distributor who intends to file a return of and pay tobacco consumption tax under Article 60 (2) of the Act shall file with the head of the Si/Gun having jurisdiction over the location of his/her main office a tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, clearly stating the following matters, and pay the calculated amount of tax in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco sold to retailers in each Si/Gun in the preceding month; |
| 2. | Total amount of tax calculated by subtracting the deducted or refunded amount of tax pursuant to Article 63 of the Act from the amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco taken out of a bonded area in the preceding month (excluding tobacco taken out pursuant to any subparagraph of Article 53 of the Act), and then adding the additional tax under Article 61 of the Act thereto; |
| 3. | Total amount of tax calculated according to the tax base and tax rate for each type of foreign tobacco sold to retailers of each Si/Gun in the preceding month; |
| 4. | Amount of tax to be actually received by each Si/Gun according to the following formula: |
Amount of
tax to be
actually
received by
each Si/Gun | = | Amount of
tax
calculated
under
subparagraph 1 | × | Total amount of
tax calculated under
subparagraph 2 | Total amount of
tax calculated under
subparagraph 3 |
|
| (3) | If it is impossible to calculate the amount of tobacco consumption tax for each Si/Gun on tobacco sold by a manufacturer or import distributer because no amount of tax computed under paragraph (1) 1 and 3 or (2) 1 and 3 exists, or if an import distributor fails to enter the quantity of tobacco per Si/Gun and per type pursuant to the proviso to Article 68 (2), it shall be distributed according to the proportion at which each Si/Gun collects the amount of tobacco consumption tax (hereafter referred to as "actual results of collection" in paragraphs (7) and (8)) from January to December of the immediately preceding year. <Amended by Presidential Decree No. 24296, Jan. 1, 2013> |
| (4) | A person who intends to file a tax return and pay tobacco consumption tax under Article 60 (5) of the Act shall file a declaration in the form prescribed by Ordinance of the Ministry of Strategy and Finance under Article 96 (2) of the Customs Act or a declaration in the form prescribed by Ordinance of the Ministry of Strategy and Finance or by the Commissioner of the Korea Customs Service under Article 241 (2) of the same Act, stating the type, quantity, etc. of tobacco thereon, and shall pay the tax, along with a statement of payment in the form prescribed by the Commissioner of the Korea Customs Service under Article 287 of the Enforcement Decree of the Customs Act. <Amended by Presidential Decree No. 26836, Dec. 31, 2015> |
| (5) | The details of collection that shall be attached by the head of a customs office under Article 60 (7) shall include the following matters: <Amended by Presidential Decree No. 26836, Dec. 31, 2015> |
| 2. | The type, quantity, tax rate, and tax amount of taxable tobacco; |
| 3. | The filing date of the declaration or the date of imposition and the date of payment; |
| 4. | Whether any delinquent tax exists. |
| (6) | Investigation as to whether there exists any error, etc. in tobacco consumption tax returned and paid, or to be returned and paid, by import distributors under paragraph (2) shall be conducted by a tax official of the Si/Gun having jurisdiction over the location of the main office; and if any error, etc. is verified, the tax official shall report it to the head of the competent Si/Gun. |
| (7) | Where there is a change to the boundary of a Si/Gun or the Si/Gun is abolished, established, divided, or merged, the actual results of collection shall be revised according to the following classifications: <Newly Inserted by Presidential Decree No. 24296, Jan. 1, 2013> |
| 1. | The actual results of collection of a Si/Gun to which an area where the boundary of the Si/Gun is changed belonged in the past [referring to the area to be included in a newly established Si/Gun or another Si/Gun from the former Si/Gun (including a Si/Gun to be abolished); hereinafter referred to as "changed area")] shall be calculated by subtracting the actual results of collection of the changed area from the actual results of collection of the relevant Si/Gun; |
| 2. | The actual results of collection of a newly established Si/Gun because the changed area is included therein shall be calculated by adding up the actual results of collection of the changed area that is included therein; |
| 3. | The actual results of collection of the changed area that is included in the actual results of a Si/Gun that continues to exist because the changed area is included therein shall be added to the actual results of collection of the relevant Si/Gun. |
| (8) | The actual results of collection in the changed area shall be calculated according to the following formula based on population statistics surveyed according to resident registration cards under the Resident Registration Act as of January 1 each year: <Newly Inserted by Presidential Decree No. 24296, Jan. 1, 2013> |
Actual results of collection of the changed area
= actual results of collection of a Si/Gun to which the changed area belonged in the past × population of the changed area / the whole population of a Si/Gun to which the changed area belonged in the past.
| Article 70 (Objects and Scope of Deduction and Refund of Amount of Tax) |
| (1) | A person who intends to receive the deduction or refund of taxes for any reason falling under any subparagraph of Article 63 (1) of the Act shall submit the application prescribed by Ordinance of the Ministry of the Interior and Safety, along with documents substantiating the fact that the relevant reason has arisen, to the head of the Si/Gun having jurisdiction over the area where the reason occurs, and then shall receive the deduction or refund certification. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A manufacturer or import distributor who has received the deduction or refund certification pursuant to paragraph (1) shall receive the deduction from the amount of tax to be paid by him/her in the following month, and if no amount of tax to return and pay in the following month exists due to the closure of his/her business or any other reason, he/she shall apply for refund, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 70-2 (Follow-up Management of Deduction and Refund of Tax Amounts) |
| (1) | When a manufacturer or an import distributor intends to discard tobacco brought back in a case falling under Article 63 (1) 1 or 2 of the Act, he/she shall file a declaration in the form prescribed by Ordinance of the Ministry of the Interior and Safety, stating the following matters thereon, with the head of the Si/Gun having jurisdiction over the location of the manufacturing place or the import distributor's tobacco storage (hereinafter referred to as "storage" in this Article) and the head of the Si/Gun having jurisdiction over the location of the discarding place respectively by not later than three days before the scheduled date of discarding: <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Name or trade name and address of the manufacturer or import distributor; |
| 2. | The quantity of each type of tobacco to be discarded; |
| 3. | Discarding place and the scheduled date of discarding; |
| (2) | A manufacturer or an import distributor shall state the following matters on a written confirmation in the form prescribed by Ordinance of the Ministry of the Interior and Safety and shall submit it to the head of the Si/Gun having jurisdiction over the storage and the head of the Si/Gun by whom a tax amount was deducted or refunded or is to be deducted or refunded respectively by not later than seven days after the date on which the discarding of tobacco is completed: <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Matters specified in paragraph (1) 1 through 4; |
| 2. | Name or trade name and address of the discarding company. |
[This Article Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 71 (Security for Tax Payment) |
| (1) | The amount of security for tax payment the head of a local government can accept from a manufacturer or import distributor pursuant to Article 64 of the Act shall be at least the amount specified in the following: <Amended by Presidential Decree No. 24296, Jan. 1, 2013> |
| 1. | In the case of a manufacturer: An amount equivalent to the amount of tax calculated by subtracting the sum of the already paid amount of tax from the sum of the calculated amount of tax on tobacco taken out of a place of manufacturing and the calculated amount of tax on tobacco to be taken out of the place of manufacturing; |
| 2. | In the case of an import distributor: An amount equivalent to the amount of tax calculated by subtracting the sum of the already paid amount of tax from the sum of the calculated amount of tax on tobacco, the import of which has been declared, and the calculated amount of tax on tobacco, the import of which is declared. |
| (2) | When an import distributor intends to clear imported tobacco through the customs, he/she shall submit a certificate of security for tax payment or a receipt of payment issued by the head of the Si/Gun having jurisdiction over the location of the main office, to the head of the customs office of the port of entry, as prescribed by Ordinance of the Ministry of the Interior and Safety, and the head of the relevant customs office shall permit customs clearance up to the secured quantity stated in the certificate of security for tax payment or up to the releasable quantity stated in the receipt of payment: Provided, That where it is possible to verify information on documentation to be submitted through joint use of administrative information under Article 36 (1) of the Electronic Government Act, such verification may be substituted for the submission of documentation. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | Notwithstanding paragraph (1), the head of the local government having jurisdiction over the location of the principal office of a manufacturer or import distributor may grant a reduction or exemption of the amount of security for tax payment to manufacturers or tobacco importers who have not failed in or intentionally evaded the payment of tobacco consumption tax for three years from the date on which they bring tobacco out of the place of manufacturing or the bonded area, as prescribed by the relevant municipal ordinance. <Newly Inserted by Presidential Decree No. 25545, Aug. 12, 2014> |
| Article 72 (Appropriation of Security for Tobacco Consumption Tax) |
Where a person who has provided security pursuant to Article 64 (1) of the Act fails to pay tobacco consumption tax by the due date, or pay less than the amount due, his/her security may be appropriated for disposition fees for arrears, the amount of tobacco consumption tax, or additional dues. In such cases, if there is any shortfall, the shortfall shall be collected; and any balance after the appropriation shall be refunded.
CHAPTER VI LOCAL CONSUMPTION TAX
| Article 73 (Payment Manager) |
"The competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor specified by Presidential Decree" in Article 71 (1) of the Act means the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereafter referred to as "payment manager" in this Chapter) designated by the Minister of the Interior and Safety in consideration of the ratio of local consumption tax to population, etc. <Amended by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
| Article 74 (Payment by Persons Responsible for Special Collection) |
Where a person responsible for special collection pays local consumption tax collected under Article 71 (1) of the Act, he/she may pay such tax in a lump sum to the payment manager through the Commissioner of the National Tax Service for the efficient handling of payment affairs.
| Article 75 (Proportional Distribution Standards and Methods) |
| (1) | Local consumption tax paid pursuant to Article 71 shall be proportionally distributed to the portion set aside taking into consideration consumer spending for each region and the portion for compensating acquisition tax, local education tax, local subsidies, local education subsidies, etc. (hereinafter referred to as "acquisition tax, etc.") by allocating at the ratio of 5/11 and 6/11, respectively, and the proportionally distributed amount shall be calculated according to any of the following formulas: Provided, That, the proportionally distributable amounts, out of the amount calculated under subparagraph 2 (a) as the amount equivalent to 2/100 of the aggregate of amounts proportionally distributable to the relevant Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereafter referred to as "City/Do" in this Article (excluding paragraph (3)) and Articles 76 and 77), may be varied, as prescribed by Ordinance of the Ministry of the Interior and Safety in consideration of demand for social welfare, etc.: <Amended by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | The formula for calculating the amount proportionally distributed in view of consumer spending, etc. in each region: |
Amount proportionally distributed to the relevant City/Do = Tax base of
local consumption tax × 5% × (Consumer index of the relevant City/Do
× Weighted value of the relevant City/Do)/National sum of values calculated by multiplying the consumer index of each City/Do by weighted value |
|
| 2. | The formular for calculating the amount proportionally distributed to compensate acquisition tax, etc.: |
| (a) | The formula for calculating the amount proportionally distributed to compensate acquisition tax: |
Amount proportionally distributed to the relevant City/Do = {[A?(A×B) -
(A×C)]?D} × E:
A: Tax base of local consumption tax × 6%;
B: Percentage (19.24%) of the reduced amount of local subsidies under Article 69 (2) of the Act;
C: Percentage (20.27%) of the reduced amount of local education subsidies under Article 69 (2) of the Act;
D: Local education tax reduced under Article 69 (2) of the Act {[A?(A×B)-(A×C)]÷11} ;
E: Percentage of the compensation for the reduced portion of acquisition tax
of the relevant City/Do. |
|
| (b) | The formula for calculating the amount proportionally distributed to compensate local education tax: |
| Amount proportionally distributed to the relevant City/Do = Amount calculated according to item (a) × 10% |
|
| (c) | The formula for calculating the amount proportionally distributed to compensate local subsidies: |
Amount proportionally distributed to the relevant local government = (A×B) × C:
A: Tax base of local consumption tax × 6%;
B: Percentage (19.24%) of the reduced amount of local subsidies under Article 69 (2) of the Act;
C: Percentage of ordinary subsidies allocated for the relevant year to the relevant local government. |
|
| (d) | The formula for calculating the amount proportionally distributed to compensate local education subsidies: |
Amount proportionally distributed to the Office of Education of the relevant City/Do = (A×B) × C ? D:
A: Tax base of local consumption tax × 6%;
B: Percentage (20.27%) of the reduced amount of local education subsidies under Article 69 (2) of the Act;
C: Percentage of ordinary subsidies allocated to the Office of Education of the relevant City/Do as prescribed by the Minister of Education;
D. Amount proportionally distributed to compensate the relevant City/Do for the deduction from the portion appropriated for compensating local education subsidies. |
|
| (e) | The formula for calculating the amount proportionally distributed to compensate the relevant City/Do for the deduction from the portion appropriated for compensating local education subsidies: |
| (2) | "Consumption index" in the formula under paragraph (1) 1 means the index of each City/Do which is the final private consumption expenditure (referring to that announced as of January 1 of each year; hereafter referred to as "final private consumption expenditure" in this Article) determined and announced by the Statistics Korea pursuant to Article 17 of the Statistics Act and is converted into a percentage. <Amended by Presidential Decree No. 23711, Apr. 10, 2012; Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | "Weight" in the formula under paragraph (1) 1 means weight by region applied to the consumption index in order to narrow the financial gap between regions, which refers to 100% for the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, 200% for Metropolitan Cities other than the Seoul Metropolitan area, and 300% for Dos and Special Self-Governing Provinces other than Special Self-Governing Cities and the Seoul Metropolitan area. <Amended by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (4) | If the boundary of a City/Do is changed or a City/Do is newly established by abolition, establishment, or division of a City/Do or by a merger of Cities/Dos, the amount of local consumption tax of the City/Do to which the changed area previously belonged (referring to the area over which the City/Do has jurisdiction is changed; hereafter the same shall apply in this paragraph) and the Do in which the changed area is newly included shall be adjusted by adding the amount of local consumption tax of the changed area, as calculated according to the following formula, to the amount of local consumption tax of the relevant City/Do, as calculated according to paragraphs (1) through (3), or subtracting the former amount from the latter amount until the year in which the final private consumption expenditure in which the changed area is reflected is settled and announced. In such cases, population shall be based on the population statistics according to the survey conducted with resident registration cards under the Resident Registration Act on January 1 each year: <Newly Inserted by Presidential Decree No. 23711, Apr. 10, 2012> |
| The amount of local consumption tax of the changed area = The amount of local consumption tax of the City/Do to which the changed area previously belonged × Population of the changed area/The whole population of the City/Do to which the changed area previously belonged |
|
| (5) | "Percentage of the compensation for the reduced portion of acquisition tax |
of the relevant City/Do" in the formula under paragraph (1) 2 (a) means a ratio of the total amount of reductions in acquisition tax on each onerous transaction of a house in the relevant City/Do to the total amount of reductions in acquisition tax on each onerous transaction of a house throughout the country. <Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016>
| (6) | Reductions in acquisition tax on each onerous transaction of a house in the relevant City/Do under paragraph (5) shall be calculated according to the period, method, etc. prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (7) | The Minister of the Interior and Safety shall calculate a percentage of the compensation for reductions in acquisition tax on each onerous transaction of a house under paragraphs (5) and (6) and notify a payment manager of such percentage each year. <Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (8) | The Minister of Education shall calculate a percentage of allocation of ordinary subsidies for the Office of Education of each City/Do under paragraph (1) 2 (d) and notify a payment manager of such percentage each year. <Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 76 (Payment, etc. by Payment Managers) |
| (2) | The payment manager shall pay local consumption tax distributed to each City/Do pursuant to Article 75 to the saving depository of each City/Do by the due date specified in paragraph (1), and notify each City/Do of the details of payment and proportional distribution with the collection bill attached under Article 71 (1) of the Act: Provided, That he/she shall directly pay the amount calculated pursuant to Article 75 (1) 2 (c) to the saving depository of the relevant local government, and the amount calculated pursuant to item (d) of the aforesaid subparagraph to the saving depository of the Office of Education of the relevant City/Do. <Amended by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 77 (Treatment of Refund of Local Consumption Tax) |
| (1) | Where a person responsible for special collection pays local consumption tax he/she has collected under Article 74 in a lump sum through the Commissioner of the National Tax Service, if local consumption tax has been refunded in excess of the amount the person responsible for special collection has to pay to the payment manager, the Commissioner of the National Tax Service may transfer an amount equivalent to the excess refund, using the money paid by another person responsible for special collection. In such cases, when the refunded amount is in excess even after the amount of payment made by another person responsible for special collection is transferred, such excess amount shall be carried over to the following month. |
| (2) | Notwithstanding the latter part of paragraph (1), a person responsible for special collection or the Commissioner of the National Tax Service shall request the payment manager to transfer the shortage of a refund of local consumption tax in regard to the last month of a fiscal year for value-added tax. |
| (3) | The payment manager, in receipt of a request for transfer under paragraph (2), shall receive a refund from each City/Do after proportionally dividing the relevant amount for each City/Do (including a payment manager) under Article 75, and transfer it to the account designated by a person responsible for special collection. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 78 (Scope of Buildings Used as Place of Business) |
| (1) | "Total floor area of a building used as a place of business prescribed by Presidential Decree" in subparagraph 6 of Article 74 of the Act means the total floor area of a building or facility used as a place of business which meets any of the following: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | The total floor area of a building stipulated under Article 2 (1) 2 of the Building Act (including buildings of a similar type; hereafter the same shall apply in this Article): Provided, That in the case of a dormitory, boarding house, company house, refectory, medical clinic, library, museum, science building, gallery, shelter, gymnasium, library, training facility, entertainment room, lounge, armory, building for a garbage disposal facility or pollution prevention facility in operation, or any other building prescribed by Ordinance of the Ministry of the Interior and Safety which are used for the health, welfare, cultural education, etc. of employees, the total floor area thereof shall be excluded; |
| 2. | Where only machinery or a storage facility (referring to a water tank, a oil reservoir, a storehouse, a silo, etc.) exists without any building prescribed in subparagraph 1, the horizontally projected area of such machinery or storage facility. |
| (2) | Where two or more places of business jointly use a building or facility prescribed in paragraph (1), the area of such use shall be the total floor area of the building used as the place of business, and where the boundary of the area of such use is unclear, an area divided by the rate of the area for exclusive use shall be the total floor area of the building used as the place of business. |
| Article 78-2 (Scope of Total Amount of Wages of Employees) |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 78-3 (Scope of Employees) |
| (1) | "Who are prescribed by Presidential Decree" in subparagraph 8 of Article 74 of the Act means a person who engages in the relevant business in accordance with a contract with an employer or a person acting with his/her authority, irrespective of whether wages under Article 78-2 are paid: Provided, That a person who works overseas shall be excluded. |
| (2) | A contract under paragraph (1) shall be an employment contract which an employee concludes with an employer or a person delegated by him/her, irrespective of its name, form, or content, and where he/she is paid wages even though he/she does not actually work in the relevant place of business for a certain period for such reasons as active military service, he/she shall be deemed an employee. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 79 (Persons, etc. Liable to Pay Tax) |
| (1) | "Individual who has a place of business the same as or larger than a specified scale prescribed by Presidential Decree" in Article 75 (1) of the Act means a person whose tax base for value-added tax under the Value-Added Tax Act in the immediately preceding year (in the case of a business entity exempt from value-added tax, total amount of income under the Income Tax Act) is not less than 48 million won, and who does not fall under any of the following subparagraphs, from among individuals having a place of business: Provided, That this shall not apply where any of the following persons is concurrently engaged in any other type of business: |
| 2. | and 3. Deleted. <by Presidential Decree No. 26836, Dec. 31, 2015> |
| 4. | Retailers of briquettes and grain; |
| (2) | The head of a tax office shall notify the head of the relevant Si/Gun/Gu having jurisdiction over the location of the individual business entity, of data on the business entity who has a place of business, and whose tax base for value-added tax in the immediately preceding year (in cases of a business entity exempt from value-added tax, total amount of income under the Income Tax Act) is not less than 48 million won, as prescribed in paragraph (1). <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 80 (Secondary Tax Liability of Owners of Buildings) |
| (1) | Cases where the secondary tax liability for pro rata property portion may be imposed on the owner of a building pursuant to the proviso to Article 75 (2) of the Act shall be limited to cases where a shortfall exists even after the property of a business owner is collected for the already imposed pro rata property portion. |
| (2) | Even when the owner of a building used as a place of business is a person subject to non-taxation pursuant to Article 77 of the Act, the secondary tax liability may be imposed on him/her. |
| Article 81 (Places for Tax Payment) |
| (1) | Where a building used as a place of business extends over two or more Sis/Guns/Gus, the respective pro rata property portion shall be apportioned according to the total floor area of the building, and be paid to the heads of the relevant local governments, respectively. <Amended by Presidential Decree No. 25252, Mar. 14, 2014; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Where it is impracticable to divide tax payment for the employee portion, the total amount of the employee portion shall be proportionally divided according to the percentage of the property portion of resident tax calculated pursuant to paragraph (1) and paid to the heads of the relevant local governments, respectively. <Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014> |
| Article 82 (Method of Calculating Tax Base) |
When the tax base of a pro rata property portion prescribed in Article 80 of the Act is calculated, a fraction less than one square meter shall not be counted.
| Article 83 (Places of Business Discharging Pollutants) |
"Business establishments specified by Presidential Decree as those emitting pollutant" in Article 81 (3) of the Act means the following places of business to whom an administrative agency issued an order of improvement, an order of the suspension of business operations, an order of the suspension of use or an order of permanent closure (hereafter referred to as "order of improvement, etc." in this Article) under the Water Environment Conservation Act or the Clean Air Conservation Act during the last one year before an obligation to pay a tax arises under Article 34 (1) of the Framework Act on Local Taxes (including business establishments on which a penalty was imposed in lieu of an order of improvement, etc.): <Amended by Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28524, Dec. 29, 2017; Presidential Decree No. 28583, Jan. 16, 2018> | 1. | Places of business subject to permission for or reporting on the installation of wastewater discharge facilities under Article 33 of the Water Environment Conservation Act, which fail to obtain permission for or reporting on the installation of discharge facilities under the same Act; |
| 2. | Places of business which have obtained permission for the installation of discharge facilities under the Water Environment Conservation Act, and have been judged noncompliant after an inspection of the relevant place of business; |
| 3. | Business establishments that have not obtained a permit for, or have not filed a report on, the installation of an emission facility pursuant to Article 23 of the Clean Air Conservation Act, although such business establishments are obligated to obtain a permit for, or file a report on, the establishment of such emission facility under the same Act; |
| 4. | Business establishments that are permitted to, or has reported on, the establishment of an emission facility under the Clean Air Conservation Act but fail to pass an inspection for conformity to standards. |
| Article 84 (Tax Returns and Payment) |
| (1) | A person who intends to file a return of a pro rata property portion in accordance with Article 83 (3) of the Act shall file a return of it with the head of the relevant Si/Gun/Gu, accompanied by a statement detailing the total floor area of the building, amount of tax and other necessary matters in a tax return form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person who intends to pay a pro rata property portion in accordance with Article 83 (3) of the Act shall pay it in a payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 85 (Keeping, etc. Tax Ledgers) |
| (1) | The head of a Si/Gun/Gu shall keep tax ledgers of a per capita portion and pro rata property portion and record necessary matters in such ledgers. In such cases, where the relevant matters are electronically processed, the tax ledgers shall be deemed kept. <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | When the head of a Si/Gun/Gu records the outcome of an ex officio investigation in the tax ledger pursuant to Article 84 (2) of the Act, he/she shall notify a person liable to pay tax of such fact. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 85-2 (Basis for Calculation of Monthly Average Total Amount of Wages of Employees, etc.) |
| (1) | The monthly average total amount of employees’ wages under Article 84-4 (1) of the Act shall be calculated by dividing the total amount of wages paid to the employees of the relevant business establishment during the most recent 12 months, including the month in which the duty to pay the tax under Article 34 of the Framework Act on Local Taxes arises, (referring to the period from the month in which the duty to pay the tax arises until the month in which business operation commences, if the period of business operation is less than 12 months) by the relevant number of months. In such cases, the total amount of wages for the months in which the number of days of business operation is less than 15 days due to the commencement or suspension of business operation or the closure of business and the number of such months shall be excluded from the calculation of the monthly average total amount of employees’ wages. |
[This Article Wholly Amended by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 85-3 (Basis for Calculation of Number of Employees) |
The calculation of the number of employees under Article 84-5 of the Act shall be based on the average monthly number of employees. In such cases, the method of calculating the average monthly number of persons shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 85-4 (Reporting and Payment of Employee Portion) |
| (1) | A person who intends to report the employee portion pursuant to Article 84-6 (2) of the Act shall submit a tax return prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government, along with a detailed statement mentioning the number of employees, the total amount of wages, the amount of tax, and other necessary matters. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person who intends to pay the employee portion pursuant to Article 84-6 (2) of the Act shall pay the employee portion with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 85-5 (Keeping, etc. Tax Ledger) |
| (1) | The head of a local government shall keep a tax ledger for the employee portion and record necessary matters therein. In such cases, where he/she electronically handles the relevant matters, he/she shall be deemed to have kept the tax ledger. |
| (2) | Where the head of a local government records any matters in the tax ledger after ex officio investigation pursuant to Article 84-7 (2) of the Act, he/she shall notify a person liable to pay tax of such fact. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
CHAPTER VIII LOCAL CONSUMPTION TAX
SECTION 1 Common Provisions
| Article 86 (Scope of Korean Non-Profit Corporations and Foreign Corporations) |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 87 (Place for Tax Payment, etc.) |
| (1) | Where a corporation relocates its place of business, the place of payment of local income tax of the relevant corporation shall be the location of its place of business as of the last day of the business year of the relevant corporation. |
| (2) | Where personal local income tax needs to be refunded or additionally collected after the year-end adjustment of personal local income tax of a worker whose place of employment changes before the taxable period ends or who receives earned income from at least two employers, the place of payment of personal local income tax shall be a new place of employment or main place of employment of the relevant worker as of the end date of the taxable period. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 88 (Methods of Proportional Distribution of Corporate Local Income Tax) |
| (1) | "The criteria prescribed by Presidential Decree" in Article 89 (2) of the Act means the rate calculated by the following formula (hereafter referred to as "proportional distribution rate" in this Chapter): |
| (Number of employees within jurisdiction of the relevant local government/Total number of employees of the corporation + Total floor area of the buildings within jurisdiction of the relevant local government/Total floor area of the buildings of the corporation)/2 |
|
| (2) | The calculation of the number of employees and the total floor area of buildings under paragraph (1) shall be based on the following criteria as at the end of each business year. If a building directly used as a place of business is located in an area which falls within the jurisdiction of two or more local governments in such cases, the number of employees and the total floor area of the building shall be calculated according to the proportion of the total floor area of the building in the area for each of the local governments involved, and matters concerning a specific method of proportional allocation shall be prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended by Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 2. | Total floor area of buildings: The total floor area of the buildings defined by Article 2 (1) 2 of the Building Act (including structures in a similar form) and used directly as the place of business: Provided, That the horizontal projected area shall be deemed the total floor area in the case of machines or facilities (limited to water tanks, oil tanks, warehouses, storage tanks, oil pipelines, water pipelines, and electric power transmission towers) where it is impracticable to determine the total floor area due to structural characteristics. |
| (3) | Where the head of a local government increases or decreases the tax rate of corporate local income tax from the standard tax rate under Article 103-20 (2) of the Act, the taxpayer shall pay the amount calculated by the following formula by adding the amount to, or subtracting the amount from, corporate local income tax: |
| (4) | If a corporation has its places of business in areas within jurisdiction of two or more Gus in the Special Metropolitan City or in the same Metropolitan City, the corporation shall file a tax return and pay the corporate local income tax to be paid to the Special Metropolitan City or the Metropolitan City to the head of the Gu having jurisdiction over its head office or principal place of business (the head office or principal place of business of the parent corporation, in the case of a consolidated corporation) in a lump sum: Provided, That, if a corporation does not have its head office or principal place of business in the Special Metropolitan City or a Metropolitan City, it shall file the tax return and pay the tax to the head of the Gu having jurisdiction over the principal place of business specified by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 26836, Dec. 31, 2015]
SECTION 2 Local Income Tax on Global Income and Retirement Income of Residents
| Article 88-2 (Special Cases of Calculation of Tax Amount for Excess Refund from Workplace Mutual Aid Associations) |
[This Article Newly Inserted by Presidential Decree No. 25545, Aug. 12, 2014]
| Article 89 (Special Exceptions to Calculation of Tax Amount on Real Estate Business Entities) |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 90 (Provisional Tax Return for Profit Margins on Purchase and Sale of Land, etc. of Real Estate Business Entities and Payment of Tax) |
| (1) | A person who intends to file a provisional tax return for profit margins on the purchase and sale of land, etc. pursuant to Article 93 (5) of the Act shall submit a provisional tax return for profit margins on the purchase and sale of land, etc. in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | When a real estate business entity pays the calculated amount of tax on profit margins on the purchase and sale of land, etc. pursuant to Article 93 (7) of the Act, he/she shall pay the amount of tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 91 (Profit Margins on Purchase and Sale of Land, etc.) |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 91-2 (Special Cases concerning Calculation of Final Tax Amount on Global Income Related to Income from Rental of Houses Subject to Separate Taxation) |
In calculating the final tax amount on global income related to income from renting a house subject to separate taxation under Article 93 (11) of the Act, the amount of business income under Article 93 (10) 2 (a) of the Act shall be an amount equivalent to 40/100 of the amount of gross revenue (referring to the amount of the revenue from a business of rental of residential buildings). [This Article Newly Inserted by Presidential Decree No. 27710, Dec. 30, 2016]
| Article 92 (Final Return of Tax Base and Tax Amount and Payment of Tax) |
| (1) | A person who intends to file a final tax return and pay tax pursuant to Article 95 (1) of the Act shall submit a final tax base return of personal local income tax on global income or retirement income, a calculation of payment and attached documents prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person who intends to pay personal local income tax on global income or retirement income pursuant to Article 95 (3) of the Act shall pay such tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 93 (Amended Tax Return and Payment of Tax) |
| (1) | Where a resident files an amended tax return pursuant to Article 96 (1) of the Act, he/she shall submit an amended tax return to the head of a local government having jurisdiction over the place of tax payment, along with documents proving the details of an amended income tax return. |
| (2) | Where an additional tax amount to be paid takes place due to an amended tax return filed under Article 96 (3) of the Act, a resident shall pay the additional tax amount in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 94 (Determination and Correction of Tax Base and Tax Amount) |
| (1) | In principle, determination or correction of the tax base and tax amount under Article 97 of the Act shall be made in accordance with data determined or corrected by the head of a tax office or the head of a regional tax services having jurisdiction over the place of tax payment, a final tax base return and documents attached thereto, or an on-site survey as prescribed in the Income Tax Act. |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 95 (Notification of Tax Base and Tax Amount) |
| (1) | When the head of a local government having jurisdiction over the place of tax payment notifies a resident of the tax base and tax amount pursuant to Article 97 (4) of the Act, he/she shall notify the resident of the tax base, tax rate, tax amount, and other necessary matters in writing. In such cases, the same shall also apply where there is no tax to be paid. |
| (2) | Where the head of a local government having jurisdiction over the place of tax payment imposes personal local income tax on at least two inheritors on the amount of income that the ancestor earns, he/she shall distribute the tax base and tax amount based on the share of each inheritor and notify each inheritor of the tax base and tax amount. |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 96 (Occasional Imposition) |
| (1) | The head of a local government having jurisdiction over the place of tax payment shall determine the tax base and tax amount under Article 98 of the Act by applying Article 94 (1) mutatis mutandis. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| (2) | Where a business entity receives the amount of income from the UN armed forces in the Republic of Korea or a foreign agency in a foreign exchange certificate or Korean won via a foreign exchange bank, the head of a local government may determine the tax base and tax amount for the amount the business entity receives pursuant to Article 98 of the Act. |
| (3) | In the case of occasional imposition of tax under Article 98 of the Act, matters necessary for the calculation of the tax amount thereof shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 97 Deleted. <by Presidential Decree No. 26431, Jul. 24, 2015> |
| Article 98 (Refund on Retroactive Deduction for Loss) |
| (1) | "Amount calculated as prescribed by Presidential Decree" in Article 101 (1) of the Act means the amount calculated by subtracting the amount referred to in subparagraph 2 from the amount referred to in subparagraph 1 (hereinafter referred to as "retroactively deducted tax amount for loss"): |
| 1. | Calculated amount of personal local income tax on global income of the relevant small and medium enterprise for the immediately preceding period of taxation; |
| 2. | Calculated amount of personal local income tax on global income of the relevant small and medium enterprise calculated by applying tax rates in the immediately preceding period of taxation to the amount calculated by subtracting the amount it intends to get a retroactive deduction (limited to the tax base of personal local income tax on global income in the immediately preceding period of taxation), which is the loss brought forward referred to in Article 45 (3) of the Income Tax Act, from the tax base of personal local income tax on global income in the immediately preceding period of taxation. |
| (2) | A person who intends to get a tax refund after retroactive deduction for loss pursuant to Article 101 (2) of the Act shall submit an application for tax refund after retroactive deduction for loss prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | The calculation of the amount of tax refund on retroactive deduction for loss and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 99 (Submission of Detailed Statements of Distribution to Each Joint Business Partner) |
Where joint business partners file a final tax base return, the representative joint business partner shall submit a final tax base return to the head of a local government having jurisdiction over the place of tax payment, along with a detailed statement of distribution to each joint business partner prescribed by Ordinance of the Ministry of the Interior and Safety mentioning the amount of income generated in the place of business of the relevant joint business partners, the amount of additional tax and the amount of specially collected tax. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 3 Local Income Tax on Capital Gains of Residents
| (1) | Deleted. <by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | through (5) Deleted. <by Presidential Decree No. 25545, Aug. 12, 2014> |
| (9) | through (11) Deleted. <by Presidential Decree No. 28714, Mar. 27, 2018> |
[This Article Wholly Amended by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-2 (Provisional Tax Returns and Payment of Tax) |
| (1) | A person who intends to file a provisional tax return pursuant to Article 103-5 (1) of the Act shall file a provisional tax base return of personal local income tax on capital gains prescribed by Ordinance of the Ministry of the Interior and Safety and a calculation of payment with the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person who intends to pay personal local income tax on capital gains pursuant to Article 103-5 (3) of the Act shall pay the personal local income tax using the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-3 (Final Tax Base Return for Personal Local Income Tax on Capital Gains) |
| (1) | A person who intends to file a final tax return and pay tax pursuant to Article 103-7 (1) or (6) of the Act shall submit a final tax base return for personal local income tax on capital gains prescribed by Ordinance of the Ministry of the Interior and Safety and a calculation of payment to the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28524, Dec. 29, 2017> |
| 1. | Where a person who has filed a provisional tax return on assets subject to the application of cumulative tax rates at least twice in the relevant year fails to file a tax return by adding together the amount of capital gains already reported pursuant to Article 103-6 (2) of the Act; |
| (3) | A person who intends to pay personal local income tax on capital gains pursuant to Article 103-7 (4) through (6) of the Act shall pay tax in accordance with a statement of payment prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28524, Dec. 29, 2017> |
| (4) | The amount equivalent to the interest under the latter part of Article 103-7 (7) of the Act shall be calculated by the following formula: <Amended by Presidential Decree No. 28524, Dec. 29, 2017> |
| The amount equivalent to interest = The amount of payment deferred under Article 103-7 (7) of the Act ? The number of days from the day immediately after the deadline for filing a return to the date of payment ? The interest rate under Article 43 of the Enforcement Decree of the Framework Act on Local Taxes as at the filing date of the application for the deferment of payment |
|
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 4 Local Income Tax on Income of Nonresidents
| Article 100-4 (Special Exceptions to Tax Return and Payment of Personal Local Income Tax on Capital Gains on Securities of Nonresidents) |
| (1) | If a nonresident who intends to file a local income tax return and pay the tax pursuant to Article 103-12 (4) of the Act falls within Article 126-2 (1) or (2) of the Income Tax Act, he/she shall submit a report on the adjustment of capital gains on securities of a nonresident in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the seat of the Korean corporation that issued the relevant securities. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | If a nonresident who intends to file a local income tax return and pay the tax pursuant to Article 103-12 (4) of the Act falls within the main sentence of Article 126-2 (3) of the Income Tax Act, he/she shall submit a report on capital gains on securities of the nonresident in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the seat of the Korean corporation that issued the relevant securities. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 5 Special Collection of Tax on Personal Local Income
| Article 100-5 (Obligations to Perform Special Collection) |
| (1) | Where a person responsible for special collection under the latter part of Article 103-13 (1) of the Act (hereafter referred to as "person responsible for special collection" in this Section) pays the amount of tax he/she has specially collected pursuant to Article 103-13 (2) of the Act, he/she shall attach a statement of calculation and a detailed statement to a statement of payment. |
| (2) | Where a person responsible for special collection of personal local income tax pays the amount of tax he/she has specially collected, notwithstanding the provisions of paragraph (1), he/she may choose not to attach a detailed statement of earned income, interest income, annuity income under Article 20-3 (1) 1 and 2 of the Income Tax Act, and business income paid by the National Health Insurance Corporation under the National Health Insurance Act: Provided, That where a person having the authority to impose tax requests him/her to submit a detailed statement because he/she needs to identify the results of tax payment of each person in order to handle civil petitions, such as the issuance of a certificate of tax payment, he/she shall attach the detailed statement. |
| (3) | Where a person responsible for special collection of personal local income tax discovers errors in the amounts of specially collected tax to be paid to each local government pursuant to the former part of Article 103-13 (3) of the Act, he/she shall adjust the overpaid or underpaid proportion in the amount of specially collected tax he/she should pay to the relevant local government by the tenth day of the month following the month to which the date he/she discover errors belongs. In such cases, where the remainder exceeds the amount of specially collected tax of the following month which he/she should pay to the relevant local government, it shall be adjusted in the amount of specially collected tax of the following month. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-6 (Exceptions to Additional Taxes on Non-Performance of Obligations) |
"Persons prescribed by Presidential Decree" in the proviso to Article 103-14 of the Act means the United States Armed Forces stationed in the territory of the Republic of Korea. [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-7 (Refund at Time of Year-End Adjustment of Personal Local Income Tax) |
| (1) | When local income tax shall be refunded to an income earner under Article 103-15 (1) of the Act, the difference shall be refunded by adjusting the local income tax that shall be specially collected and paid by the person responsible for special collection with the difference: Provided, That, if there is no amount of local income tax that shall be specially collected and paid by the person responsible for special collection, the difference shall be refunded as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | Paragraph (1) shall apply mutatis mutandis to cases where an amount overpaid or erroneously paid shall be refunded out of local income tax already specially collected and paid by the person responsible for special collection under Article 103-13 of the Act. |
[This Article Wholly Amended by Presidential Decree No. 26431, Jul. 24, 2015]
| Article 100-8 (Procedures for Making Personal Local Income Tax Refund on Retirement Income) |
Where a person responsible for special collection who receives an application for refund under Article 103-16 (1) of the Act shall fix 1/10 of the amount of tax calculated according to the calculation formula referred to in Article 202-2 (1) of the Enforcement Decree of the Income Tax Act as the tax amount he/she should refund, and where personal local income tax he/she should refund exceeds personal local income tax he/she should specially collect and pay in the month he/she should refund, he/she shall make an adjustment in and a refund from personal local income tax he/she should specially collect and pay after the following month: Provided, That where the relevant person responsible for special collection files an application for refund, the head of a local government having jurisdiction over special collection shall refund such excess. [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-9 (Collection Subsidies) |
| (1) | Collection subsidies the head of a local government pays to a tax association pursuant to Article 103-17 (3) of the Act shall be 5/100 of the tax amount such tax association has paid. <Amended by Presidential Decree No. 28714, Mar. 27, 2018> |
| (2) | A tax association that intends to receive collection subsidies under paragraph (1) shall submit an invoice to the head of a local government having jurisdiction over the place of tax payment by the 20th day of the following month every month. |
| (3) | If any amount shall be refunded to a tax association, out of a tax amount paid by the tax association, after paying a collection subsidy to the tax association under paragraph (1), such refundable amount shall be paid by adjusting the collection subsidies invoiced on or after the date of accrual of such refundable amount by the difference in the collection subsidy calculated by excluding the refundable amount. <Newly Inserted by Presidential Decree No. 28714, Mar. 27, 2018> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-10 (Payment of Specially Collected Tax Amount on Nonresidents) |
Where a person responsible for special collection has no domicile, residence, head office, principal office, or place of business (including a place of business of a foreign corporation in the Republic of Korea) in the Republic of Korea, he/she shall designate a tax payment manager under Article 139 of the Framework Act on Local Taxes and report the tax payment manager to the head of a local government having jurisdiction over the place of tax payment: Provided, That where he/she has reported to the head of a tax office having jurisdiction over the place of tax payment pursuant to the proviso to Article 207 (1) of the Enforcement Decree of the Income Tax Act, he/she shall be deemed to have reported the tax payment manager to the head of a local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 27958, Mar. 27, 2017> [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 6 Local Income Tax on Income of Korean Corporations in Each Business Year
| Article 100-11 (Calculation of Number of Months) |
The number of months referred to in Article 103-21 (2) of the Act shall be calculated according to the calendar, and the number of days less than one month shall be deemed one month. [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-12 (Reporting of Tax Base) |
| (2) | The tax return under paragraph (1) shall be a return of the tax base and amount of corporate local income tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | A statement of tax adjustment under Article 103-23 (2) 2 of the Act shall consist of the tax base and the statement of tax adjustment of corporate local income tax prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | "A statement of proportional distribution of corporate local income tax in the form prescribed by Presidential Decree" in Article 103-23 (2) 3 of the Act means a statement of proportional distribution in the form prescribed by Ordinance of the Ministry of the Interior and Safety, including details of proportional distribution to each local government. <Amended by Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (6) | A corporation may file a tax return of the tax base and amount of corporate local income tax by the electronic return system under Article 2 (1) 29 of the Framework Act on Local Taxes. In such cases, the submission of financial statements may be substituted by the submission of a standard balance sheet, a standard statement of profit or loss, and standard accompanying statements on the calculation of profit or loss. <Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-13 (Reporting of Proportional Distribution and Payment of Corporate Local Income Tax) |
| (1) | A Korean corporation that intends to file a corporate local income tax return pursuant to Article 103-23 (1) of the Act shall submit a written report of proportional distribution of corporate local income tax under Article 100-12 (4), stating the total amount of corporate local income tax and the details of proportional calculation of corporate local income tax for the head office or the principal place of business and each place of business under Article 88, to the head of the relevant local government, along with the tax base return and amount of corporate local income tax under Article 100-12 (2). Provided, That where it has made an electronic report through the local tax information and communication network under Article 135 of the Framework Act on Local Taxes, it shall be deemed to have submitted the report of proportional distribution. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 27958, Mar. 27, 2017> |
| (2) | Where a Korean corporation pays corporate local income tax pursuant to Article 103-23 (3) of the Act, it shall pay such tax to the relevant local government in a form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-14 (Amended Returns on Corporate Local Income Tax) |
| (1) | A Korean corporation that intends to file an amended return pursuant to Article 103-24 (1) of the Act shall file an amended return with the head of a local government having jurisdiction over the place of tax payment with documents verifying the details of the amended corporate tax return. <Amended by Presidential Decree No. 25545, Aug. 12, 2014> |
| (2) | A person who intends to pay an additional tax amount incurred from an amended return under Article 103-24 (3) of the Act shall pay it using the payment form prescribed by Ordinance of the Ministry of the Interior and Safety. <Newly Inserted by Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-15 (Determination and Correction) |
| (1) | Where the head of a local government having jurisdiction over the place of tax payment determines or corrects the tax base and the amount of corporate local income tax pursuant to Article 103-25 of the Act, he/she shall, in principle, make such determination or correction in accordance with data the head of a tax office or the head of a regional tax services having jurisdiction over the place of tax payment has determined or corrected pursuant to the Corporate Tax Act, a final tax base return and documents attached thereto, or an actual survey based on books or other evidentiary documents. |
| (2) | Deleted. <by Presidential Decree No. 28714, Mar. 27, 2018> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-16 (Notification) |
Where the head of a local government notifies a Korean corporation of the tax base and the tax amount pursuant to Article 103-25 (4) of the Act, he/she shall send a notice of tax payment, along with details of the calculation of the tax base and the tax amount, and where there is no amount that becomes the tax base for each business year or no tax amount to be paid, he/she shall notify it of the details determined. [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-17 (Determination of Occasional Imposition) |
| (2) | Where the head of a local government having jurisdiction over the place of tax payment occasionally imposes tax on a corporation in which case reasons under paragraph (1) arise pursuant to Article 103-26 (1) of the Act, he/she shall determine the tax base and the tax amount thereof by applying Article 100-15 (1) and (4) hereof and Article 103-21 (2) of the Act mutatis mutandis. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where a corporation receives the amount of business income from the UN armed forces in the Republic of Korea or a foreign agency in a certificate of foreign exchange or Korean won via a foreign exchange bank, the head of a local government having jurisdiction over the place of tax payment may determine the tax base on the amount such corporation receives pursuant to Article 103-26 of the Act. |
| (4) | Where the head of a local government having jurisdiction over the place of tax payment occasionally imposes tax pursuant to paragraph (3), the amount calculated by multiplying the amount calculated pursuant to Article 100-15 (4) hereof by tax rates under Article 103-20 of the Act shall be the amount of tax thereof. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-18 (Calculation of Amount of Tax Refund on Retroactive Deduction for Loss) |
| (1) | "Corporate local income tax prescribed by Presidential Decree" in Article 103-28 (1) of the Act means the amount calculated (hereafter referred to as "amount of corporate local income tax for the immediately preceding business year" in this Article) by subtracting the amount of corporate local income tax deducted, or reduced or exempted (hereinafter referred to as "amount of tax reduction or exemption"), which is corporate local income tax on income in the immediately preceding business year, from the calculated amount of corporate local income tax for the immediately preceding business year (excluding corporate local income tax on capital gains on land, etc. under Article 103-31 of the Act; hereafter the same shall apply in this Article). |
| (2) | "Amount calculated as prescribed by Presidential Decree" in Article 103-28 (1) of the Act means the amount calculated by subtracting the amount referred to in subparagraph 2 from the amount referred to in subparagraph 1: |
| 1. | Calculated amount of corporate local income tax for the immediately preceding business year; |
| 2. | Amount calculated by applying tax rates of the immediately preceding business year to the amount calculated by subtracting the amount a Korean corporation intends to get a retroactive deduction as the loss in the relevant business year (limited to the tax base of the immediately preceding business year, and hereafter referred to as "amount of loss retroactively deducted" in this Article) under Article 14 (2) of the Corporate Tax Act from the tax base of the immediately preceding business year. |
| (3) | A corporation that intends to get a refund pursuant to Article 103-28 (2) of the Act shall submit an application for refund of the amount of corporate local income tax after retroactive deduction prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place of tax payment by a deadline for filing a tax return under Article 103-23 (1) of the Act. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | The amount of corporate local income tax to collected as the loss is reduced pursuant to Article 103-28 of the Act shall be calculated according to the following formula: Provided, That where only some of the losses referred to in Article 14 (2) of the Corporate Tax Act is retroactively deducted, the loss which is not retroactively deducted shall be deemed first reduced: |
| Amount of tax refund under Article 103-28 (2) of the Act (hereafter referred to as "amount of original tax refund" in this Article) × Amount exceeding the loss which is not retroactively deducted, which is the amount of loss reduced / Amount of the loss retroactively deducted. |
|
| (5) | Where the head of a local government having jurisdiction over the place of tax payment collects the amount of tax refund pursuant to Article 103-28 (5) of the Act, he/she shall collect the amount calculated by multiplying the amount referred to in subparagraph 1 by the rate referred to in subparagraph 2 in addition to the amount of tax refund: <Amended by Presidential Decree No. 27958, Mar. 27, 2017> |
| (6) | Where the amount of corporate local income tax for the immediately preceding business year or the amount of tax base which becomes the basis of the calculation of the amount of tax refund is changed after the head of a local government having jurisdiction over the place of tax payment determines the amount of original tax refund, he/she shall immediately re-determine the amount of original tax refund and make an additional refund or collect the amount equivalent to the amount of excessive tax refund. |
| (7) | Where the amount of loss retroactively deducted exceeds the amount of tax base when the head of a local government having jurisdiction over the place of tax payment re-determines the amount of original tax refund pursuant to paragraph (6), the amount of such loss exceeding the amount of tax base shall not be deemed the amount of loss retroactively deducted. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-19 (Responsibility for Special Collection) |
| (1) | A person responsible for special collection under Article 103-29 (2) of the Act (hereafter referred to as "person responsible for special collection" in this Article) shall pay the tax amount specially collected under Article 103-29 (3) of the Act, along with the payment statement in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 26290, Jun. 1, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | A person responsible for special collection shall submit a statement of special collection of corporate local income tax of each person liable to pay the tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction of the location of the person responsible for special collection by not later than March 31 of the year immediately following the year in which the tax is specially collected. In such cases, if the location of the person responsible for special collection is not in the area where the place of business of a person liable to pay the tax is located, the head of a local government having jurisdiction over the location of the person responsible for special collection shall send the relevant statement of special collection of corporate local income tax to the head of the local government having jurisdiction over the place of business of the person liable to pay the tax. <Newly Inserted by Presidential Decree No. 26290, Jun. 1, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | A person responsible for special collection shall submit a statement of special collection of corporate local income tax under the former part of paragraph (2) by any of the following means: <Newly Inserted by Presidential Decree No. 26290, Jun. 1, 2015> |
| 1. | Submission of the statement in person or by mail in the form of print-out or in diskettes or any other medium for storage of information; |
| (4) | When a person responsible for special collection specially collects corporate local income tax from a person liable to pay the tax, he/she shall issue a receipt of specially collected corporate local income tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That, if a withholding agent under Article 73 of the Corporate Tax Act issues a receipt of the withholding tax under Article 74 of the same Act, including the specially collected amount of corporate local income tax and the information about the place of tax payment for the tax therein, the receipt of specially collected corporate local income tax shall be deemed issued. <Newly Inserted by Presidential Decree No. 26290, Jun. 1, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (5) | Notwithstanding the main sentence of paragraph (4), a person responsible for special collection does not need to issue a receipt of specially collected corporate local income tax, if the amount of interest income or dividend income under Article 73 of the Corporate Tax Act, which has accrued during one year for each account, is not more than one million won: Provided, That the receipt of specially collected corporate local income tax shall be issued, if a person liable to pay the tax requests to issue the receipt. <Newly Inserted by Presidential Decree No. 26290, Jun. 1, 2015> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-20 Deleted. <by Presidential Decree No. 26431, Jul. 24, 2015> |
| Article 100-21 (Special Taxation on Capital Gains on Land, etc.) |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-22 (Special Exceptions to Reporting of Tax Base by Korean Nonprofit Corporations) |
| (1) | When applying Article 103-32 (1) of the Act, a Korean nonprofit corporation may choose not to report the tax base on some of the interest income specially collected. |
| (2) | A Korean nonprofit corporation shall not include interest income the tax base of which has not been reported pursuant to Article 103-32 (1) of the Act in the tax base through an amended return, tax return after a deadline for filing the tax return or correction. |
| (3) | When a corporation files a provisional return of the tax base of capital gains under Article 103-32 (5) of the Act, it shall submit the provisional return of the tax base of capital gains on corporate local income in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | Even where a Korean nonprofit corporation has filed a provisional return of the tax base of capital gains and voluntarily paid the tax pursuant to Article 103-32 (5) of the Act, it may report the tax base pursuant to Article 103-23 (1) of the Act. In such cases, the amount of tax payable by the provisional return shall be deducted from the amount of tax payable under Article 103-23 (3) of the Act. <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 7 Local Income Tax on Income of Korean Corporations in Each Consolidated Business Year
| Article 100-23 (Calculated Amount of Corporate Local Income Tax for Each Consolidated Corporation) |
| (1) | The calculated amount of corporate local income tax of each consolidated corporation under Article 103-35 (4) of the Act shall be the amount calculated by multiplying the amount referred to in subparagraph 1 by the rate referred to in subparagraph 2. In such cases, where a consolidated corporation is liable to pay corporate local income tax on capital gains on land, etc. under Article 103-31 of the Act, such tax shall be added thereto: <Amended by Presidential Decree No. 26431, Jul. 24, 2015> |
| (2) | Deleted. <by Presidential Decree No. 26431, Jul. 24, 2015> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-24 (Amount of Tax Reduction or Exemption for Consolidated Corporations) |
When applying Article 103-36 (1) and (2) of the Act, the amount of tax reduction or exemption for each consolidated corporation shall be the amount calculated by multiplying income from which a tax reduction or exemption is allowed by consolidated tax rates (in the case of a tax reduction, the amount calculated by multiplying the amount of tax reduction by the relevant tax reduction rate). In such cases, income from which a tax reduction or exemption is allowed shall be limited to the amount of tax base individually belonging to each consolidated corporation. [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-25 (Return and Payment of Amount of Consolidated Tax) |
| (1) | A tax return under Article 103-37 (1) of the Act shall be a tax return on the tax base and amount of corporate local income tax on the income for each consolidated business year in the form prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | "Documents specified by Presidential Decree as those accompanying a statement of tax adjustment" in Article 103-37 (1) 2 of the Act means a statement of the tax base of corporate local income tax of a consolidated group and tax adjustment and supplementary documents specified by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 8 Local Income Tax on Income from Liquidation of Korean Corporations
| Article 100-26 (Tax Return) |
When a Korean corporation files a tax return pursuant to Article 103-43 of the Act, it shall submit a return of the tax base and the amount of corporate local income tax on income from liquidation in the form prescribed by Ordinance of the Ministry of the Interior and Safety, stating the amount of income from liquidation as calculated in accordance with Article 103-41 of the Act, and a statement of financial position under Article 84 (2) 1 of the Corporate Tax Act (referring to the statement of financial position under Article 85 (2) of the same Act in the case of an interim return) to the head of the local government having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 9 Local Income Tax on Income of Foreign Corporations in Each Business Year
| Article 100-27 (Tax Returns for Foreign Corporations) |
| (1) | A foreign corporation which cannot file a tax return under Article 103-23 of the Act because the settlement of accounts of its head office, etc. under Article 7 (1) 2 of the Enforcement Decree of the Corporate Tax Act is not finalized or due to other unavoidable circumstances, which should file a return of the tax base of corporate local income tax on income in each business year pursuant to Article 103-51 (2) of the Act, may file an application for extension of a deadline for filing a tax return with the head of a local government having jurisdiction over the place of tax payment along with a statement of reasons within 60 days from the last day of the relevant business year: Provided, That where it has filed an application for extension of a deadline for filing a tax return with the head of a tax office pursuant to Article 136 of the Enforcement Decree of the Corporate Tax Act, it shall be deemed to have filed such application along with an application for a deadline for filing a corporate local income tax return. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-28 (Special Exceptions to Tax Return on Capital Gains, etc. on Securities of Foreign Corporations and Payment of Tax) |
A foreign corporation that intends to file a tax return on capital gains, etc. on securities and pay tax pursuant to Article 103-51 (5) of the Act shall prepare written reports according to the following classification, and shall submit the same and pay tax: | 1. | Where it reports and pays the amount equivalent to the amount of specially collected tax on income the tax on which has not been specially collected out of capital gains on stocks or investment certificates pursuant to Article 98-2 (1) of the Corporate Tax Act: A written report on the adjustment of capital gains on securities of the foreign corporation; |
| 2. | Where it reports and pays the amount of tax on capital gains on stocks, investment certificates, or other securities pursuant to Article 98-2 (3) of the Corporate Tax Act: A written report on capital gains on securities of the foreign corporation; |
| 3. | Where it reports and pays the amount of tax on income generated by receiving the transfer of ownership of assets in the Republic of Korea pursuant to Article 98-2 (4) of the Corporate Tax Act: A written report on income generated by receiving the transfer of ownership of assets of the foreign corporation. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-29 (Special Exceptions to Tax Return on Personal Services Income Tax Return of Foreign Corporations and Payment of Tax) |
A foreign corporation that intends to file its personal services income tax return and pay the tax pursuant to Article 103-51 (6) of the Act shall submit a report on personal services income of the foreign corporation prescribed by Ordinance of the Ministry of the Interior and Safety, along with documents verifying expenses related to such income and pay tax. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 10 Special Taxation of Partnership Enterprises
| Article 100-30 (Corporate Local Income Tax Return on Income from Quasi-Liquidation) |
A corporation converted to a partnership enterprise that intends to file a corporate local income tax return on income from quasi-liquidation and pay tax pursuant to Article 103-53 (2) of the Act shall report the corporate local income tax base and the tax amount on income from quasi-liquidation prescribed by Ordinance of the Ministry of the Interior and Safety to the head of a local government having jurisdiction over the place of tax payment, along with the statement of financial position as of the date of quasi-liquidation and pay tax by the date three months lapse after the last day of the immediately preceding business year of the first business year to which special taxation on partnership enterprises applies. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-31 (Distribution Ratio of Profits and Losses) |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-32 (Calculation and Allocation of Tax Amount for Partnership Enterprises) |
| (1) | Amounts referred to in the subparagraphs of Article 103-54 (1) of the Act shall be calculated by regarding a partnership enterprise as a Korean corporation. |
| (2) | When applying Article 103-54 (2) of the Act, the amount distributed to partners pursuant to paragraph (1) of the aforesaid Article shall be deducted or added according to the following methods: |
| 1. | Amount of tax deduction or tax reduction or exemption: Method of deduction from the calculated amount of local income tax; |
| 2. | Amount of specially collected tax: Method of deduction as the amount of tax paid already; |
| 3. | Additional tax: Method of adding to the calculated amount of local income tax; |
| 4. | Amount of tax equivalent to corporate local income tax on capital gains on land, etc.: Method of adding to the calculated amount of corporate local income tax. In such cases, the amount of tax equivalent to corporate local income tax on capital gains on land, etc. shall be the amount calculated by multiplying the amount calculated by regarding a partnership enterprise as a Korean corporation by the aggregate distribution ratio of profits and losses to partners which are a Korean corporation and a foreign corporation. |
| (3) | Deleted. <by Presidential Decree No. 27710, Dec. 30, 2016> |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
SECTION 11 Supplementary Provisions
| Article 100-33 (Notification of Tax Amount, etc. Related to Local Income Tax) |
| (1) | "Head of a local government prescribed by Presidential Decree" in Article 103-59 (1) and (2) of the Act means the head of a local government having jurisdiction over the place of payment of income tax and corporate tax. |
| (2) | Where the head of a tax office, etc. electronically processes data of which he/she notifies the head of a local government pursuant to Article 103-59 (1) and (2) of the Act, he/she may notify the head of a local government of such data in electronic form. |
| (3) | Where the head of a local government who receives notification under paragraph (1) discovers that the seat of the head office or principal office of a corporation is different from the seat of its place of business, he/she shall notify, without delay, the head of a local government having jurisdiction over the place of business of the relevant corporation of the tax base, etc. for corporate tax of the relevant corporation. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-34 (Making and Making up for Local Tax Refund) |
The refundable amount of local income tax shall be refunded or appropriated for other tax by the local government to which the local income tax was overpaid or erroneously paid: Provided, That the refundable amount of a local tax according to a decision made to refund personal local income tax on global income after filing a final global income return of a taxpayer shall be refunded or appropriated for other tax by the local government having jurisdiction over the domicile of the person entitled to the refund at the time when the person filed the final tax return on the tax base of his/her global income (or at the time when a decision or a correction was made, in the case of a decision or a correction). <Amended by Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 27710, Dec. 30, 2016>
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-35 (Keeping Tax Management Ledgers) |
The head of each local government shall keep the following tax ledgers and shall record necessary matters therein. If the relevant matters are computerized in such cases, the tax management ledgers shall be deemed to be kept. <Amended by Presidential Decree No. 26836, Dec. 31, 2015>
| 1. | Tax ledger of local income tax; |
| 2. | Ledger of adjustment of specially collected amounts of corporate local income tax. |
[This Article Newly Inserted by Presidential Decree No. 25252, Mar. 14, 2014]
| Article 100-36 (Settlement of Specially Collected Amount of Corporate Local Income Tax, etc.) |
| (1) | "The settled amount as prescribed by Presidential Decree" in Article 103-62 (3) of the Act means an amount of corporate local income tax payable proportionally for each place of business in the relevant place of tax payment, as calculated in accordance with Article 88 (1). |
| (2) | Where the head of a local government having jurisdiction over the location of the head office under Article 103-62 (2) of the Act (hereafter referred to as "location of the head office") shall refund a refundable tax amount to a taxpayer under Article 103-62 (1) of the Act, he/she shall reserve the payment of the amount distributable to the head of the local government having jurisdiction over the filing place defined by Article 103-62 (1) of the Act (hereinafter referred to as "filing place") and shall refund the refundable amount to the relevant corporation in a lump sum (limited to the amount that the head of the relevant local government shall refund to the person liable to pay the tax). In such cases, the remaining amount after paying the refund to the relevant corporation shall be paid to the head of the local government having jurisdiction over the filing place. |
| (3) | If a taxpayer wishes to have a specially collected amount of corporate local income tax settled under Article 103-62, he/she shall submit the documents specified by Ordinance of the Ministry of the Interior and Safety to the head of the local government having jurisdiction over the location of the head office. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | Upon completion of the settlement under Article 103-62, the head of the local government having jurisdiction over the location of the head office shall give notice of relevant matters as follows: |
| 1. | To the person liable to pay a tax: Details of refund or appropriation; |
| 2. | To the head of the local government having jurisdiction over the location of the relevant branch office: Details of payment, refund, or appropriation. |
[This Article Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 100-37 (Income Subject to Additional Payment of Local Income Tax, etc.) |
The income subject to the additional payment of local income tax under Article 103-63 (1) and the calculation of the tax amount thereon shall be as follows: <Amended by Presidential Decree No. 27710, Dec. 30, 2016> | 1. | Where an additional amount equivalent to interest is included in taxable income and is paid additionally as corporate tax under Article 29 (5) or 30 (4) of the Corporate Tax Act: 10/100 of the additional amount equivalent to interest, which shall be paid additionally as corporate tax; |
| 2. | Where an additional amount equivalent to interest is included in taxable income and is paid additionally as corporate tax or income tax under Article 9 (4), 10-2 (4), 33 (3), 34 (2), 38-2 (3), 39 (3), 40 (5), 46 (3), 46-4 (2), 47-4 (2), 60 (4), 61 (5), 62 (2), 85-2 (2), 85-7 (2), 85-8 (2), 85-9 (2), 97-6 (3), or 104-11 (3) of the Restriction of Special Taxation Act: 10/100 of the additional amount equivalent to interest, which shall be paid additionally as corporate tax or income tax. |
[This Article Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 100-38 (Application of Special Cases concerning Refunds Following Correction of False Accounting Entries) |
In applying Article 103-64 of the Act, the deductible tax amount shall be calculated by the following formula, where a request for correction is filed on any other ground for the request for correction, in addition to the ground specified for a request for correction in the former part of Article 103-64 (1) in the same business year: | Overpaid tax amount ? Overstated tax base by false accounting entries/Sum of overstated tax base |
|
[This Article Wholly Amended by Presidential Decree No. 28714, Mar. 27, 2018]
SECTIONS 1 Common Provisions
| Article 101 (Scope of Land Subject to Special Aggregate Taxation) |
| (1) | "Land annexed to buildings prescribed by Presidential Decree, such as land annexed to a building to be used as a factory" in Article 106 (1) 2 (a) of the Act means the land annexed to any of the following buildings: Provided, That the land annexed to the buildings for which permission, etc. should be obtained, but has not been obtained, or which are used without obtaining approval for use (including approval for temporary use) pursuant to the relevant statutes, including the Building Act, shall be excluded: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 27710, Dec. 30, 2016> |
| 1. | Land annexed to buildings to be used as factories within an area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding any of the following areas), which is the land within the scope computed by multiplying the floor area of the buildings to be used as factories (referring to the horizontally projected area, in the case of installations other than buildings) by the applicable multiple for each specific-use area under paragraph (2): |
| 2. | Of land annexed to buildings (excluding buildings to be used as factories prescribed in subparagraph 1), the land annexed to buildings that excludes any of the following land, and is within the scope of space computed by multiplying the floor area of the buildings (referring to the horizontally projected area, in the case of installations other than buildings) by the applicable multiple by specific-use area under paragraph (2): |
| (b) | Land annexed to buildings where the standard market prices of the buildings is less than 2/100 of the standard market price of the relevant annexed land, excluding the floor area of such buildings. |
| (2) | The applicable multiple by specific-use area to be applied to paragraph (1) shall be as follows: |
| By specific-use area | Applicable
multiple |
Urban
areas | 1. Exclusive residential areas | 5 times | | 2. Quasi-residential areas and commercial areas | 3 times | | 3. General residential areas and industrial areas | 4 times | | 4. Green-belt areas | 7 times | | 5. Unplanned areas | 4 times | | Specific-use areas, other than urban areas | 7 times |
|
| (3) | "Land prescribed by Presidential Decree" in Article 106 (1) 2 (b) of the Act means any of the following: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 22942, May 30, 2011; Presidential Decree No. 23966, Jul. 20, 2012; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 24563, May 31, 2013; Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26928, Jan. 22, 2016; Presidential Decree No. 27245, Jun. 21, 2016; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Land for a garage used by a person who has obtained a license for or the registration of the passenger transport business or the trucking transport business under the Passenger Transport Service Act or the Trucking Transport Business Act, or the registration of the automobile lease business pursuant to the conditions of such license or registration, which has an area of up to 1.5 times the space standard of the minimum retained garage of the transport service or lease business; |
| 2. | Land for parking lots or outdoor work places satisfying the registration standards for construction machinery rental business, construction machinery maintenance business, construction machinery sales business or construction machinery dismantlement business to be used by a person who has filed for registration of the construction machinery business under the Construction Machinery Management Act according to registration requirements of such business, which has an area of up to 1.5 times the standard of the minimum space of such facilities; |
| 3. | Land for a driving school, which is owned by a driving school registered under the Road Traffic Act, within the districts equipped with the facilities required under the same Act; |
| 4. | Land for bonded warehouses among the land for open storage yards and container storage places designated or publicly announced by the Minister of Oceans and Fisheries or a Mayor/Do Governor pursuant to the Harbor Act, and among the patented bonded districts obtaining a special permit from the head of a customs office pursuant to the Customs Act, which has an area of up to 1.2 times the maximum space used for the storage and management of goods, etc. during the relevant business year and the immediately preceding two business years; |
| 5. | Land for automobile management business (limited to land for the place of the automobile maintenance business, automobile-scrapping business, automobile transaction business or automobile auction business) to be used by a person who has filed for registration of the automobile management business under the Motor Vehicle Management Act according to the standards of facilities of such registration and that is with an area of up to 1.5 times the minimum space standards of such facilities; |
| 14. | Land for experiments, research, practical exercises or seed production being directly used for the research and production of seeds as farmland owned by a seed business entity registered to run a seed-farming business pursuant to Article 37 (1) of the Seed Industry Act; |
| 15. | Land owned by a person who holds a license or a permit issued under the Fisheries Act, a person who holds a license or a permit issued under the Inland Water Fisheries Act or who filed a report under the same Act, or a person who holds a permit for a fish hatchery business under the Fisheries Seed Industry Promotion Act and directly used for an aquiculture business or a fish hatchery; |
| 16. | Land used for keeping automobiles towed under the Road Traffic Act, and equipped with facilities provided for in the same Act; |
| 17. | Land being directly used for landfill of wastes, which is owned by a person with a license for terminal waste disposal business or for general waste disposal business under Article 25 (3) of the Wastes Control Act. |
| Article 102 (Scope of Land Subject to Separate Taxation) |
| (1) | "Land prescribed by Presidential Decree" in Article 106 (1) 3 (a) of the Act means any of the following land: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | A factory site: Land annexed to a building to be used as a factory located in the areas stipulated in each item of Article 101 (1) 1 (including a building under construction, but excluding cases where construction works have been suspended for at least six months without good cause), which is within the extent of standard space for factory sites prescribed by Ordinance of the Ministry of the Interior and Safety; |
| 2. | A rice paddy, field, or orchard: |
| (a) | Farmland owned by individuals and actually being used for farming as of the tax base date, which is the rice paddy, field, or orchard (hereafter referred to as "farmland" in this Article): Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland located within the development restriction districts and green belts (including an area, the detailed use of which based on classification referred to in the items of Article 36 (1) 1 of the National Land Planning and Utilization Act is not designated among urban areas under subparagraph 1 of Article 6 of the aforesaid Act; hereafter the same shall apply in this paragraph); |
| (b) | Farmland actually used for farming as of the tax base date as land owned by an agricultural corporation defined in subparagraph 3 of Article 2 of the Farmland Act: Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland within the development restriction districts and green belts; |
| (d) | Farmland owned by social welfare business entities under relevant statutes for the purpose of consumption by welfare institutions; |
| (e) | Farmland acquired by a corporation through landfill or reclamation which is owned by the corporation and actually being used for farming as of the tax base date: Provided, That the farmland within the urban area of the Special Metropolitan City, a Metropolitan City (excluding the area of a Gun), a Special Self-Governing City, a Special Self-Governing Province, or a Si (excluding the area of Eups/Myeons) shall be limited to farmland located within the development restriction districts and green belts; |
| (f) | Farmland owned by a clan; |
| 3. | Land for stock farming: Land owned within the scope of land area calculated by applying the standards of land and buildings for the following livestock farming based on the year immediately preceding the year in which the tax base date falls, as land for stock farm used by an individual or a corporation for livestock farming, and located in the development restriction districts and green belts within an urban area, and in an area outside the urban area: |
<Standards for Land and Buildings for Livestock Farming>
| Classification | Business | Number of cattle (maximum number during the year) | Stall & accessory facilities | Grassland or feed field | Remarks | | Stall (square meters) | Accessory facilities (square meters) | Grassland (hectare) | Feed field (hectare) | | 1. Korean cattle (beef cattle) | Breeding business | per head | 7.5 | 5 | 0.5 | 0.25 | Including breeding horses, mules and donkeys | | 2. Korean cattle (beef cattle) | Fatting business | per head | 7.5 | 5 | 0.2 | 0.1 | | | 3. Dairy cattle | Stock farm business | per head | 11 | 7 | 0.5 | 0.25 | | | 4. Sheep | Stock farm business | per 10 heads | 8 | 3 | 0.5 | 0.25 | | | 5. Deer | Stock farm business | per 10 heads | 66 | 16 | 0.5 | 0.25 | | | 6. Rabbits | Breeding business | per 100 heads | 33 | 7 | 0.2 | 0.1 | Including breeding chinchilla | | 7. Pigs | Pig raising business | per 5 heads | 50 | 13 | - | - | Including breeding dogs | | 8. Poultry | Poultry raising business | per 100 heads | 33 | 16 | - | - | | | 9. Minks | Breeding Business | per 5 heads | 7 | 7 | - | - | Including breeding foxes |
|
| (2) | "Forests prescribed by Presidential Decree" in Article 106 (1) 3 (b) of the Act means the following forests: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 25058, Jan. 1, 2014> |
| 3. | A forest within a park natural environment district designated pursuant to the Natural Parks Act; |
| 4. | A forest owned by a clan; |
| 5. | Any of the following forests: |
| (b) | A forest within a development restriction zone among the military bases and the protection zones of military installations under the Protection of Military Bases and Installations Act, and a forest for which two years have not elapsed from the date of revocation of development restriction zones; |
| (c) | A forest within a clearance zone designated under the Road Act; |
| (4) | "Land prescribed by Presidential Decree" in Article 106 (1) 3 (d) of the Act means land within the extent of standard space for factory sites prescribed by Ordinance of the Ministry of the Interior and Safety under paragraph (1) 1. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Land within the premises of a factory of which the State or a local government imposes restrictions on the use, disposal, etc. for any purpose other than national defense; |
| (a) | Land the ownership of which shall vest in the State or a local government, without consideration, for public facilities pursuant to statutes regarding development projects; |
| 3. | Land for a military facility for testing explosives for which a permit has been issued under Article 53 of the Defense Acquisition Program Act (excluding the area used for any purpose other than the permitted purpose) and land for which such permit was revoked not more than one year ago; |
| 4. | Existing real estate, defined in subparagraph 6 of Article 2 of the Special Act on the Construction and Development of Innovation Cities, which the Korea Rural Community Corporation, established pursuant to the Korea Rural Community Corporation and Farmland Management Fund Act, acquires and temporarily owns with intention to sell it to others, according to a request of the Minister of Land, Infrastructure and Transport to purchase the land pursuant to Article 43 (3) of the Special Act on the Construction and Development of Innovation Cities; |
| (6) | "Land specified by Presidential Decree" in Article 106 (1) 3 (f) of the Act means the land specified in any of the following subparagraphs (excluding the land specified in Article 106 (1) 3 (c) of the Act). In such cases, the land specified in subparagraphs 5 and 7 through 9 shall be included in the land in which a facility or a system referred to in any of the same subparagraphs is under construction: <Newly Inserted by Presidential Decree No. 28524, Dec. 29, 2017> |
| 1. | Land that is continuously used as a de facto salt farm as at the tax base date or land that ceases to be used as a salt farm, although it has been continuously used as a salt farm: Provided, That any land used for any other purpose after it ceases to be used as a salt farm shall be excluded; |
| 2. | Land located in a mining area subject to a mining right established under the Mining Industry Act, for which a mining plan has been approved by the Minister of Trade, Industry and Energy (if a part of such land is used for any purpose other than mining, such part shall be excluded); |
| 6. | Land that a common telecommunications business operator under Article 5 of the Telecommunications Business Act directly uses to install and preserve telecommunications systems (referring to telecommunications systems referred to in Article 8 of the Regulations on the Accounting and Reporting of Telecommunications Business) provided for common telecommunications services (limited to the land of which the Korea Telecommunications Corporation completed the registration on or before December 31, 1983 pursuant to Article 5 of the Addenda to the Enforcement Decree of the Korea Telecommunications Corporation Act (Presidential Decree No. 10492)); |
| 7. | Land that the Korea District Heating Corporation, established pursuant to the Integrated Energy Supply Act, directly uses for heat generation systems; |
| 8. | Land that the Korea Gas Corporation, established pursuant to the Korea Gas Corporation Act, directly uses for systems for the supply of gas produced by the corporation; |
| (7) | "Land specified by Presidential Decree" in Article 106 (1) 3 (g) of the Act means the land specified in any of the following subparagraphs (excluding the land specified in Article 106 (1) 3 (c) of the Act): Provided, That the land specified in subparagraph 9 or 11 shall be excluded, if a project for the development of a site or a construction project has not commenced within five years from the date of acquisition: <Newly Inserted by Presidential Decree No. 28524, Dec. 29, 2017; Presidential Decree No. 28627, Feb. 9, 2018; Presidential Decree No. 28686, Feb. 27, 2018> |
| 1. | Land filled or reclaimed pursuant to the Public Waters Management and Reclamation Act not more than four years ago from the approval date of the completion of the project (referring to the date of approval or permission for use, such approval or permission for use is granted before the approval date of the completion of the project); |
| 4. | Land (limited to land for housing construction and for industrial complexes) that the implementor of an urban development project under Article 11 of the Urban Development Act provides for the urban development project; land (limited to land for housing construction and land for industrial complexes) that the implementer of a land compartmentalization and rearrangement project under the former Land Compartmentalization and Rearrangement Projects Act (referring to the same Act in force until before it is repealed by Act No. 6252); hereafter the same shall apply in this subparagraph) for a land compartmentalization and rearrangement project; and land (limited to land for housing construction and land for industrial complexes) that the implementor of a development project for a free economic zone or the relevant unit district for the development project under Article 8-3 of the Special Act on Designation and Management of Free Economic Zones provides for the development project for a free economic zone (limited to land for housing construction and land for an industrial complex): Provided, That this shall be applicable only to the following periods: |
| (a) | From the date on which the implementation plan for an urban development project under the Urban Development Act is publicly notified until the supply of the land developed by the development project is completed (referring to the date of acquisition by the purchaser) or until the completion of the project is publicly announced pursuant to Article 51 of the same Act; |
| (b) | From the date on which the implementation of a land compartmentalization and rearrangement project is authorized or from the date on which a project plan is publicly announced (limited to cases where the implementor of a land compartmentalization and rearrangement project is the State) until the supply of the land developed by a land compartmentalization and rearrangement project under the former Land Compartmentalization and Rearrangement Project Act is completed (referring to the date of acquisition by the purchaser) or until the completion of the project is publicly announced pursuant to Article 61 of the same Act; |
| (c) | From the date on which the approval of the implementation plan for a project for the development of a free economic zone under the Special Act on Designation and Management of Free Economic Zones is publicly notified until the supply of the land developed by the project for the development of the free economic zone is completed (referring to the date of acquisition by the purchaser) or until an inspection of the completion of the project is undertaken under Article 14 of the same Act; |
| 5. | Land that the implementor of a project for the development of an industrial complex under Article 16 of the Industrial Sites and Development Act and in which the project implementor performs the project for the development of the industrial complex according to the approved implementation plan for the project for the development of the industrial complex under the same Act; |
| 8. | Land that the Small and Medium Business Corporation, established pursuant to the Small and Medium Enterprises Promotion Act, owns for the purpose of selling it by lots or leasing it to small and medium business enterprises pursuant to the same Act; |
| 10. | Land (excluding leased land) falling within any of the following categories and owned by the Korea Water Resources Corporation, established pursuant to the Korea Water Resources Corporation Act: |
| 11. | Land (including leased land) that the Korea Land and Housing Corporation, established pursuant to the Korea Land and Housing Corporation Act, owns for the purpose of selling houses or lease the land to others according to the same Act; and land that a special purpose company, established pursuant to the Asset-Backed Securitization Act, acquired from the Korea Land and Housing Corporation and owns for the purpose of asset-backed securitization; |
| (c) | Existing real estate defined in subparagraph 6 of Article 2 of the Act and purchased upon a request of the Minister of Land, Infrastructure and Transport to purchase pursuant to Article 43 (3) of the Special Act on the Construction and Development of Innovation Cities; |
| (f) | Land purchased as reserved land but included in a public works project; and land reconverted into reserved land due to a change or cancellation of the relevant public works project; |
| (h) | Land purchased and reserved to implement a policy to stabilize the land market as part of plans announced by the Government on August 31, 2005 to reform real estate systems; |
| (i) | Land purchased on or before December 31, 1997. |
| 1. | Land that a nonprofit business entity under Article 22 has owned since December 31, 1995 or earlier; |
| (a) | Land for the knowledge industry, the cultural industry, the information and communications industry or a resources storage facility provided for in Article 2 of the Industrial Sites and Development Act or land for a facility for education, research, information processing or distribution directly related to any of the afore-mentioned industries and facilities; |
| (b) | Land for a business specialized in collecting, transporting and disposing of wastes, a business specialized in renewing raw materials, a business specialized in treating effluent, a warehouse business, a business specialized in the installation and operation of a cargo terminal or any other logistics facility (excluding a passenger transportation business), a business specialized in the rental of industrial machinery and equipment, an electricity business or an industry specialized in local specialty in an agro-industrial complex; land for facilities for the supply of gas under subparagraph 5 of Article 2 of the Urban Gas Business Act; or land for a facility for an integrated energy supply facility under subparagraph 6 of Article 2 of the Integrated Energy Supply Act; |
| 5. | Land that a person who has the establishment of a knowledge industry center approved under Article 28-2 of the Industrial Cluster Development and Factory Establishment Act newly builds or extends the knowledge industry center to directly use (excluding cases where business operations have been suspended for at least 60 days as at the tax base date for property tax), sell by units or lease it as a facility provided for in Article 28-5 (1) 1 or 2 of the same Act (limited to five years from the date on which an obligation to pay property tax arises for the first time after the establishment of the knowledge industry center is approved; and limited to the land for extension, in the case of extension); |
| 8. | Land that the Incheon International Airport Corporation, established under the Incheon International Airport Corporation Act, owns for airport facilities (referring to airport facilities defined in subparagraph 7 of Article 2 of the Airport Facilities Act) and uses or plans to use for business activities provided for in Article 10 (1) of the Incheon International Airport Corporation Act: Provided, That any part of land for facilities defined in subparagraph 2 of Article 3 of the Enforcement Decree of the Airport Facilities Act shall be excluded, if the part is used for any profit-making business pursuant to Article 107; |
| (9) | Farmland and forests referred to in paragraphs (1) 2 (d) and (f), and (2) 4 and 6 shall be limited to those owned prior to May 31, 1990 (including farmland or forest owned through inheritance or through acquisition due to corporate merger on or after June 1, 1990), and among land for stock farms referred to in paragraph (1) 3, land for stock farms within an urban area and forests stipulated under each item of paragraph (2) 5 shall be limited to those owned prior to December 31, 1989 (including land for stock farms or forest owned through inheritance or through acquisition due to corporate merger on or after January 1, 1990). |
| (10) | For the purpose of applying paragraph (1) or (2), land shall be subject to separate taxation until the time specified for each of the following cases: <Amended by Presidential Decree No. 26836, Dec. 31, 2015> |
| Article 103 (Scope, etc. of Buildings) |
| (1) | The scope of buildings under Article 101 (1) shall include the following buildings: <Amended by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | Deleted; <by Presidential Decree No. 26836, Dec. 31, 2015> |
| 2. | A building in which case a building permit was received, but the commencement of construction is restricted pursuant to Article 18 of the Building Act; |
| 3. | A building under construction [including a building (referring to a building where the relevant administrative authority has confirmed the use and floor area) that is to be built on the land at a stage before the building passes the completion inspection or the use of the building is permitted after the implementor of a development project under a statute related to development projects provides the land for the development project with approval of an implementation plan for the development project and commences the land development project in order to use it as the land appurtenant to the building (excluding the land subject to separate taxation under Article 106 (1) 3 of the Act)]: Provided, That cases where construction works have been suspended for at least six months as on the tax base date without good cause shall be excluded herefrom; |
| 4. | Objects fixed to the ground prescribed by Ordinance of the Ministry of the Interior and Safety, such as gas piping systems. |
| (2) | The scope of buildings to be used as factories under Articles 101 and 102 shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 103-2 (Scope of Buildings or Houses Demolished or Destroyed) |
"The appurtenant land specified by Presidential Decree" in Article 106 (1) 2 (c) means the land appurtenant to a building or house where it has not passed six months, as on the tax base date, since the date on which the building or house was actually demolished or destroyed (referring to the date of demolition or destruction on official records, if the date of actual demolition or destruction is unknown). [This Article Newly Inserted by Presidential Decree No. 26836, Dec. 31, 2015]
| Article 104 (Urban Areas) |
| Article 105 (Calculation of Scope of Land Annexed to House) |
Where the boundary of land annexed to a house is unclear pursuant to Article 106 (2) 3 of the Act, land equivalent to ten times the floor area of the house shall be deemed land annexed to such housing.
| Article 106 (Scope, etc. of Persons Liable to Pay Tax) |
| (1) | A person liable to pay tax under Article 107 (1) 3 of the Act (referring to a trustee for property classified for each truster; hereafter the same shall apply in this paragraph) shall be classified by enclosing the name or trade name of a truster in the parenthesis next to the name or trade name of such person liable to pay tax (including the name of a corporation; hereafter the same shall apply in this paragraph). <Newly Inserted by Presidential Decree No. 25058, Jan. 1, 2014> |
| (2) | Where a person has gratuitously received a right to use land for sale which is created upon receipt of advance payment by the State, a local government, or a local government association, and the creation of which was actually completed, such person shall be deemed a vendee referred to in Article 107 (2) 4 of the Act. <Amended by Presidential Decree No. 25058, Jan. 1, 2014> |
| (3) | Where it is unclear in regard to a person who is vested in the ownership of property pursuant to Article 107 (3) of the Act and it is intended to impose property tax on the user of such property as he/she is deemed a person liable to pay tax, such fact shall be notified to him/her in advance. <Amended by Presidential Decree No. 25058, Jan. 1, 2014> |
| Article 107 (Scope of For-Profit Business) |
| Article 108 (Non-Taxation) |
| (1) | "Roads, rivers, embankments, conduits, reserving ponds, and graves prescribed by Presidential Decree" in Article 109 (3) 1 of the Act means the following land: <Amended by Presidential Decree No. 26302, Jun. 1, 2015> |
| 4. | Conduits: Conduits for agricultural purposes and those provided for the drainage of natural running water; |
| 5. | Reserving ponds: Dams, reservoirs, and small reserving ponds provided for agricultural purposes and power generation, and naturally-formed lake and marsh; |
| 6. | Graves: Land, the category of which on the public register is a grave yard and is used for a grave and a site for its attached facilities. |
| 1. | Land located within a controlled protection zone, among the military bases and the protective zones of military installations under the Protection of Military Bases and Installations Act: Provided, That rice paddies, fields, orchards, and sites shall be excluded; |
| 3. | A forest within a nature conservation district in a park under the Natural Parks Act; |
| (3) | "Buildings or housing prescribed by Presidential Decree" in Article 109 (3) 5 of the Act means a building or housing (limited to building parts under Article 2 (1) 2 of the Building Act; hereafter the same shall apply in this paragraph) to which an administrative agency has issued an order of removal as of the tax base date of property tax, or for which a contract for compensation and removal has been entered into as a plan is finalized for the building that is to be removed in the relevant year when the property tax is imposed. In such cases, where part of a building or housing is removed, it shall be limited to the part removed as such. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
SECTION 2 Tax Bases and Tax Rates
| Article 109 (Fair Market Price Rates) |
"Fair market price rates prescribed by Presidential Decree" in the main sentence of Article 110 (1) of the Act means the following rates: | 1. | Land and buildings: 70/100 of the relevant standard market price; |
| 2. | Houses: 60/100 of the relevant standard market price. |
| Article 110 (Buildings for Factories) |
"A building used as a factory prescribed by Presidential Decree" in Article 111 (1) 2 (b) of the Act means a building used as a factory prescribed by Ordinance of the Ministry of the Interior and Safety equipped with production facilities to be used for manufacture, process, repair, printing, etc. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
| Article 111 (Scope of Land, etc.) |
"Land, a building or housing unit prescribed by Presidential Decree" in the main sentence of Article 112 (1) of the Act means those listed in the following: <Amended by Presidential Decree No. 22586, Dec. 30, 2010; Presidential Decree No. 26836, Dec. 31, 2015> | 1. | Land: Land subject to property tax stipulated under Chapter Ⅸ of the Act excluding rice paddies, fields, orchards, land for stock farms and forests, and whole land (including land to which the replotting method is applied within an urban development zone implemented in the combined method) for which a disposition of substitute land is publicly announced, as land within an urban development zone implemented in a replotting method under the Urban Development Act; |
| 2. | Buildings: Buildings subject to property tax stipulated under Chapter Ⅸ of the Act; |
| 3. | Houses: Houses subject to the imposition of property tax under Chapter Ⅸ of the Act: Provided, That, in the case of a development restriction zone under the National Land Planning and Utilization Act, the scope of such houses shall be limited to villas or high-end houses under Article 13 (5) 1 or 3 of the Act (based on the standard market price as on the tax base date). |
| Article 112 (Housing Types) |
With regard to a multi-unit house referred to in subparagraph 1 (c) of attached Table 1 of the Enforcement Decree of the Building Act, the partitioned portion which a household may independently use shall be deemed a house on one parcel. In such cases, with regard to the land annexed thereto, the area divided in proportion to the rate of the floor area of the building shall be deemed the annexed land of one parcel.
SECTION 3 Imposition and Collection
| Article 113 (Application and Permission for Payment in Kind) |
| (1) | A person who intends to pay property tax in kind pursuant to Article 117 of the Act shall file an application with the head of the Si/Gun/Gu having jurisdiction over the place for tax payment, along with documentation prescribed by Ordinance of the Ministry of the Interior and Safety by ten days prior to the payment deadline. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | Upon receipt of an application for in-kind payment under paragraph (1), the head of a Si/Gun/Gu shall notify a person liable to pay tax in writing of whether permission is granted within five days from the date on which he/she receives the application. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where real estate to which permission for in-kind payment under paragraph (2) has been granted is paid in kind, as prescribed by Ordinance of the Ministry of the Interior and Safety, it shall be deemed to have been paid within the payment deadline. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 114 (Disposal of Inappropriate Real Estate in regard to Management and Disposition) |
| (1) | Where the head of a Si/Gun/Gu deems it inappropriate to manage and dispose of real estate for which an application for in-kind payment has been filed pursuant to Article 113 (1), he/she may choose not to grant permission. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Where a taxpayer who has been given notice of non-permission under paragraph (1) above and Article 113 (2) files an application for permission by replacing the real estate with any other real estate located within the jurisdiction of the relevant Si/Gun/Gu, which can be managed and disposed of, within ten days from the date on which he/she has been given such notice, the head of the Si/Gun/Gu may accept the application and grant permission for such replacement. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where real estate permitted pursuant to paragraph (2) is paid in kind, as prescribed by Ordinance of the Ministry of the Interior and Safety, it shall be deemed to have been paid within the payment deadline. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 115 (Appraisal of Real Estate to which Permission for In-Kind Payment is Granted) |
| (1) | The value of real estate to which permission for in-kind payment is granted pursuant to Articles 113 (2) and 114 (2) shall be based on the market price as of the tax base date of property tax. |
| (2) | The market price under paragraph (1) shall be according to the value determined pursuant to the following: Provided, That values of expropriation, public sale, appraisal, etc. which are deemed market prices, as prescribed by Ordinance of the Ministry of the Interior and Safety, shall be deemed market prices: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | In applying paragraph (2), where values publicly announced by the Commissioner of the National Tax Service are proved by separate appraisal methods of real estate under Article 61 (1) 3 of the Inheritance Tax and Gift Tax Act, the publicly announced values shall be deemed market prices. |
| Article 116 (Standards Amount of Tax to be Paid in Installments and Application for Payment in Installments) |
| (1) | Where the payment in installments is permitted pursuant to Article 118 of the Act, the amount of tax so paid shall be based on the following standards: |
| 1. | Where the amount of tax to be paid is not more than ten million won: An amount exceeding five million won; |
| 2. | Where the amount of tax to be paid exceeds ten million won: An amount equivalent to or less than 50/100 of the amount of such tax. |
| (2) | A person who intends to pay in installments pursuant to Article 118 of the Act shall file an application prescribed by Ordinance of the Ministry of the Interior and Safety with the head of a Si/Gun/Gu within the payment deadline of property tax. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | Where the head of a Si/Gun/Gu receives an application for payment in installments pursuant to paragraph (2), he/she shall provide a modified notice, classifying the tax payment notice already issued as a tax payment notice to be paid within the payment deadline and the tax payment notice to be paid within the deadline for payment in installments. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 117 (Notice of Registration in Tax Ledgers) |
Where the head of a Si/Gun/Gu has registered unreported property in the tax ledger pursuant to Article 120 (3) of the Act, he/she shall give notice of such fact to the parties concerned. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
| Article 118 (Method of Calculating Tax Ceiling) |
"Amount equivalent to property tax on the property concerned in the immediately preceding year as calculated according to the method prescribed by Presidential Decree" in the main sentence of Article 122 of the Act, with the exception of its subparagraphs, means the amount corresponding to the amount of tax or the amount of tax, respectively calculated by the following methods, with respect to the amount of tax calculated under Article 112 (1) 1 of the Act and the amount of tax calculated under Article 112 (1) 2 of the Act and paragraph (2) of the same Article, respectively: <Amended by Presidential Decree No. 22942, May 30, 2011; Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 27471, Aug. 31, 2016> | 1. | An amount corresponding to the amount of tax on land: |
| (a) | Where there exists the tax base (referring to the tax base under Article 110 of the Act in the case of the amount of tax calculated under Article 112 (1) 1 of the Act; referring to the tax base for land, etc. under Article 110 of the Act in the case of the amount of tax calculated under Article 112 (1) 2 of the Act and paragraph (2) of the same Article) in the immediately preceding year for taxable land in the relevant year: An amount of tax calculated by applying the statutes, tax base, etc. in the immediately preceding year for each taxable land: Provided, That where persons liable to pay tax and the land state of each parcel of taxable land in the relevant year are identical with those in the immediately preceding year, it means the amount of tax imposed on the relevant land in the immediately preceding year; |
| (b) | Where there exists no tax base in the immediately preceding year for taxable land in the relevant year due to the partition, consolidation, change of land category, new registration, conversion of registration, etc.: An amount of tax calculated by applying the Acts and subordinate statutes, tax base (referring to the tax base calculated by applying the Acts and subordinate statutes in the immediately preceding year), etc. in the immediately preceding year for each taxable land that is deemed that it, as the taxable land in the relevant year, existed as of the tax base date in the immediately preceding year: Provided, That where there exists no tax base in the immediately preceding year for taxable land in the relevant year due to the partition and consolidation of land, it means the amount of tax under the following classifications: |
| (i) | Where the area or share has not increased compared to taxable land prior to the partition or consolidation: An amount of tax applicable to the area or share owned in the relevant year, among the amount of tax imposed on land prior to the partition or consolidation in the immediately preceding year; |
| (ii) | Where the area or share has increased compared to taxable land prior to the partition or consolidation: The aggregate tax calculated pursuant to subitem (ⅰ) for the area or share of taxable land prior to the partition or consolidation and the amount of tax calculated pursuant to the main sentence of subitems (ⅰ) and (ⅱ) for the area or share of the increased taxable land after the partition or consolidation; |
| (c) | Notwithstanding items (a) and (b), where a change is made in the classification of objects of taxation under Article 106 (1) of the Act for taxable land in the relevant year, an amount of tax calculated by applying the Acts and subordinate statutes, tax base (referring to the tax base calculated by applying the statutes in the immediately preceding year), etc. in the preceding year for each taxable land in the relevant year, deeming as if the classification of objects of taxation in the relevant year applied to taxable land in the immediately preceding year; |
| (d) | Notwithstanding items (a) through (c), where tax is imposed on taxable land in the relevant year because a house thereon has been lost or destroyed due to the implementation of a rearrangement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents and then another house is under construction (even before starting the construction of another house after a house is lost or destroyed, it shall be deemed to be under construction for three years from the date on which the tax base date of property tax arrives for the first time), an amount corresponding to the amount of tax calculated according to the following formula (where an amount corresponding to the amount of tax on land in the immediately preceding year calculated according to item (b) is less than the aforementioned amount, such amount corresponding to the amount of tax under item (b)): |
Amount of tax actually imposed on a house before its destruction ? (130/100)n
n = (tax year - year in which tax is actually imposed on a house before its destruction - 1)
| 2. | An amount corresponding to the amount of tax on houses and buildings: |
| (a) | Where the tax base exists in the immediately preceding year for houses and buildings in the relevant year: An amount of tax calculated for each object of taxation by applying the Acts and subordinate statutes, tax base, etc. in the immediately preceding year: Provided, That where an amount of tax is imposed on the relevant house and building in regard to the relevant person to pay tax in the immediately preceding year, it means such amount of tax; |
| (b) | Where no tax base exists in the immediately preceding year for taxable houses and buildings in the relevant year due to new construction, enlargement, etc. of a house and building: An amount of tax calculated for each object of taxation by applying the statutes, tax base (referring to the tax base calculated by applying the Acts and subordinate statutes, etc. in the immediately preceding year), etc., deeming as if taxable houses and buildings in the relevant year existed as of the tax base date in the immediately preceding year; |
| (c) | Where tax rates, other than tax rates stipulated in Article 111 (1) 2 (c) of the Act and subparagraph 3 (b) of the same paragraph, apply or do not apply to taxable houses and buildings in the relevant year due to change of use, etc: Notwithstanding items (a) and (b), an amount of tax calculated by applying the statutes, tax base (referring to the tax base calculated by applying the statutes in the immediately preceding year), etc. in the immediately preceding year, deeming as if the relevant tax rates applied or did not apply in the immediately preceding year as well; |
| (d) | In the case of a house, notwithstanding the main sentence of item (a) and items (b) and (c), where the amount corresponding to the amount of tax calculated under the main sentence of item (a) and items (b) and (c) differs considerably from the amount of tax imposed pursuant to the proviso to item (a) in the immediately preceding year on an owner of a neighboring house, the price of which (referring to the house price publicly announced under Act on the Public Announcement of Real Estate Values) is similar to the relevant house: An amount corresponding to the amount of tax calculated considering the amount of tax so imposed; |
| 3. | In applying subparagraphs 1 and 2, where the provisions of non-taxation and reduction or exemption applies or does not apply to land, buildings and houses in the relevant year, the amount corresponding to the amount of tax under Article 112 (1) 1 of the Act and the amount corresponding to the amount of tax under paragraphs (1) 2 and (2) of the same Article shall be calculated, deeming as if such relevant provisions applied or did not apply in the immediately preceding year. |
| Article 119 (Imposition of Property Tax according to Current Status) |
Where the current status of objects of taxation of property tax registered in the public ledger and the de facto current status thereof are different, property tax shall be imposed according to the de facto current states.
| Article 119-2 (Structure and Operation of Organization Solely in Charge of Data on Comprehensive Real Estate Holding Tax, Notice of Data, etc.) |
| (1) | The organization solely in charge of data on comprehensive real estate holding tax referred to in Article 123 (1) of the Act (hereinafter referred to as "sole-charge organization") shall be an organization performing the duties referred to in Article 20 (3) 31 of the Organization of the Ministry of the Interior and Safety and Subordinate Institutions, and prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | The sole-charge organization may collect, process, and provide the following data (hereinafter referred to as "data on comprehensive real estate holding tax"): |
| 1. | Data on property tax for a house, building and land referred to in Article 116 of the Act, data on the changed tax amount, and data on occasional imposition; |
[This Article Newly Inserted by Presidential Decree No. 25317, Apr. 22, 2014]
| Article 119-3 (Information System for Data on Comprehensive Real Estate Holding Tax) |
| (1) | The Minister of the Interior and Safety shall build and operate an information system necessary for the collection, processing, provision, etc. of data on comprehensive real estate holding tax. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| (2) | When the Minister of the Interior and Safety notifies the Commissioner of the National Tax Service of data under Article 21 (2) through (5) of the Gross Real Estate Tax Act, he/she shall devise a method to do so by linking the information system built under paragraph (1) to the information system operated by the National Tax Service. <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25317, Apr. 22, 2014]
SECTION 1 Automobile Tax on Possession of Automobile
| Article 120 (Scope of Construction Machinery Deemed Automobiles) |
| Article 121 (Non-Taxation) |
| 1. | Automobiles provided for national defense: Automobiles registered as special automobiles for military use pursuant to subparagraph 6 of Article 70 of the Motor Vehicle Management Act and directly used for such original purposes; |
| 2. | Automobiles provided for convoy, guard, or traffic patrol: Automobiles stipulated under the following items: |
| (a) | Automobiles for convoy: Automobiles used for protecting the President, the sovereign of a foreign country, and any other important person; |
| (b) | Automobiles for guard: Guard automobiles of police stations; |
| (c) | Automobiles for traffic patrol: Automobiles with a special mark and special structure used for the traffic patrol to maintain the traffic safety and perform the traffic patrol; |
| 3. | Automobiles provided for fire-fighting, cleaning, and garbage removal: Automobiles with a special structure and marks indicating relevant purposes specified by the State or a local government, which are directly used for such original purposes; |
| 4. | Automobiles provided for the transportation of patients: Automobiles with a special structure and a mark suitable for transporting patients, which are used only for their original purposes; |
| 5. | Automobiles provided for road construction: Automobiles with a special structure, which are used for the repair and construction of roads and the construction appurtenant thereto, not for the transportation of cargo. |
| (2) | "Other automobiles prescribed by Presidential Decree, such as automobiles used by foreign diplomatic agencies in the Republic of Korea" in subparagraph 3 of Article 126 of the Act shall be as follows: |
| 1. | Automobiles that are produced in a special structure in order for the Government to exclusively use for the postal service and radio waves and that have marks indicating such use; <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| 2. | Automobiles used by foreign diplomatic agencies in the Republic of Korea, the United Nations agencies, and foreign aid organizations in the Republic of Korea (including foreign nongovernmental aid organizations); |
| 3. | Automobiles exported after filing their export declaration with the head of a customs office under the Customs Act; |
| 4. | Automobiles recognized by the head of a Si/Gun/Gu as uncollectable or unusable due to their disappearance, loss, destruction, or damage caused by natural calamities, fire, traffic accidents, etc.; |
| 6. | Automobiles that are under compulsory execution proceedings, such as public sale, etc., from the date delivered to the executing agency until the date preceding the payment of the auction award in such a public sale; |
| 7. | Automobiles for sale or construction machinery for sale that are registered in the name of a business entity by a person who has filed for registration of an automobile transaction business under the Motor Vehicle Management Act, or a person who has filed for registration of a construction machinery sales business under the Construction Machinery Management Act: Provided, That it shall be limited to the period registered in the name of respective business entities; |
| (3) | A person who intends to apply for non-taxation pursuant to paragraph (2) 3 through 5 shall apply to the head of a Si/Gun/Gu, along with documents substantiating the grounds therefor. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 122 (Distinction between Business and Non-Business Uses and Calculation of Automobile Age) |
| (1) | "For business use" in Article 127 of the Act means that an automobile is provided to meet the demand of the general public after a license (including registration) is granted pursuant to the Passenger Transport Service Act or the Trucking Transport Business Act, or after registration for the construction machinery rental business set forth in the Construction Machinery Management Act is made; and "for non-business use" means that an individual or a corporation provides an automobile for uses, other than business use, or that the State or a local government provides an automobile for its official use. |
| 1. | The age of an automobile, the initial date of which falls between January 1 and June 30 = The tax year － the year in which the initial date falls ＋ 1; |
| 2. | The age of an automobile, the initial date of which falls between July 1 and December 31: |
| (a) | The age of an automobile for the first-term: The tax year － the year in which the initial year falls; |
| (b) | The age of an automobile for the second-term: The tax year － the year in which the initial year falls ＋ 1. |
| Article 123 (Types of Automobiles) |
The types of automobiles under Article 127 (2) of the Act shall be classified as follows: <Amended by Presidential Decree No. 24296, Jan. 1, 2013> | 2. | Other passenger automobiles: Automobiles that use electricity, solar energy, and alcohol among those under subparagraph 1; |
| 3. | Automobiles for passengers and freight: |
| (e) | Small general buses: Buses, other than large general buses under item (d), as buses for urban bus transportation business, buses for agricultural and fishing villages bus transportation business, buses for shuttle bus transportation business, buses for inter-city bus transportation business (excluding express buses under item (a)) and buses for non-business use under Article 3 of the Enforcement Decree of the Passenger Transport Service Act; |
| 4. | Freight automobiles: Freight automobiles (excluding any trailing truck, the maximum loading capacity of which exceeds eight tons) under Article 3 of the Motor Vehicle Management Act, and dump trucks and concrete mixer trucks registered pursuant to the Construction Machinery Management Act. In such cases, a concrete mixer truck shall be deemed a freight automobile, the maximum loading capacity of which exceeds 10,000 kilograms; |
| 5. | Special motor vehicles: |
| (a) | Large special motor vehicles mean the following motor vehicles: |
| (i) | A trailing truck the maximum loading capacity of which exceeds eight tons; |
| (iv) | A motor vehicle that does not fall under paragraphs 1 through 4 and 6, the maximum loading capacity of which exceeds four tons or the engine displacement of which exceeds 4,000cc; |
| (b) | Small special motor vehicles mean the following motor vehicles: |
| (ii) | A motor vehicle that does not fall under subparagraphs 1 through 4 and 6, the gross weight of which is not more than four tons or the engine displacement of which is not more than 4,000cc. |
| 6. | Compact automobiles with three or less wheels: |
| (a) | Automobiles with three wheels: Compact automobiles with three wheels and a structure suitable for transporting persons or freight; |
| (b) | Automobiles with two wheels: Automobiles reported and registered as two-wheeled ones, the engine displacement of which exceeds 125cc. |
| Article 124 (Determination on Types of Automobiles) |
Where an automobile involves two or more types specified in Article 123 in determining the type of the automobile, the main type shall be chosen; and where it is difficult to choose its main type, the head of a Si/Gun/Gu shall determine the main type. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
| Article 125 (Location of Automobile and Tax Return and Payment) |
| (1) | The location of an automobile under the main sentence of Article 128 (1) of the Act means the place indicated as the place of main usage in the registration ledger for the relevant automobile or construction machinery: Provided, That where the place indicated in the registration ledger is unclear, the address of its owner shall be deemed the place of the automobile. |
| (2) | A person who intends to pay an annual tax amount in a lump sum pursuant to Article 128 (3) of the Act shall file a return thereon and pay it to the head of a Si/Gun/Gu, along with the payment notice on the taxable object, tax base, calculated amount of tax, and amount of tax paid, during the period specified in any subparagraph of Article 128 (3) of the Act. In such cases, the head of a Si/Gun/Gu may send the payment notice to a person who filed a tax return and paid the annual tax amount in a lump sum in January pursuant to Article 128 (3) 1 of the Act, if the person fails to report the payment of the annual tax amount for the following year in a lump sum. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | "Amount of tax for the period after the deadline for payment in a lump sum" in Article 128 (3) of the Act means the annual tax amount where a tax return is filed and payment is made during the period from January 16 to January 31, an amount of tax for the second term where a tax return is filed and payment is made during the payment period of the tax for the first term, or an amount of tax for the period after the installment payment period where a tax return is filed and payment is made within the installment payment period. <Amended by Presidential Decree No. 24296, Jan. 1, 2013> |
| (4) | When filing an annual tax return and pay the amount under Article 128 (3) and (4) of the Act, or imposing and collecting it, the location of an automobile under paragraph (1) shall be deemed the place for tax payment; where the location of the automobile is changed after the annual tax amount has been returned or paid or has been imposed and collected, no automobile tax on the possession of an automobile in the relevant year (hereafter referred to as "automobile tax" in this Section) shall be imposed in the changed location of the automobile. |
| (5) | Where a person liable to pay tax pays the annual tax amount in quarterly installments pursuant to the proviso to Article 128 (1) of the Act, the amount to be paid in installments for the first term and the amount to be paid in installments for the second term shall be collected by the respective Si/Gun/Gu having jurisdiction over the location of the automobile as of March 16 and as of September 16, respectively. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| Article 126 (Methods of Calculating Amount of Tax on Daily Installment in Cases of Change in Ownership, etc. during Taxable Period) |
The amount calculated on a daily installment pursuant to Articles 128 (5) and 130 (1) through (3) of the Act means the amount computed by dividing, by the total number of days in the relevant year, the amount calculated by multiplying the annual tax amount on the relevant automobile by the number of days in the taxable period: Provided, That in the case of a passenger automobile for non-business purposes which has been used for at least three years pursuant to Article 122 (2), it refers to the amount computed by dividing the amount obtained by multiplying the amount of tax in the relevant term in which the registration date of ownership transfer (referring to the date of transfer, in cases under the proviso to Article 130 (3) of the Act) computed pursuant to Article 127 (1) 2 of the Act falls by the number of days in the taxable period, by the total number of days in the corresponding term. <Amended by Presidential Decree No. 24296, Jan. 1, 2013>
| Article 127 (Amount of Tax in Cases of Change in Use or Types of Automobiles) |
When the use or type of an automobile is changed, the amount of tax shall be calculated by adding up the amounts of taxes calculated based on the types of automobile before and after the change of its use or type by applying mutatis mutandis Article 126.
| Article 128 (Withdrawal, etc. of Automobile Registration Certificates) |
| (1) | Upon receipt of a request from the head of a Si/Gun/Gu (excluding a Special Self-Governing City Mayor and a Special Self-Governing Province Governor; hereafter the same shall apply in this paragraph) under the main sentence of Article 131 (1) of the Act, the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor shall not issue an automobile registration certificate or shall, without delay, withdraw the automobile registration certificate already issued, retain the custody of the automobile registration plate in custody and notify the head of the Si/Gun thereof. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (2) | Where a person liable to pay tax fails to pay automobile tax in arrears within the reminder period, the head of a Si/Gun/Gu may choose not to issue an automobile registration certificate, or shall withdraw the automobile registration certificate already issued and retain the automobile registration plate in custody. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | Where the head of a Si/Gun has chosen not to issue an automobile registration certificate, or has withdrawn the automobile registration certificate already issued and has retained the automobile registration plate in custody pursuant to paragraph (2), he/she shall give notice of such fact to a person liable to pay tax. |
| (4) | Where a person liable to pay tax pays automobile tax in arrears, the head of a Si/Gun/Gu shall immediately return the automobile registration certificate withdrawn and the automobile registration number plate retained in custody to the person liable to pay tax, or shall request the competent Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor (excluding a Special Self-Governing City Mayor or a Special Self-Governing Province Governor) to immediately return the automobile registration certificate withdrawn and the automobile registration number plate retained in custody to the person liable to pay tax. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (5) | Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary for withdrawing automobile registration certificates or for retaining registration number plates in custody shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 129 (Notification of Tax Data) |
In any of the following events, the head of a local government shall notify the head of a Si/Gun/Gu having jurisdiction over the place for tax payment of the following: <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
| 1. | Acquisition of an automobile or the transfer of its ownership; |
| 2. | The change in the main place where the automobile is used; |
| 3. | The change in the use of the automobile; |
| 4. | Disuse of the automobile; |
| 5. | The change in the motor, frame, passenger capacity or maximum loading capacity of the automobile. |
| Article 130 (Keeping Tax Ledgers) |
The head of a Si/Gun/Gu shall keep an automobile tax ledger and record necessary matters in the tax ledger. In such cases, where the relevant matters are electronically processed, the tax ledger shall be deemed kept. <Amended by Presidential Decree No. 27710, Dec. 30, 2016>
SECTION 2 Automobile Tax on Driving of Automobiles
| Article 131 (Adjusted Tax Rates) |
The adjusted tax rate under Article 136 (2) of the Act shall be 260/1000 of the amount of traffic, energy and environment tax on the taxable goods under Article 135 of the Act (hereafter referred to as "taxable goods" in this Section). <Amended by Presidential Decree No. 25910, Dec. 30, 2014>
| Article 132 (Tax Returns and Payment) |
A person who intends to file an automobile tax return on the operation of a motor vehicle under Article 137 (1) of the Act (hereafter referred to as "automobile tax" in this Section) shall file a tax return with the person responsible for special collection under the latter part of Article 137 (1) of the Act (hereinafter referred to as "person responsible for special collection") in the tax return form prescribed by Ordinance of the Ministry of the Interior and Safety, along with the following documents, and shall pay the tax, along with a statement of payment in the form prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 25910, Dec. 30, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
| Article 133 (Proportional Distribution Standards and Methods) |
| (1) | The proportional distribution of the amount of automobile tax collected under the former part of Article 137 (3) of the Act shall be based on the following amounts: <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017> |
| 1. | The amount of automobile tax collected for non-business passenger automobiles by the Special Metropolitan City or each Metropolitan City, Special Self-Governing City, Special Self-Governing Province, Si or Gun (hereafter referred to as "Si/Gun" in this Section) referred to in Section 1 of Chapter X of the Act. In such cases, from January to June, it shall be the settled amount of tax of the year before the preceding year, and from July to December, it shall be the settled amount of tax of the preceding year; |
| 2. | Subsidies to oil tax paid to the transport industry following an increase in tax on oil. In such cases, the total amount thereof shall be the amount in the paying year, which is determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of the Interior and Safety. |
| (2) | An amount of proportional distribution of the amount of automobile tax by Si/Gun according to the standard under paragraph (1) shall be the sum of the following amounts: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| 983 billion won |
× | The amount of automobile tax of the relevant Si/Gun
collected in the year before the preceding year or in the
preceding year pursuant to Section 1 of Chapter X of the
Act | | 12 | The amount of automobile tax of the whole country
collected in the year before the preceding year or in the
preceding year pursuant to Section 1 of Chapter X of the
Act |
|
| 2. | Subsidies to oil tax by Si/Gun for the relevant month that is determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of the Interior and Safety, in regard to the amount remaining after deducting (983 billion won/12) from the total amount of automobile tax collected in the relevant month. |
| Article 134 (Payment, etc. by Persons Responsible for Special Collection) |
| (1) | A person responsible for special collection who has collected automobile tax shall remit the amount of tax collected (referring to the collected amount of tax remaining after deducting the expenses incurred in handling administrative affairs, etc. pursuant to the latter part of Article 137 (3) of the Act; hereinafter the same shall apply) to the Mayor of Ulsan Metropolitan City (hereafter referred to as "main person responsible for special collection" in this Section) by the 10th day of the month following the month in which the collection date of automobile tax falls, and at the same time, forward the details of such remittance and the copies of documents under each subparagraph of Article 132. |
| (2) | The main person responsible for special collection shall proportionally distribute the aggregate amount of automobile tax remitted by persons responsible for special collection under paragraph (1) and the amount of self-collected automobile tax in the preceding month by Si/Gun pursuant to Article 133, and shall pay automobile tax so proportionally distributed to the saving depository of each Si/Gun in accordance with the notice of payment prescribed by Ordinance of the Ministry of the Interior and Safety by the deadline specified in the former part of Article 137 (3) of the Act and notify each Si/Gun of the detailed statement on the proportional distribution. <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
| Article 134-2 (Security for Tax Payment, etc.) |
| 1. | Manufacturer: The amount equivalent to the tax amount determined by subtracting the sum of already paid tax amounts from the aggregate of the calculated tax amount on taxable objects taken out of the manufacturing place and the calculated tax amount on taxable objects to be taken out of the manufacturing place; |
| 2. | Import distributor: The amount equivalent to the tax amount determined by subtracting the sum of already paid tax amounts from the aggregate of the calculated tax amount on taxable objects for which an import declaration has been filed and the calculated tax amount on taxable objects for which an import declaration is to be filed. |
| (2) | Notwithstanding paragraph (1), a person responsible for special collection may exempt a manufacturer or an import distributor from providing security for tax payment, if the manufacturer or import distributor has engaged in the relevant business for three years before the date on which taxable objects are taken out of the manufacturing place or bonded area and has no record of default on the payment of automobile tax or intentional evasion of the tax. In such cases, the manufacturer or import distributor who is exempt from the tax shall submit a certificate of exemption from security for tax payment to the head of the customs office at the place of customs clearance in the form prescribed by Ordinance of the Ministry of the Interior and Safety, when the manufacturer or import distributor takes out taxable objects from the manufacturing place or bonded area. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| (3) | For customs clearance of imported taxable objects, an import distributor shall submit a certificate of exemption from security for tax payment to the head of the customs office at the place of customs clearance in the form prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That the submission of documents may be substituted by verification of relevant information, if it is possible to verify information by matching relevant information against administrative information available for sharing under Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 28211, Jul. 26, 2017> |
| (4) | Upon receipt of a certificate of exemption from security for tax payment paragraph (3), the head of the customs office at the place of customs clearance shall permit customs clearance within the maximum of the amount of security for tax payment stated in the certificate. |
[This Article Newly Inserted by Presidential Decree No. 25910, Dec. 30, 2014]
| Article 134-3 (Satisfaction of Automobile Tax with Security) |
If a person who provided security for tax payment under Article 137-2 (1) fails to pay the full amount or part of automobile tax by the deadline, the expenses incurred in disposing of the delinquent tax, the amount of automobile tax, and additional charges may be satisfied with the asset provided as security. If there is any deficit in such cases, automobile tax shall be collected additionally, while the remainder, if any, shall be refunded. [This Article Newly Inserted by Presidential Decree No. 25910, Dec. 30, 2014]
| Article 135 (Notification of Amount of Tax) |
When the head of a tax office or the head of a customs office receives a traffic, energy and environment tax return or the payment of traffic, energy and environment tax under Articles 7 and 8 of the Traffic, Energy and Environment Tax Act pursuant to Article 140 of the Act or determines or corrects the amount of such tax under Article 9 of the same Act, he/she shall notify the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Special Self-Governing Province Governor, or the head of the Si/Gun having jurisdiction over the place of payment for traffic, energy and environment tax in the form prescribed by Ordinance of the Ministry of the Interior and Safety. In such cases, where the head of a tax office or the head of a customs office electronically processes the relevant data, he/she may provide a notice in electronic form. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27710, Dec. 30, 2016; Presidential Decree No. 28211, Jul. 26, 2017>
CHAPTER XI LOCAL RESOURCE AND FACILITY TAX
SECTION 1 Common Provisions
| Article 136 (Taxable Objects) |
"Which are prescribed by Presidential Decree" in subparagraph 1 of Article 142 of the Act means any of the following: <Amended by Presidential Decree No. 23482, Dec. 31, 2011; Presidential Decree No. 24296, Jan. 1, 2013; Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 28211, Jul. 26, 2017> | 1. | Water for power generation: Running water directly used for power generation: Provided, That running water used for generating electricity of up to 3,000 kilowatts out of the total volume of generation per hour by a power plant, as running water directly used by a business entity engaging in small-scale power generation business, the capacity of power-generating facility of which is less than 10,000 kilowatts shall be excluded; |
| (a) | Potable water: Underground water pumped up to be sold as potable water; |
| (b) | Water for bathing: Hot spring water pumped up to be used for bathing; |
| (c) | Water for other purposes: Underground water pumped up, other than that stipulated under items (a) and (b): Provided, That the following underground water shall be excluded: |
| (ii) | Underground water falling under the proviso to Article 7 (1) and Article 8 (1) 1 through 5 (limited to a well for household use, from which less than 30 tons of water per day may be pumped out using a discharging pipe that measures not more than 32 millimeters in inner diameter in the cases of underground water falling under Article 8 (1) 5) of the Groundwater Act; |
| 4. | Containers: Incoming and outgoing containers using a wharf where containers are handled: Provided, That transshipment containers, containers for coastal-transportation, and containers not loaded with freight shall be excluded; |
| 5. | Nuclear power generation: Electricity generated by a nuclear power plant; |
| 6. | Thermal power generation: Electricity generated by a thermal power plant, the capacity of power-generating facility of which is at least 10,000 kilowatts per hour: Provided, That the following electricity (limited to electricity not sold to electricity sales business entities defined in subparagraph 10 of Article 2 of the Electric Utility Act) shall be excluded: |
| Article 137 (Non-Taxation) |
| (1) | No local resource and facility tax on specific real estate under Article 142 (1) 2 of the Act (hereinafter referred to as "specific real estate") shall be imposed on the facilities specified by Article 5 (excluding the buildings that fall within Article 138 (1) 2 and (2) 2 and the facilities installed as part of such buildings). <Amended by Presidential Decree No. 26431, Jul. 24, 2015; Presidential Decree No. 26836, Dec. 31, 2015> |
| (2) | No local resource and facility tax shall be imposed on a building or housing (limited to building parts under Article 2 (1) 2 of the Building Act; hereafter the same shall apply in this paragraph) to which the administrative agency has issued a order of removal, or for which a contract for removal and compensation has been entered into, as a plan is finalized for the building or housing that is to be removed in the relevant year when local resource and facility tax on specific real estate is imposed. In such cases, where part of a building or housing is removed, only the part removed as such shall be exempt from local resource and facility tax. <Amended by Presidential Decree No. 22586, Dec. 30, 2010> |
SECTION 2 Tax Bases and Rates
| Article 138 (Buildings Vulnerable to Fire, etc.) |
| (1) | "Buildings vulnerable to fire prescribed by Presidential Decree, such as oil reservoirs, gasoline stations, oil refineries, amusement centers, theaters, and buildings with at least four stories, but not more than ten stories" in Article 146 (2) 2 of the Act means any of the following: <Amended by Presidential Decree No. 22880, Apr. 6, 2011; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 26916, Jan. 19, 2016> |
| 1. | A building with at least four stories, but up to ten stories for non-residential purposes. In such cases, the basement floor and rooftop shall not be counted as a story; |
| (a) | Private teaching institutes, video-viewing rooms, small theaters for video projection, and song-practice rooms among neighboring living facilities: Provided, That any facility, the aggregate floor area of which is less than 200 square meters, shall be excluded; |
| (b) | Entertainment establishments: Provided, That any dance hall or dancing school, the aggregate floor area of which is less than 200 square meters, and any entertainment bar or karaoke bar, the aggregate floor area of which is less than 33 square meters and 150 square meters, respectively, shall be excluded; |
| (c) | Theaters, cinemas, video-viewing rooms, small theaters for video projection, or wedding halls, among cultural, gathering and sports establishments; |
| (d) | Whole sale markets, retail markets, and stores among sales establishments, passenger bus terminals among transportation facilities, and cargo terminals among warehouse facilities; |
| (e) | Lodging facilities: Provided, That lodging facilities with a floor area of less than 60 square meters for the part used as guest rooms shall be excluded herefrom; |
| (f) | Funeral parlors (including funeral parlors affiliated to medical facilities); |
| (h) | Warehouses among warehouse facilities (limited to any warehouse set up for business purpose); |
| (i) | Buildings for parking lots among facilities related to aircraft and automobiles; |
| (j) | Facilities for storing and treating hazardous substances. |
| (2) | "Large buildings vulnerable to fire prescribed by Presidential Decree, such as large-scale marts, multiplexes theaters (excluding theaters under subparagraph 2), department stores, hotels, and buildings with at least 11 stories" in Article 146 (2) 2-2 of the Act means the following: <Newly Inserted by Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25545, Aug. 12, 2014; Presidential Decree No. 26836, Dec. 31, 2015; Presidential Decree No. 26916, Jan. 19, 2016; Presidential Decree No. 28524, Dec. 29, 2017> |
| 1. | High-rise buildings with at least 11 stories for non-residential purposes; |
| (a) | Entertainment bars with a floor area of at least 500 square meters, among entertainment facilities: Provided, That the total floor area of an entertainment bar shall be at least 330 square meters, if the entertainment bar is located at an underground level or on the fifth or a higher floor above ground; |
| (b) | Any of the following cinemas among cultural and meeting facilities: |
| (i) | A cinema complex with at least 10 screens; |
| (ii) | A cinema with at least 500 seats; |
| (iii) | A cinema established on the underground floor; |
| (c) | Any of the following sales facilities, the total floor area of which is at least 10,000 square meters: |
| (e) | A factory or warehouse in a unit with a total floor area of at least 15,000 square meters (limited to logistics warehouses or cold storage or refrigerated warehouses with walls made of sandwich panels (referring to double-layered materials provided for in Article 61 (1) 4 (c) of the Enforcement Decree of the Building Act)), in the case of warehouse facilities), among factories and warehouse facilities; |
| (g) | A composite building, the floor area of which is at least 30,000 square meters. In such cases, with regard to a mixed-use building (referring to a building which includes a neighborhood living facility, sales facility, business facility, accommodation facility, or entertainment establishment, and is used for dwelling purposes), the floor area for housing part shall be excluded, and where the housing part and part used for purposes other than dwelling purposes share stairs, the area of stairs shall be deemed the area of the housing part and included in the total floor area. |
| (3) | Where a building or whole building on one parcel is used both for a purpose stipulated under paragraph (1) 2 or (2) 2 and for any other purpose, or is used separately, the method of assessing the tax base and the amount of tax shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Presidential Decree No. 24425, Mar. 23, 2013; Presidential Decree No. 25058, Jan. 1, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017> |
SECTION 3 Imposition and Collection
| Article 139 (Payment Notice) |
Where the due date for payment of local resource and facility tax on specific real estate and the property tax due date falls on the same date, local resource and facility tax may be also stated in the payment notice of property tax.
CHAPTER XII LOCAL EDUCATION TAX
| Article 140 (Calculation of Tax Base) |
Where a person liable to pay local education tax fails to pay local tax which constitutes the tax base for local education tax, or pays less than the amount due, and thus an additional tax is added to the relevant amount of tax, the amount of the additional tax so added shall not be included in the tax base for local education tax.
| Article 141 (Tax Returns and Payment, and Imposition and Collection) |
| (1) | When a person liable to pay tax files a local education tax return and pays the local education tax pursuant to Article 152 (1) of the Act, he/she shall record local education tax alongside the relevant amount of local tax, and the sum thereof in the tax return form and the payment form of local tax constituting the tax base. |
| (2) | When the head of a Si/Gun/Gu imposes and collects local education tax pursuant to Article 152 (2) of the Act, he/she shall provide a written notice stating the relevant amount of local tax and local education tax, and the sum thereof in the tax return form and the payment form for local tax constituting the tax base. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
| (3) | When the head of a Si/Gun/Gu imposes and collects local education tax on unavoidable grounds, he/she shall give notice of only the amount of local education tax, indicating local tax items and the amount of tax constituting the tax base for the relevant local education tax on the payment notice. <Amended by Presidential Decree No. 27710, Dec. 30, 2016> |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first tax liability which arises after this Decree enters into force.
Article 3 (Applicability concerning Timing of Acquisition)
The amended provisions of provisos to Article 20 (1) and (2) 2 shall apply, beginning with the first gratuitous acquisition by succession or acquisition for consideration by succession after this Decree enters into force. Article 4 (General Transitional Measures)
The former provisions shall govern any local tax imposed, reduced or exempted, or to be imposed, reduced or exempted under the former provisions as at the time this Decree enters into force.
Article 5 (Transitional Measures concerning Timing of Acquisition of Ships Acquired in Annual Installments by Importation or Building)
Article 73 (3) of the Enforcement Decree of the former Local Tax Act shall govern the timing of acquisition of a ship acquired in annual installments by importation or building as at the time this Decree enters into force, notwithstanding the amended provisions of Article 20 (11). Article 6 (Transitional Measures concerning Handling of Payment Receipts of Registration Tax)
Where a person liable to pay registration tax pursuant to Article 6 of the Addenda to the Local Tax Act (wholly amended by Act No. 10221) applies for the registration, Article 91 of the former Enforcement Decree of the Local Tax Act shall govern the attachment, forwarding, etc. of a notice of payment certificate and of a document confirming payment. Article 7 (Transitional Measures concerning Calculating Ceiling of Property Tax Burden)
In computing tax ceiling on the calculated amount of tax on land, etc. under Article 112 (1) 2 of the Act and Article 112 (2) among the amount of property tax for the year 2011 pursuant to the amended provisions of Article 118 in order to separate the amount of tax calculated under Article 112 (1) 1 from the amount of tax calculated under Article 112 (1) 2 and (2) pursuant to Article 6-2 of the Addenda to the Local Tax Act (Wholly Amended by Act No. 10221), for the purpose of the amended provisions of Article 118, "tax base in the immediately preceding year" shall be construed as "tax base for urban planning tax under the former Local Tax Act (referring to that prior to the Local Act (wholly amended by Act No. 10221); hereafter the same shall apply in this Article)"; "statutes and tax base in the immediately preceding year" as "tax base under the former Local Tax Act and urban planning tax"; "amount of tax imposed" as "amount of urban planning tax imposed"; and "tax base calculated by applying statutes in the immediately preceding year" as "tax base for urban planning tax calculated by applying the former Local Tax Act," respectively. <Amended by Presidential Decree No. 22942, May 30, 2011> Article 8 Omitted.
Article 9 (Relationship with other Statutes)
ADDENDA <Presidential Decree No. 22586, Dec. 30, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011: Provided, That the amended provisions of Article 102 (2) 2 shall enter into force on February 5, 2011. Article 2 (General Applicability)
This Decree shall apply, beginning with the first establishment of liability to pay tax after this Decree enters into force.
Article 3 (Applicability concerning Scope of Exemption from Acquisition Tax on Repair of Multi-Family Housing)
The amended provisions of Article 12-2 shall apply, beginning with the first acquisition tax on repair of multi-family housing after this Decree enters into force. Article 4 (Applicability concerning Special Case of Tax Rate for Acquisition Tax)
| (1) | The amended provisions of subparagraph 4 of Article 30 shall apply, beginning with the first special case of the tax rate for acquisition tax after this Decree enters into force. |
| (2) | The amended provisions of subparagraph 5 of Article 30 shall also apply to the acquisition of a building, in regard to which the former liability to pay registration tax is established for preservation registration of ownership or registration of transfer of ownership (excluding any registration made on the ground of acquisition) before this Decree enters into force, and for which the timing of acquisition under Article 20 arrives after this Decree enters into force. |
Article 5 (Applicability concerning Payment of Acquisition Tax in Installments)
The amended provisions of Article 35-2 shall apply, beginning with the first acquisition by an individual of housing, a vehicle or machinery equipment after this Decree enters into force. Article 6 (Applicability concerning Scope of Tax Exemption for Tobacco)
The amended provisions of Article 64 (2) shall apply, beginning with the first tobacco brought into the Republic of Korea after this Decree enters into force. Article 7 (General Transitional Measures)
Article 8 (Transitional Measures concerning Collection through Heavy Taxation on Corporation Registration, etc. within Areas of Large Cities)
With regard to the application of the tax rate for heavy taxation, where a corporation that is subject to the tax rates under Articles 131 and 137 of the former Local Tax Act pursuant to the proviso to Article 138 (1) of the same Act (referring to the former Local Tax Act pursuant to Article 13 of the Addenda to the Local Tax Act (Partially Amended by Act No. 10416)) before December 31, 2010, shifts to or adds a type of business, other than the type of business excluded from heavy taxation in large cities, or in cases due to the violation of the liability to directly use real estate in the type of business excluded from heavy taxation in large cities, Articles 101, 102 and 104-2 of the former Enforcement Decree of the Local Tax Act shall govern, notwithstanding the amended provisions of Articles 26, 34, 45 and 48 (2). Article 9 Omitted.
ADDENDA <Presidential Decree No. 22605, Dec. 31, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 22880, Apr. 6, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22942, May 30, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 102 (5) 24 and 32 through 35 shall enter into force on January 1, 2012. Article 2 (Applicability concerning Scope of Prices of Acquiring Real Estate)
The amended provisions of Article 18 (1) 6 and 7 and the amended provisions of Article 18 (4) 3 shall apply, beginning with the first acquisition of real estate after this Decree enters into force: Provided, That the loss from the sale of the class 2 national housing bond shall apply, beginning with the acquisition of real estate in accordance with the first public notice for recruitment of occupants after this Decree enters into force. Article 3 (Applicability concerning Special Aggregate Taxation and Separate Taxation)
| (1) | The amended provisions of Articles 101 (3) 17 and 102 (5) 5 and 31 shall apply, beginning with the first establishment of liability to pay property tax after this Decree enters into force. |
| (2) | The amended provisions of Article 102 (5) 24, 32 and 33 shall apply, beginning with the first establishment of liability to pay property tax on or after January 1, 2012. |
| (3) | The amended provisions of Article 102 (5) 34 shall apply, beginning with the first case of obtaining approval for establishment of a knowledge industry center on or after January 1, 2012. |
| (4) | The amended provisions of Article 102 (5) 35 shall apply, beginning with the first purchase in lots of a knowledge industry center on or after January 1, 2012. |
Article 4 (Applicability concerning Property Tax Ceiling on Lost or Destroyed House)
The amended provisions of subparagraph 1 (d) of Article 118 shall apply, beginning with first establishment of liability to pay property tax after this Decree enters into force.
ADDENDA <Presidential Decree No. 23482, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2012: Provided, That the amended provisions of subparagraphs 1 and 2 of Article 133 shall enter into force on the first day of the month in which the date on which the Free Trade Agreement between the Republic of Korea and the United States of America enters into force falls, and the amended provisions of subparagraph 6 of Article 136 shall enter into force on January 1, 2014. Article 2 (General Applicability)
This Decree shall apply, beginning with the first establishment of liability to pay tax after this Decree enters into force.
Article 3 (Applicability concerning Acquisition Tax on Two-Wheel Automobiles with Engine Displacement of not More than 50cc)
The amended provisions of Article 7 (1) shall apply, beginning with the first establishment of liability to pay tax after January 1, 2007.
ADDENDA <Presidential Decree No. 23535, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23711, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Registration and License Tax on Pro Rata License Portion)
| (1) | The amended provisions of subparagraph 40 of Article 51 and subparagraph 35 in the columns of Class V of attached Table shall apply, beginning with from the first registration and license tax on a pro rata license portion that constitutes liability for taxation after January 1, 2012. |
| (2) | The amended provisions of subparagraph 175 in the columns of Class III of attached Table and subparagraphs 33 and 34 in the columns of Class V of attached Table shall apply, beginning with the first registration and license tax on a pro rata license portion that constitutes liability for taxation after this Decree enters into force. |
ADDENDA <Presidential Decree No. 23718, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 15, 2012. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 23947, Jul. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 18, 2012.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 23966, Jul. 20, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 22, 2012. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23993, Jul. 26, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 27, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24296, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply to a local tax that constitutes liability for taxation after this Decree enters into force.
ADDENDA <Presidential Decree No. 24425, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among Presidential Decrees amended pursuant to Article 6 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcements dates of the respective Presidential Decrees.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24502, Apr. 22, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 24, 2013.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24563, May 31, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 2, 2013.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Presidential Decree No. 24890, Dec. 4, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 5, 2013. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 25058, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first income on which liability to pay tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 25249, Mar. 11, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25252, Mar. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply, beginning with the first income on which liability to pay tax arises in the period of taxation to which the enforcement date of this Decree belongs: Provided, That with regard to local income tax under Chapter VIII, this Decree shall apply, beginning with the first income on which liability to pay tax arises because the first period of taxation begins after the partially amended Local Tax Act (Act No. 12153) enters into force. Article 3 (Applicability concerning Change of Payment Managers)
The amended provisions of Article 73 shall apply, beginning with the first local income tax to be paid in the month following the month to which the enforcement date of this Decree belongs. Article 4 (Applicability concerning Criteria for Proportional Distribution of Local Consumption Tax)
The amended provisions of Articles 75 (1), (5) and (8) and 76 (2) shall apply, beginning with the first local consumption tax paid or refunded in the first period of taxation which begins pursuant to the Value-Added Tax Act after the partly amended Local Tax Act (Act No. 12118) enters into force. Article 5 (Special Exceptions to Personal Local Income Tax Returns, etc.)
| (1) | A person who intends to file a provisional tax return on profit margins on the purchase and sale of land, etc. under Article 90 (1), a final tax base return under Article 92 (1), an amended tax return under Article 93 (1), a final tax base return on the place of business of joint business partners under Article 99, a provisional tax base return on capital gains under Article 100-2 (1), a final tax base return under Article 100-3 (1), and a tax return on capital gains on securities under Article 100-4 with the head of a tax office or the head of a regional tax service having jurisdiction over the place of tax payment pursuant to Article 13 (1) of Addenda to the partially amended Local Tax Act (Act No. 12153), shall file such tax returns in accordance with forms prescribed by Ordinance of the Ministry of Security and Public Administration along with an income tax return, provisional tax return, or amended tax return under the Income Tax Act. |
| (2) | Where the head of a tax office or the head of a regional tax service having jurisdiction over the place of tax payment collects income tax by determination, correction or determination of occasional imposition under the Framework Act on National Taxes or the Income Tax Act, he/she shall also determine, correct or determine occasional imposition of personal local income tax pursuant to Article 13 (2) of Addenda to the partially amended Local Tax Act (Act No. 12153) and give notice of the imposition thereof along with income tax in accordance with a form prescribed by Ordinance of the Ministry of Security and Public Administration. |
Article 6 (General Transitional Measures)
| (1) | Where a person has filed a local income tax return and paid local income tax in accordance with the former provisions before this Decree enters into force, he/she shall be deemed to have filed a resident tax return and a local income tax return and paid the aforesaid taxes pursuant to this Decree. |
| (2) | The former provisions shall apply to local tax which has been imposed or reduced or exempted or which should be imposed or reduced or exempted in accordance with the former provisions as at the time this Decree enters into force. |
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25317, Apr. 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Registration and License Tax)
The amended provisions of the attached Table shall apply, beginning with the first liability to pay a tax that arises after this Decree enters into force.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 25448, Jul. 7, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 8, 2014.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25456, Jul. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 15, 2014.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 25485, Jul. 18, 2014>
This Decree shall enter into force on July 21, 2014.
ADDENDA <Presidential Decree No. 25522, Jul. 28, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2014.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25545, Aug. 12, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 5 (2) shall enter into force on January 1, 2015. Article 2 (General Applicability)
This Decree shall apply, beginning with the first liability to pay a tax that arises after this Decree enters into force: Provided, That the amended provisions of Articles 100 and 100-7 pertaining to local income tax shall apply, beginning with the first income or transfer which occurs during the period of taxation into which the enforcement date of this Decree falls. Article 3 (Applicability to Reduction or Exemption of Security for Tax Payment)
The amended provisions of Article 71 (3) shall apply, beginning with the tobacco brought out of the place of manufacturing or the bonded area, or brought into Korea after this Decree enters into force. Article 4 (Applicability to Calculation of Tax Amount for Excess Repayment from Workplace Mutual Aid Associations)
The amended provisions of Article 88-2 shall apply, beginning with the portion paid in installments after this Decree enters into force. Article 5 (General Transitional Measures)
The former provisions shall apply to local taxes imposed, reduced or exempted, or to be imposed, reduced or exempted under the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 25700, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decree amended in accordance with Article 5 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcement dates of the respective Presidential Decrees. Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25910, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015. (Proviso Omitted.)
Article 2 (General Applicability)
This Decree shall apply to the cases where the duty to pay a tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 26290, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Submission of Statements of Special Collection of Corporate Local Income Tax)
The amended provisions of Article 100-19 (1) through (3) shall also apply to the cases where the tax is specially collected on or after January 1, 2015. Article 3 (Applicability to Issuance of Receipts of Specially Collected Corporate Local Income Tax)
The amended provisions of Article 100-19 (4) and (5) shall apply to the cases where the duty to pay the tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 26302, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26369, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 26431, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply to the cases where the duty to pay a tax arises after this Decree enters into force.
Article 3 (Applicability to Scope of Land Subject to Separate Taxation of Property Tax)
The amended provisions of Article 102 (5) 12 shall apply to the cases where notice is given on the imposition of property tax after this Decree enters into force.
ADDENDA <Presidential Decree No. 26438, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2015.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26763, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 29, 2015.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 26836, Dec. 31, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2016. (Proviso Omitted.)
Article 2 (General Applicability)
This Decree shall apply to cases where the duty to pay a tax arises after this Decree enters into force.
Article 3 (Applicability to Method of Proportional Distribution of Corporate Local Income Tax)
The amended provisions of Article 88 shall apply to cases where a corporate local income tax return is filed after this Decree enters into force. Article 4 (Applicability to Tax Returns on Unappropriated Earnings of Enterprises)
The amended provisions of Article 100-12 (1) shall apply to tax returns filed on corporate local income tax after this Decree enters into force. Article 5 (Applicability to Refund of Personal Local Income Tax)
The amended provisions of Article 100-34 shall apply to cases where a decision or a correction is made with regard to personal local income tax after this Decree enters into force. Article 6 (Applicability to Separate Taxation)
Article 7 (General Transitional Measures)
Former provisions shall apply to the local taxes imposed, reduced, or exempted or to be imposed, reduced, or exempted under former provisions at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 26858, Jan. 6, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 7, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26916, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 21, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 26928, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2016.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27102, Apr. 26, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 18 (4) shall apply to the cases where the duty to pay the tax arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 27245, Jun. 21, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 23, 2016.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27431, Aug. 2, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 4, 2016. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 27471, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27473, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27619, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27621, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27710, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017.
Article 2 (General Applicability)
This Decree shall apply to cases where a tax liability arises after this Decree enters into force.
Article 3 (Applicability to Tax Rates of Resident Tax to Places of Business Discharging Pollutants)
Article 4 (Applicability to Proportional Distribution of Corporate Local Income Tax)
The amended provisions of the latter part of Article 88 (2) shall apply to the cases where a return on the tax base and amount is filed after this Decree enters into force. Article 5 (Applicability to Refunds Following Determination or Correction of Local Income Tax)
The amended proviso to Article 100-34 shall apply where an amount for which a correction is requested or a determined amount is refunded after this Decree enters into force. Article 6 (General Transitional Measures)
Former provisions shall apply to the local taxes imposed, reduced, or exempted or to be imposed, reduced, or exempted under former provisions at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 27793, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 20, 2017.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27958, Mar. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 27959, Mar. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27971, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Presidential Decree No. 27972, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, among the Presidential Decrees amended by Article 8 of the Addenda, the amendment to a Presidential Decree which was promulgated before this Decree enters into force but whose enforcement date has yet to arrive, shall enter into force on the enforcement date of the relevant Decree.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28366, Oct. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28524, Dec. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 (General Applicability)
This Decree shall begin to apply to obligations to pay a tax that arise after this Decree enters into force.
Article 3 (Transitional Measures concerning Acquisition of Dormant Corporation)
Notwithstanding the amended provisions of Article 27 (2), the former provisions shall apply to a person who became an oligopolistic stockholder under the former provisions of Article 27 (2) before this Decree enters into force. Article 4 (Transitional Measures concerning Business Establishments Emitting Air Pollutants)
Notwithstanding the amended provisions of Article 83, the former practices shall apply to violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 28583, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28627, Feb. 9, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 9, 2018.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 28686, Feb. 27, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 27, 2018. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28714, Mar. 27, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2018: Provided, That the amended provisions of subparagraph 5 of Article 60, subparagraph 1 (e) (ii) of Article 61 and Articles 64 (2), 88-2, 100 (6), 100 (8), 100-9 (1) and (3), 100-15 (2) and 100-38 shall enter into force on the promulgation date of the Decree. Article 2 (Applicability to Exemption from Tax on Cigarette Type Electronic Tobacco Brought in by Entrants)
The amended provisions of Article 64 (2) shall begin to apply where an entrant brings in electronic tobacco in such type pursuant to Article 54 (2) of the Act on or after the enforcement date provided for in the proviso to Article 1 of the Addenda. Article 3 (Applicability to Personal Local Income Tax on Capital Gains)
The amended provisions concerning capital gains in this Decree shall begin to apply to transfers occurring after this Decree enters into force: Provided, That the amended provisions of Article 100 (6) shall begin to apply to the income accruing during the taxable year in which the enforcement date under the proviso to Article 1 of the Addenda occurs. Article 4 (Applicability to Adjustment of Collection Subsidies)
The amended provisions of Article 100-9 (3) shall begin to apply to the refundable amounts accrue on or after the enforcement date provided for in the proviso to Article 1 of the Addenda.