FRAMEWORK ACT ON NATIONAL TAXES
Act No. 2679, Dec. 21, 1974
Amended by Act No. 2932, Dec. 22, 1976
Act No. 2925, Dec. 22, 1976
Act No. 3097, Dec. 5, 1978
Act No. 3199, Dec. 28, 1979
Act No. 3471, Dec. 31, 1981
Act No. 3746, Aug. 7, 1984
Act No. 3755, Dec. 15, 1984
Act No. 3754, Dec. 15, 1984
Act No. 4177, Dec. 30, 1989
Act No. 4277, Dec. 31, 1990
Act No. 4561, jun. 11, 1993
Act No. 4672, Dec. 31, 1993
Act No. 4743, Mar. 24, 1994
Act No. 4810, Dec. 22, 1994
Act No. 4981, Dec. 6, 1995
Act No. 5189, Dec. 30, 1996
Act No. 5193, Dec. 30, 1996
Act No. 5454, Dec. 13, 1997
Act No. 5579, Dec. 28, 1998
Act No. 5993, Aug. 31, 1999
Act No. 6070, Dec. 31, 1999
Act No. 6303, Dec. 29, 2000
Act No. 6299, Dec. 29, 2000
Act No. 6782, Dec. 18, 2002
Act No. 7008, Dec. 30, 2003
Act No. 7032, Dec. 31, 2003
Act No. 7329, Jan. 5, 2005
Act No. 7582, Jul. 13, 2005
Act No. 7796, Dec. 29, 2005
Act No. 7930, Apr. 28, 2006
Act No. 8139, Dec. 30, 2006
Act No. 8372, Apr. 11, 2007
Act No. 8521, Jul. 19, 2007
Act No. 8830, Dec. 31, 2007
Act No. 8860, Feb. 29, 2008
Act No. 9131, Sep. 26, 2008
Act No. 9259, Dec. 26, 2008
Act No. 9263, Dec. 26, 2008
Act No. 9346, Jan. 30, 2009
Act No. 9412, Feb. 6, 2009
Act No. 9911, Jan. 1, 2010
Act No. 9968, Jan. 25, 2010
Act No. 10219, Mar. 31, 2010
Act No. 10405, Dec. 27, 2010
Act No. 10580, Apr. 12, 2011
Act No. 10621, May 2, 2011
Act No. 11124, Dec. 31, 2011
Act No. 11845, May 28, 2013
Act No. 11873, jun. 7, 2013
Act No. 12162, Jan. 1, 2014
Act No. 12848, Dec. 23, 2014
Act No. 13552, Dec. 15, 2015
Act No. 14382, Dec. 20, 2016
Act No. 15220, Dec. 19, 2017
Act No. 16097, Dec. 31, 2018
Act No. 16841, Dec. 31, 2019
Act No. 17339, jun. 9, 2020
Act No. 17354, jun. 9, 2020
Act No. 17651, Dec. 22, 2020
Act No. 17650, Dec. 22, 2020
Act No. 17758, Dec. 29, 2020
CHAPTER I GENERAL PROVISIONS
SECTION 1 Common Provisions
The purpose of this Act is to ensure legal relations concerning the national taxes, to promote the impartiality of taxation, and to contribute to facilitating taxpayers’ fulfillment of their tax obligations, by providing for fundamental and common matters concerning the national taxes and matters concerning the rights and duties of taxpayers and the protection of their rights. <Amended on Dec. 20, 2016>
[This Article Wholly Amended on Jan. 1, 2010]
The terms used in this Act are defined as follows: <Amended on Dec. 22, 1976, Dec. 5, 1978; Dec. 31, 1981; Aug. 7, 1984; Dec. 30, 1989; Dec. 31, 1993; Mar. 24, 1994, Dec. 6, 1995; Dec. 30, 1996; Dec. 28, 1998; Aug. 31, 1999; Dec. 29, 2000; Dec. 18, 2002; Dec. 30, 2003; Jan. 5, 2005; Dec. 30, 2006; Jul. 19, 2007; Dec. 31, 2007; Jan. 1, 2010; Mar. 31, 2010; Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2018; Jun. 9, 2020; Dec. 22, 2020>
| 1. | The term "national taxes" means any of the following taxes imposed by the State: |
| (c) | Inheritance tax and gift tax; |
| (d) | Comprehensive real estate holding tax; |
| (f) | Individual consumption tax; |
| (g) | Traffic, energy, and environment tax; |
| (j) | Securities transaction tax; |
| (l) | Special rural development tax; |
| 3. | The term "withholding" means that a withholding agent collects national taxes (excluding penalty taxes related thereto)under tax-related statutes ; |
| 4. | The term "penalty tax" means an amount collected in addition to the amount of tax calculated in accordance with tax-related statutes in order to ensure the faithful fulfillment of duties prescribed in the this Act and other tax-related statutes; |
| 5. | Deleted; <Dec. 31, 2018> |
| 6. | The term "forced collection charge" means expenses incurred in the seizure, safekeeping, transport, and sale (if the sale is conducted by any agent, including commissions therefor) of any property under the National Tax Collection Act governing forced collection; |
| 8. | The term "public charges" means claims that can be forcibly collected as prescribed in the National Tax Collection Act, excluding national taxes, customs, provisional import surtax, local taxes, and forced collection charge related thereto; |
| 9. | The term "person liable to pay taxes" means persons liable to pay national taxes under tax-related statutes (excluding an obligation to collect and pay national taxes); |
| 10. | The term "taxpayer" means persons liable to pay taxes (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) and persons liable to collect and pay national tax under tax-related statutes; |
| 11. | The term "person secondarily liable for tax payment" means a person liable to pay taxes on behalf of a taxpayer unable to fulfill his or her liability to pay taxes; |
| 12. | The term "guarantor" means a person who guarantees the payment of national taxes or forced collection charge by taxpayers; |
| 13. | The term "taxable period" means a period to be a basis for calculating tax base of a national tax under tax-related statutes; |
| 14. | The term "tax base" means the quantity or value of a taxable object to constitute a direct basis for calculating the amount of tax under tax-related statutes; |
| 15. | The term "tax base return" means a return stating the tax base of national tax and other matters necessary for payment or refund of national tax; |
| 15-2. | The term "revised tax base return" means a return to revise items in the tax base return originally filed; |
| 16. | The term "statutory due date of return" means the term in which a tax base return is to be submitted under tax-related statutes; |
| 17. | The term "tax officials" means the following persons: |
| (a) | The Commissioner of the National Tax Service, the commissioner of a regional tax office, the head of a tax office or public officials under his or her control; |
| (b) | Where the head of a customs office is in charge of the affairs related to national taxes under tax-related statutes, the head of the customs office or public officials under his or her control; |
| (c) | Deleted; <Dec. 31, 2011> |
| 18. | The term "information and communications networks" means information and communications system to collect, process, store, search, send, or receive information utilizing telecommunications facilities and equipment under subparagraph 2 of Article 2 of the Framework Act on Telecommunications or telecommunications facilities and equipment and computers as well as computer technologies; |
| 19. | The term "electronic filing" means a return made by means of the information and communications networks designated and publicly notified by the Commissioner of the National Tax Service (hereinafter referred to as "national tax information and communications networks") of documents related to returns pursuant to this Act or other tax-related statutes, such as returns of tax base, etc.; |
| 20. | The term "related person" means a person who has relationship falling under any of the following items with the principal. In such cases, the principal shall be deemed the related person of such related person when this Act and other tax-related statutes apply: |
| (a) | Relationship by blood prescribed by Presidential Decree such as blood relative, relative by marriage, etc.; |
| (b) | Economic relationship prescribed by Presidential Decree, such as an executive officer or employee; |
| (c) | Management control relationship prescribed by Presidential Decree, such as a shareholder and investor; |
| 21. | The term "tax investigation" means any activity involving inquiries to determine or correct the national tax base or an amount of such tax or inspection and investigation of relevant books, documents, or other articles (hereinafter referred to as "books, etc.") or issuance of an order for submission thereof. |
[Title Amended on Dec. 31, 2007]
[Enforcement Date: Feb. 3, 2022] The part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
The terms used in this Act are defined as follows: <Amended on Dec. 22, 1976, Dec. 5, 1978; Dec. 31, 1981; Aug. 7, 1984; Dec. 30, 1989; Dec. 31, 1993; Mar. 24, 1994; Dec. 6, 1995; Dec. 30, 1996; Dec. 28, 1998; Aug. 31, 1999; Dec. 29, 2000; Dec. 18, 2002; Dec. 30, 2003; Jan. 5, 2005; Dec. 30, 2006; Jul. 19, 2007; Dec. 31, 2007; Jan. 1, 2010; Mar. 31, 2010; Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2018; Jun. 9, 2020; Dec. 22, 2020>
| 1. | The term "national taxes" means any of the following taxes imposed by the State: |
| (c) | Inheritance tax and gift tax; |
| (e) | Individual consumption tax; |
| (h) | Securities transaction tax; |
| (j) | Special rural development tax; |
| (k) | Comprehensive real estate holding tax; |
| 3. | The term "withholding" means that a withholding agent collects national taxes (excluding penalty taxes related thereto) under tax-related statutes; |
| 4. | The term "penalty tax" means an amount collected in addition to the amount of tax calculated in accordance with tax-related statutes in order to ensure the faithful fulfillment of duties prescribed in the tax-related statutes: Provided, That additional dues shall not be included herein; |
| 5. | Deleted; <Dec. 31, 2018> |
| 6. | The term "forced collection charge" means expenses incurred in the seizure, safekeeping, transport, and sale (if the sale is conducted by any agent, including commissions therefor) of any property under the National Tax Collection Act governing forced collection; |
| 8. | The term "public charges" means claims that can be forcibly collected as prescribed in the National Tax Collection Act, excluding national taxes, customs, provisional import surtax, local taxes, and forced collection charge related thereto; |
| 9. | The term "person liable to pay taxes" means persons liable to pay national taxes under tax-related statutes (excluding an obligation to collect and pay national taxes); |
| 10. | The term "taxpayer" means persons liable to pay taxes (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) and persons liable to collect and pay national tax under tax-related statutes; |
| 11. | The term "person secondarily liable for tax payment" means a person liable to pay taxes on behalf of a taxpayer unable to fulfill his or her liability to pay taxes; |
| 12. | The term "guarantor" means a person who guarantees the payment of national taxes or forced collection charge by taxpayers; |
| 13. | The term "taxable period" means a period to be a basis for calculating tax base of a national tax under tax-related statutes; |
| 14. | The term "tax base" means the quantity or value of a taxable object to constitute a direct basis for calculating the amount of tax under tax-related statutes; |
| 15. | The term "tax base return" means a return stating the tax base of national tax and other matters necessary for payment or refund of national tax; |
| 15-2. | The term "revised tax base return" means a return to revise items in the tax base return originally filed; |
| 16. | The term "statutory due date of return" means the term in which a tax base return is to be submitted under tax-related statutes; |
| 17. | The term "tax officials" means any of the following persons: |
| (a) | The Commissioner of the National Tax Service, the commissioner of a regional tax office, the head of a tax office or public officials under his or her control; |
| (b) | Where the head of a customs office is in charge of the affairs related to national taxes under tax-related statutes, the head of the customs office or public officials under his or her control; |
| (c) | Deleted; <Dec. 31, 2011> |
| 18. | The term "information and communications networks" means information and communications system to collect, process, store, search, send, or receive information utilizing telecommunications facilities and equipment under subparagraph 2 of Article 2 of the Framework Act on Telecommunications or telecommunications facilities and equipment and computers as well as computer technologies; |
| 19. | The term "electronic filing" means a return made by means of the information and communications networks designated and publicly notified by the Commissioner of the National Tax Service (hereinafter referred to as "national tax information and communications networks") of documents related to returns pursuant to this Act or other tax-related statutes, such as returns of tax base, etc.; |
| 20. | The term "related person" means a person who has relationship falling under any of the following items with the principal. In such cases, the principal shall be deemed the related person of such related person when this Act and other tax-related statutes apply: |
| (a) | Relationship by blood prescribed by Presidential Decree such as blood relative, relative by marriage, etc.; |
| (b) | Economic relationship prescribed by Presidential Decree, such as an executive officer or employee; |
| (c) | Management control relationship prescribed by Presidential Decree, such as a stockholder and investor; |
| 21. | The term "tax investigation" means any activity involving inquiries to determine or correct the national tax base and an amount of such tax and inspection or investigation of relevant books, documents, or other articles (hereinafter referred to as "book, etc.") or issuance of an order for submission thereof. |
[Title Amended on Dec. 31, 2007]
[Enforcement Date: Feb. 3, 2022] In Article 2, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax [Enforcement Date: Jan. 1, 2022] Subparagraph 1 of Article 2
| Article 3 (Relationship to Tax-Related Statutes) |
| (1) | Except as otherwise provided in tax-related statutes, this Act shall apply to matters related to national taxes. <Amended on Dec. 31, 2019> |
| (2) | Where the Customs Act and the Act on Special Cases concerning the Refund of Customs, etc. Levied on Raw Materials for Export provide for special provisions on this Act with respect to the national taxes levied and collected by the head of a customs office, the special provisions of the aforementioned Acts shall be applied. <Amended on Jan. 1, 2014> |
[This Article Wholly Amended on Jan. 1, 2010]
SECTION 2 Period and Due Date
| Article 4 (Computation of Period) |
Except as otherwise provided for in this Act or other tax-related statutes, the computation of a period under this Act or other tax-related statutes shall be based on the Civil Act. [This Article Wholly Amended on Jan. 1, 2010]
| Article 5 (Special Cases concerning Due Date) |
| (1) | If the due date of any return, application, claim, submission of other documents, notification, payment or collection under this Act or other tax-related statutes falls on a legal holiday, Saturday, or Workers' Day under the Designation of Workers' Day Act, the due date shall be the day following such holiday, Saturday or Workers' Day. <Amended on Jan. 1, 2010> |
| (2) | Deleted. <Apr. 28, 2006> |
| (3) | Where an electronic filing or payment (referring to the payment of national taxes to be paid under this Act or other tax-related statutes by means of information and communications networks) is made impossible on the due date of return or the due date of payment as prescribed by this Act or other tax-related statutes due to suspension of operation of the national tax information and communications networks due to failures prescribed by Presidential Decree, the due date shall be the day immediately following the date such filing or payment can be made ordinarily after such failures are recovered. <Amended on Jan. 1, 2010; Dec. 31, 2018; Dec. 31, 2019> |
[Title Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 5, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 5-2 (Tax Return by Mail and Electronic Filing) |
| (1) | Where a tax base return, revised tax base return, request for correction or documents related to such tax base return, revised tax base return or request for correction is filed by mail, the tax return shall be deemed filed or the request for correction shall be deemed made on the date on which a postmark under the Postal Service Act is applied (where no date stamp is applied or the date stamp is illegible, the date on which the aforesaid documents are deemed sent based on the number of days ordinarily required for delivery by mail). <Amended on Dec. 23, 2014; Dec. 31, 2019> |
| (2) | Where a return, etc. under paragraph (1) is submitted using the national tax information and communications network, such return, etc. shall be deemed filed or correction for which shall be deemed requested when the relevant return, etc. is transmitted to the Commissioner of the National Tax Service. <Amended on Dec. 15, 2015; Dec. 31, 2019> |
| (3) | Where the return is filed electronically or correction for which is requested electronically pursuant to paragraph (2), the deadline for submitting documents prescribed by Presidential Decree, among documents related to a tax base return or revised tax base return, may be extended up to 10 days, as prescribed by Presidential Decree. <Amended on Dec. 31, 2019> |
| (4) | Detailed matters on procedures, etc. for an electronic filing of tax base, etc. shall be prescribed by Ordinance of the Ministry of Economy and Finance. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 6 (Extension of Due Date Due to Act of God) |
If it is deemed impractical to file any return, application and claim, to submit other documents, or to make notification by the due date prescribed in this Act or other tax-related statutes, due to an act of God or any other ground prescribed by Presidential Decree, or if any taxpayer applies for the extension of due date, the head of a competent tax office may extend the due date, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 22, 2020]
| Article 6-2 Deleted. <Dec. 22, 2020> |
| Article 7 Deleted. <Dec. 22, 2020> |
SECTION 3 Service of Documents
| Article 8 (Service of Documents) |
| (1) | Documents prescribed in this Act or other tax-related statutes shall be served on the domicile, address, business office or place of business (in cases of the service by means of information and communications networks (hereinafter referred to as "electronic service"), referring to an electronic mail address of the designated person (if stored in national tax information and communications networks, referring to the place accessible using an identification mark of the designated person); hereinafter referred to as "domicile or business office") of the designated person (referring to the person designated as a recipient; hereinafter the same shall apply). |
| (2) | Where documents are served on persons jointly and severally liable for tax payment, the representative thereof shall become the designated person, and, if no representative exists, a person against whom the collection of national taxes is convenient, among the persons jointly and severally liable for tax payment, shall become the designated person: Provided, That documents regarding the notice of and demand for payment shall be served on all persons jointly and severally liable for tax payment. <Amended on Dec. 29, 2020> |
| (3) | Where inheritance is commenced and an administrator of inherited property exists, documents shall be served on the domicile or business office of the administrator. |
| (4) | Where a tax administrator exists, documents regarding the notice of and demand for payment shall be served on the domicile or business office of the tax administrator. <Amended on Dec. 29, 2020> |
| (5) | Notwithstanding paragraph (1), where it is confirmed that a person who should have been served with documents has been arrested, detained, or confined in a correctional facility or a detention room in a national police agency, such documents shall be served with the head of the relevant correctional facility or the head of the relevant national police agency. <Newly Inserted on Dec. 31, 2018> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 9 (Report on Place to be Served) |
Where a person to receive documents pursuant to Article 8 reports to the Government a place to be served, either his or her domicile or business office, as prescribed by Presidential Decree, the documents shall be served on the reported place. When such place is changed, the same shall also apply. [This Article Wholly Amended on Jan. 1, 2010]
| Article 10 (Method of Service of Documents) |
| (1) | Documents under Article 8 shall be served by delivering them in person, mailing them, or using electronic service. |
| (2) | Documents related to notice of, demand for, or forced collection of payment or the Government's orders under tax-related statutes shall be served by registered mail: Provided, That where notice of payment of the amount of interim tax prepayment under Article 65 (1) of the Income Tax Act, written notice of payment to collect said amount under Article 48 (3) of the Value-Added Tax Act, and a tax base return for the national taxes under the subparagraphs of Article 22 (2) are submitted by the statutory due date of return, but where said notice of payment is issued because of a failure to pay all or part of the amount of taxes equivalent to the amount of tax base return and the amount is less than that prescribed by Presidential Decree, such notice of payment may be served by regular mail. <Amended on Jun. 7, 2013; Dec. 31, 2019; Jun. 9, 2020; Dec. 22, 2020; Dec. 29, 2020> |
| (3) | Service of documents in person shall be made upon the person authorized to receive service by a public official of the competent administrative agency at the place where the documents are to be delivered: Provided, That if the person authorized to receive documents does not object, such documents may be delivered at another place. |
| (4) | In cases under paragraphs (2) and (3), if a person authorized to receive documents does not appear at the place where the documents are to be delivered, such documents may be served to his or her employee or any other worker or person who is a resident of the immediate household, who is able to make reasonable judgement, and if the person authorized to receive the documents, his or her employee or any other worker or person who is a resident of the immediate household, who is able to make reasonable judgement, refuses to receive the documents without any reasonable ground, the documents may be left at the place where they are to be delivered. |
| (5) | With respect to service of documents under paragraphs (1) through (4), if a person authorized to receive documents moves his or her domicile or business place, the documents shall be served to the changed domicile or business place after such move is confirmed on the resident registration card. |
| (6) | Where documents are delivered, a recipient shall sign or affix his or her seal on a delivery slip. In such cases, if the recipient refuses to sign or affix the seal, such fact shall be recorded on the delivery slip. |
| (7) | When documents are delivered by regular mail, the head of a competent administrative agency shall prepare and keep a record to confirm the following matters: |
| 1. | Title of the documents; |
| 2. | Name of a person authorized to receive documents; |
| 5. | Main details of the documents. |
| (8) | Electronic service shall be provided only if a person authorized to receive documents files an application as prescribed by Presidential Decree: Provided, That where a taxpayer has made voluntary payment of taxes as determined by this Act or other tax-related statutes before notice of payment is served, as prescribed by Presidential Decree, such taxpayer shall be deemed to have applied for the electronic service at the time of such voluntary payment for the amount paid. <Amended on Jan. 1, 2013; Jun. 9, 2020; Dec. 29, 2020> |
| (9) | Notwithstanding paragraph (8), service of documents may be made either personally or by mail where the electronic service is unable to be made due to a failure of national tax information and communications networks or where any ground prescribed by Presidential Decree exists. |
| (10) | Specific scope of documents to be provided through electronic service pursuant to paragraph (8) and necessary matters on methods of service shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 11 (Service by Public Notification) |
| (1) | If a person authorized to receive the documents falls under any of the following subparagraphs, such documents shall be considered as served in accordance with Article 8 once 14 days have passed since the main contents of the documents were publicly notified: |
| 1. | Where domicile or business office is located overseas so that it is difficult to deliver documents; |
| 2. | Where domicile or business office is not evident; |
| 3. | Other cases prescribed by Presidential Decree, such as where the documents sent by registered mail is returned because the person provided for in Article 10 (4) does not appear at the place where the documents are to be delivered. |
| (2) | The public notification under paragraph (1) shall be posted or placed on any of the following subparagraphs. In such cases, if service by public notification is made by means of national tax information and communications networks, another method shall also be used: <Amended on Jan. 1, 2013> |
| 1. | National tax information and communications networks; |
| 2. | Bulletin board of tax offices or other proper place; |
| 3. | Web site or bulletin board of the Special Self-governing City, Special Self-governing Province, or Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) having jurisdiction over the place where the documents are to be delivered, or other appropriate place; |
| 4. | The Official Gazette or daily newspaper. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 12 (Taking Effect of Service) |
| (1) | Any document served under Article 8 shall take effect when it reaches a person authorized to receive the document: Provided, That in cases of electronic service, such document shall be deemed to be delivered to the person authorized to receive the document when it is sent to the electronic mail address designated by such person (in cases of service by means of national tax information and communications networks, when it is stored therein). |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 13 (Organization Deemed Corporation) |
| (1) | Any incorporate body, foundation or other organization (hereinafter referred to as "organization other than corporation") which is not a corporation (referring to domestic corporations and foreign corporations under subparagraph 1 of Article 2 and subparagraph 3 of Article 2, respectively, of the Corporate Tax Act; hereinafter the same shall apply) and which falls under any of the following subparagraphs and does not distribute profits to its members, shall be deemed a corporation and governed by this Act and other tax-related statutes: <Amended on Dec. 27, 2010; Dec. 31, 2018> |
| 1. | Any unregistered incorporate body, foundation or other organization which has been established with permission or authorization by the competent government agency or registered therewith under Acts and subordinate statues; |
| 2. | Any unregistered foundation which has basic property contributed for the purposes of public interest. |
| (2) | An organization approved by the head of a competent tax office upon request by its representative or manager, among an organization deemed a juristic person under paragraph (1), other than a juristic person, except for the incorporate body, foundation or other organization, meeting all the requirements of the following subparagraphs, shall be deemed a juristic person and, therefore, be governed by this Act or other tax-related statutes. In such cases, the continuity and homogeneity of such incorporate body, foundation or other organization shall be deemed maintained: <Amended on Dec. 27, 2010> |
| 1. | It shall have rules concerning the organizational structure and operation of the incorporate body, foundation or other organization and appoint a representative or manager; |
| 2. | It shall independently possess and manage the revenues and property for the account of and under the name of the incorporate body, foundation, or other organization; |
| 3. | It shall not distribute its profits to its members. |
| (3) | Any organization, other than juristic person, which is deemed a juristic person pursuant to paragraph (2), shall not be changed to a resident under the Income Tax Act or nonresident during the period between the taxable period which includes the date its application is approved by the head of a competent tax office and the taxable period which includes the date on which three years have elapsed since the end of the former taxable period: Provided, That the same shall not apply to the cancellation of approval due to a failure to meet the requirements under each of the subparagraphs of paragraph (2). <Amended on Dec. 27, 2010; Dec. 31, 2011> |
| (4) | The national tax obligation of an organization, other than a juristic person, which is deemed a juristic person under paragraphs (1) and (2), (hereinafter referred to as "organization deemed a juristic person") shall be fulfilled by its representative or manager. <Amended on Dec. 27, 2010> |
| (5) | Any organization deemed a juristic person shall, when it appoints or changes its representative or manager to discharge national tax obligation, report thereon to the head of a competent tax office, as prescribed by Presidential Decree. |
| (6) | Where an organization deemed a juristic person fails to report under paragraph (5), the head of a competent tax office may designate a person to fulfill the national tax obligation, among members or related persons of the organization. |
| (7) | Necessary matters on the application of an organization deemed a juristic person and its approval, issuance of tax payment number, and revocation of approval shall be prescribed by Presidential Decree. |
| (8) | Notwithstanding the tax liability prescribed in tax-related statutes, in applying obligations to pay national taxes (excluding the obligation to collect and pay national taxes; hereafter in this paragraph, the same shall apply) to converted national university corporations (referring to corporations converted into national university corporations, among national university corporations under Article 3 of the Higher Education Act, after having been operated as national or public schools under Articles 3, 18, and 19 of the same Act under statutes based on which corporations are founded under Article 3 of the Higher Education Act; hereafter in this paragraph, the same shall apply), converted national university corporations shall not been deemed separate corporations but national or public schools before conversion into national university corporations: Provided, That the same shall not apply to obligations to pay taxes in cases where converted national university corporations engage in profit-making activities beyond an extent not hindering educational and research activities under statutes based on which relevant corporations are founded. <Newly Inserted on Dec. 31, 2019> |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 31, 2019]
CHAPTER II IMPOSITION OF NATIONAL TAXES AND APPLICATION OF TAX-RELATED STATUTES
SECTION 1 Principles of Imposition of National Taxes
| Article 14 (Actual Taxation) |
| (1) | If any ownership of an income, profit, property, act or transaction which is subject to taxation, is just nominal, and there is other person to whom such income, etc., belongs, the other person shall be liable to pay taxes and tax-related statutes shall apply, accordingly. |
| (2) | The provisions pertaining to the computation of tax base in the tax-related statutes shall be applied to a real income, profit, property, act or transaction, regardless of its title or form. <Amended on Jun. 9, 2020> |
| (3) | Where it is recognized as a method of receiving unjust benefit pursuant to this Act or tax-related statutes, such as an indirect method through a third party or a method of involving two or more activities or transactions, this Act or tax-related statutes shall apply as if the relevant parties have made a direct transaction or have conducted an activity or transaction in succession, according to the economic substance of such activity or transaction. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 15 (Good Faith and Sincerity) |
Any taxpayer shall perform his or her liability in good faith and sincerity. The same shall apply to any tax officials in performing their duties.
[This Article Wholly Amended on Jan. 1, 2010]
| Article 16 (Grounds for Taxation) |
| (1) | If any person liable to pay taxes keeps and enters a book under tax-related statutes, the examination and determination of assessment of the relevant national tax base shall be based on the book and evidentiary materials related thereto. <Amended on Jun. 9, 2020> |
| (2) | In examining and determining national taxes under paragraph (1), if the contents of entry of the book are different from facts, or any omission exists in the entry, only such part may be determined in accordance with the facts examined by the Government. |
| (3) | When the Government examines and determines any fact different from the contents of entry or omission in the entry under paragraph (2), the fact examined and grounds for determination by the Government shall be stated additionally in the determination note. |
| (4) | The head of an administrative agency shall, upon a request by the person liable to pay taxes or his or her representative, permit the inspection or copy of the determination note under paragraph (3), or verify that a transcript or extract of the note is identical to the original. |
| (5) | Any request under paragraph (4) shall be made by oral statement: Provided, That if the head of an administrative agency deems it necessary, he or she may demand a signature of the person who inspects or copies a determination note. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 17 (Follow-Up Management of Tax Reduction and Examinations) |
| (1) | In cases of tax reduction and examination, the Government may determine a range of the management of funds or assets equivalent to the amount of tax reduced or exempted, as prescribed by tax-related statutes, if it is deemed necessary to achieve the object of tax reduction or exemption or to implement national policies. |
| (2) | The amount of tax reduced or exempted, which is equivalent to the funds or assets in excess of the range of management under paragraph (1), may be collected after revoking the reduction or exemption thereof, as prescribed by tax-related statutes. |
[This Article Wholly Amended on Jan. 1, 2010]
SECTION 2 Principles for Application of Tax-Related Statutes
| Article 18 (Standards for Interpretation of Tax-Related Act and Prohibition of Retroactive Taxation) |
| (1) | In interpreting and applying tax-related statutes, property rights of a taxpayer shall not be unreasonably infringed, in light of the equity in taxation and purposiveness of the relevant provisions. <Amended on Jan. 1, 2010> |
| (2) | Any income, profit, property, act or transaction with a duty to pay national taxes already established (in cases of national tax for which the person responsible for collection is designated separately by tax-related statutes, the duty to collect and pay them; hereinafter the same shall apply) shall not be subject to taxation retroactively by new tax-related statutes enacted after such duty is established. <Amended on Jan. 1, 2010> |
| (3) | Once any interpretation of a tax-related Act or practices in tax administration is accepted generally by taxpayers, any act or computation according to such interpretation or practices shall be considered to be correct, and no tax shall be retroactively imposed in accordance with new interpretation or practice. <Amended on Jan. 1, 2010> |
| (4) | Deleted. <Dec. 31, 1993> |
| (5) | In applying paragraphs (1) through (3), any provisions of Acts, other than tax-related statutes, that provide for the imposition, collection, reduction, and exemption of national taxes and procedures therefor, shall be deemed those of tax-related statutes. <Amended on Act No.9911, Jan. 1, 2010> |
[Title Amended on Jan. 1, 2010]
| Article 18-2 (Examination Committee on Established Rules for National Taxes) |
| (1) | The Ministry of Economy and Finance shall have the Examination Committee on Established Rules for National Taxes in order to deliberate on the following: <Amended on Dec. 31, 2011; Dec. 19, 2017> |
| 1. | Matters on interpreting tax-related statutes to comply with the standards under Articles 18 (1) through (3) and interpreting this Act related thereto; |
| 2. | Matters on interpreting the Customs Act to comply with the standards under Article 5 (1) and (2) of the Customs Act and interpreting the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements and the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export related thereto. |
| (2) | Where it is deemed difficult to expect fair deliberation by a member of the Examination Committee on Established Rules for National Taxes, he or she shall be excluded or refrain himself/herself from a meeting of the aforesaid Committee, as prescribed by Presidential Decree. <Newly Inserted on Dec. 23, 2014> |
| (3) | Matters necessary for the establishment, composition and methods of operation of the Examination Committee on Established Rules for National Taxes under paragraph (1), and procedures, methods, etc. for handling questions and answers concerning interpreting tax-related statutes shall be prescribed by Presidential Decree. <Amended on Dec. 23, 2014> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 19 (Limitation of Tax Officials' Discretion) |
In performing the duties of tax officials in their own discretion, the tax officials shall strictly observe the generally acceptable limitation in light of the equity of taxation and purpose of related tax-related statutes.
[This Article Wholly Amended on Jan. 1, 2010]
| Article 20 (Respect for Corporate Accounting) |
In examining and determining the assessment of national tax base, standards or practices of corporate accounting which the person liable to pay taxes adopts continuously and are generally recognized as reasonable and proper, shall be respected: Provided, That the same shall not apply to cases specifically provided for in other tax-related statutes.
[This Article Wholly Amended on Jan. 1, 2010]
SECTION 3 Medium and Long-Term Tax Policy and Administration Plan
| Article 20-2 (Formulation of Medium and Long-Term Tax Policy and Administration Plan) |
| (1) | In order to form efficient tax policies and enhance tax equity and fairness, the Minister of Economy and Finance shall formulate each year a medium and long-term tax policy and administration plan for a period of not less than five years starting from the relevant year (hereinafter referred to as “medium and long-term tax policy and administration plan” in this Article). In such cases, the medium and long-term tax policy and administration plan shall be linked to the national financial management plan under Article 7 of the National Finance Act. |
| (2) | The medium and long-term tax policy and administration plan shall include the followings: |
| 1. | Basic directions and objectives of tax policies; |
| 2. | Tax policy directions for each main taxable item; |
| 3. | Directions for the operation of tax exemption and reduction system; |
| 5. | Other matters prescribed by Presidential Decree. |
| (3) | The Minister of Economy and Finance shall hold consultations with the heads of relevant central government agencies when he or she formulates a medium and long-term tax policy and administration plan. |
| (4) | The Minister of Economy and Finance shall report the medium and long-term tax policy and administration plan that has been established to the competent standing committees of the National Assembly. |
| (5) | Matters necessary for the formulation of a medium and long-term tax policy and administration plan, other than those provided for in paragraphs (1) through (4), shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 1, 2014]
CHAPTER III TAX LIABILITY
SECTION 1 Creation and Determination of Tax Liability
| Article 21 (Timing when Tax Liability Arises) |
| (1) | Liability to pay national taxes shall arise when the taxation requirements under this Act and other tax-related statutes are met. <Amended on Jun. 9, 2020> |
| (2) | The time when the liability to pay national taxes under paragraph (1) arises shall be as follows: <Amended on Dec. 31, 2019; Dec. 22, 2020; Dec. 29, 2020> |
| 1. | Income tax or corporate tax: When the taxable period expires: Provided, That a corporate tax liability on liquidation income arises when the relevant corporation is dissolved; |
| 2. | Inheritance tax: When inheritance begins; |
| 3. | Gift tax: When property is acquired by gift; |
| 4. | Value-added tax: When the taxable period expires: Provided, That in cases of imported goods, when import declaration is made to the head of a customs office; |
| 5. | Individual consumption tax, liquor tax, and traffic, energy, and environment tax: When a taxable item is carried out of the manufacturing place or sold at a selling place, or when anyone enters a taxable place or conducts an act for amusement, food and drink at a taxable amusement quarter or operates business at a taxable place of business: Provided, That in cases of imported goods, the tax liability shall arise when import declaration is made to the head of a customs office; |
| 6. | Stamp tax: When a taxable document is prepared; |
| 7. | Securities transaction tax: When the relevant transaction concludes; |
| 8. | Education tax: The following times: |
| (a) | Education tax levied on the national tax: When the relevant national tax liability arises; |
| (b) | Education tax levied on the revenue of financial and insurance businessmen: When the taxable period expires; |
| 10. | Comprehensive real estate holding tax: The base date for taxation; |
| 11. | Penalty tax: The following times: Provided, That for purposes of applying Article 39 in cases of items (b) and (c), the time when the due date of payment under this Act and other tax-related statutes (hereinafter referred to as "statutory due date of payment") elapses shall be the time: |
| (a) | Penalty taxes for non-filing under Article 47-2 and penalty taxes for underreporting or excess tax refund claims under Article 47-3: When the statutory due date of return expires; |
| (b) | Penalty taxes for delayed payment under Article 47-4 (1) 1 and 2, penalty taxes for delayed payment, such as withholding under Article 47-5 (1) 2: Each day that elapses after the statutory due date of payment expires; |
| (c) | Penalty taxes for delayed payment under Article 47-4 (1) 3: When the due date of payment stated on a notice of payment expires; |
| (d) | Penalty taxes for delayed payment, such as withholding under Article 47-5 (1) 1: When the statutory due date of payment expires; |
| (e) | Other penalty taxes: When the national tax liability thereto arises. |
| (3) | Notwithstanding paragraph (2), the liability to pay the following national taxes shall arise at the following times: |
| 1. | Income or corporate tax collected by withholding; When the amount of income or proceeds is paid; |
| 2. | Income tax collected by a taxpayers' association or paid by preliminary return: The last day of the month in which the amount of tax base arises; |
| 3. | Income or corporate tax prepaid intermediately or value-added tax for a preliminary return period or preliminary imposition period: When an interim prepayment period, or a preliminary return period or preliminary imposition period expires; |
| 4. | National tax collected by imposition whenever the occasion arises: When the ground for such imposition arises. |
[This Article Wholly Amended on Dec. 31, 2018]
| Article 21 (Timing when Tax Liability Arises) |
| (1) | Liability to pay national taxes shall arise when the taxation requirements under this Act and other tax-related statutes are met. <Amended on Jun. 9, 2020> |
| (2) | The time when the liability to pay national taxes under paragraph (1) arises shall be as follows: <Amended on Dec. 31, 2019; Dec. 22, 2020; Dec. 29, 2020 > |
| 1. | Income tax or corporate tax: When the taxable period expires: Provided, That a corporate tax liability on liquidation income arises when the relevant corporation is dissolved; |
| 2. | Inheritance tax: When inheritance begins; |
| 3. | Gift tax: When property is acquired by gift; |
| 4. | Value-added tax: When the taxable period expires: Provided, That in cases of imported goods, when the declaration of import is made to the head of a customs office; |
| 5. | Individual consumption tax or liquor tax: When a taxable item is carried out of the manufacturing place or sold at a selling place, or when anyone enters a taxable place or conducts an act for amusement, food and drink at a taxable amusement quarter or operates business at a taxable place of business: Provided, That in cases of an imported object, the tax liability shall come into existence when the import declaration is made to the head of the relevant customs office; |
| 6. | Stamp tax: When a taxable document is prepared; |
| 7. | Securities transaction tax: When the relevant transaction concludes; |
| 8. | Education tax: The following times: |
| (a) | Education tax levied on the national tax: When the relevant national tax liability arises; |
| (b) | Education tax levied on the revenue of financial and insurance businessmen: When the taxable period expires; |
| 10. | Comprehensive real estate holding tax: The base date for taxation; |
| 11. | Penalty tax: The following times: Provided, That for purposes of applying Article 39 in cases of item (b) and (c), the time when the due date of payment under this Act and other tax-related statutes (hereinafter referred to as "statutory due date of payment") elapses shall be the time: |
| (a) | Penalty taxes for non-filing under Article 47-2 and penalty taxes for underreporting or excess tax refund claims under Article 47-3: When the statutory due date of return expires; |
| (b) | Penalty taxes for delayed payment under Article 47-4 (1) 1 and 2 and penalty taxes for delayed payment such as withholding under Article 47-5 (1) 2: Each day that elapses after the statutory due date of payment expires ; |
| (c) | Penalty taxes for delayed payment under Article 47-4 (1) 3: When the due date of payment stated on a notice of payment expires; |
| (d) | Penalty taxes for delayed payment, such as withholding under Article 47-5 (1) 1: When the statutory due date of payment expires; |
| (e) | Other penalty taxes: When additional national tax liability arises hen. |
| (3) | Notwithstanding paragraph (2), the liability to pay the following national taxes shall arise at the following times: |
| 1. | Income tax or corporate tax collected by withholding; When the amount of income or proceeds is paid; |
| 2. | Income tax collected by a taxpayers' association or paid by an estimated return: The last day of the month in which the amount of tax base accrues; |
| 3. | Income tax or corporate tax prepaid intermediately or value-added tax for a preliminary return period or preliminary imposition period: When an interim prepayment period, or a preliminary return period or preliminary imposition period expires; |
| 4. | National tax collected by imposition whenever the occasion arises: When the ground for such imposition arises. |
[This Article Wholly Amended on Dec. 31, 2018]
[Enforcement Date: Jan. 1, 2022] Article 21
| Article 22 (Determination of Tax Liability) |
| (1) | The amount of a national tax shall be determined in accordance with the procedures prescribed in this Act and other tax-related statutes. <Amended on Jan. 1, 2010; Dec. 31, 2018; Jun. 9, 2020> |
| (2) | The following national taxes shall be determined when a person liable to pay taxes has reported a tax base and an amount of tax due to the Government: Provided, That where a person liable to pay taxes fails to file a tax base and an amount of tax due or where the tax base or the amount of tax filed fails to meet the conditions prescribed by tax-related statutes, a tax base and an amount of tax shall be determined when the Government determines or corrects them: <Newly Inserted on Dec. 31, 2018; Jun. 9, 2020> |
| 4. | Individual consumption tax; |
| 6. | Securities transaction tax; |
| 8. | Traffic, energy, and environment tax; |
| 9. | Comprehensive real estate holding tax (limited to where a person liable to pay taxes reports the tax base and the amount of such tax to the Government under Article 16 (3) of the Comprehensive Real Estate Holding Tax Act). |
| (3) | The national taxes other than those prescribed in paragraph (2) with the exception of the subparagraphs shall be finalized when the Government determines the tax base and amount of national taxes. <Newly Inserted on Dec. 31, 2018> |
| (4) | Notwithstanding paragraphs (1) through (3), the amount of national taxes under the following subparagraphs shall be determined without any special procedure, when the tax liability arises: <Amended on Dec. 22, 1976; Jan. 1, 2010;Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020; Dec. 29, 2020> |
| 2. | Withholding income or corporate tax; |
| 3. | Income tax collected by a taxpayers' association; |
| 4. | Interim prepayment of corporate tax (excluding cases where the Government examines and determines such tax under tax-related statutes); |
| 5. | Penalty taxes for delayed payment under Article 47-4 and penalty taxes for delayed payment such as withholding under Article 47-5 (limited to penalty taxes stated on a notice of payment after the due date of payment expires). |
[Title Amended on Jan. 1, 2010]
| Article 22-2 (Effect of Revised Return) |
| (1) | A revised national tax return under the subparagraphs of Article 22 (2) (limited to a revised return filed by a person who has filed a tax base return by the statutory due date of return) shall have the effect of increasing the tax base and the amount of tax determined based on the original return. <Amended on Dec. 31, 2019> |
| (2) | A revised national tax return under paragraph (1) shall not affect the rights and obligations under this Act or other tax-related statutes regarding the amount of tax determined based on the original return. |
[This Article Newly Inserted on Dec. 31, 2018]
[Previous Article 22-2 moved to Article 22-3 <Dec. 31, 2018>]
| Article 22-3 (Effect of Correction) |
| (1) | Any correction which leads to an increase in an amount of taxes originally determined under tax-related statutes shall not affect the rights and obligations provided in this Act or other tax-related statutes, with respect to such amount of tax originally determined. |
| (2) | Any correction which leads to a decrease in an amount of tax originally determined under tax-related statutes shall not affect the rights and obligations provided in this Act or other tax-related statutes, with respect to the amount of tax, other than that decreased due to such correction. |
[This Article Wholly Amended on Jan. 1, 2010]
[Moved from Article 22-2 <Dec. 31, 2018>]
SECTION 2 Succession to Tax Liability
| Article 23 (Succession to Tax Liability Due to Merger of Corporations) |
If corporations are merged, the one surviving the merger or resulting from the merger shall be liable to pay any national tax and forced collection charge imposed upon or, are to be paid by, the corporation that ceases to exist due to the merger. <Amended on Dec. 31, 2018; Dec. 22, 2020>.
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 23, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 24 (Succession to Tax Liability Due to Inheritance) |
| (2) | Where a decedent takes out an insurance policy designating an heir as beneficiary to inherit estate while avoiding succession to tax liability under paragraph (1) and the heir is deemed to have relinquished his or her inheritance pursuant to Article 1019 (1) of the Civil Act, when a person who has relinquished his or her inheritance receives insurance money (referring to insurance money under Article 8 of the Inheritance Tax and Gift Tax Act) due to the death of his or her decedent, the person who has relinquished his or her inheritance shall be construed as the heir and insurance money shall be construed as an inheritance, and paragraph (1) shall apply thereto. <Newly Inserted on Dec. 23, 2014> |
| (3) | In cases falling under paragraph (1), where heirs are at least two persons, each heir shall be liable to jointly and severally pay national taxes and forced collection charge imposed upon or to be paid by their decedent, calculated by dividing them by his or her share of inheritance under Articles 1009, 1010, 1012 and 1013 of the Civil Act or the percentage prescribed by Presidential Decree (limited to cases where there is a beneficiary or person who has relinquished his or her inheritance pursuant to Article 1019 (1) of the Civil Act among heirs, or where insurance money is included in his or her inheritance) to the extent of his or her inheritance. In such cases, each heir shall designate his or her representative who will pay national taxes and forced collection charge imposed on his or her decedent, and report the representative to the head of a competent tax office, as prescribed by Presidential Decree. <Amended on Dec. 23, 2014; Dec. 31, 2018; Dec. 22, 2020> |
| (4) | In cases falling under paragraph (1), where it is uncertain whether any heir exists, a notice of or demand for payment that should be made to the heir, or other necessary matters shall be served to a trustee of his or her inheritance. <Amended on Dec. 23, 2014; Dec. 29, 2020> |
| (5) | In cases falling under paragraph (1), where it is uncertain whether any heir exists, and no trustee of his or her inheritance exists, the head of a tax office may request a court having jurisdiction over the place where succession begins to appoint a trustee of his or her inheritance. <Amended on Dec. 23, 2014> |
| (6) | Any disposition or procedures imposed on a decedent shall also have an effect on an heir who succeeds to tax liability by inheritance pursuant to paragraph (1) or trustee of his or her inheritance. <Amended on Dec. 23, 2014> |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 24, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
SECTION 3 Joint and Several Tax Liability
| Article 25 (Joint and Several Tax Liability) |
| (1) | For any national tax and forced collection charge related to a jointly-owned property or enterprise or any property belonging to such enterprise, the owners of such property or enterprise shall be liable to pay them jointly and severally. <Amended on Dec. 31, 2018; Jun. 9, 2020; Dec. 22, 2020> |
| (2) | Where a corporation that is divided after a merger through division (hereafter in this Article referred to as "divided corporation") continues to exist, it shall be jointly and severally liable to pay national taxes and forced collection charge that have been imposed on the divided corporation before the registration date of the division referred to in the following subparagraphs, in an amount not exceeding the value of the property the corporation succeeds to through the division: <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| 1. | A divided corporation; |
| 2. | A corporation to be incorporated following division or merger through division (hereafter in this Article referred to as "newly established corporation through division"); |
| 3. | Where part of a divided corporation merges with another corporation which is the other party to such merger (hereafter in this Article referred to as "other party to a merger through division"). |
| (3) | Where a corporation ceases to exist after division or merger through division, the following corporations shall be jointly and severally liable to pay national taxes and forced collection charge imposed on or payable by the divided corporation in an amount not exceeding the value of the property the corporation succeeds to through the division: <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| 1. | A newly established corporation after division; |
| 2. | Other party to a merger after division. |
| (4) | Where a corporation establishes a new company pursuant to Article 215 of the Debtor Rehabilitation and Bankruptcy Act, the new company shall be jointly and severally liable to pay national taxes and forced collection charge, which have been imposed on the existing corporation or the liability of which arises. <Amended on Dec. 31, 2018; Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Jan. 1, 2020] Articles 25 (2) and 25 (3) (amendments related to additional dues) [Enforcement Date: Feb. 3, 2022] In Article 2, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 25-2 (Application Mutatis Mutandis of Civil Act concerning Joint and Several Tax Liability) |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 25-2, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
SECTION 4 Extinction of Tax Liability
| Article 26 (Extinguishment of Tax Liability) |
In any of the following cases, a liability to pay a national tax or a forced collection charge shall be extinguished: <Amended on Dec. 31, 2018; Dec. 22, 2020>
| 1. | Where the payment or appropriation is completed or the imposition is revoked; |
| 2. | Where the period in which a national tax may be assessed under Article 26-2 expires without any assessment; |
| 3. | Where an extinctive prescription of the right to collect a national tax is completed under Article 27. |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 26, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 26-2 (Limitation Period for Imposition of National Taxes) |
| (1) | The period during which a national tax can be imposed (hereinafter referred to as "limitation period for imposition") shall be five years from the date the national tax becomes imposable: Provided, That in cases of cross-border trades (referring to international transactions defined in Article 2 (1) 1 of the Adjustment of International Taxes Act (hereinafter referred to as "international transaction") and a transaction in which both parties to the transaction are residents (including a domestic corporation and the domestic place of business of a foreign corporation), which is related to the sale and lease of assets overseas; hereinafter the same shall apply), such period shall be seven years from the date the national tax can be imposed. <Amended on Dec. 31, 2019> |
| (2) | Notwithstanding paragraph (1), in any of the following cases, the limitation period for imposition shall be as follows: <Newly Inserted on Dec. 31, 2019> |
| 1. | Where a taxpayer fails to file a tax base return until the statutory due date of return: Seven years (10 years in the case of a cross-border trade) from the date the relevant tax can be imposed; |
| 2. | Where a taxpayer evades a national tax by fraud or other improper acts (hereinafter referred to as "improper acts") or has obtained a refund or deduction of a national tax: 10 years (15 years where he or she evaded, or obtained a refund or deduction of, a national tax due to any improper act committed in cross-border trades) from the date on which such national tax can be imposed. In such cases, where the national tax evaded, refunded, or deducted due to an improper act is a corporate tax, the same shall apply to the income tax or corporate tax for the amount disposed of under Article 67 of the Corporate Tax Act in connection therewith; |
| 3. | Where a taxpayer becomes liable to pay a penalty tax as follows: 10 years from the date the relevant penalty tax can be imposed: |
| (3) | If a loss carried forward is deducted under Article 45 (3) of the Income Tax Act, or Article 13 (1) 1, 76-13 (1) 1, or 91 (1) 1 of the Corporate Tax Act, in the taxable period after the taxable period within which the expiration date of the period referred to in paragraphs (1) or (2) 1 falls, notwithstanding paragraphs (1) and (2) 1, the limitation period for imposition of income taxes or corporate taxes for the period during which the relevant loss has occurred shall be one year from the statutory due date of return for the taxable period during which the loss carried forward was deducted. <Newly Inserted on Dec. 31, 2019> |
| (4) | Notwithstanding paragraphs (1) and (2), the limitation period for the imposition of inheritance taxes or gift taxes shall be 10 years from the date on which a national tax can be imposed, and 15 years from the date on which any of the following is applicable. Where the income tax under the latter part, with the exception of the items, of subparagraph 1 of Article 88 of the Income Tax Act is imposed, along with gift tax for gift of encumbered property, the same shall also apply to the limitation period for the imposition of said income tax: <Amended on Dec. 31, 2019> |
| (a) | Where a taxpayer evades the inheritance tax or gift tax, or obtains a tax refund or deduction by improper act; |
| (5) | Where a taxpayer evades inheritance tax or gift tax (in cases of subparagraph 7, a national tax related to the relevant title trust shall be included) by improper act in any of the following cases, the inheritance tax and gift tax can, notwithstanding paragraph (4), be levied within one year from the date the taxpayer becomes aware of inheritance or gift of the relevant property: Provided, That this shall not apply where a successor, donor, or donee dies, and where the property value as a basis for calculating the amount of evaded tax (referring to the sum of values of any of the following properties) is not more than five billion won: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 20, 2016; Dec. 31, 2019> |
| 1. | Where a successor or donee acquires the property of a decedent or donor held in the name of a third party; |
| 2. | Where a successor acquires property to be acquired by a decedent under a contract without registering or recording such property, entering the change of the holder thereof, as the inheritance began during the period of contract execution; |
| 3. | Where a successor or donee acquires inherited or gifted property located overseas; |
| 4. | Where a successor or donee acquires inherited or gifted property such as securities, paintings and writings, and curios for which registration, recording, or entry of change of a holder is not required; |
| 7. | Where the property registered in the name of another person is deemed donated under Article 45-2 of the Inheritance Act and Gift Tax Act. |
| (6) | Notwithstanding paragraphs (1) through (5), the commissioner of a regional tax office or the head of a tax office may correct the violation or take other necessary measures before the periods classified as follows expire: <Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 19, 2017; Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020> |
| 1. | Where a decision or judgment is made final and conclusive on the objection, or request for examination or adjudgment under Chapter Ⅶ, request for examination under the Board of Audit and Inspection Act, or litigation under the Administrative Litigation Act: One year from the date when the decision or judgment is made final and conclusive; |
| 1-2. | As a decision or judgment referred to in subparagraph 1 is made final and conclusive and such decision or judgment governs a tax base or amount of tax, where it is necessary to adjust a tax base or amount of tax for other taxable periods connected therewith: One year from the date when the decision or judgment referred to in subparagraph 1 is made final and conclusive; |
| 2. | Within three years (where a tax treaty prescribes otherwise, the provisions of the treaty shall prevail) after the date when it is known that any measure which happens to cause taxation in violation of the tax treaty has been taken, where an application for mutual agreement is made pursuant to the tax treaty and then mutual agreement is reached therefor; One year from the closing date of a procedure for mutual agreement; |
| 4. | Where a request for correction or recommendation of adjustment provided for in subparagraph 3 is filed or made and such request or recommendation governs a tax base or amount of tax, and therefore it is necessary to adjust a tax base or amount of tax for other taxable periods connected therewith: Two months from the date when the request for correction or recommendation of adjustment provided for in subparagraph 3 is filed or made; |
| 5. | With regard to a transaction, act, etc. which formed the basis of calculation of a tax base and amount of tax in the initial return, determination or correction, where a judgment (including reconciliation or other acts that have the same effect as that of judgment) on a lawsuit brought related thereto is made final and conclusive that such calculation should be made, based on another transaction, act, etc.: One year from the date when the judgment is made final and conclusive; |
| 6. | Where a request for tax information necessary to impose and collect taxes under Article 36 (1) of the Adjustment of International Taxes Act (hereafter in this subparagraph referred to as "tax information") is made within the period under paragraph (1) in connection with an cross-border trades to the competent foreign authority and such information is received within two years from the date such request is filed: One year from the date tax information is received. |
| (7) | Notwithstanding paragraphs (1) through (5), if a person falls under any of the following subparagraphs due to a decision or judgment referred to in paragraph (6) 1, the original disposition of imposition may be revoked, and a correction or other necessary disposition may be issued to a person classified as follows from the date such decision or judgment becomes final and conclusive: <Newly Inserted on Dec. 31, 2019> |
| 1. | Where the fact that a name was lent is verified: A person who actually runs a business; |
| (8) | Notwithstanding paragraphs (1) through (5), Article 51 of the Adjustment of International Taxes Act shall apply where the mutual agreement procedure is in progress in accordance with a treaty concluded to prevent double taxation of taxes in connection with a limitation period for the imposition of national taxes. <Newly Inserted on Dec. 31, 2019; Dec. 22, 2020> |
| (9) | Dates on which national taxes can be imposed under paragraphs (1) through (4) shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2018; Dec. 31, 2019>> |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 31, 2019]
| Article 27 (Extinctive Prescription of Right to Collect National Taxes) |
| (1) | The State’s right to collect national taxes (hereafter in this Article referred to as "right to collect national taxes") shall be extinguished by prescription, if it is not exercised during the period classified as follows from the time it is exercisable. In such cases, the amount of the following national taxes shall be an amount, excluding penalty taxes: <Amended on Jan. 1, 2013; Dec. 31, 2019> |
| 1. | National taxes of 500 million or more: 10 years; |
| 2. | National taxes other than those provided in subparagraph 1: Five years. |
| (2) | Except as otherwise provided in this Act or other tax-related statutes, the provisions of the Civil Act shall apply to the extinctive prescription under paragraph (1). |
| (3) | The time when the right to collect national taxes under paragraph (1) can be exercised means the following days: <Amended on Dec. 31, 2019; Dec. 29, 2020> |
| 1. | For the reported amount of tax concerned, with respect to the national taxes, tax liability of which is finally determined by the report of the amount of tax and the tax base, the day immediately following the expiration of its statutory due date of return and payment; |
| 2. | For the amount of tax concerned, with respect to those, tax base and amount of tax of which are determined, corrected, or occasionally decided and imposed by the Government, the day immediately following the expiration of the due date of payment stated on the notice. |
| (4) | Notwithstanding paragraph (3), the dates prescribed in the following subparagraphs shall be deemed the time when the right to collect national taxes under paragraph (1) can be exercised: <Newly Inserted on Dec. 31, 2019; Dec. 29, 2020> |
| 1. | In cases of national taxes collected from a withholding agent or taxpayer association, the day immediately following the due date of payment stated on a notice of payment concerning the amount of the relevant withholding tax or the amount collected from the relevant taxpayer association; |
| 2. | In cases of stamp taxes, the day immediately following the due date of payment stated on a notice of payment concerning the amount of the relevant stamp tax; |
| 3. | Where the statutory due date of return and payment under paragraph (3) 1 is extended, the day immediately following such extended due date. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 28 (Interruption and Suspension of Extinctive Prescription) |
| (1) | The extinctive prescription referred to in Article 27 shall be interrupted on any of the following grounds: <Amended on Dec. 29, 2020> |
| 2. | Urging or demand notice of payment; |
| (2) | Extinctive prescription interrupted pursuant to paragraph (1) shall resume when the period specified in the following subparagraphs expires: <Amended on Dec. 29, 2020> |
| 1. | Period of payment notified; |
| 2. | Period of payment demanded; |
| 3. | Period during which a request for delivery is pending; |
| 4. | Period until seizure is canceled. |
| (3) | Extinctive prescription under Article 27 shall not run during the period falling under any of the following subparagraphs: <Amended on Dec. 19, 2017; Dec. 29, 2020> |
| 1. | Period for an installment payment under tax-related statutes; |
| 2. | Deferment of notice of payment, the extension of designated due date of payment and of due date stated on a demand note, and grace period for collection under tax-related statutes; |
| 3. | Grace period for seizure and sales under tax-related statutes; |
| 4. | Period for yearly installment payment under tax-related statutes; |
| 6. | Period of at least six months during which a delinquent taxpayer continues to stay in a foreign country. |
| (4) | The suspension of extinctive prescription due to a lawsuit for the revocation of a fraudulent act filed or to a lawsuit for subrogation of creditor under paragraph (3), shall lose its effect when the lawsuit is rejected, dismissed or withdrawn. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 29 Deleted. <Dec. 22, 2020> |
| Article 30 Deleted. <Dec. 22, 2020> |
| Article 31 Deleted. <Dec. 22, 2020> |
| Article 32 Deleted. <Dec. 22, 2020> |
| Article 33 Deleted. <Dec. 22, 2020> |
| Article 34 Deleted. <Dec. 22, 2020> |
CHAPTER IV RELATION BETWEEN NATIONAL TAXES AND COMMON CLAIMS
SECTION 1 Priority of National Taxes
| Article 35 (Priority of National Taxes) |
| (1) | National taxes and forced collection charge shall be collected in preference to other public charges or obligations: Provided, That this shall not apply to public charges or other obligations falling under any of the following subparagraphs: <Amended on Dec. 22, 2020> |
| 1. | In cases of disposition for arrears or forced of local taxes or public charges, if any national tax or forced collection charge is collected from the amount of said disposition for arrears or the amount of forced collection, a disposition fee for arrears or forced collection charge for such local taxes or public charges; |
| 2. | In cases of selling property through procedures for the compulsory execution, public auction or bankruptcy, and where any national tax and forced collection charge are collected from the proceeds of sale, the expenses incurred in such procedure; |
| 3. | Where the property for which any of the following rights have been established is sold and the national tax is collected from the proceeds of the sale before the statutory deadline under paragraph (2), the claim secured by the rights or the claims for the return of a security deposit for lease. In such cases, the fact that the following rights have been established shall be verified by means prescribed by Presidential Decree: |
| (a) | The right of lease on deposit basis, the pledge right, and the mortgage; |
| (c) | Provisional registration security rights (including provisional record; hereinafter the same shall apply) for which provisional registration is made to secure against claims in accordance with the advance agreement on substitute payment under which a person liable to pay taxes shall be a person obliged to file for registration and a default shall be a condition for suspension; |
| 5. | Where national taxes are collected from the proceeds of sale or the amount of collection of the employer's property, the wages, retirement allowances, accident compensation, or other claims derived from employment, which are paid in preference to the national taxes under Article 38 of the Labor Standards Act or Article 12 of the Act on the Guarantee of Workers’ Retirement Benefits. |
| (2) | "Statutory deadline" in this Article means any of the following dates: <Amended on Dec. 22, 2020; Dec. 29, 2020> |
| 1. | In cases of national taxes [including corporate tax subject to interim prepayment and the value-added tax and income tax subject to preliminary return and payment (limited to cases where the tax return is filed pursuant to Article 105 of the Income Tax Act)] for which the amount of liability is determined according to the tax base return and amount of tax, the relevant amount of tax filed; |
| 2. | Where the Government determines or corrects a tax base and amount of tax or determines to impose tax occasionally, the amount of tax notified (including the penalty tax for deferred payment after the due date of payment specified in the notice of payment under Article 47-4, and the penalty tax for deferred payment after the due date of payment, such as withholding, etc. stated on a notice of payment under Article 47-5): The date the notice of payment is sent; |
| 3. | Income tax, corporate tax, and special rural development tax collected from the stamp tax, withholding agent, or tax association: The date the liability to pay such tax is finalized; |
| 8. | Comprehensive real estate holding tax, etc. collected from trust property pursuant to Articles 7-2 and 12-2 of the Comprehensive Real Estate Holding Tax Act: The date a notice of payment under Article 16-2 (1) of the same Act is sent. |
| (3) | Notwithstanding paragraph (1), inheritance tax, gift tax, and comprehensive real estate holding tax imposed on the relevant property shall take precedence over claims secured by the rights prescribed in the subparagraphs of paragraph (1), which are established before the statutory due date, or claims for repayment of rental deposit. |
| (4) | Where the fact that property whose provisional registration has been completed under paragraph (1) 3 (c) after the statutory deadline can be proven, as prescribed by Presidential Decree, and where a national tax is collected from the proceeds of the sale of said property, the national tax shall take precedence over the claim secured by the provisional registration, even if the principal registration is made after the date of seizure of such property. |
| (5) | When the head of a tax office seizes or sells by public auction any provisionally registered property under paragraph (1) 3 (c), he or she shall without delay notify the person that has the right to the provisional registration of such fact. |
| (6) | If it is deemed difficult to collect national taxes from any proceeds of the sale of property because a taxpayer falsely enters into any of the following contracts on property in conspiracy with a third party and registers or records such contract or because a taxpayer enters into a lease contract after satisfying prerequisites for counterclaim and obtaining a certificate of a fixed date under Article 3-2 (2) of the Housing Lease Protection Act and Article 5 (2) of the Commercial Building Lease Protection Act, the head of a tax office may request a court to revoke such acts. In such cases, where the taxpayer enters into a contract to establish a right of lease on a deposit basis, the pledge right, or the mortgage, a lease contract, a contract to effect a provisional registration, or a contract to establish a security for transfer with a person prescribed by Presidential Decree from among related persons within one year before the statutory deadline for national tax, such contract shall be deemed to be a collusive, false contract: <Amended on Dec. 22, 2020> |
| 1. | Contract to establish the right of lease on deposit basis, the pledge right, or the mortgage under paragraph (1) 3 (a); |
| 2. | Lease contract under paragraph (1) 3 (b); |
| 3. | Contract to effectuate a provisional registration under paragraph (1) 3 (c); |
| 4. | Contract to establish a security for transfer under Article 42 (3). |
[This Article Wholly Amended on Dec. 31, 2019]
[Enforcement Date: Feb. 3, 2022] In Article 35, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 36 (Priority by Seizure) |
| (1) | Where a taxpayer's property is seized as part of efforts to forcibly collect national taxes, if a request for the delivery of national taxes, forced collection charge, or local taxes (including where participation in attachment is made pursuant to Article 61 of the National Tax Collection Act or Article 67 of the Local Tax Collection Act; hereafter in this Article the same shall apply) is made, national taxes and forced collection charge related to the seizure shall be collected in preference to other national taxes, forced collection charge, or local taxes. <Amended on Dec. 31, 2019; Dec. 22, 2020; Dec. 29, 2020> |
| (2) | Where a taxpayer's property is seized following a disposition for arrears of local taxes, if a request for delivery of a national tax and forced collection charge is made, the national tax and forced collection charge requested for delivery shall be collected after the local taxes are collected. <Amended on Dec. 31, 2018; Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 36, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 37 (Priority of National Tax with Security) |
When security for tax payment is sold, notwithstanding Article 36, the national tax and the forced collection charge shall be collected from the proceeds of sale in preference to other national taxes, forced collection charge, and local taxes. <Amended on Dec. 31, 2018; Dec. 22, 2020> [This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 37, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
SECTION 2 Secondary Tax Liability
| Article 38 (Secondary Tax Liabilities of Liquidators) |
| (1) | Where a corporation is dissolved and distributes or transfers its residual property without paying national taxes and forced collection charge which were imposed upon, or are to be paid by, the corporation, and if it is insufficient to pay the amount to be collected even after the forced collection therefrom, a liquidator or a person who is distributed or transferred the residual property shall be subject to a secondary tax liability with regard to the amount of shortage. <Amended on Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020> |
| (2) | The limit on the secondary tax liability under paragraph (1) shall be classified as follows: <Amended on Dec. 31, 2019> |
| 1. | Liquidators: The value of property distributed or transferred; |
| 2. | A person who is distributed or transferred the residual property: The value of property each person receives. |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 38, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 39 (Secondary Tax Liability of Investors) |
Where the property of a corporation (excluding the corporation whose stock certificate is listed on the securities market prescribed by Presidential Decree; hereafter in this Article the same shall apply) is not enough to pay national taxes and forced collection charge imposed upon or to be paid by the corporation, any person who falls under any of the following as of the date on which the national tax liability is established shall have the secondary tax liability for the amount of such money shortage: Provided, That in cases of an oligopolistic stockholder under subparagraph 2, his or her secondary tax liability shall be limited to the amount calculated by multiplying the amount obtained by dividing the amount of such money shortage by the total number of issued stocks (excluding non-voting stocks; hereafter in this Article the same shall apply) or the total amount of investments of the corporation multiplied by the number of stocks to which the relevant oligopolistic stockholder actually exercises the rights (excluding non-voting stocks) or the amount of investments of the oligopolistic stockholder: <Amended on May 28, 2013; Dec. 23, 2014; Dec. 31, 2018; Dec. 22, 2020>
| 1. | A general partner who falls under either of the following: |
| (a) | Members of a partnership company; |
| (b) | General partners of a limited partnership company;( |
| 2. | A stockholder or one of the following members and a person prescribed by Presidential Decree from among his or her related parties, whose total amount of stocks held or investments exceeds 50/100 of the total number of outstanding stocks or investments of the relevant corporation and who actually exercise substantial influence over the corporation's management (hereinafter referred to as "oligopolistic stockholder"): |
| (a) | Limited partners of a limited partnership company; |
| (b) | Members of a limited partnership company; |
| (c) | Members of a limited company. |
[This Article Wholly Amended on Dec. 31, 2011]
[Enforcement Date: Feb. 3, 2022] In Article 39, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 40 (Secondary Tax Liability of Corporations) |
| (1) | Where the property (excluding issued stocks or equity investment stakes of a corporation) of a general partner or oligopolistic stockholders (hereinafter referred to as "investors") of the corporation as of the expiration date of the period for payment of a national tax (in cases of two or more national taxes, the national tax whose due date of payment comes later) is not enough to pay the national taxes and forced collection charge be paid by the investors, the corporation shall have the secondary liability to pay the amount of such money shortage only in any of the following cases: <Amended on Dec. 23, 2014; Dec. 31, 2018; Dec. 22, 2020; Dec. 29, 2020> |
| 1. | Where the Government intends to resell them in public or by private contract but no person wishes to purchase owned stocks or invested stakes of investors; |
| 2. | Where the transfer of owned stocks or invested stakes of investors are restricted pursuant to statutes or the articles of incorporation of the corporation (excluding cases where a public sale under 66 (4) of the National Tax Collection Act cannot be conducted). |
| (2) | The secondary tax liability of a corporation under paragraph (1) shall be limited to the amount calculated by the following formula. <Amended on Dec. 31, 2019> |
Upper Limit = (A-B)*C/D
A: Total amount of assets of the corporation
B: Total amount of liabilities of the corporation
C: Total amount of stocks owned by investors and total amount of their investments
D: Total amount of outstanding shares or total amount of investments |
|
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 40, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 41 (Secondary Tax Liability of Business Transferees) |
| (1) | When an enterprise is acquired or transferred, if the property of the transferor is insufficient to pay the national tax and forced collection charge, for which the liability of the transferor to pay taxes becomes final before the transfer is made, the transferee of the enterprise prescribed by Presidential Decree shall assume the secondary tax liability with respect to such insufficient amount, in an amount not exceeding the value of the transferred property. <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| (2) | The value of the transferred property under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 41, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
SECTION 3 Liability for Tax Payment in Kind
| Article 42 (Liability for Tax Payment in Kind by Person with Right to Property Transferred for Security) |
| (1) | When a taxpayer fails to pay any national tax or forced collection charge, if he or she has property transferred for security, the national tax or forced collection charge may be collected from such property as prescribed in the National Tax Collection Act, only in cases where there is a shortage in the amount to be collected after the forced collection of its other properties: Provided, That the same shall not apply to the property transferred for security which has been established prior to the statutory deadline to pay the national tax. <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| (2) | Where the relevant property is finally vested in a person with right to property transferred for security due to a taxpayer's non-performance of the obligation essentially secured by transfer after a notice of payment is given to the person pursuant to Article 7 (1) of the National Tax Collection Act, and the right to property transferred for security ceases to exist, it shall be deemed that the property transferred for security as at the time of notice of payment continues to exist as such. <Newly Inserted on Dec. 22, 2020> |
| (3) | "Property transferred for security" in paragraphs (1) and (2) means the property essentially becoming the object of security for an obligation to the transferor, when a taxpayer transfers the property under a contract between the parties. <Amended on Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 42, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
SECTION 1 Competent Authorities
| Article 43 (Jurisdiction over Tax Base Returns) |
| (1) | The tax base return shall be submitted to the head of a tax office having jurisdiction over the place where the national tax is paid at the time of return: Provided, That in cases of an electronic filing, it may be submitted to the commissioner of a regional tax office or the Commissioner of the National Tax Service. |
| (2) | Even if the return has been submitted to the head of a tax office, other than those under paragraph (1), it does not affect the validity of the return. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 44 (Jurisdiction over Decision or Decision of Correction) |
A decision or decision of correction on the tax base and the amount of a national tax shall be made by the head of a tax office having jurisdiction over the place where the national tax shall be paid as at the time of disposition.
[This Article Wholly Amended on Jan. 1, 2010]
SECTION 2 Revised Return and Request
| Article 45 (Revised Returns) |
| (1) | A person who has filed a tax base return by the statutory due date of return (including persons falling under Article 73 (1) 1 through 7 of the Income Tax Act) or a person who has filed a tax base return after the due date under Article 45-3 (1) may file a revised tax base return until the head of a competent tax office determines or corrects and notifies the tax base before the relevant period under Article 26-2 (1) through (4) expires and the amount of national taxes pursuant to the provisions of tax-related statutes, in any of the following cases: <Amended on Jan. 1, 2010; Dec. 31, 2011; Dec. 31, 2019> |
| 1. | Where the tax base and tax amount entered in the tax base return is short of those to be reported under tax-related statutes; |
| 2. | Where the amount of deficit or amount of refundable taxes entered in the tax base return exceeds the amount of deficit or that to be refunded under tax-related statutes; |
| 3. | Where incomplete returns are made due to grounds prescribed by Presidential Decree, such as an omission in the course of exact calculation, tax adjustment, etc. by a withholding agent, other than subparagraphs 1 and 2 (excluding where a request for correction, etc. under Article 45-2 may be filed). |
| (2) | Deleted. <Dec. 22, 1994> |
| (3) | Matters to be entered in a revised tax base return and procedure of return shall be determined by Presidential Decree. <Amended on Jan. 1, 2010> |
[This Article Wholly Amended on Dec. 28, 1979]
[Title Amended on Jan. 1, 2010]
| Article 45-2 (Request for Correction) |
| (1) | Any person who has filed a tax base return within the statutory due date of return or a person who has filed a tax base return after the due date under Article 45-3 (1) may, within five years after the elapse of the statutory due date of return, request the head of the competent tax office to determine or correct the original tax base and the amount of taxes of the national tax on which he or she has filed a return and a revised return in any of the following cases: Provided, That he or she may request correction of tax base and the amount of taxes increased due to such determination or correction within 90 days from the date on which he or she becomes aware of the relevant disposition (or on the date of receiving such disposition, if he or she is notified thereof; filing of such request shall be limited to five years after the statutory due date of return elapses): <Amended on Dec. 27, 2010; Dec. 23, 2014; Dec. 31, 2019> |
| 1. | Where the tax base and the amount of taxes on a tax base return or a tax base return after the due date (referring to the tax base and tax amount after determination or correction is made, if such determination or correction is made pursuant to the tax-related statutes), exceed those to be declared under the tax-related statutes; |
| 2. | Where the amount of loss or refundable taxes on a tax base return or a tax base return after the due date (referring to the amount of loss or tax refund after the determination or correction is made, if such determination or correction is made pursuant to the tax-related statutes) is less than the amount of loss or refundable taxes to be declared under the tax-related statutes. |
| (2) | Where any of the following grounds is established, a person who has filed a return on a tax base within the statutory due date of return, or who has the tax base and the amount of national taxes determined, may request the determination or correction within three months from the date on which he or she becomes aware of occurrence of such ground, regardless of the period under paragraph (1): <Amended on Dec. 15, 2015> |
| 1. | Where the transactions or act, etc. which forms the basis of calculation of the tax base and the amount of taxes in the initial return, determination or correction, is confirmed as a different one by a final judgment (including any reconciliation or other act having the same effect as the judgment) in the lawsuit against it; |
| 2. | Where a determination or correction exists, converting the ownership of the income or other taxable object to a third person; |
| 3. | Where mutual agreement procedure under a tax treaty is implemented differently from the details of the initial return, determination or correction; |
| 4. | Where the tax base and the amount of national taxes initially filed for the taxable period, other than a taxable period subject to determination or correction exceed the tax base and the amount of taxes to be declared under the tax-related statutes, due to such determination or correction; |
| 5. | Where the ground similar to those referred to in subparagraphs 1 through 4 and prescribed by Presidential Decree, occurs after the statutory due date of return of the national tax expires. |
| (3) | The head of a tax office requested to make a determination or correction pursuant to paragraphs (1) and (2) shall determine or correct the tax base and the amount of tax, or notify a person who has made such request of the fact that no ground exists to make any determination or correction within two months from the date on which he or she receives such request: Provided, That where the person who has made the request receives no notice within two months (excluding notice under paragraph (4); hereafter in this paragraph the same shall apply), he or she may file a formal objection, demand for examination, or demand for judgment under Chapter VII, or demand for examination under the Board of Audit and Inspection Act. <Amended on Dec. 23, 2014; Dec. 22, 2020> |
| (4) | Where it is impracticable for the head of a tax office who receives a request under paragraphs (1) and (2) to make a determination or correction of the tax base and the amount of tax within the period prescribed in the main clause of paragraph (3), he or she shall notify the requester of relevant developments, and that he or she may file a formal objection, demand for examination, demand for adjudgment under Chapter VII or demand for examination under the Board of Audit and Inspection Act pursuant to the proviso of paragraph (3). <Newly Inserted on Dec. 22, 2020> |
| (5) | Paragraphs (1) through (3) shall apply mutatis mutandis to a person with income falling under the subparagraphs of Article 73 (1) of the Income Tax Act or subparagraphs 1, 2, 4 through 8, 8-2, and 10 through 12 of Article 119 of the Income Tax Act or domestic source income falling under subparagraphs 1, 2, 4 through 6, and 8 through 10 of Article 93 of the Corporate Tax Act (hereafter in this paragraph and Article 52 referred to as "person liable to pay withholding tax" in this paragraph and Article 52) if he or she falls under any of the following subparagraphs. In such cases, in paragraphs (1) and (2), with the exception of the subparagraphs thereof, "any person who has filed a tax base return within the statutory due date of return or a person who has filed a tax base return after the due date under Article 45-3 (1), shall be deemed "a withholding agent or a person liable to pay withholding tax who submits his or her payment record within a submission deadline in accordance with Articles 164 and 164-2 of the Income Tax and Articles 120 and 120-2 of the Corporate Tax Act after paying income tax or corporate tax through the year-end settlement of income tax or tax withholding (excluding non-residents under Article 1-2 (1) 2 of the Income Tax Act and foreign corporations under subparagraph 3 of Article 2 of the Corporate Tax Act); "after the lapse of the statutory due date of return" in paragraph (1), with the exception of its subparagraph, shall be deemed "after the lapse of the due date of payment of the amount of taxes payable for year-end tax settlement or tax withholding"; the "tax base and tax amount entered on a tax base return" in paragraph (1) 1 shall be deemed "tax base and tax amount entered on a withholding tax receipt"; and the "amount of loss or the refundable amount entered on a tax base return" in paragraph (1) 2 shall be deemed "amount of refundable tax on a withholding tax receipt," respectively: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020> |
| 1. | Deleted; <Dec. 31, 2019> |
| 2. | Deleted; <Dec. 31, 2019> |
| 3. | Deleted. <Dec. 31, 2019> |
| (6) | Necessary matters regarding request for determination or correction and the procedures for giving notice thereof shall be prescribed by Presidential Decree. <Amended on Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 45-3 (Return after Due Date) |
| (1) | Any person who fails to file a tax base return within the statutory due date of return may file the tax base return after the due date, prior to the notification of tax base and tax amount (including penalty taxes under this Act and tax-related statutes; hereinafter in this Article the same shall apply) of the relevant national tax determined by the head of a competent tax office pursuant to the tax-related statutes. <Amended on Dec. 20, 2016> |
| (2) | Any person who files a tax base return after the due date pursuant to paragraph (1) and should pay the tax amount pursuant to tax-related statutes shall pay the tax amount. <Amended on Dec. 23, 2014> |
| (3) | Where a person who filed a tax base return after the due date under paragraph (1) or who filed a tax base return after the due date under Article 45 (1) submitted a revised tax base return, the head of a competent tax office shall determine or correct the tax base or the amount of the relevant national tax within three months from the filing date under tax-related statutes and shall notify the reporting person of the tax base and the amount of tax determined or corrected: Provided, That where the head of the competent tax office is unable to determine or correct the tax base or amount of tax within three months from the date of the report due to unavoidable reasons, he or she shall notify the reporting person of such reasons. <Amended on Dec. 23, 2014; Dec. 31, 2018; Dec. 31, 2019> |
| (4) | Matters necessary for items to be entered in a tax base return after due date, procedures for filing the return, and the like shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 46 (Voluntary Payment of Additional Amount) |
| (1) | When a taxpayer submits a revised tax base return prescribed by Article 45, with regard to the national taxes, for which an amount of taxes equivalent to the amount of tax base return is to be paid voluntarily under tax-related statutes, if the amount of taxes already paid is less than that equivalent to the amount of the revised return of the tax base, he or she shall pay the shortage and a penalty tax prescribed by this Act or other tax-related statutes. <Amended on Dec. 23, 2014> |
| (2) | Deleted. <Dec. 23, 2014> |
| (3) | Any person who has filed a tax base return within the statutory due date of return, fails to pay the whole or part of the amount of taxes equivalent to the amount of tax base return, may pay the relevant amount of taxes and the penalty tax determined by this Act or other tax-related statutes, prior to the notification from the head of a tax office. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 46-2 Deleted. <Dec. 22, 2020> |
SECTION 3 Imposition, Reduction and Exemption
| Article 47 (Imposition of Penalty Taxes) |
| (1) | The Government may impose penalty taxes upon the person violating obligations prescribed in tax-related statutes, as prescribed in this Act or other tax-related statutes. |
| (2) | Penalty taxes shall be an item of the relevant national tax under the tax-related statutes prescribing the obligation concerned: Provided, That in cases of reducing or exempting a relevant national tax, the penalty tax shall not be included in such reduced or exempted national tax. |
| (3) | Penalty taxes shall be added to tax payable or deducted from the amount of taxes to be refunded. <Newly Inserted on Dec. 31, 2011> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 47-2 (Penalty Taxes for Non-Filing) |
| (1) | Where a taxpayer fails to file a return (including preliminary returns and interim returns, but excluding returns of persons who are not financial and insurance business entities from among returns prescribed in Article 9 of the Education Tax Act and excluding returns under the Act on Special Rural Development Tax and the Comprehensive Real Estate Holding Tax Act) on the tax base of national tax pursuant to the tax-related statutes within the statutory due date of return, amounts obtained by multiplying an amount he or she should pay upon filing the tax return by the following rates (where he or she should pay a penalty tax under this Act and the tax-related statutes and an additional amount equivalent to the interest he or she should pay by adding thereto pursuant to the tax-related statutes, such amounts shall be excluded; hereinafter referred to as "tax amount to be paid due to non-filing") shall be penalty taxes: <Amended on Dec. 20, 2016; Dec. 31, 2019> |
| 1. | Where the taxpayer fails to file a return on tax base under the tax-related statutes by the statutory due date of return due to an unlawful act: 40/100 (in cases of an unlawful act committed in cross-border trades, 60/100); |
| 2. | Cases except for those prescribed in subparagraph 1: 20/100. |
| (2) | Notwithstanding paragraph (1), in any of the following cases, an amount specified in the relevant subparagraph shall be a penalty tax: <Amended on Dec. 20, 2016; Dec. 31, 2019> |
| (a) | In cases falling under paragraph (1) 1: An amount obtained by multiplying the amount of revenue classified as follows (hereafter in this Article, referred to as "amount of revenue") by 14/10,000: |
| (b) | In cases of paragraph (1) 2: An amount obtained by multiplying the amount of revenue by 7/10,000; |
| (3) | Notwithstanding paragraphs (1) and (2), in any of the following cases, paragraphs (1) and (2) shall not apply: <Amended on Jun. 7, 2013; Dec. 23, 2014> |
| 1. | Deleted; <Dec. 22, 2020> |
| (4) | In applying paragraph (1) or (2), penalty tax under paragraph (1) or (2) shall not apply to the portion equivalent to the bad-debt tax amount under the proviso of Article 45 (3) of the Value-Added Tax Act. <Amended on Jun. 7, 2013> |
| (5) | When applying paragraph (1) or (2), a penalty tax under paragraph (1) or (2) in relation to a final return shall not apply to a portion on which a penalty tax is imposed pursuant to this Article or Article 47-3 in relation to a preliminary return and interim return. <Amended on Dec. 23, 2014> |
| (6) | When applying paragraph (1) or (2), Article 81-5 or 115 of the Income Tax Act or Article 75-3 of the Corporate Tax Act applies simultaneously, only a penalty tax the amount of which is the largest among them shall apply, and where the amount of penalty tax is equal to one another, only a penalty tax under paragraph (1) or (2) shall apply. <Amended on Dec. 23, 2014; Dec. 19, 2017; Dec. 31, 2018; Dec. 31, 2019> |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for operating the Committee shall be prescribed by Presidential Decree. <Amended on Dec. 23, 2014; Dec. 31, 2019> |
[This Article Wholly Amended on Dec. 31, 2011]
| Article 47-3 (Penalty Taxes for Underreporting or Excess Tax Refund Claims) |
| (1) | Where a taxpayer has filed a return (including preliminary returns and interim returns, but excluding returns of persons who are not financial or insurance business entities from among returns prescribed in Article 9 of the Education Tax Act and excluding returns under the Act on Special Rural Development Tax) on the tax base of national tax pursuant to the tax-related statutes within the statutory due date of return, but he or she has reported the tax amount he or she should pay less than the amount he or she should report (hereinafter in this Article and Article 48, referred to as "underreporting") or has reported the tax amount to be refunded more than the amount he or she should report (hereinafter in this Article and Article 48, referred to as "overreporting"), amounts obtained by applying the following calculation methods to the aggregate amount of the underreported tax amount to be paid and the overreported tax amount to be refunded (where he or she should pay a penalty tax under this Act and the tax-related statutes and an additional amount equivalent to the interest he/should pay by adding thereto pursuant to the tax-related statutes, such amounts shall be excluded; hereinafter referred to as "underreported tax amount to be paid, etc.") shall be penalty taxes: <Amended on Dec. 20, 2016; Dec. 19, 2017; Dec. 31, 2019> |
| 1. | In cases of underreporting or overreporting due to an unlawful act: The aggregate of the following amounts: |
| (a) | An amount equivalent to 40/100 (in cases of underreporting caused by an unlawful act in cross-border trades, 60/100) of the underreported tax amount to be paid, etc., caused by an unlawful act; |
| (b) | An amount equivalent to 10/100 of the amount obtained by subtracting the underreported tax amount to be paid, etc., caused by an unlawful act, from the underreported tax amount to be paid, etc.; |
| 2. | Cases other than subparagraph 1: An amount equivalent to 10/100 of the underreported tax amount to be paid, etc. |
| (2) | Notwithstanding paragraph (1), in any of the following cases, an amount specified in the relevant subparagraph shall be a penalty tax: <Amended on Jan. 1, 2013; Jun. 7, 2013; Dec. 23, 2014; Dec. 20, 2016> |
| (a) | An amount prescribed in paragraph (1) 1 (a); |
| (b) | An amount calculated by multiplying the amount of revenue related to the tax base underreported by an unlawful act, by 14/10,000; |
| 2. | Where a business entity prescribed in the Value-Added Tax Act has filed a return under Articles 48 (1) and (4), 49 (1), 66 and 67 of the same Act, but has underreported the zero-rate tax base or has failed to file a return on such tax base: The aggregate amount of an amount specified in the relevant subparagraph of paragraph (1) and an amount equivalent to 5/1,000 of the zero-rate tax base underreported or non-reported. |
| (3) | Paragraphs (1) and (2) shall also apply to the case where a person other than an enterprise under the Value-Added Tax files a return on refunded tax amount. |
| (4) | When applying paragraph (1) or (2), in cases falling under any of the following, a penalty tax under paragraph (1) or (2) shall not apply to the underreported or overreported portion in relation thereto: <Amended on Jun. 7, 2013; Dec. 23, 2014; Dec. 15, 2015; Dec. 19, 2017> |
| 1. | In cases of underreporting the tax base of inheritance tax or gift tax due to the any of the following causes: |
| (a) | Where inherited tax or gifted tax is not confirmed due to the reasons such a lawsuit for its ownership at the time of filing a return; |
| (d) | Where a profit deemed donation under the provisions of Articles 45-3 through 45-5 of the Inheritance Act and Gift Tax Act varies due to the determination or correction of the corporate tax base and tax amount pursuant to Article 66 of the Corporate Tax Act (excluding cases that the corporate tax base and tax amount are determined or corrected due to an unlawful act); |
| 3. | Where acquisition values of stocks, etc. defined in subparagraph 2 of Article 88 of the Income Tax Act are reduced due to a ground falling under subparagraph 1 (d). |
| (5) | Deleted. <Dec. 23, 2014> |
| (6) | Article 47-2 (5) and (6) shall apply mutatis mutandis to the imposition of penalty tax under this Article. <Amended on Dec. 23, 2014; Dec. 22, 2020> |
| (7) | Matters necessary for the calculation of the underreported tax amount to be paid, etc. due to an unlawful act and the imposition of penalty tax, shall be prescribed by Presidential Decree. <Amended on Dec. 23, 2014> |
[This Article Wholly Amended on Dec. 31, 2011]
| Article 47-4 (Penalty Tax for Delayed Payment) |
| (1) | Where a person liable to pay taxes (including persons jointly and severally liable for tax payment, persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) fails to pay national tax (excluding the stamp tax under Article 8 (1) of the Stamp Tax Act) by the statutory due date of payment (including interim pre-payment, payment by preliminary return, and interim return) or has paid less than the tax amount payable (hereinafter referred to as "underpayment"), or is refunded more than the amount of tax to be refunded (hereinafter referred to as "excess refund"), the aggregate of the following amounts shall be the penalty tax: <Amended on Dec. 31, 2018; Dec. 31, 2019; Dec. 29, 2020> |
| 1. | The amount of unpaid tax or the underpayment (where there is any penalty amount corresponding to the interest to be paid by being added under the tax-related statutes, such amount shall be added) × The period beginning with the day immediately after the statutory due date of payment and ending with payment date (excluding the period from the date of notice of payment to the due date of payment under a notice of payment) × The interest rate prescribed by Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans; |
| 2. | The excessively refunded amount of taxes (where there is any penalty amount corresponding to the interest to be paid by being added under the tax-related statutes, such amount shall be added) × The period beginning with the day immediately after the refund date (excluding the period from the date of notice of payment to the due date of payment under a notice of payment) × The interest rate prescribed by the Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans; |
| 3. | Out of the amount of tax payable by the statutory due date of payment (where there is any penalty amount corresponding to the interest to be paid by being added under tax-related statutes, such amount shall be added), an amount of tax yet to be paid by the due date of payment under a notice of payment or an amount of underpayment × 3/100 (limited to where the amount of national tax is not paid in full by the due date of payment under the notice of payment). |
| (2) | Paragraph (1) shall also apply to the case where a person other than an enterprise under the Value-Added Tax is refunded the value-added tax. |
| (3) | In any of the following cases, the penalty tax under paragraph (1) 1 and 2 shall not apply (limited to the period beginning with the day immediately after the statutory due date of payment and ending with the date of notice of payment): <Amended on Jun. 7, 2013; Dec. 23, 2014; Dec. 15, 2015; Dec. 19, 2017; Dec. 31, 2018; Dec. 22, 2020; Dec. 29, 2020> |
| 1. | Where a business operator under the Value-Added Tax Act files a return and pays value-added tax by adding a value-added tax on a place of business to a value-added tax on another place of business by the due date of payment under the aforesaid Act; |
| 3. | Deleted; <Dec. 22, 2020> |
| 5. | Where acquisition values of stocks, etc. provided for in subparagraph 2 of Article 88 of the Income Tax Act are reduced due to a ground falling under subparagraph 4; |
| 6. | Where a person who has filed a return of inheritance tax or gift tax pursuant to Article 67 or 68 of the Inheritance Tax and Gift Tax Act pays inheritance tax or gift tax by the statutory due date of return pursuant to Article 70 of the same Act and determines and corrects the tax base and tax amount by assessing the inherited property or gift property according to the methods prescribed by Presidential Decree after the statutory due date of return. |
| (4) | Penalty tax under paragraph (1) in relation to the payment of national tax shall not apply to the portion on which the penalty tax is levied under Article 47-5. <Amended on Dec. 31, 2018> |
| (5) | In applying paragraph (1), penalty tax under paragraph (1) in relation to the final return and payment shall not apply to the portion when the penalty tax under paragraph (1) is levied in relation to the interim pre-payment, payment by preliminary return and payment by interim return. <Amended on Dec. 31, 2018> |
| (6) | Where a taxpayer files a return and pays national tax (limited to income tax, corporate tax and value-added tax) by erroneously applying the taxable period, it shall be deemed that the taxpayer has voluntarily paid national tax with respect to the taxable period for which he or she should have filed a return and paid the national tax within the scope of the amount actually declared and paid on the date when he or she actually filed such return and paid the national tax: Provided, That the same shall not apply to failure to file a return by an unlawful act from among returns prescribed in Article 47-2, or underreporting or overreporting by an unlawful act from among returns prescribed in Article 47-3. <Amended on Dec. 20, 2016> |
| (7) | In applying paragraph (1), if the period beginning with the day immediately after the due date of payment and ending with the date of payment (if the periods specified in the designated due date of payment under Article 13 of the National Tax Collection Act and in the demand notice are extended, the extended period shall be excluded) exceeds five years, such period shall be five years. <Newly Inserted on Dec. 31, 2018; Dec. 29, 2020> |
| (8) | Where the amount of delinquent national taxes by notice of payment and by tax item is less than one million won, the penalty tax under paragraph (1) 1 and 2 shall not apply. <Newly Inserted on Dec. 31, 2018; Dec. 31, 2019; Dec. 29, 2020> |
| (9) | Where a person fails to pay or makes underpayment of stamp tax under Article 8 (1) of the Stamp Tax Act, he or she shall be liable to pay penalty tax in an amount equivalent to 300/100 of the amount of tax not paid or underpaid: Provided, That in any of the following cases (excluding where a person pays taxes with prior knowledge that the tax base and the amount of tax will be corrected), the amount of penalty tax shall be as follows: <Newly Inserted on Dec. 31, 2018; Dec. 22, 2020> |
| 1. | Where tax is paid within three months after the statutory due date of payment under the Stamp Tax Act: 100/100 of the amount of tax not paid or underpaid; |
| 2. | Where tax is paid between three and six months after the statutory due date of payment under the Stamp Tax Act: 200/100 of the amount of tax not paid or underpaid. |
[This Article Wholly Amended on Dec. 31, 2011]
[Title Amended on Dec. 31, 2018]
| Article 47-5 (Penalty Taxes for Delayed Payment, such as Withholding) |
| (1) | Where a person liable to collect and pay national taxes fails to pay or underpays the tax to be collected (in cases falling under paragraph (2) 2, the amount of tax collected) by the statutory due date of payment, an aggregate of the following amounts equivalent to less than 50/100 of the amount of such unpaid or underpaid tax (in the case of an aggregate of the amounts for the period from the day immediately after the statutory due date of payment until the date of notice of payment, referring to an amount equivalent to 10/100) shall be a penalty tax:<Amended on Jan. 1, 2013; Dec. 31, 2019; Dec. 29, 2020> |
| 1. | An amount equivalent to 3/100 of the amount of unpaid tax or underpaid tax; |
| 2. | The amount of unpaid tax or underpaid tax x The period from the day immediately after the statutory due date of payment through the date of payment (excluding the period from the date of notice of payment until the due date of payment stated on a notice of payment) × The interest rate prescribed by Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans. |
| (2) | "Obligation to collect and pay national taxes" in paragraph (1) refers to any obligation described below: <Amended on Jun. 7, 2013> |
| 1. | An obligation to withhold and pay the income tax or corporate tax under the Income Tax or the Corporate Tax; |
| (3) | Notwithstanding paragraph (1), in any of the following subparagraphs, paragraph (1) shall not apply: <Amended on Jan. 1, 2013> |
| 1. | Where a person liable to withhold the income tax under the Income Tax Act is a US solider who resides in Korea; |
| (4) | For purposes of applying paragraph (1), if the period from the day immediately after the due date of payment stated on a notice of payment until the date of payment (where the designated due date of payment and the due date prescribed in a notice of demand are extended under Article 13 of the National Tax Collection Act, such extended period shall be excluded) exceeds five years, such period shall be five years. <Newly Inserted on Dec. 31, 2019; Dec. 29, 2020> |
| (5) | Where the amount of delinquent national taxes by notice of payment and by tax item is less than one million won, a penalty tax under paragraph (1) 2 shall not apply. <Newly Inserted on Dec. 31, 2019; Dec. 29, 2020> |
[This Article Wholly Amended on Dec. 31, 2011]
[Title Amended on Dec. 22, 2020]
| Article 48 (Reduction of Exemption from, Penalty Taxes) |
| (1) | Where the Government intends to impose a penalty tax under this Act or any other tax-related statutes, if any cause for such imposition falls under any of the following, the Government shall not impose such penalty tax: <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| 1. | Where such cause constitutes grounds for extension of the due date under Article 6; |
| 2. | Where a taxpayer fails to fulfill his or her obligations for good cause; |
| 3. | Other cases prescribed by Presidential Decree, which are similar to those provided in subparagraphs 1 and 2. |
| (2) | In any of the following cases, the Government shall reduce or exempt an amount set forth in each of the following subparagraphs, from the relevant penalty tax imposed under this Act or any other tax-related Act: <Amended on Dec. 27, 2010; Dec. 31, 2011; Dec. 23, 2014; Dec. 19, 2017; Dec. 31, 2019> |
| 1. | Where a person who filed a tax base return files until the statutory due date of return files a revised return pursuant to Article 45 after expiration of the statutory due date of return (limited to penalty taxes referred to in Article 47-3, excluding cases where the revised tax base return is filed with a prior knowledge that the initial tax base and the amount of tax would be corrected), the amount shall be the following: |
| (a) | Where a revised return is filed within one month after expiration of the statutory due date of return, the amount shall be equivalent to 90/100 of the amount of the relevant penalty tax; |
| (b) | Where a revised return is filed between one and three months after expiration of the statutory due date of return, the amount shall be equivalent to 75/100 of the amount of the relevant penalty tax; |
| (c) | Where a revised return is filed between three to six months after the statutory due date of return elapses, the amount shall be equivalent to 50/100 of the amount of the relevant penalty tax; |
| (d) | Where a revised return is filed between six months and one year after expiration of the statutory due date of return, the amount shall be equivalent to 30/100 of the amount of the relevant penalty tax; |
| (e) | Where a revised return is filed between one year and one and a half years after expiration of the statutory due date of return, the amount shall be equivalent to 20/100 of the amount of the relevant penalty tax; |
| (f) | Where a revised return is filed between one and a half years and two years after expiration of the statutory due date of return, the amount shall be equivalent to 10/100 of the amount of the relevant penalty tax; |
| 2. | Where a person who fails to file a tax base return until the statutory due date of return files a return after the due date pursuant to Article 45-3 after expiration of the statutory due date of return (limited to penalty taxes referred to in Articles 47-2, excluding cases where the tax base return after the due date is filed with a prior knowledge that the initial tax base and the amount of tax would be determined), the amount shall be the following: |
| (a) | Where a return is filed within one month after the statutory due date of return elapses, the amount shall be equivalent to 50/100 of the amount of the relevant penalty tax; |
| (b) | Where a revised return is filed between one and three months after expiration of the statutory due date of return: The equivalent to 30/100 of the relevant amount of penalty tax; |
| (c) | Where a revised return is filed between three and six months after expiration of the statutory due date of return: The equivalent to 20/100 of the relevant amount of penalty tax; |
| 3. | Where it falls under any of the following categories, the amount shall be equivalent to 50/100 of the amount of the relevant penalty tax: |
| (a) | Where a result of the pre-assessment review is not notified under Article 81-15 within the period of determination and notification thereof (limited to penalty taxes imposed under Article 47-4 during the relevant period for which such determination and notification are delayed); |
| (b) | Where the obligation of the submission, filing, joining, registration or establishment pursuant to tax-related statutes (hereinafter in this subparagraph, referred to as "submission, etc.") is fulfilled in compliance with the tax-related statutes within one month after the deadline for submission, etc. elapses (limited to penalty taxes to be imposed pursuant to tax-related statutes for violation of the duty of such submission, etc.); |
| (c) | Notwithstanding subparagraph 1 (d) through (f), where the preliminary return and interim return are filed to be underreported or overreported by the due date of preliminary returns and due date of interim returns prescribed in tax-related statutes and then the revised return of the tax base is filed by the due date of final returns (limited to penalty taxes provided for in Article 47-3 imposed during the relevant period, and excluding cases of reporting tax bases, knowing in advance that the tax bases and tax amounts are to be corrected); |
| (d) | Notwithstanding subparagraph 2, where the preliminary return and interim return fail to be filed by the due date of preliminary returns and due date of interim returns prescribed in tax-related statutes, but the tax base is returned by the due date of final returns (limited to penalty taxes provided for in Article 47-2 imposed during the relevant period, and excluding cases of reporting tax bases, knowing in advance that the tax bases and tax amounts are to be corrected). |
| (3) | Any person who intends to have penalty tax reduced or exempted under paragraph (1) or (2) may file an application therefor, as prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 49 (Upper Limit on Penalty Taxes) |
| (1) | Any of the following penalty taxes shall be imposed up to 50 million won for each occasion (100 million won for an enterprise, other than small and medium enterprises under Article 2 (1) of the Framework Act on Small and Medium Enterprises), by type of violation of the obligation concerned: Provided, That the same shall not apply to any intentional violation of the obligation: <Amended on Dec. 27, 2010; Jan. 1, 2013; Jun. 7, 2013; Jan. 1, 2014; Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020> |
| (2) | In applying paragraph (1), the classification of violations of obligation, the period and methods for application of the upper limit on penalty tax, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 50 Deleted. <Dec. 22, 1994> |
CHAPTER VI NATIONAL TAX REFUND AND ADDITIONAL REFUND OF NATIONAL TAX
| Article 51 (Appropriation and Refund of National Tax Refund) |
| (1) | If a taxpayer erroneously paid or overpaid national taxes or forced collection charge, or if there is an amount of tax to be refunded under tax-related statutes (when any amount of tax is to be deducted from the refundable amount under the tax-related statutes, referring to the remaining amount after deduction), the head of a tax office shall immediately determine such amount of erroneous payment, overpayment, or refundable amount as a refund of national tax. In such cases, any claim filed for the refund of any tax due to erroneous or double payment shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2018; Dec. 22, 2020> |
| (2) | The head of a tax office shall appropriate the amount determined as refundable amount for the payment of national taxes or forced collection charge that fall under any of the following subparagraphs, as prescribed by Presidential Decree: Provided, That the appropriation of national taxes under subparagraph 1 (excluding cases falling under the ground for collection prior to the due date of payment under Article 9 of the National Tax Collection Act) and subparagraph 3 shall be made only if the taxpayer consents to the relevant appropriation: <Amended on Dec. 27, 2010; Dec. 31, 2018; Dec. 22, 2020; Dec. 29, 2020> |
| 1. | National taxes to be paid by notice of payment; |
| 2. | National taxes in arrears and forced collection charge (including national taxes in arrears in other tax offices and forced collection charge); |
| 3. | National taxes to be paid voluntarily under tax-related statutes. |
| (3) | Where appropriation is made under paragraph (2) 2, national taxes in arrears, forced collection charge, and refund of the national taxes shall be deemed to have been extinguished in the equal amount, retroactive to the statutory due date of payment of national taxes in arrears or the date a refund of national taxes arises prescribed by Presidential Decree, whichever is later. <Newly Inserted on Dec. 27, 2010; Dec. 31, 2018; Dec. 22, 2020> |
| (4) | Where a taxpayer is entitled to tax refund under tax-related statutes, the taxpayer may request that such tax amount be appropriated for the payment of national tax under paragraph (2) 1 and 3. In such cases, it shall be deemed that the relevant national tax is paid when the taxpayer requests such appropriation. <Amended on Dec. 27, 2010> |
| (5) | Where a withholding agent has any tax refund from the amount of tax paid after having it withheld at source, he or she shall be paid the remainder of taxes that the person appropriates for the payment of the amount of taxes payable by withholding taxes at source (appropriation of the payment of the amount of taxes payable by withholding taxes at source on any other taxable item may be allowed only when a report on the processing status of tax withholding under the Income Tax Act includes details of appropriation and adjustment thereof): Provided, That in the event that the withholding agent claims immediate refund of taxes or has no amount of tax to pay by withholding taxes at source, the amount of taxes shall be immediately refunded. <Amended on Dec. 27, 2010> |
| (6) | The amount of national tax refund remaining after appropriating under paragraph (2) shall be repaid to the taxpayer within 30 days after the refund of the national tax is determined, as prescribed by Presidential Decree. <Amended on Dec. 27, 2010> |
| (7) | The repayment of the national tax refund under paragraph (6) shall be made by the Bank of Korea with revenues falling under the jurisdiction of the head of a tax office concerned, as prescribed by Presidential Decree. <Amended on Dec. 27, 2010> |
| (8) | Notwithstanding paragraph (6), where the amount of national tax refund remaining after appropriating under paragraph (2) is not more than 100,000 won and it is not refunded within one year from the date when a decision on payment is made, it may be appropriated for national taxes provided for in paragraph (2) 1, as prescribed by Presidential Decree. In such cases, the consent provided for in the proviso of paragraph (2) shall be deemed to exist. <Newly Inserted on Dec. 19, 2017> |
| (9) | When the head of a tax office requests the return of the amount which has been already appropriated or paid upon revocation of the determination on refund of national tax, the provisions of the National Tax Collection Act concerning the notification, demand, and forced collection shall apply mutatis mutandis. <Amended on Dec. 27, 2010; Dec. 19, 2017; Dec. 22, 2020> |
| (10) | Notwithstanding paragraph (1), in cases falling under the main clause of Article 47-4 (6), paragraph (1) shall not apply. <Newly Inserted on Dec. 31, 2011; Dec. 20, 2016; Dec. 19, 2017> |
| (11) | Where income, profits, property, acts, or transactions subject to taxation are attributed to the holder of the legal title other than the person to whom all of them are substantially attributed (hereafter in this paragraph referred to as "beneficial owner") and the imposition of a tax on the holder of the legal title is revoked and the beneficial owner pays the tax as a person liable for tax payment, the amount verified to be paid by the beneficial owner shall be deducted from the amount of tax he or she already paid and where there is any amount remaining after deduction, it shall be refunded to the beneficial owner. <Newly Inserted on Dec. 31, 2019> |
[This Article Wholly Amended on Jan. 1, 2010]
[Enforcement Date: Feb. 3, 2022] In Article 51, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 51-2 (Refund of Property Paid in Kind) |
| (1) | Where a taxpayer has paid inheritance tax in kind under Article 73 of the Inheritance Tax and Gift Tax Act and then receives a refund of the tax pursuant to a decision of correction such as full or partial revocation or reduction of the tax imposed, the relevant property already paid in kind shall be refunded: In such cases, no additional refund of national taxes prescribed in Article 52 shall be paid. <Amended on Dec. 20, 2016> |
| (2) | Notwithstanding paragraph (1), in cases prescribed by Presidential Decree, such as where the relevant property paid is sold or used for other purpose, refunds shall be made by monetary means under Article 51. <Amended on Dec. 20, 2016> |
| (3) | Detailed matters concerning a refund of property paid in kind, such as the order of refunding and the entity to bear management expenses incurred in the time slot from accepting property paid in kind to refunding it, shall be prescribed by Presidential Decree. <Amended on Dec. 20, 2016> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 52 (Additional Refund of National Taxes) |
| (1) | When the head of a tax office appropriates or pays a national tax refund under Article 51, he or she shall add, to the national tax refund, the amount calculated according to the interest rate prescribed by Presidential Decree (hereinafter referred to as "additional refund of national tax"), taking into consideration the period between the reckoning day of additional refund of national taxes prescribed by Presidential Decree and the day of appropriation or decision on payment, and the interest rate, etc. of deposits in financial institutions, etc. <Amended on Dec. 19, 2017> |
| (2) | In cases of appropriating for national taxes pursuant to Article 51 (8), additional refund of national taxes shall be calculated by the date when a decision of payment is made. <Newly Inserted on Dec. 19, 2017> |
| (3) | Notwithstanding paragraphs (1) and (2), where national tax refunds are appropriated or paid according to procedures for handling civil petitions for grievances prescribed by Presidential Decree without any of the following grounds, no additional refund of national tax shall be added thereto: <Newly Inserted on Dec. 22, 2020> |
[This Article Wholly Amended on Dec. 31, 2011]
| Article 53 (Transfer of Rights to National Tax Refund) |
| (1) | A taxpayer may transfer to another person the rights to the national tax refund as prescribed by Presidential Decree. <Amended on Dec. 31, 2019> |
| (2) | When the transfer of rights to the national tax refund is requested, if the transferor or transferee has national taxes and forced collection charge to pay, the head of a tax office shall appropriate such national taxes and forced collection charge, and the remaining amount shall be transferred without delay upon request. <Newly Inserted on Dec. 31, 2019; Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 31, 2019]
| Article 54 (Extinctive Prescription of National Tax Refund) |
| (1) | A taxpayer's right to any national tax refund or additional national tax refund shall become extinct by a prescription, if the taxpayer does not exercise them for five years from the time they are exercisable. |
| (2) | The provisions of the Civil Act shall be applied to the extinctive prescription under paragraph (1), except as otherwise provided for in this Act or tax-related statutes. In such cases, where a claim for a national tax refund and additional national tax refund is filed by means of an administrative suit, including a suit for the revocation of the disposition of taxation or a suit for demanding the confirmation of invalidity, the claim under subparagraph 1 of Article 168 of the Civil Act shall be deemed filed concerning the suspension of prescription. <Amended on Dec. 23, 2014> |
| (3) | No extinctive prescription in paragraph (1) shall be suspended by any instruction, notice, etc. of a claim for refund, given by the head of a tax office to a taxpayer, to urge the taxpayer to claim a refund. <Newly Inserted on Dec. 20, 2016> |
[This Article Wholly Amended on Jan. 1, 2010]
CHAPTER VII EXAMINATION AND ADJUDGMENT
SECTION 1 Common Provisions
| (1) | Any person whose rights or interests have been infringed on, by receiving an unlawful or unreasonable disposition or due to failure to receive a required disposition under this Act or other tax-related statutes, may request the revocation or modification of such disposition or request other necessary dispositions pursuant to this Chapter: Provided, That the same shall not apply to any of the following dispositions: <Amended on Jan. 1, 2010; Dec. 20, 2016; Dec. 31, 2019> |
| 3. | Disposition to impose an administrative fine under this Act and other tax-related statutes. |
| (2) | An interested person falling under any of the following subparagraphs, whose rights and interests are to be infringed on due to a disposition pursuant to this Act or other tax-related statutes, may request the revocation or modification of an unlawful or unreasonable disposition imposed on a person or request other necessary dispositions pursuant to this Chapter: <Amended on Jan. 10, 2010; Dec. 19, 2017; Dec. 22, 2020; Dec. 29, 2020> |
| 1. | A person secondarily liable to pay taxes who has received a notice of payment; |
| 2. | A person who has received a notice of payment as he or she has to bear the liability of tax payment in kind pursuant to Article 42; |
| 2-3. | A person liable to pay taxes in kind pursuant to Articles 7-2 and 12-2 of the Comprehensive Real Estate Holding Tax Act, who receives a notice of payment under Article 16-2 (1) of the same Act; |
| 4. | Other persons prescribed by Presidential Decree. |
| (3) | Except for the cases of dispositions prescribed in paragraphs (1) and (2) which are to be or to have been examined, determined or managed by the Commissioner of the National Tax Service, an objection may be filed pursuant to this Chapter before a request for examination or request for adjudgment against such dispositions is made. <Amended on Jan. 1, 2010> |
| (4) | Deleted. <Aug. 31, 1999> |
| (5) | No objection, request for examination and request for adjudication shall be filed against dispositions on requests for examination or requests for adjudication under this Chapter: Provided, That as to dispositions issued by a disposition agency following a decision of re-investigation prescribed in the proviso of Article 65 (1) 3 (including cases applied mutatis mutandis in Article 81), a request for examination or a request for adjudication may be filed against the ruling agency that has made the relevant decision of re-investigation. <Amended on Dec. 20, 2016> |
| (6) | No objection shall be filed against dispositions on objections under this Chapter and against dispositions issued by a disposition agency following a decision of re-investigation prescribed in the proviso of Article 65 (1) 3 (referring to cases applied mutatis mutandis in Article 66 (6)). <Newly Inserted on Dec. 20, 2016> |
| (7) | Deleted. <Jan. 1, 2010> |
| (8) | Deleted. <Jan. 1, 2010> |
| (9) | No overlapping requests for examination and adjudgment on the same disposition shall be filed. <Amended on Jan. 1, 2010> |
[Title Amended on Jan. 1, 2010]
| Article 55-2 (Special Cases concerning Calculation of Period in Procedure of Adjustment of Taxes on International Trade Price, etc.) |
[This Article Wholly Amended on Dec. 31, 2011]
| Article 56 (Relationship to Other Statutes) |
| (1) | No disposition prescribed in Article 55 shall be governed by the Administrative Appeals Act: Provided, That Articles 15, 16, 20 through 22, 29, 36 (1), 39, 40, 42 and 51 of the Administrative Appeals Act shall apply mutatis mutandis to a request for examination or adjudgment; in such cases, "committee" shall be construed as "National Tax Examination Committee", "Council of Tax Judges", or "Joint Session of Tax Judges." <Amended on Jan. 25, 2010; Jan. 1, 2013> |
| (2) | Notwithstanding the main clause of Article 18 (1) and Article 18 (2) and (3) of the Administrative Litigation Act, no administrative litigation against an illegal disposition prescribed in Article 55 shall be filed without a request for examination or adjudgment and a decision on such request under this Act: Provided, That the same shall not apply to administrative litigations against dispositions issued by a disposition agency following a decision of re-investigation in the proviso of Article 65 (1) 3 (including cases applied mutatis mutandis in Article 81) rendered for a request for examination or a request for adjudication. <Amended on Dec. 20, 2016> |
| (3) | Notwithstanding Article 20 of the Administrative Litigation Act, any administrative litigation under the main clause of paragraph (2) shall be filed within 90 days from the date when a decision on a request for examination or adjudgment is notified: Provided, That where such decision is not notified within the period for decision prescribed in Article 65 (2) or Article 81, the administrative litigation may be initiated from the date when the prescribed period for decision elapses even before the decision is notified. <Amended on Dec. 20, 2016> |
| 1. | Where an administrative litigation is filed without a request for examination or for adjudication under this Act: Within 90 days from the date when the results of a disposition issued by a disposition agency after re-investigation are notified: Provided, That in cases of failure to receive a notification of the results of a disposition issued by a disposition agency within the period for disposition prescribed in Article 65 (5) (including cases applied mutatis mutandis in Article 81) (where an investigation is postponed, the period for investigation is extended or an investigation is suspended under the latter part of Article 65 (5), including the relevant period: hereinafter in this subparagraph, the same shall apply), an administrative litigation may be filed from the date when the period for disposition elapses; |
| 2. | Where an administrative litigation is filed by a request for examination or a request for adjudication under this Act: Within 90 days from the date of receiving notification of a decision on the request for examination or request for adjudication made against a disposition issued by a disposition agency after re-investigation: Provided, That in cases of failure to receive notification of decision within the period for decision prescribed in Article 65 (2) (including cases applied mutatis mutandis under Article 81), an administrative litigation may be filed from the date when the period for decision elapses. |
| (5) | If a request for examination prescribed in Article 55 (1) 2 is filed, a request for examination or adjudgment under this Act is deemed made; and paragraph (2) shall apply mutatis mutandis. <Amended on Dec. 20, 2016; Dec. 19, 2017> |
| (6) | The period falling under paragraph (3) shall be an invariable term. <Amended on Dec. 20, 2016> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 57 (Effect of Request for Examination on Execution) |
| (1) | Except as otherwise provided for in tax-related statutes, an objection, request for examination, or request for adjudgment shall not have any effect on the execution of the relevant disposition: Provided, That where the ruling agency deems it urgent to prevent a serious loss to the applicant for objection, a requester for examination, or for adjudgment due to the execution of a disposition or continuation of procedures, it may suspend all or part of the execution of the disposition or continuation of the procedures (hereinafter referred to as "suspension of execution"). <Amended on Dec. 31, 2018> |
| (2) | Where the ruling agency deliberates and determines on suspension of execution or revocation thereof, it shall notify the relevant person without delay. <Newly Inserted on Dec. 31, 2018> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 58 (Rights to Read Related Documents and State Opinions) |
Any person who files a formal objection, demand for examination, demand for judgment or agency that makes dispositions (in a case of an agency that makes dispositions, limited to demands for judgment) may read documents related to such formal objection or demand, and state his or her opinion to the ruling agency, as prescribed by Presidential Decree. <Amended on Dec. 23, 2014>
[This Article Wholly Amended on Jan. 1, 2010]
| Article 59 (Representative) |
| (1) | A person who files an objection or a request for examination or judgement and a disposition agency may, as his or her representative, nominate a lawyer, a certified tax consultant or a certified public accountant registered under Article 20-2 (1) of the Certified Tax Accountant Act. |
| (2) | Where the object of the filing or request is a small amount under the proviso of Article 78 (1), any person who files an objection or a request for examination or judgement may, as his or her representative, nominate his or her spouse, blood relatives within the fourth degree of relationship, or his or her spouse's blood relatives within the fourth degree of relationship. <Newly Inserted on Dec. 27, 2010> |
| (3) | The authority of a representative shall be certified in writing. <Amended on Dec. 27, 2010> |
| (4) | Any representative may perform all the acts concerning an objection or request on behalf of the principal: Provided, That that any withdrawal of the objection or request shall be made only under a special mandate to do so. <Amended on Dec. 27, 2010> |
| (5) | When a representative is dismissed, it shall be reported in writing to the ruling agency. <Amended on Dec. 27, 2010> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 59-2 (Public Representative) |
| (1) | Any person who files a formal objection, who requests for examination or adjudgment, or who request a pre-assessment review (hereafter in this Article, referred to as a "person who files a formal objection, etc.") may request a ruling agency (in the case of a pre-assessment review under Article 81-15, referring to the head of a tax office or the commissioner of a regional tax office who issued notices under the subparagraphs of 81-15 (2); hereafter in this Article the same shall apply) to appoint an attorney-at-law, a certified tax accountant, or a certified public accountant registered pursuant to Article 20-2 (1) of the Certified Tax Accountant Act, as his or her representative (hereinafter referred to as "public representative"), as prescribed by Presidential Decree, after satisfying the following requirements: <Amended on Dec. 20, 2016; Dec. 31, 2019> |
| 1. | The amount of gross income under Article 14 (2) of the Income Tax Act and the value of property of a person who files a formal objection, etc., respectively, shall not exceed the amounts prescribed by Presidential Decree; |
| 2. | No person who files a formal objection, etc. shall be a corporation; |
| 3. | A formal objection or demand for examination shall not exceed the amount prescribed by Presidential Decree; |
| 4. | A formal objection or demand for examination shall be the formal objection to or demand for examination of tax items, other than inheritance tax, gift tax and comprehensive real estate holding tax. |
| (2) | Where a formal objection under paragraph (1) satisfies all the requirements under the subparagraphs of paragraph (1), a ruling agency shall immediately appoint a public representative; and notify a person who files a formal objection, etc. and the public representative of the result thereof within five days from the date it receives a formal objection. |
| (3) | Article 59 (4) concerning a representative shall apply to the authority of the public representative. |
| (4) | Matters necessary for the operation of the public representative system, such as qualifications, management, etc. of public representatives, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 23, 2014]
| Article 60 (Notification of Methods of Protest) |
| (1) | A ruling agency that makes a decision on a formal objection or a request for examination or adjudgment shall specify in a notice of decision that any person who has filed such objection may make a request for examination or adjudgment, and one who has filed such request for examination or adjudgment may institute an administrative litigation, respectively, within 90 days after he or she receives the notice of decision. |
| (2) | When a ruling agency that makes decide on an objection or a request for examination or adjudgment fails to make a decision after the expiration of the period of decision on such objection or request, the agency shall immediately notify, in writing, the person who has filed such objection that he or she may make a request for examination or adjudgment, and one who has filed such request for examination or adjudgment that he or she may institute an administrative litigation, once the prescribed period of decision elapses, even before he or she receives the notice of such decision. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 60-2 (Appeal through Information and Communications Networks) |
| (1) | Any person who raises an objection, or makes a request for examination or adjudgment may submit a written objection, request for examination or adjudgment through the information and communications network operated by the Commissioner of the National Tax Service or the Director of the Tax Tribunal. |
| (2) | In cases of submission of an objection, written request for examination, or written request for adjudgment under paragraph (1), the objection, written request for examination, or written request for adjudgment shall be deemed submitted under this Act when it is transmitted to the Commissioner of the National Tax Service or the Director of the Tax Tribunal. |
[This Article Newly Inserted on Dec. 31, 2018]
| Article 61 (Period of Request) |
| (1) | Any request for examination shall be made within 90 days from the date when the disposition concerned is known (if notice of the disposition is issued, the date when such notice is received). |
| (2) | If a person intends to file a request for examination after filing an objection, he or she shall file such request within 90 days after being notified of the decision on the objection: Provided, That he or she has not received the notification of the decision within the period for decision prescribed in Article 66 (7), he or she may file a request for examination from the date when the prescribed period for decision elapses, even before being notified of the decision. <Amended on Dec. 20, 2016> |
| (3) | If a written request for examination submitted by mail within the period referred to in paragraphs (1) and the main clause of paragraph (2) (based on the date prescribed in Article 5-2) arrives after the request period expires, it shall be considered that a lawful request has been made on the last day of such period. |
| (4) | Where a person cannot file a request for examination within the period referred to in paragraph (1) due to reasons under Article 6, he or she may file such request for examination within 14 days from the date when such reason ceases to exist. In such cases, he or she shall submit documents stating the reasons, the date when the reasons occur, the date when the reasons cease to exist, and other necessary matters. <Amended on Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 62 (Procedure of Request) |
| (1) | Any request for examination shall be filed with the Commissioner of the National Tax Service through the head of a tax office who has made or should have made the disposition in question, with the ground for protest prepared, as prescribed by Presidential Decree. |
| (2) | For computing the period of request for examination under Article 61, the request shall be deemed complete when it is filed with the head of a tax office under paragraph (1). The same shall apply even if it is filed with the head of another tax office, other than the head of a tax office referred to in paragraph (1), the commissioner of a regional tax office or the commissioner of the National Tax Service. |
| (3) | The head of a tax office that receives the relevant request pursuant to paragraph (1) shall send it to the Commissioner of the National Tax Service, along with a written opinion specifically stating grounds and reasons for a disposition, the fact that constitutes reasons for a disposition, etc. within seven days from the date of the receipt thereof: Provided, That in cases of any request for examination falling under the following subparagraphs, a written opinion by the commissioner of a regional tax office shall be attached to the request for examination: <Amended on Dec. 15, 2015> |
| 1. | Where the disposition subject to the request for examination was or should have been investigated, decided or settled by the commissioner of a regional tax office; |
| 2. | Where any person who has filed an objection with the commissioner of a regional tax office has an objection against the decision thereon or has failed to receive the decision thereon. |
| (4) | Where the head of a tax office submits a written opinion under paragraph (3), the Commissioner of the National Tax Service shall immediately send the relevant written opinion to a person who has made a request for an examination. <Newly Inserted on Dec. 15, 2015> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 63 (Supplementation or Correction of Request Form) |
| (1) | If the Commissioner of the National Tax Service finds that the substance or procedure of a request for examination does not conform to the provisions of this Act or other tax-related statutes, and that it can be supplemented or corrected, he or she may demand supplementation or correction thereof by fixing a period not exceeding 20 days: Provided, That if matters to be supplemented or corrected is insignificant, the Commissioner of the National Tax Service may supplement or correct them ex officio. |
| (2) | Upon receipt of a request under paragraph (1), a person who requests an examination may prepare in writing matters to be amended and submit them to the Commissioner of the National Tax Service, or may visit the National Tax Service to state the information to be amended and make an amendment by affixing his or her seal or signature to a document containing said information recorded by a public official of the National Tax Service. <Amended on Dec. 31, 2018> |
| (3) | The period of amendment under paragraph (1) shall not be counted in that of request for examination provided in Article 61. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 63-2 (Evidential Documents or Evidence) |
| (1) | A person who requests an examination may submit evidential documents or evidence to the Commissioner of the National Tax Service to protest against a written opinion forwarded pursuant to Article 62 (4). |
| (2) | Where the Commissioner of the National Tax Service requests submission of evidential documents or evidence provided for in paragraph (1) by fixing a deadline, the person who requests an examination shall submit the relevant evidential documents or evidence by such deadline. |
| (3) | Where evidential documents are submitted pursuant to paragraphs (1) and (2), the Commissioner of the National Tax Service shall forward the copies of the evidential documents to the head of the relevant tax office and to the commissioner of the relevant regional office of the National Tax Service without delay. |
[This Article Newly Inserted on Dec. 19, 2017]
| Article 64 (Procedure of Decision) |
| (1) | The Commissioner of the National Tax Service shall, upon receiving a request for examination, decide upon it according to the resolution by the National Tax Examination Committee: Provided, That this shall not apply where a request for examination, etc. has been filed after the period of request elapsed or any grounds prescribed by Presidential Decree occur. <Amended on Dec. 31, 2019> |
| (2) | Where the Commissioner of the National Tax Service deems that a decision of the National Tax Examination Committee under paragraph (1) is clearly in violation of statutes or regulations, he or she may request, in writing, that the National Tax Examination Committee re-deliberate such matter only once by stating grounds for such request. <Newly Inserted on Dec. 31, 2019> |
| (3) | Meetings of the National Tax Examination Committee shall not be made public: Provided, That where deemed necessary by the chairperson of said Committee, they may be open to the public. <Amended on Dec. 31, 2019> |
[This Article Wholly Amended on Jan. 1, 2010]
| (1) | A decision on a request for examination shall be rendered as follows: <Amended on Jan. 1, 2013; Dec. 20, 2016> |
| 1. | Where a request for examination falls under any of the following cases, a decision to reject such request shall be rendered: |
| (a) | Where a request for examination is filed after a request for adjudication is filed (including where such requests are filed on the same date); |
| (b) | Where a request for examination is filed after the period for filing a request prescribed in Article 61 lapses; |
| (c) | When neither necessary supplementation nor correction is made within the period for supplementation or correction set out in Article 63 (1) after a request for examination is filed; |
| (d) | Where a request for examination is not legal; |
| (e) | Cases similar to those in compliance with subparagraphs (a) through (d), prescribed by Presidential Decree; |
| 2. | When a request for examination is deemed groundless, a decision to dismiss such request shall be rendered; |
| 3. | When a request for examination is deemed reasonable, a decision for revocation or correction of the disposition against which the request is rendered, or other necessary dispositions shall be rendered: Provided, That where additional investigation, such as verification of the facts, is necessary for revocation, correction or necessary dispositions, a decision on re-investigation may be rendered to allow an disposition agency to re-investigate it; and then to revoke, correct or issue necessary dispositions according to the results thereof. |
| (2) | A decision under paragraph (1) shall be made within 90 days after a request for examination is received. |
| (3) | When a decision under paragraph (1) is rendered, it shall be notified to the person who has filed the request, by a written decision with the reasons stated therein, within the period for decision provided under paragraph (2). |
| (4) | No period for supplementation or correction prescribed in Article 63 (1) shall be counted in the period for decision under paragraph (2). |
| (5) | Where a decision on re-investigation is rendered under the proviso of paragraph (1) 3, a disposition agency shall conduct an investigation within the limited scope as stated in the text of the decision within 60 days from the date when the decision on re-investigation is rendered; and revoke, correct, or take necessary dispositions according to the results thereof. In such cases, a disposition agency may postpone the investigation, extend the period for investigation, or suspend the investigation under Articles 81-7 and 81-8. <Newly Inserted on Dec. 20, 2016> |
| (6) | Except as provided in the proviso of paragraph (1) 3 and in paragraph (5), matters necessary for decisions on re-investigation shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 20, 2016> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 65-2 (Correction of Decision) |
| (1) | Where it is apparent that erroneously recorded items, erroneous calculations or other errors similar thereto exists in the decision on a request for examination, the Commissioner of the National Tax Service may correct them either ex officio or upon request of the applicant. |
| (2) | Detailed procedures for making corrections under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 65-3 (Nemo Iudex Sine Actore and Prohibition of Reformatio in Peius) |
| (1) | In rending a decision under Article 65, the Commissioner of the National Tax Service shall not revoke or modify all or part of disposition, other than the disposition subject to request for examination nor render a decision on a new disposition. |
| (2) | In rendering a decision under Article 65, the Commissioner of the National Tax Service shall not render a decision unfavorable to the claimant than the disposition against which the request for examination was made. |
[This Article Newly Inserted on Dec. 31, 2018]
| Article 66 (Raising Objections) |
| (1) | An objection shall be filed with the head of a tax office who has issued or should have issued the relevant disposition, or with the commissioner of the competent regional tax office through the head of a tax office, with the ground for protest prepared, as prescribed by Presidential Decree: Provided, That if any of the following events occurs, an objection shall be filed with the commissioner of the competent regional tax office; and an objection filed with the head of a tax office shall be deemed filed with the commissioner of the competent regional tax office: <Amended on Jan. 1, 2010; Jan. 1, 2013; Dec. 31, 2019> |
| 1. | Where the disposition of taxation has been issued according to the investigation by the commissioner of the competent regional tax office; |
| 2. | Where a pre-assessment review has been requested to the head of a tax office under Article 81-15. |
| (2) | If the disposition subject to objection has been or should have been investigated, decided or settled by the commissioner of a regional tax office, the head of a tax office shall forward the objection to the relevant commissioner of the regional tax office, along with the relevant application stating opinions, within seven days from the date of receipt of the objection filed and notify the person who has filed the objection of such fact. <Amended on Jan. 1, 2010> |
| (3) | The head of a tax office in receipt of an objection addressed to the commissioner of a regional tax office under paragraph (1) shall forward the objection to the commissioner of the regional tax office, along with the relevant application stating opinions, within seven days from the date of receipt of the objection filed. <Amended on Jan. 1, 2010> |
| (4) | The head of a tax office and the commissioner of a regional tax office, in receipt of the objection filed under paragraphs (1) and (2), shall respectively make a decision thereon, following the deliberation of the National Tax Examination Committee. <Amended on Jan. 1, 2010> |
| (5) | Deleted. <Dec. 26, 2008> |
| (6) | Articles 61 (1), (3), and (4), 62 (2), 63, 63-2, the proviso of Article 64 (1), paragraph (3) of the same Article, 65 (1), (3) through (6), 65-2, and 65-3 shall apply mutatis mutandis to filing an objection. <Amended on Jan. 1, 2010; Dec. 20, 2016; Dec. 19, 2017; Dec. 31, 2018; Dec. 22, 2020> |
| (7) | A decision prescribed in Article 65 (1) applied mutatis mutandis in paragraph (6), shall be rendered within 30 days from the date when an objection is filed: Provided, That where a person who has filed an objection files a plea to a written opinion served under paragraph (8) within the period for decision prescribed in the main clause of this paragraph, such decision shall be rendered within 60 days from the date when the objection is filed. <Newly Inserted on Dec. 20, 2016> |
| (8) | The head of a tax office in receipt of an objection filed under paragraph (1) or the commissioner of a regional tax office in receipt of an objection filed or written opinion forwarded under paragraphs (1) through (3), shall immediately forward a written opinion on the disposition subject to the objection, to a person who has filed the objection. In such cases, grounds and reasons for the disposition, the fact that constitutes reasons for the disposition, etc., shall be specifically stated in the written opinion. <Newly Inserted on Dec. 15, 2015; Dec. 20, 2016> |
[Title Amended on Dec. 31, 2007]
| Article 66-2 (National Tax Examination Committee) |
| (1) | Tax offices, regional tax offices, and the National Tax Service shall each have a national tax examination committee to deliberate and decide on matters concerning requests for examination under Article 64 (limited to request for examination under Article 64), filing an objection under Article 66 and requests for pre-assessment review under Article 81-15. <Amended on Jan. 1, 2010; Dec. 31, 2019> |
| (2) | Non-public official members among the members of the national tax examination committees shall be the following persons with abundant knowledge of and experience in law or accounting (in cases of members who are not public officials among members of the national tax examination committees, those with qualifications prescribed by Presidential Decree): <Newly Inserted on Dec. 19, 2017; Dec. 31, 2019> |
| 1. | In cases of national tax examination committees established in tax offices: Person commissioned by the commissioner of the regional tax office; |
| 2. | National tax examination committees established in the regional tax offices and in the National Tax Service: Persons commissioned by the Commissioner of the National Tax Service. |
| (4) | Where it is deemed difficult to expect a fair deliberation by a member of a national tax examination committee, such member shall be excluded or abstain himself/herself from meetings of the national tax examination committee, as prescribed by Presidential Decree. <Newly Inserted on Dec. 23, 2014; Dec. 19, 2017>> |
| (5) | The organization and operation of a national tax examination committee, matters for deliberation by each committee and other necessary matters, shall be prescribed by Presidential Decree. <Amended on Dec. 23, 2014; Dec. 19, 2017>> |
[This Article Newly Inserted on Dec. 26, 2008]
| Article 67 (Tax Tribunal) |
| (1) | In order to decide on requests for adjudgment, a Tax Tribunal shall be established under the jurisdiction of the Prime Minister. |
| (2) | The Tax Tribunal shall independently perform duties under its authority. |
| (3) | The Tax Tribunal shall have the commissioner and tax judges; the commissioner and regular tax judges shall be appointed by the President with the recommendation of the Prime Minister, from among public officials in general service belonging to the Senior Civil Service, and non-regular tax judges shall be commissioned, as prescribed by Presidential Decree. In such cases, regular tax judges (excluding regular tax judges appointed by means of transfer or promotion, who are public officials in career service) other than the commissioner, shall be appointed as public officials with the term of office. <Amended on Jan. 1, 2014; Dec. 23, 2014> |
| (4) | The tax judges shall have qualifications prescribed by Presidential Decree, as well as expertise and experience in the fields of tax, law, and accounting. |
| (5) | Standing and non-standing tax judges shall hold office for a term of three years, and may be reappointed only once; and no tax judge shall be removed from office or dismissed against his or her will, unless he or she falls under any of the following subparagraphs: <Amended on Dec. 23, 2014; Dec. 31, 2018> |
| 1. | When a tax judge is sentenced to imprisonment without labor or heavier punishment; |
| 2. | Where a tax judge is unable to perform his or her duties due to a prolonged mental or physical illness. |
| (6) | Paragraph (5) shall not apply to a tax judge who is the commissioner. |
| (8) | Adjudication investigators in charge of investigating requests for adjudgment and assistant staff, shall be assigned to the Tax Tribunal; and their qualifications shall be determined by Presidential Decree. <Amended on Dec. 27, 2010; Dec. 19, 2017> |
| (9) | Matters on personnel, organization and administration of the Tax Tribunal and other necessary matters, shall be determined by Presidential Decree. <Amended on Dec. 19, 2017> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 68 (Period of Request) |
| (1) | Any request for adjudgment shall be filed within 90 days after the relevant disposition is known (when a notice of disposition is received, the date of its receipt). |
| (2) | Article 61 (2) shall apply mutatis mutandis to the period of request where a request for adjudgment is made after filing an objection. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 69 (Procedures for Request) |
| (1) | Any person who intends to make a request for adjudgment shall submit a written request for adjudgment, stating the grounds for appeal, etc., to the head of the tax office or the Director of the Tax Tribunal who has imposed or should have imposed the disposition, as prescribed by Presidential Decree. In such cases, the director of the tax office who has received the request for adjudgment shall, without delay, forward said request to the Director of the Tax Tribunal." <Amended on Dec. 31, 2018> |
| (2) | When calculating a period of request for adjudgment under Article 68, a request for adjudgment shall be deemed made even if a written request is submitted to the head of a tax office other than the head of the tax office under former part of paragraph (1), commissioner of a relevant regional tax office, or the Commissioner of the National Tax Service. In such cases, the head of the tax office, the commissioner of the relevant regional tax office, or the Commissioner of the National Tax Service shall, upon receipt of request for adjudgment, forward said request to the Director of the Tax Tribunal without delay. <Amended on Dec. 31, 2018> |
| (3) | Where the Director of the Tax Tribunal receives a request for adjudgment pursuant to the former part of paragraph (1) or the latter part of paragraph (2), he or she shall, without delay, send a duplicate of such request to the head of the tax office who imposed or should have imposed such disposition. <Newly Inserted on Dec. 31, 2018> |
| (4) | The head of a relevant tax office who receives a written request under the former part of paragraph (1) or who receives a duplicate of such request under paragraph (3) shall send said request to the Director of the Tax Tribunal, along with a reply within 10 days from the date of receipt: Provided, That in cases of any disposition falling under Articles 55 (3) and the proviso of Article 62 (3), the reply of the Commissioner of the National Tax Service or of a commissioner of a regional tax office shall be attached thereto. <Amended on Dec. 27, 2010; Dec. 31, 2018>T |
| (5) | A reply under paragraph (4) shall be accompanied with a written decision on the filing of objection (limited to where a decision on such objection is made), a ground and reason for disposition, documents verifying the facts underlying the reason for disposition, evidentiary documents and exhibits submitted by a claimant, and all data on examinations. <Amended on Dec. 31, 2018; Jun. 9, 2020> |
| (6) | Where a reply is submitted pursuant to paragraph (4), the Director of the Tax Tribunal shall immediately forward a copy thereof to the claimant for adjudgment in question. <Amended on Dec. 31, 2018> |
| (7) | Where the head of a tax office fails to submit a written reply by the deadline specified under the main clause of paragraph (4), the Director of the Tax Tribunal may demand the submission of a written reply by fixing a deadline. <Newly Inserted on Dec. 31, 2018> |
| (8) | Where the head of a tax office fails to submit a written reply by the deadline under paragraph (7), the Director of the Tax Tribunal may allow the examination procedure to proceed through investigation of evidence, etc. under the proviso of Article 56 (1). <Newly Inserted on Dec. 31, 2018> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 70 Deleted. <Aug. 31, 1999> |
| Article 71 (Evidentiary Document or Exhibit) |
| (1) | Where claimant for adjudgment intends to file a plea to the reply note received under Article 69 (6), he or she may submit evidentiary documents or exhibits to the Director of the Tax Tribunal. <Amended on Dec. 31, 2018> |
| (2) | If the Director of the Tax Tribunal demands that the claimant for adjudgment submit evidentiary documents or exhibits under paragraph (1) by fixing a deadline, the claimant shall submit them by the fixed deadline. |
| (3) | Where the evidentiary documents are submitted pursuant to paragraph (1), the Director of the Tax Tribunal shall immediately forward the copies thereof to the other party to the claim. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 72 (Council of Tax Judges) |
| (1) | The Director of the Tax Tribunal shall, upon request for adjudgment, designate a chief tax judge and two or more associate tax judges in order to take charge of investigation and examination on the request, and require them to form the Council of Tax Judges. |
| (2) | The chief tax judge shall preside over the Council of Tax Judges under paragraph (1), and the chairperson shall assume the overall control over the affairs of the relevant adjudgment case: Provided, That where the chief tax judge is unable to perform his or her duties due to unavoidable reasons, the Director of the Tax Tribunal shall designate one to act for the chairperson, from among associate tax judges. |
| (3) | The Council of Tax Judges shall convene with the attendance of two thirds or more of tax judges, and adopt resolutions by the affirmative vote of the majority of tax judges present. |
| (4) | Meetings of the Council of Tax Judges are not open to the public: Provided, That where the chairperson of the Council of Tax Judges deems it necessary, they may be open to the public. |
| (5) | The administration of the Council of Tax Judges and other necessary matters shall be determined by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 73 (Exclusion and Refrainment of Tax Judges) |
| (1) | Tax judges falling under any of the following subparagraphs shall be excluded from participating in the adjudgment: <Amended on Dec. 27, 2010; Dec. 23, 2014; Dec. 31, 2018> |
| 1. | A relative of a claimant for adjudgment or the representative under Article 59 (including cases where he or she has been the representative); |
| 2. | A person who is or was a blood relative of a person prescribed in subparagraph 1; |
| 3. | A person who is or was an employer of a person prescribed in subparagraph 1; |
| 4. | A person who has provided a testimony to or made an appraisal of the disposition which is the object of an appeal or on the filing of an objection to the disposition; |
| 5. | A person who has participated in the disposition which is the object of an appeal or in filing of an objection to the disposition, or in tax investigation that has formed a basis of such appeal (including investigation of tax offenses under the Procedure for the Punishment of Tax Offenses Act); |
| 6. | Where a person belongs to a corporation or organization falling under subparagraph 4 or 5, or belonged to such corporation or organization within the last five years before he or she files a demand for adjudgment; |
| 7. | Where a person participates or participated in the business of a person who files a demand for adjudgment or his or her representative. |
| (2) | Where a tax judge falls under any of the subparagraphs of paragraph (1), he or she shall refrain himself/herself from being designated as a chief or associate tax judge under Article 72 (1). <Amended on Dec. 27, 2010; Dec. 23, 2014> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 74 (Challenge of Tax Judges in Charge) |
| (1) | If a claimant deems it difficult to anticipate impartial adjudgment from tax judges in charge, he or she may challenge them. |
| (2) | A request for challenge under paragraph (1) shall be made to the Director of the Tax Tribunal, as prescribed by Presidential Decree. |
| (3) | When the Director of the Tax Tribunal finds the request for challenge is reasonable, he or she shall approve such request. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 74-2 (Exclusion, Refrainment or Challenge of Adjudication Investigator) |
Articles 73 and 74 shall also apply mutatis mutandis to the adjudication investigator who participates in the adjudgment. [This Article Newly Inserted on Dec. 27, 2010]
| Article 75 (Joinder and Separation of Cases) |
Tax judges in charge may, if necessary, merge several cases into one, or separate merged cases into several cases.
[This Article Wholly Amended on Jan. 1, 2010]
| Article 76 (Rights to Question and Inspect) |
| (1) | If it is necessary for investigation and examination into a request for adjudgment, tax judges in charge may, ex officio or upon request by a claimant perform any of the following conducts: <Amended on Dec. 31, 2019> |
| 1. | Inquiring of a claimant, agency which made a disposition (including the head of a tax office or the commissioner of a regional tax office having jurisdiction over a person directly related to the transaction at issue in a case adjudication in which is requested), relevant person, or witness; |
| 2. | Demanding to present books, documents and other articles kept by those referred to in subparagraph 1; |
| 3. | Inspecting books, documents or other articles belonging to those referred to in subparagraph 1, or requesting appraisal to an appraisal institution. |
| (2) | Any officials, other than tax judges, belonging to the Tax Tribunal may perform acts under paragraph (1) 1 and 3, by the order of the Director of the Tax Tribunal. |
| (3) | When tax judges and other officials of the Tax Tribunal perform acts under paragraph (1) 1 and 3, they shall carry a certificate indicating their status and produce them to persons concerned. |
| (4) | If tax judges in charge deem that it may be substantially difficult to judge the whole or part of request for adjudgment because a claimant does not respond, without good cause, to acts under the subparagraphs of paragraph (1) or to a request under Article 71 (2), they may not admit any claim by the claimant with regard to that part. <Amended on Jun. 9, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 77 (Judgment of Fact) |
Tax judges shall make decisions based on free will, taking into consideration the results of investigations and examinations concerning a request for adjudgment and the equality of taxation.
[This Article Wholly Amended on Jan. 1, 2010]
| Article 78 (Procedure of Decision) |
| (1) | Where the Director of the Tax Tribunal receives a request for adjudgment, the Council of Tax Judges shall decide thereon upon deliberation: Provided, That if the object of such request for adjudgment is a small amount less than that prescribed by Presidential Decree or any minor matter, or if such request is made after a period of request expires, the chief tax judge may examine and make a decision thereon without undergoing deliberation thereon by the Council of Tax Judges. |
| (2) | Where a meeting comprised of the Director of the Tax Tribunal and regular tax judges decide that a resolution passed by the Council of Tax Judges prescribed in paragraph (1) falls under any of the following cases by the method prescribed by Presidential Decree, the Joint Session of Tax Judges shall make a decision thereon following deliberation: <Amended on Dec. 20, 2016; Dec. 31, 2019> |
| 1. | Where the interpretation of the tax-related statutes is controversial in the relevant case of request for adjudication, and no former decision by the Tax Tribunal thereon exists; |
| 2. | Where it is intended to change the former interpretations or applications made by the Tax Tribunal, of the tax-related statutes; |
| 3. | Where it is intended to maintain consistency in decisions made by the Council of Tax Judges; |
| 4. | Other cases prescribed by Presidential Decree, such as where national tax administration or the rights and duties of taxpayers are expected to be greatly affected. |
| (3) | The Joint Session of Tax Judges under paragraph (2) shall be comprised of the Director of the Tax Tribunal, all of standing tax judges, and non-standing tax judges designated by the Director of the Tax Tribunal in the same number as that of standing tax judges or more. |
| (4) | Article 72 (2) through (4) shall apply mutatis mutandis to the Joint Session of Tax Judges under paragraph (2). In such cases, "chief national tax judge" in paragraph (2) of the same Article shall be construed as "Director of the Tax Tribunal", and "Council of Tax Judges" as "Joint Session of Tax Judges,” respectively. |
| (5) | The decision on adjudgment shall be made in writing, and the text and reasons thereof shall be written in a decision, clearly stating the names of tax judges who have participated in examination, and the said decision shall be sent to the relevant claimant and the head of the relevant tax office. |
| (6) | Matters necessary for the administration of the joint sessions of tax judges and the delivery, etc. of decision documents, shall be determined by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 79 (Nemo Judex Sine Actore and Prohibition of Disadvantageous Modification) |
| (1) | In making a decision under Article 65 which applies mutatis mutandis to Article 81, the Council of Tax Judges or the Joint Session of Tax Judges shall not revoke or modify all or part of dispositions, other than the subject of tax appeals, or make a decision on a new disposition. |
| (2) | In making a decision under Article 65 which applies mutatis mutandis to Article 81, the Council of Tax Judges or the Joint Session of Tax Judges shall not make a decision giving more disadvantage to the claimant than the disposition against which the request was made. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 80 (Effect of Decision) |
| (1) | The decision under Article 65 applicable mutatis mutandis in Article 81 shall bind the administrative agencies concerned. |
| (2) | When a decision on a request for adjudgment is made, the competent administrative agency shall immediately take necessary disposition in accordance with the intent of the decision. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 81 (Application Mutatis Mutandis of Provisions concerning Request for Examination) |
Article 61 (3) and (4), Articles 63, 65 (in cases of paragraph (1) 1 (a), excluding where a request for examination and a request for adjudgment are filed on the same date) and 65-2 shall apply mutatis mutandis to any request for adjudgment: Provided, That "period not exceeding 20 days" in Article 63 (1) shall be construed as "reasonable period". <Amended on Jan. 1, 2013; Dec. 20, 2016> [This Article Wholly Amended on Jan. 1, 2010]
CHAPTER VII-2 RIGHTS OF TAXPAYERS
| Article 81-2 (Establishment and Delivery of Taxpayers' Right Charter) |
| (1) | The Commissioner of the National Tax Service shall establish and publish the taxpayers' right charter which contains the matters prescribed in Articles 81-3 through 81-16, 81-18, and 81-19 and other matters concerning the protection of taxpayers' rights. <Amended on Dec. 19, 2017> |
| (2) | A tax official shall deliver a document that states the details of the taxpayers' rights charter under paragraph (1) to taxpayers, where the tax official falls under any of the following subparagraphs: <Amended on Dec. 31, 2011; Dec. 19, 2017; Dec. 31, 2018> |
| 2. | Deleted; <Dec. 31, 2011> |
| 3. | Where he or she issues a business registration certificate; |
| 4. | Other cases prescribed by Presidential Decree. |
| (3) | A tax official who undertakes tax investigation shall produce the investigator identification card to the relevant taxpayer or related persons; deliver the taxpayers' rights charter and read out the gist thereof; and explain the reason for investigation, investigation period, matters requested for deliberation by the taxpayer protection committee provided for in Article 81-18 (1) and the procedures thereof, remedy procedures, etc. <Newly Inserted on Jan. 1, 2014; Dec. 19, 2017> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 81-3 (Presumption of Taxpayer's Sincerity) |
A tax official shall presume that a taxpayer is sincere and the return, etc. submitted by him or her is true, unless the taxpayer falls under any subparagraph of Article 81-6 (3). <Amended on Jan. 1, 2014> [This Article Newly Inserted on Dec. 30, 2006]
[Previous Article 81-3 moved to Article 81-4 <Dec. 30, 2006>]
| Article 81-4 (Prohibition of Abuse of Authority to Investigate Tax-Related Matters) |
| (1) | A tax official shall conduct a tax investigation (including investigation of tax offenses under the Procedure for the Punishment of Tax Offenses Act; hereafter in this Article the same shall apply) to the minimum extent necessary to ensure appropriate and fair taxation, and shall not abuse his or her authority to investigate tax-related matters for other purposes, etc. <Amended on Dec. 31, 2018> |
| (2) | No tax officials shall re-investigate the same item of taxes and for the same taxable period, except in any of the following cases: <Amended on Jan. 1, 2013; Dec. 23, 2014; Dec. 15, 2015; Dec. 20, 2016; Dec. 19, 2017; Dec. 31, 2018> |
| 1. | Where obvious evidence exists to admit a suspicion of tax evasion; |
| 2. | Where it is necessary to investigate a party to a transaction; |
| 3. | Where faults are found in connection with at least two taxable periods; |
| 4. | Where an investigation is conducted in accordance with a decision on re-investigation under the proviso of Article 65 (1) 3 (including cases applied mutatis mutandis in Articles 66 (6) and 81) or under the proviso of Article 81-15 (5) 2 (limited to investigations within the scope as stated in the text of a decision); |
| 5. | Where a taxpayer provides a tax official with money and other valuables or helps a person provide a tax official with money and other valuables in relation to the duties of the tax official; |
| 6. | Where an investigation is conducted into a part not included in the relevant investigation, after a partial investigation provided for in Article 81-11 (3) is conducted; |
| 7. | Other cases prescribed by Presidential Decree, which are similar to subparagraphs 1 through 6. |
| (3) | A tax official shall request the submission of account books, etc. within the minimum scope necessary for tax investigation; and shall not request the submission of account books, etc. irrelevant to the tax items subject to investigation and to the calculation of tax bases and tax amounts of taxable periods. <Newly Inserted on Dec. 19, 2017> |
| (4) | No person shall engage in a conduct that impedes a fair tax investigation, including making a tax official violate any Act or subordinate statutes or abuse his or her power. <Newly Inserted on Jan. 1, 2014; Dec. 19, 2017> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 81-5 (Right to Receive Help in Tax Investigation) |
Where a taxpayer is subjected to a tax investigation (including investigation of tax offenses under the Procedure for the Punishment of Tax Offenses Act), he or she may arrange for a lawyer, a certified public accountant, or a certified tax accountant to attend the investigation or to state his or her opinion. <Amended on Dec. 31, 2011; Dec. 31, 2018> [This Article Wholly Amended on Jan. 1, 2010]
| Article 81-6 (Jurisdiction over Tax Investigation and Selection of Persons Subject to Tax Investigation) |
| (1) | A tax investigation shall be conducted by the head of a tax office or the commissioner of a regional tax office having a jurisdiction over the place of tax payment: Provided, That the Commissioner of the National Tax Service (the commissioner of a regional tax office in cases of rearranging jurisdictions of tax offices under the jurisdiction of the same regional tax office) may rearrange the jurisdiction in cases prescribed by Presidential Decree, including where a jurisdiction over the principal business place, etc. of the taxpayer is not the same as a jurisdiction over the place of tax payment, or it is not proper for the head of the competent tax office or the commissioner of the competent regional tax office to conduct the tax investigation. <Newly Inserted on Jan. 1, 2014> |
| (2) | In any of the following cases, a tax official may periodically select taxpayers (hereinafter referred to as "periodic selection") subject to tax investigation to verify the propriety of returns. In such cases, the tax official shall fairly select such taxpayers in accordance with objective criteria: <Amended on Jan. 1, 2013; Jan. 1, 2014; Dec. 19, 2017> |
| 1. | Where the Commissioner of the National Tax Service acknowledges that a taxpayer is suspected to be non-compliant from the findings of periodic compliance analysis of the taxpayer's tax returns, which takes into consideration accounting compliance materials, such as materials for assessment, tax affair information, and auditor's opinions and reports by external audit, etc. prescribed by the Act on External Audit of Stock Companies; |
| 2. | Where it is necessary to verify whether a taxpayer that has not been subject to a tax investigation for the same taxable items for at least four taxable periods has filed tax returns in a compliant manner, as prescribed by President Decree, considering the category and scale of his or her business, economic concentration, etc.; |
| 3. | Where a sample tax investigation is to be conducted under a random sampling method. |
| (3) | In addition to investigation by a periodic selection provided for in paragraph (2), a tax official may also conduct a tax investigation in any of the following cases: <Amended on May 2, 2011; Jan. 1, 2014; Dec. 15, 2015> |
| 1. | Where a taxpayer fails to fulfill his or her tax compliance obligations under tax-related statutes, such as filing a return, submitting a document certifying compliant filing, preparing, delivering, and submitting a tax invoice or an invoice, or preparing and submitting a payment record; |
| 2. | Where a taxpayer is suspected of false transactions, such as undocumented transactions or disguised or fictitious transactions; |
| 3. | Where concrete information on a taxpayer's tax evasion is reported; |
| 4. | Where an evident material exists to admit a suspicion of omissions or errors in the details of a return by a taxpayer; |
| 5. | Where a taxpayer provides a tax official with money and other valuables or helps a person provide a tax official with money and other valuables in relation to the duties of the tax official. |
| (4) | A tax official may conduct a tax investigation to determine the tax base and the tax amount for the taxable items fixed by a decision of investigation by tax authorities. <Amended on Jan. 1, 2014> |
| (5) | A tax official may choose not to conduct a tax investigation for a person that satisfies all the following requirements: Provided, That the same shall not apply where objective evidentiary materials obviously prove that the under-reported return has been filed: <Amended on Act No. Jan. 1, 2014> |
| 1. | An enterpriser whose amount of revenue by business category does not exceed the amount prescribed by Presidential Decree; |
| 2. | An enterpriser whose books and records meet the requirements prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Jul. 1, 2014]
| Article 81-7 (Notice of Tax Investigation and Requests for Postponement) |
| (1) | Where a tax official conducts a tax investigation, he or she shall give a notice (hereafter in this Article, referred to as "advance notice") to a taxpayer subject to an investigation (where the taxpayer designates a tax manager pursuant to Article 82 and reports such fact to the head of the competent tax office, referring to the tax manager; hereafter in this Article, the same shall apply) for the taxable items of investigation, the period of and reason for investigation, and other matters prescribed by Presidential Decree 15 days prior to the commencement of the investigation: Provided, That the same shall not apply where it is deemed that the purpose of investigation may not be attained because of possible destruction of evidence, etc. if advance notice is issued. <Amended on Dec. 31, 2011; Dec. 19, 2017; Dec. 31, 2018> |
| (2) | Where a taxpayer who has received an advance notice pursuant to paragraph (1) has difficulty in taking an investigation due to a natural disaster and other grounds prescribed by Presidential Decree, he or she may request the head of the competent tax office to postpone such investigation, as prescribed by Presidential Decree. <Amended on Dec. 19, 2017> |
| (3) | The head of the competent tax office who is requested to postpone investigation under paragraph (2), shall decide on whether such request is accepted and notify the taxpayer of the result of the decision before the investigation is commenced. |
| (4) | Where a tax official conducts a tax investigation without giving an advance notice pursuant to the proviso of paragraph (1), he or she shall deliver a notice of tax investigation including the following matters to the taxpayer to receive the tax investigation when commencing the tax investigation: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as the closure of business: <Newly Inserted on Dec. 19, 2017> |
| 1. | Matters to be notified in advance; |
| 2. | Grounds for failure to give an advance notice; |
| 3. | Other matters prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 19, 2017]
| Article 81-8 (Tax Investigation Period) |
| (1) | A tax official shall endeavor to shorten the tax investigation period to the minimum possible, in consideration of the taxable items of investigation, the category and scale of business, complexity of investigation, etc.: Provided, That the tax investigation period may be extended in any of the following cases: <Amended on Jan. 1, 2010; Dec. 31, 2011; Jan. 1, 2014; Dec. 31, 2018> |
| 1. | Where it is evident that a taxpayer has evaded investigation, by hiding books or documents, etc. or delaying or refusing the submission thereof; |
| 2. | Where it is necessary to investigate a place of transaction and conduct the on-the-spot confirmation of the transaction place or financial transactions; |
| 4. | Where the investigation is suspended due to a natural disaster or a labor dispute; |
| 5. | Where an official for taxpayer advocacy service or an official in charge under Article 81-16 (2) (hereinafter in this Article, referred to as “official for taxpayer advocacy service, etc.”) acknowledges that additional fact-checking is required in relation to the suspicion of tax evasion; |
| 6. | Where a person subject to tax investigation applies for the extension of the tax investigation period to clarify the suspicion of tax evasion, etc. and the official for taxpayer advocacy service, etc. accepts such application. |
| (2) | Where a tax official sets a tax investigation period pursuant to paragraph (1), the tax investigation period shall not exceed 20 days for the taxpayers whose annual income or transfer amount is less than ten billion won in the taxable period with the largest annual income or transfer amount of the entire taxable periods subject to tax investigation. <Newly Inserted on Jan. 1, 2010> |
| (3) | Where the tax investigation period set under paragraph (2) is extended pursuant to the proviso of paragraph (1), approval is required from the head of a competent tax office for the first extension of the period; while, after the first extension, approval is required from the head of a higher tax office, and the extension period shall be extended by up to 20 days, respectively: Provided, That restriction on the tax investigation period under paragraph (2) and restriction on the extended tax investigation period under the main clause of this paragraph, shall not apply in any of the following cases: <Newly Inserted on Jan. 1, 2010; Jan. 1, 2014; Dec. 23, 2014; Dec. 31, 2019> |
| 1. | Where investigation of the details of the actual transaction is required due to suspicion of untruthful description of transaction, such as undocumented transaction and disguised or fabricated transaction; |
| 2. | Where investigation is conducted on suspicion of tax evasion using cross-border trade or suspicion of irregular expatriation of the earnings from tax evasion accrued in the Republic of Korea; |
| 3. | Where investigation is conducted on suspicion of tax evasion through the use of fake names, double-entry book-keeping, use of borrowed accounts, omission of cash transactions, etc.; |
| 4. | Where investigation is conducted on suspicion of tax evasion through property speculation using false contracts, unregistered transfer of property, etc.; |
| 5. | Where investigation is conducted on an inheritance tax or gift tax case, stake transfer, or tax offense, or simultaneous investigation is conducted for persons in an investment or trade relationship. |
| (4) | Where it is impracticable to continue a tax investigation due to grounds prescribed by Presidential Decree, such as delay in the submission of data by a taxpayer, a tax official may suspend the tax investigation. In such cases, the suspended period shall not be counted in the tax investigation period and the extended period of tax investigation under paragraphs (1) through (3). <Newly Inserted on Jan. 1, 2010> |
| (5) | During the period of suspending a tax investigation provided for in paragraph (4), a tax official shall not ask questions to the taxpayer to determine or correct the tax base and tax amount of national taxes; nor inspect or investigate account books, etc. or request the submission thereof. <Newly Inserted on Dec. 19, 2017> |
| (6) | When a tax official suspends a tax investigation under paragraph (4), he or she shall immediately resume the tax investigation when the grounds for suspension are eliminated: Provided, That the tax investigation may resume when it is necessary to do so urgently, such as securing tax claims, etc. <Newly Inserted on Jan. 1, 2010; Dec. 19, 2017> |
| (7) | When a tax official intends to extend a tax investigation period in accordance with the proviso of paragraph (1), he or she shall notify the ground and period of such extension in writing to the taxpayer; where he or she suspends or resumes a tax investigation under paragraphs 4 and 6, he or she shall notify the taxpayer of the ground thereof in writing. <Amended on Jan. 1, 2010; Dec. 19, 2017> |
| (8) | A tax official shall endeavor to shorten the tax investigation period to the minimum possible and may close the investigation prior to the expiration of the investigation period if he or she determines that further investigation is unnecessary after reviewing the transparency of book-keeping and accounting and other taxation faithfulness of the relevant person. <Newly Inserted on Jan. 1, 2014; Dec. 19, 2017> |
[This Article Newly Inserted on Dec. 30, 2006]
[Previous Article 81-8 moved to Article 81-10 <Dec. 30, 2006>]
| Article 81-9 (Restriction on Extending Scope of Tax Investigation) |
| (1) | A tax official shall not extend the scope of a tax investigation under progress, except in cases prescribed by Presidential Decree, such as where it is confirmed that specific suspicion of tax evasion exists for several taxable periods or is related to other items of tax. |
| (2) | A tax official shall, when he or she extends the scope of a tax investigation pursuant to paragraph (1), notify the reasons and scope thereof to a taxpayer in writing. |
[This Article Newly Inserted on Jan. 1, 2010]
| Article 81-10 (Prohibition of Keeping Account Books, etc.) |
| (1) | No tax official shall keep account books, etc. of taxpayers at his or her discretion in the tax office for the purpose of tax investigation (including investigation of tax offenses under the Procedure for the Punishment of Tax Offenses Act; hereafter in this Article the same shall apply). <Amended on Dec. 31, 2018> |
| (2) | Notwithstanding paragraph (1), for any of the grounds falling under subparagraphs of Article 81-6 (3), a tax official may temporarily keep account books, etc., which are submitted at the discretion of persons with justifiable rights, such as taxpayers, holders or keepers, at the tax office by obtaining consent from the taxpayer, within the minimum scope necessary for the purpose of investigation. |
| (3) | Where a tax official intends to temporarily keep the account books, etc. of a taxpayer at the tax office pursuant to paragraph (2), he or she shall obtain consent from the taxpayer for such temporary keeping, and deliver a certificate of temporary keeping. |
| (4) | Where a taxpayer requests the return of the account books, etc. kept temporarily pursuant to paragraph (2), the tax official shall return the account books, etc. within 14 days from the date when the return is requested: Provided, That the period of keeping may be extended within the scope of 14 days only once following deliberation by the taxpayer protection committee provided for in Article 81-18 (1), if necessary to attain the purpose of investigation. |
| (5) | Notwithstanding paragraph (4), where the taxpayer requests to return the account books, etc. kept temporarily pursuant to paragraph (2) and the tax official determines that such return will cause no obstacle to tax investigation, the account books, etc. requested shall be returned immediately. |
| (6) | Where accounts books, etc. are returned to the taxpayer pursuant to paragraphs (4) and (5), the tax official may keep copies of the account books, etc., and may request the taxpayer's sign or seal to verify that the copies are the same as the originals. |
| (7) | Matters necessary for the methods, procedures, etc. for the temporary keeping of account books, etc. in addition to those provided for in paragraphs (1) through (6), shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Dec. 19, 2017]
| Article 81-11 (Principle of Integrated Investigation) |
| (1) | In principle, a tax investigation shall be conducted, integrating the items of tax subject to the duty to return and pay in accordance with tax-related statutes with respect to the business of a taxpayer. <Amended on Dec. 19, 2017> |
| (2) | Notwithstanding paragraph (1), in any of the following cases, only specific tax items may be investigated: <Newly Inserted on Dec. 19, 2017> |
| 1. | Where it is necessary to investigate specific tax items in consideration of the characteristics of tax items, taxpayer's type of return, business scale or suspicion of tax evasion, etc.; |
| 2. | Where it is necessary to investigate specific tax items urgently for the security of tax claims, etc.; |
| 3. | Other cases prescribed by Presidential Decree, where it is necessary to investigate only specific tax items in consideration of the efficiency of tax investigation, taxpayers' convenience, etc. |
| (3) | In any of the following cases, notwithstanding paragraphs (1) and (2), a limited investigation may be conducted for parts necessary to verify the matters in the relevant case (hereinafter referred to as "partial investigation"): <Newly Inserted on Dec. 19, 2017; Dec. 31, 2018> |
| 2. | Where it is necessary to verify the facts, etc. in accordance with the determination of re-investigation provided for in the proviso of Article 65 (1) 3 (including cases Article 66 (6) and Article 81) or in the proviso of Article 81-15 (5) 2; |
| 3. | Where it is necessary to verify part of a transaction in the middle of tax investigation for the other party to the transaction; |
| 4. | Where the tax evasion of a taxpayer is informed in detail and it is necessary to verify the suspicion of the relevant tax evasion; |
| 5. | Where it is necessary to verify the suspicion of tax evasion by means of the use of fake names and the use of borrowed accounts; |
| 6. | Other cases prescribed by Presidential Decree, where it is necessary to verify specific places of business, specific items or specific transactions in consideration of the efficiency of tax investigation, taxpayers' convenience, etc. |
| (4) | No partial investigation on grounds falling under paragraph (3) 3 through 6, shall be conducted more than twice for the same tax item and for the same taxable period. <Newly Inserted on Dec. 19, 2017> |
[This Article Newly Inserted on Jan. 1, 2010]
| Article 81-12 (Notice on Result of Tax Investigation) |
When a tax official completes a tax investigation, he or she shall explain to the taxpayer, the results of investigation including the following matters within 20 days (40 days in cases falling under any of subparagraphs of Article 11 (1)) from the date when the investigation is completed, and notify the taxpayer thereof in writing: Provided, That the same shall not apply in cases prescribed by Presidential Decree such as where a tax manager is not determined or where a taxpayer does not have a domicile or place of residence in the Republic of Korea: <Amended on Dec. 31, 2011; Dec. 19, 2017; Dec. 31, 2018; Dec. 31, 2019> | 1. | Details of a tax investigation; |
| 2. | Tax bases and tax amounts to be determined or corrected, and grounds for the calculation thereof; |
| 3. | Other matters prescribed by Presidential Decree. |
| (2) | Notwithstanding paragraph (1), where a tax official is unable to notify the findings of investigation within the period prescribed in paragraph (1) for any of the following reasons, he or she may explain the findings of investigation to the taxpayer, excluding the details of the investigation that shall not be revealed, and notify the taxpayer of such result in writing only where the taxpayer consents thereto: <Newly Inserted on Dec. 31, 2019> |
| 1. | Where consultation with a foreign tax agency is underway, due to collection or submission of foreign data or commencement of mutual agreement procedures under the Adjustment of International Taxes Act and a tax treaty; |
| 2. | Where, in relation to the relevant tax investigation, an inquiry process is being conducted by the Minister of Economy and Finance or the Commissioner of the National Tax Service for the interpretation of tax-related statutes or the confirmation of facts. |
| (3) | When the causes provided in the subparagraphs of paragraph (2), such as the termination of the mutual agreement procedure, interpretation of tax-related statutes, or reply to an inquiry for confirmation of facts, are resolved, the head of a tax office shall explain to the taxpayer the findings of the investigation other than the part notified pursuant to paragraph (2) within 20 days (in the case falling under any subparagraph of Article 11 (1), 40 days), and shall notify him or her of said results. <Newly Inserted on Dec. 31, 2019> |
[This Article Wholly Amended on Jan. 1, 2010]
[Moved from Article 81-9 <Jan. 1, 2010>]
| Article 81-13 (Confidentiality) |
| (1) | A tax official shall neither offer or disclose to others, data that a taxpayer has submitted in order to fulfill his or her liability to taxation prescribed by tax-related statutes, or data that the tax official has obtained for the purpose of taxation or collection of national tax, etc. in discharging his or her duties (hereinafter referred to as "taxation information"), nor make use of it except for the prescribed purposes: Provided, That in cases falling under any of the following subparagraphs, the tax official may offer the taxation information of taxpayers, insofar as it is appropriate for the purpose of use: <Amended on Jan. 1, 2014; Dec. 19, 2017; Dec. 31, 2019> |
| 1. | Where a State administrative agency, a local government, etc. request taxation information in order to use it for the imposition and collection of the taxes and penalty surcharges prescribed by statutes; |
| 2. | Where governmental authorities request taxation information to use for tax action or the prosecution of a tax evader; |
| 3. | Where taxation information is requested by the submission order of a court or a warrant issued by a judge; |
| 4. | Where taxation information is requested by another tax official as it is necessary for taxation and collection of the national tax, or for placing questions or the investigation; |
| 5. | Where the Commissioner of the Korea National Statistical Office requests taxation information for compiling national statistics; |
| 6. | Where an agency established for the operation of a social insurance system under subparagraph 2 of Article 3 of the Framework Act on Social Security requests taxation information to perform business activities assigned to the agency under applicable Acts; |
| 7. | Where a State administrative agency, local government, or public institution under the Act on the Management of Public Institutions requests taxation information necessary to investigate or examine qualifications of a candidate for the grant of benefits or subsidies with consent from the relevant party; |
| 9. | When taxation information is requested pursuant to the provisions of other Acts. |
| (2) | A person who requests taxation information pursuant to paragraph (1) 1, 2, and 5 through 9, shall make a request in writing to the head of the competent tax office. <Amended on Jan. 1, 2014; Dec. 19, 2017> |
| (3) | If the request for taxation information is made in violation of paragraphs (1) and (2), a tax official shall refuse such request. |
| (4) | A person provided with taxation information under paragraph (1) shall not offer or disclose it to others, or shall not make use of it for purposes other than those prescribed. |
| (5) | A person who is not a public official among those provided with taxation information under this Article, shall be deemed a public official in the application of penalty provisions under the Criminal Act and other Acts. |
| (6) | A person provided with taxation information under the proviso of paragraph (1) shall take measures to ensure the safety of such information, as prescribed by Presidential Decree, such as the establishment of a system to prevent divulgence of taxation information. <Newly Inserted on Dec. 31, 2019> |
[This Article Wholly Amended on Jan. 1, 2010]
[Moved from Article 81-10 <Jan. 1, 2010>]
| Article 81-14 (Provision of Information Necessary for Taxpayers to Exercise Their Right) |
| (1) | Where a taxpayer (including a person who is delegated for tax affairs by the taxpayer, such as a certified tax accountant) requests information necessary to exercise his or her right, a tax official shall promptly provide information. |
| (2) | Necessary matters, such as the scope of information and persons who may be delegated for tax affairs pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Dec. 23, 2014]
| Article 81-15 (Pre-Assessment Review) |
| (1) | In any of the following cases, the head of a tax office or the commissioner of a regional tax office shall give prior written notice of the details to the taxpayer (hereafter in this Article referred to as "advance notice of taxation"): <Newly Inserted on Dec. 31, 2018; Dec. 29, 2020> |
| 1. | Where a tax is imposed by the head of a tax office or the commissioner of a regional tax office, according to the results of inspections of duties of such office (including the corrective measures taken on site) by the commissioner of the regional tax office or the Commissioner of the National Tax Service, regarding the tax office or the regional tax office, respectively; |
| 2. | Where a tax is imposed by the head of a tax office or the commissioner of a regional tax office, according to the results of investigations of taxation data and on-site investigations, regarding any other person than the taxpayer verified in the tax investigation; |
| 3. | Where an amount of tax the payment of which is to be notified is at least one million won: Provided, That excluded herefrom are cases where a disposition of taxation is imposed by the head of a tax office or by the commissioner of a local tax service in response to the request for correction prescribed in Article 33 of the Board of Audit and Inspection Act; and where the person subject to the disposition of taxation is given information on vindication about matters pointed out by the Board of Audit and Inspection before a request for correction is made. |
| (2) | A person who receives any of the following notifications may request an examination of whether the content of notification is legal (hereafter in this Article referred to as "pre-assessment review") to the head of a tax office or the commissioner of a regional tax office who gave the notification within 30 days from the date of its receipt: Provided, That the person may request a judgment to the Commissioner of the National Tax Service regarding matters prescribed by Presidential Decree, such as where the authoritative interpretation of the Commissioner of the National Tax Service needs to be changed or a new interpretation is required in regard to statutes or regulations: <Amended on Dec. 31, 2018> |
| 1. | Written notice of the results of a tax investigation under Article 81-12; |
| 2. | Advance notice of taxation under the subparagraphs of paragraph (1). |
| (3) | Paragraph (2) shall not apply to any of the following: <Amended on Dec. 27, 2010; Dec. 31, 2018; Dec. 29, 2020> |
| 3. | Where a period from the date of notice of the results of a tax investigation and the advance notice of taxation to the limitation period for the imposition of national taxes is less than three months; |
| 4. | Other cases prescribed by Presidential Decree. |
| (4) | Upon receipt of request for a pre-assessment review, the head of a tax office, the commissioner of a regional tax office, or the Commissioner of the National Tax Service shall make a decision thereon after an examination by each national tax examination committee, and notify the claimant of the relevant results within 30 days from the date of receipt of such request. <Amended on Dec. 31, 2018> |
| (5) | A decision on a request for pre-assessment review shall be made according to the following classifications: <Amended on Dec. 23, 2014; Dec. 20, 2016; Dec. 31, 2018> |
| 1. | Where a request for judgment is deemed groundless: Decision not to adopt such request; |
| 2. | Where a request for judgment is deemed reasonable: Decision to adopt such request or part of the request: Provided, That where further investigation, such as verification of the facts, is necessary to determine the specific scope of adoption, a decision on re-investigation may be rendered to allow the head of the tax office or the commissioner of the local tax service who gave any notice prescribed in the subparagraphs of paragraph (2) to re-investigate it; and then to give a notice by correcting the original notice according to the results thereof; |
| 3. | Where the period for request elapses or no supplementation or correction is made within the period for supplementation or correction: Decision not to examine it. |
| (6) | Articles 58, 59, 60-2, 61 (3), 62 (2), 63, the proviso of Article 64 (1), Articles 64 (2) and 65 (4) through (6) shall apply mutatis mutandis to the pre-assessment review. <Amended on Dec. 20, 2016; Dec. 31, 2018; Dec. 31, 2019> |
| (7) | Articles 15, 16, 20 through 22, 29, 36 (1), 39, 40, and 42 of the Administrative Appeals Act shall apply mutatis mutandis with respect to the pre-assessment review. In such cases, "appeal" shall be construed as "request for pre-assessment review"; "resolution under Article 7 (6) or 8 (7)" as "decision on a request for pre-assessment review under paragraph (4)"; and "commission" as the "national tax examination committee", respectively. <Amended on Jan. 25, 2010; Dec. 15, 2015; Dec. 31, 2018> |
| (8) | A person who has received notification falling under any subparagrpah of paragraph (2) may request the head of a tax office or the commissioner of a regional tax office who gave such notification to determine tax base and an amount of tax early for all or part of the content that he or she was notified of, or to decide to make corrections thereof, without requesting a pre-assessment review. Upon receipt of such request, the head of a tax office or the commissioner of a regional tax office shall immediately make decisions or decide to make corrections as requested. <Amended on Dec. 27, 2010; Dec. 31, 2018> |
| (9) | The request and methods for pre-assessment review and other necessary matters shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2018> |
[This Article Wholly Amended on Jan. 1, 2010]
[Moved from Article 81-12 <Jan. 1, 2010>]
| Article 81-16 (Protection of Taxpayers' Rights by Commissioner of National Tax Service) |
| (1) | The Commissioner of the National Tax Service shall, in performing his or her duties, faithfully endeavor to protect and realize the rights of taxpayers. <Amended on Jun. 9, 2020> |
| (2) | In order to protect taxpayers' rights, an official for taxpayer advocacy service shall be assigned to the National Tax Service to control overall affairs of protecting taxpayers' rights; and one official in charge of performing the affairs for taxpayer advocacy shall be assigned in each tax office and regional tax office. |
| (3) | The Commissioner of the National Tax Service shall assign an official for taxpayer advocacy service under paragraph (2) as an open-type position and ensure that the official for taxpayer advocacy service and officials in charge perform their duties independently. In such cases, officials for taxpayer advocacy service shall be publicly recruited from among persons with professional knowledge of and experience in taxation, law, and accounting excluding the following persons: <Amended on Dec. 19, 2017; Jun. 9, 2020> |
| 2. | A person for whom three years have not passed since he or she resigned as a tax official. |
| (4) | The Commissioner of the National Tax Service shall publish materials on the performance of promoting business to protect the rights of taxpayers, etc., to the general public periodically under Article 85-6 (2). <Newly Inserted on Dec. 20, 2016> |
| (5) | Necessary matters for operating a system with an official for taxpayer advocacy service, including the qualifications, duties, authorities, etc. of the official for taxpayer advocacy service and officials in charge, shall be prescribed by Presidential Decree. <Amended on Dec. 20, 2016> |
[This Article Newly Inserted on Jan. 1, 2010]
| Article 81-17 (Taxpayer’s Duty of Cooperation) |
Taxpayers shall cooperate in good faith with tax officials in their due inquiry, investigation, and submission order.
[This Article Newly Inserted on Jan. 1, 2014]
| Article 81-18 (Taxpayer Protection Committees) |
| (1) | Taxation protection committees shall be established in tax offices, regional offices of the National Tax Service and the National Tax Service to deliberate on matters concerning protecting the rights of taxpayers (hereinafter referred to as "taxpayer protection committee"). <Amended on Dec. 19, 2017> |
| (2) | Taxpayer protection committees established in tax offices pursuant to paragraph (1) (hereinafter referred to as "taxpayer protection committees in tax offices") and taxpayer protection committees established in the regional offices under the National Tax Service pursuant to paragraph (1) (hereinafter referred to as "taxpayer protection committee in a regional office under the National Tax Service"), shall deliberate on the following matters: <Amended on Dec. 19, 2017> |
| 1. | Extension of the period of tax investigation (excluding investigation into tax offenses under subparagraph 3 of Article 2 of the Procedure for the Punishment of Tax Evaders Act: hereinafter the same shall apply in this Article) with regard to taxpayers other than taxpayers whose annual amount of income or transfer is less than 10 billion won (in cases of tax investigation on value-added tax, the sum of the supplied values for any one taxable period is less than five billion won) during the taxable period with the largest annual income or transfer amount of the entire taxable periods subject to tax investigation (hereinafter referred to as “small and medium-sized taxpayer” in this Article): Provided, That the same shall not apply where a person subject to tax investigation requests the extension for the purpose of clarification, etc. pursuant to Article 81-8 (1) 6; |
| 2. | Expansion of the scope of investigation on taxpayers other than small and medium-sized taxpayers; |
| 3. | Requests of small and medium-sized taxpayers for the temporary suspension or suspension of tax investigation with regard to the extension of period of tax investigation and the expansion of scope of tax investigation provided for in Article 81-8 (3); |
| 4. | Requests of taxpayers for the temporary suspension or suspension of tax investigation with regard to illegal or unjust tax investigation and tax officials' illegal or unjust acts during the tax investigation; |
| 5. | Extension of period of temporary keeping account books, etc. provided for in the proviso of Article 81-10 (4); |
| 6. | Other agenda items officials for taxpayer advocacy service deems necessary to be deliberated for the protection of rights of taxpayers. |
| (3) | The Taxpayer Protection Committee established in the National Tax Service pursuant to paragraph (1) (hereinafter referred to as the "Taxpayer Protection Committee of the National Tax Service") shall deliberate on the following matters: <Amended on Dec. 19, 2017; Dec. 31, 2019> |
| 1. | Taxpayer's requests for the revocation or change of determinations of the head of the tax office or the head of the regional office of the National Tax Service on the matters provided for in paragraph (2) 1 through 4 which have undergone deliberation by the taxpayer protection committee established in the tax office or by the taxpayer protection committee in the regional office under the National Tax Service; |
| 2. | Other matters the chairperson of the taxpayer protection committee or an official for taxpayer advocacy service deem necessary to be deliberated, such as improvement of systems and procedures of national tax administration for the protection of rights of taxpayers. |
| (4) | Each taxpayer protection committee shall be comprised of at least 18 members including on chairperson. <Newly Inserted on Dec. 19, 2017> |
| (5) | Person in the following categories shall become chairpersons of taxpayer protection committees: <Newly Inserted on Dec. 19, 2017> |
| 1. | Taxpayer protection committees in tax offices: A person commissioned by the head of a regional office of the National Tax Service under the recommendation of the head of a tax office among persons who are not public officials; |
| 2. | Taxpayer protection committees in the regional offices of the National Tax Service: A person commissioned by the Commissioner of the National Tax Service under the recommendation of the head of a regional office of the National Tax Service among persons who are not public officials; |
| 3. | Taxpayer Protection Committee of the National Tax Service: A person commissioned by the Commissioner of the National Tax Service under the recommendation of the Minister of Economy and Finance among persons who are not public officials. |
| (6) | Members of a Taxpayer Protection Committee shall be appointed or commissioned by the Commissioner of the National Tax Service (in the case of members of a taxpayer protection committee in a tax office, the commissioner of a regional tax office), from among persons with considerable expertise and experience in taxation and related public officials. <Amended on Dec. 19, 2017> |
| (7) | No member of a Taxpayer Protection Committee shall provide any taxation information acquired in the course of performing his or her duty to a third party, divulge, or use it for any purpose other than the intended purpose. <Amended on Dec. 19, 2017> |
| (8) | Where it is deemed difficult to expect a fair deliberation by a member of a taxpayer protection committee, the member shall be excluded or refrain himself/herself from a meeting of the taxpayer protection committee. <Newly Inserted on Dec. 23, 2014; Dec. 19, 2017> |
| (10) | Matters necessary for the composition and operation of a Taxpayer Protection Committee shall be prescribed by Presidential Decree. <Amended on Dec. 23, 2014; Dec. 19, 2017> |
| (11) | A taxpayer advocate shall monitor whether resolutions made by a Taxpayer Protection Committee are implemented. <Amended on Dec. 23, 2014; Dec. 19, 2017> |
[This Article Newly Inserted on Jan. 1, 2014]
| Article 81-19 (Requests of Taxpayers for Deliberation by Taxpayer Protection Committees, Notification of Results, etc. ) |
| (1) | A taxpayer may request the head of the tax office or the head of the regional office of the National Tax Service to deliberate on matters falling under Article 81-18 (2) 3 or 4 by the period of tax investigation terminates. |
| (2) | The head of each tax office or the head of each regional office of the National Tax Service, shall determine the matters in Articles 81-18 (2) 1 through 5, after deliberation by the taxpayer protection committee in the tax office or by the taxpayer protection committee in the regional office under the National Tax Service, and notify the taxpayer of the results thereof. In such cases, results concerning Article 81-18 (2) 3 or 4 shall be notified within 20 days from the date when a request provided for in paragraph (1) is received. |
| (3) | A taxpayer may request the Commissioner of the National Tax Service to revoke or change the determinations of the head of the tax office or of the head of the regional office of the National Tax Service on the matters in Article 81-18 (2) 1 through 4 which have undergone deliberation by the taxpayer protection committee in the tax office or by the taxpayer protection committee in the regional office under the National Tax Service within seven days from the date when he or she is notified pursuant to paragraph (2). |
| (4) | In receipt of a taxpayer's request provided for in paragraph (3), the Commissioner of the National Tax Service may revoke or change the determinations of the head of the tax office or of the head of the regional office of the National Tax Service by undergoing deliberation by the Taxpayer Protection Committee of the National Tax Service. In such cases, the Commissioner of the National Tax Service shall notify the taxpayer of the results thereof within 20 days from the date when he or she receives such request. |
| (5) | Where a taxpayer files a request provided for in paragraph (1) or (3), the official for taxpayer advocacy service or official in charge provided for in Article 81-16 (2) may request tax officials to temporarily suspend tax investigation, etc. until deliberation by the taxpayer protection committee: Provided, That the same shall not apply to cases prescribed by Presidential Decree, where it is obvious that a taxpayer intends to evade a tax investigation. |
| (6) | Where a taxpayer protection committee receives a request provided for in Article 81-18 (2) 3 or 4, it may request tax officials to temporarily suspend or suspend the tax investigation by its resolution. In such cases, the taxpayer protection committee may propose the Commissioner of the National Tax Service to take disciplinary action against tax officials who fail to comply with such request without any justifiable grounds. |
| (7) | A taxpayer who files a request provided for in paragraphs (1) and (3) may make a statement of his or her opinions to the head of the tax office, to the head of the regional office of the National Tax Service or to the Commissioner of the National Tax Service as prescribed by Presidential Decree. |
| (8) | Matters necessary for taxpayer's requests for deliberation by taxpayer protection committees and notification of the results thereof, etc. in addition to those provided for in paragraphs (1) through (7), shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 19, 2017]
CHAPTER VIII SUPPLEMENTARY PROVISIONS
| (1) | When a taxpayer has no domicile or residence within the country or intends to move his or her domicile or residence out of the country, he or she shall designate a tax manager to manage matters concerning national taxes. |
| (2) | Any taxpayer may, as a tax manager, select a lawyer, a certified tax accountant, or a certified public accountant who has been registered pursuant to Article 20-2 (1) of the Certified Tax Accountant Act, in order to have him or her manage matters concerning national taxes. |
| (3) | Any taxpayer who has designated a tax manager under paragraphs (1) and (2) shall report to the head of the competent tax office as prescribed by Presidential Decree. The same shall apply to where the tax manager is dismissed or replaced. |
| (4) | When a taxpayer has failed to make a report pursuant to paragraph (3), the head of the competent tax office may designate the manager of taxpayer's property or business as a tax manager. |
| (5) | Where a successor has not been determined or a successor does not have the right to dispose of inherited property when the head of a tax office or the commissioner of a regional tax office imposes an inheritance tax pursuant to the Inheritance Tax and Gift Tax Act, the provisions concerning successors or testamentary donee in the Inheritance Tax and Gift Tax Act shall apply to presumed successors, testament executors or managers of inherited property unless any specific provision exists. |
| (6) | If a successor or testamentary donee who is a non-resident intends to request for the payment, transfer or change of title of inherited property to a financial institution, etc. he or she shall report thereon to the head of a tax office having jurisdiction over the place of tax payment after appointing a tax manager pursuant to paragraph (1) and shall have a certificate regarding the fact issued and submit it to the financial institution, etc. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 83 (Minimum Amount to Be Notified) |
If a sum of national taxes (excluding stamp tax) and forced collection charge to be notified is less than the amount prescribed by Presidential Decree, such amount shall be deemed non-existent. <Amended on Dec. 31, 2018; Dec. 22, 2020>
[This Article Wholly Amended on Dec. 31, 2011]
[Enforcement Date: Feb. 3, 2022] In Article 83, the part regarding the amended provisions of Article 47-4 relating to special rural development taxes the principal tax of which is acquisition tax, registration license tax, or leisure tax under Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax
| Article 84 (Cooperation in National Tax Service) |
| (1) | If it is necessary for performing duties, any tax official may request a governmental agency, local government or public officials thereunder to cooperate with the tax official. |
| (2) | A person who receives the request for cooperation under paragraph (1) shall, unless any justifiable reasons exist, comply therewith. |
| (3) | The Government may grant to an organization taking charge of the guidance for tax payment all or part of the expenses required for such guidance as a subsidy, as prescribed by Presidential Decree. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 84-2 (Payment of Bounty) |
| (1) | The Commissioner of the National Tax Service may pay a bounty within the extent of two billion won to any of the following persons (four billion won to a person who falls under subparagraph 1): Provided, That the amount collected through the report of tax evasion, illegal tax refund or deduction or concealed property or an administrative fine for a failure to perform the obligation to report on the overseas financial account comes short of the amount set by Presidential Decree, or where a public official has provided data in connection with his or her duty or has reported on concealed property, no bounty shall be paid: <Amended on Dec. 31, 2011; Jan. 1, 2013; Jan. 1, 2014; Dec. 23, 2014; Dec. 20, 2016; Dec. 19, 2017; Dec. 22, 2020> |
| 1. | A person who provides critical materials in calculating the tax evasion or the illegally refunded or deducted tax amount; |
| 2. | A person who reports concealed property of a delinquent taxpayer; |
| 3. | In any of the following cases, a person that reports on a credit card merchant (referring to a credit card merchant that has joined as a credit card member store under the Specialized Credit Financial Business Act pursuant to Article 162-2 (1) of the Income Tax Act) that has engaged in any of the following acts: Provided, That where the amount of transaction that is liable for settlement by credit card (including those similar to a credit card, as prescribed by Presidential Decree; hereinafter in this Article, the same shall apply) is 5,000 won or less, such amount shall be excluded herefrom: |
| (a) | Where a customer makes a request for settlement by credit card but the credit card member store has rejected such request; |
| (b) | Where the credit card member store issues a credit card sales slip (including those prescribed by Presidential Decree, as similar to credit card sales slips) containing a description different from the true facts, as prescribed by Presidential Decree; |
| (a) | Where a cash receipt merchant refuses to issue a cash receipt; |
| (b) | Where a cash receipt merchant issues a cash receipt differently from the actual facts, as prescribed by Presidential Decree; |
| 5. | A person who reports on any person operating business under another person’s name; |
| (b) | A person subject to double entry bookkeeping. |
| (2) | The critical materials referred to in paragraph (1) 1 and 6 shall be described as follows: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2018; Dec. 31, 2019; Dec. 22, 2020> |
| 1. | In cases falling under paragraph (1) 1: Any of the following items: |
| (a) | Materials or books that contain specific facts about the place of transaction, the date or period of transaction, the items and amount of transaction, etc. that helps to confirm the details of tax evasion or illegal tax refund or deduction (excluding those for which a tax investigation (including an investigation of tax offense under the Procedure for the Punishment of tax Offenses Act) is being conducted at the time of submission of the materials or books; hereafter in this Article, referred to as "materials"); |
| (b) | Specific information that helps to locate any material equivalent to that referred to in item (a); |
| (c) | Other materials prescribed by Presidential Decree, as worthy under the circumstances such as methods, details and scale, etc., of tax evasion and unjustified tax refund or deduction; |
| (3) | The term "concealed property" in paragraph (1) 2 means cash, deposits, stocks and other tangible or intangible properties having property value, which are concealed by a tax delinquent: Provided, That the property falling under any of the following subparagraphs shall be excluded: <Amended on Jun. 9, 2020; Dec. 22, 2020; Dec. 29, 2020> |
| 2. | The property of which a tax official initiated an investigation or a procedure for forced collection, with a knowledge of concealment thereof; |
| 3. | Other concealed property of tax delinquents deemed as unnecessary to be reported, which is prescribed by Presidential Decree. |
| (4) | A person shall provide data or make a report under the subparagraphs of paragraph (1) in writing, by fax, via an automated phone answering system, or the website. In such cases, data or a report shall satisfy all the following requirements: <Amended on Dec. 15, 2015; Jun. 9, 2020> |
| 1. | A person shall mention or state his or her name and address; |
| 2. | A person shall affix his or her signature (including digital signature (referring to one through which the real name of a person who has affixed his or her signature can be identified) under subparagraph 2 of Article 2 of the Digital Signature Act), or seal, or verify his or her identity through authentication; |
| 3. | A person shall submit evidential data, etc. objectively verified. |
| (5) | No public officials in charge of the affairs related to the payment of bounties under paragraph (1) shall use matters related to report or information, such as identification of a reporter or informant, for any purpose other than the originally intended purposes, nor provide or divulge them to other persons. |
| (6) | Necessary matters concerning standards and methods of bounty payment and the period for filing reports under paragraph (1), and methods for filing reports and the submission of evidential data under paragraph (4), shall be prescribed by Presidential Decree. <Amended on Dec. 15, 2015> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 85 (Cooperation in Producing and Collecting Materials for Assessment) |
| (1) | Any person who is required to produce material for assessment under tax-related statutes shall prepare it faithfully and submit it to the head of the competent tax office within a prescribed period: Provided, That when they are made by means of national tax information and communications networks, it may be submitted to the commissioner of the competent regional tax office or the Commissioner of the National Tax Service. |
| (2) | A governmental agency, local government, financial institution or a person operating an electronic data processing system shall, when collecting or preparing material or statistics relating to taxation, inform the Commissioner of the National Tax Service of such fact. <Amended on Jun. 9, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 85-2 (Use of Data on Payment Record) |
| 1. | Confirmation of inherited or donated property; |
| 2. | Confirmation of data that prove clearly the suspicion of tax evasion; |
| 3. | Confirmation of qualifications for application for work bonus under Article 100-3 of the Restriction on Special Taxation Act. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 85-3 (Keeping and Preservation of Books) |
| (1) | A taxpayer shall faithfully prepare and keep books and documentary evidence related to all transactions, as prescribed by each tax-related Act. |
| (2) | The books and documentary evidence under paragraph (1) shall be preserved for five years after the expiry of the statutory due date of return of the national tax for the taxable period in which relevant transactions are made: Provided, That in cases falling under Article 26-2 (3), they shall be preserved until the date prescribed in the same paragraph. <Amended on Dec. 31, 2019; Jun. 9, 2020> |
| (3) | A taxpayer may prepare the whole or part of books and documentary evidence under paragraph (1) by means of any computer system. In such cases, the taxpayer shall preserve the course of a process thereof by means of magnetic tapes, diskettes and other information preservation systems pursuant to the criteria prescribed by Presidential Decree. |
| (4) | For the purpose of paragraph (1), where books and documentary evidence are deposited in an authorized electronic documents depository referred to in Article 31-2 of the Framework Act on Electronic Documents and Transactions after converting them into electronic documents under Article 5 (2) of the same Act, they shall be deemed kept as prescribed in paragraph (1): Provided, That this shall not apply to contracts or any books and documentary evidence that can be easily forged or falsified, as prescribed by Presidential Decree. <Amended on Jun. 1, 2012> |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 85-4 (Issuance of Receipt for Document) |
| (1) | When a tax official receives the returns of tax base, revised returns of tax base and requests for correction, or the documents related thereto, and other documents prescribed by Presidential Decree from a taxpayer or a person liable to submit the data for taxation (hereinafter referred to as the "taxpayer, etc."), he or she shall issue the receipt thereof: Provided, That in cases prescribed by Presidential Decree, such as the return by postal service, the same shall not apply. |
| (2) | When the returns, etc. under paragraph (1) are received from taxpayers, etc. by means of national tax information and communications networks, the fact of their receipt may be notified in an electronic form. |
[This Article Wholly Amended on Jan. 1, 2010]
| Article 85-5 (Publication of Large Case and Habitual Delinquent Taxpayer List) |
| (1) | The Commissioner of the National Tax Service may publish the personal information, etc. about any of the following persons, notwithstanding Article 81-13 and Article 57 of the Adjustment of International Taxes Act: Provided, That the same shall not apply where national taxes in arrears are under a request for appeal, such as objection, request for review, etc. or where any other ground prescribed by Presidential Decree exists: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 23, 2014; Dec. 15, 2015; Dec. 20, 2016; Dec. 22, 2020> |
| 1. | Deleted; <Dec. 22, 2020> |
| 2. | Personal information about, details of additional charge of national taxes, etc. of an organization that unfaithfully receives donations prescribed by Presidential Decree (hereafter in this Article, referred to as "unfaithful donation-receiving organization"); |
| 4. | Personal particulars, the amount of violations, etc. of a person required to report account under Article 53 (1) of the Adjustment of International Taxes Act, whose amount has been not reported within the due date of tax return or underreported amount exceeds five billion won (hereafter in this Article, referred to as “person who has violated obligations to report his or her overseas financial accounts”). |
| (2) | A national tax information committee shall be established in the National Tax Service (hereafter in this Article, referred to as the "Committee") in order to deliberate on whether to disclose personal information about unfaithful donation-receiving organization, a tax evader, or a person who has violated obligations to report his or her overseas financial accounts as provided in paragraph (1), details of national taxes to be additionally charged thereto, amount of taxes evaded, the amount of taxes subject to violation of obligations to report, etc.; and on whether it is necessary to impose a court-ordered confinement to the delinquent taxpayer under Article 115 (1) 3 of the National Tax Collection Act. <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 31, 2019; Dec. 22, 2020; Dec. 29, 2020> |
| (3) | Where it is deemed difficult to expect a fair deliberation by a member of the Committee, such member shall be excluded or refrain himself or herself from a meeting of the Committee, as prescribed by Presidential Decree. <Newly Inserted on Dec. 23, 2014; Dec. 31, 2017; Dec. 31, 2019> |
| (4) | The Commissioner of the National Tax Service shall notify the persons, the list of which is subject to publication, who have undergone deliberation by the Committee, that their list will be published as unfaithful donation-receiving organizations or persons who have violated obligations to report on his or her overseas financial accounts, and shall provide them with an opportunity to explain their position, and shall select persons, the list of which is subject to publication, taking into account whether they have fulfilled their responsibilities for preparing and keeping the details of issuance of donation receipts, or whether they have performed their obligations to report on their overseas financial accounts after having the Committee re-deliberate on whether to publish the list of unfaithful donation-receiving organizations or persons who have violated obligations to report on overseas financial accounts after an elapse of six months from the date of notice. <Amended on Jan. 1, 2013; Dec. 23, 2014; Dec. 22, 2020> |
| (5) | The publication under paragraph (1) shall be made by means of posting their list in the Official Gazette and in the national tax information and communications network or on the bulletin boards of competent tax offices. <Amended on Dec. 23, 2014> |
| (6) | Necessary matters regarding the publication of the list of unfaithful donation-receiving organizations, tax evaders, or persons who have violated obligations to report on overseas financial accounts, and matters necessary for the composition, operation, etc. of the Committee under paragraphs (1) through (4), shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 23, 2014; Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 22, 2020]
| Article 85-6 (Preparation and Publication of Statistical Data) |
| (1) | The Commissioner of the National Tax Service shall compile and manage statistical data (hereinafter referred to as "statistical data") by analyzing and processing taxation information to utilize such statistical data in the formulation, evaluation, etc. of taxation policy. In such cases, the statistical data shall be formulated so as to make it impossible to directly or indirectly verify a taxpayer's taxation information. <Amended on Jan. 1, 2014; Dec. 15, 2015> |
| (2) | In order to ensure the transparency of sources of tax revenue, guarantee the people’s right to know, and enhance trust and confidence in tax administration, the Commissioner of the National Tax Service shall publish statistical data regularly, following deliberation by the national tax information committee referred to in Article 85-5 (2). <Amended on Jan. 1, 2013; Jan. 1, 2014; Dec. 31, 2019> |
| (3) | In order to disclose national tax information pursuant to paragraph (2), the Commissioner of the National Tax Service may build and operate a national tax information system, within budgetary limits. <Newly Inserted on Jan. 1, 2014> |
| (4) | In the following cases, the Commissioner of the National Tax Service shall provide statistical data within the extent of their intended purposes, and send copies of the provided statistical data to the Minister of Economy and Finance: <Amended on Jan. 1, 2014; Jun. 9, 2020> |
| 1. | Where the competent standing committee of the National Assembly requests by resolution statistical data necessary for the examination of a bill for the enactment of or amendment to tax-related statutes, or a budget bill of tax revenue, inspection of state administration, and other statistical data for parliamentary activities; |
| 2. | Where the Director of the National Assembly Budget Office requests statistical data necessary to analyze and estimate tax revenue or a budget bill of tax revenue for a bill for the enactment of or amendment to tax-related statutes after obtaining permission from the Speaker. |
| (5) | Notwithstanding the main clause, with the exception of the subparagraphs, of Article 81-13 (1), where the competent standing committee of the National Assembly requests data on the imposition, collection, reduction, exemption, etc. of national taxes following a resolution passed by such committee, the Commissioner of the National Tax Service shall process taxation information so that no personal information may be identified by direct or indirect means, within the scope of the intended purposes thereof; and shall provide such processed taxation information. <Amended on Dec. 23, 2014; Dec. 20, 2016; Dec. 22, 2020> |
| (6) | Where the head of a research institute established under Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes, Etc. requests statistical data for tax policy research, the Commissioner of the National Tax Service may provide such data within the extent of the intended purposes thereof. In such cases, necessary matters concerning the scope of the statistical data, procedure to provide such data, confidentiality, etc., shall be prescribed by Presidential Decree. <Newly Inserted on Jan. 1, 2014; Dec. 19, 2017> |
| (7) | Notwithstanding the main clause, with the exception of the subparagraphs of, Article 81-13 (1), the Commissioner of the National Tax Service may provide basic data within the facilities prescribed by Presidential Decree established in the National Tax Service within the scope of its purpose, if any of the following persons wishes to directly analyze basic data used in compiling statistics (hereinafter referred to as "basic data") to be used for the assessment of, research, etc. on tax policies. In such cases, the basic data shall be provided in a way that does not reveal the taxation information either directly or indirectly: <Newly Inserted on Dec. 31, 2019> |
| 1. | The Secretary General of the National Assembly, the Chief Librarian of the National Assembly Library, the Chief of the National Assembly Budget Office, the Chief of the National Assembly Research Service, and the President of the National Assembly Futures Institute under the National Assembly Futures Institute Act; |
| (8) | Where a person who intends to use basic data for the purpose of evaluation of and research on tax policies requests the provision of some basic data related to income tax, the Commissioner of the National Tax Service may provide some of the basic data related to income tax processed in the form of samples by applying verified techniques for the production of statistics (hereinafter referred to as "sample data"), notwithstanding paragraph (7) and the main clause, with the exception of the subparagraphs, of Article 81-13 (1) in the method prescribed by Presidential Decree. In such cases, a sample data shall be processed and provided within the scope of the purpose of its use and in a way that makes it impossible to verify the taxation information of an individual taxpayer is directly or indirectly. <Newly Inserted on Dec. 22, 2020> |
| (9) | Any person who becomes aware of statistical data (excluding those disclosed pursuant to paragraph (2)) that have been provided or sent pursuant to paragraphs (4) and (6), basic data provided pursuant to paragraph (7), and sample data provided pursuant to paragraph (8) shall not use them for purposes other than their original purposes. <Amended on Jan. 1, 2014; Dec. 31, 2019; Dec. 22, 2020> |
| (10) | Necessary matters regarding procedures for the provision of statistics under paragraph (4), basic data under paragraph (7), and sample data under paragraph (8) shall be prescribed by Presidential Decree. <Amended on Jan. 1, 2014; Dec. 31, 2019; Dec. 22, 2020> |
[This Article Wholly Amended on Jan. 1, 2010]
[Title Amended on Dec. 31, 2019]
| Article 86 (Sharing of Computerized Information on Registration of Family Relationship) |
[This Article Newly Inserted on Dec. 31, 2011]
| Article 87 (Disciplinary Action for Receiving or Offering Money or Valuables) |
| (1) | If a tax official receives money or valuables in connection with his or her duties, a request shall be made through procedures for disciplinary action under Article 82 of the State Public Officials Act, to adopt a resolution to impose a disciplinary additional charge in an amount not exceeding five times the value of the money or valuables received. |
| (2) | Where a tax official subject to a disciplinary action has received a criminal punishment or has fulfilled his or her obligation of compensation, etc. (including cases of confiscation or additional collection) under other statutes before or after a resolution to impose a disciplinary additional charge is adopted pursuant to paragraph (1), a request shall be made to the disciplinary committee to adopt a resolution to impose a reduced amount of the disciplinary additional charge or to reduce or exempt the disciplinary additional charge. |
| (3) | The Commissioner of the National Tax Service (where the head of a customs office takes charge of affairs related to national taxes under tax-related statutes, the Commissioner of the Korea Customs Service) shall request a resolution to impose a disciplinary additional charge (including request for reduction) under paragraphs (1) and (2) against public officials of Grade V or higher or members in general service of the Senior Executive Service; and the head of a subordinate agency or the superior agency against public officials of Grade VI or lower. |
| (4) | Where a person subject to the imposition of a disciplinary additional charge under paragraph (1) fails to pay the additional charge within the due date of payment, a person authorized to impose disciplinary actions may collect such charge in the same manner as forced collection of national taxes. <Amended on Dec. 22, 2020> |
[This Article Newly Inserted on Dec. 31, 2018]
CHAPTER IX PENALTY PROVISIONS
| Article 88 (Administrative Fines for Refusal to Perform Duties) |
The head of the competent tax office shall impose an administrative fine not exceeding 20 million won on a person who has made a false statement in response to a question by a tax official under regulations governing right to inquiry and investigation under tax-related statutes or a person who has refused or evaded the performance of duties.
[This Article Newly Inserted on Dec. 31, 2018]
| Article 89 (Administrative Fines for Receiving or Offering Money or Valuables) |
The head of the competent tax office or the head of the competent customs office shall impose on a person who has offered money or valuables to a customs officer or received the same from a customs officer, an administrative fine between two to five times the corresponding amount of the relevant money or valuables: Provided, That no administrative fine shall be imposed if the relevant person has received a criminal punishment under other statutes such as the Criminal Act, and the imposition of an administrative fine shall be revoked if the relevant person has received a criminal punishment after the administrative fine was imposed. [This Article Newly Inserted on Dec. 31, 2018]
| Article 90 (Administrative Fines for Violations of Obligations of Confidentiality) |
The Commissioner of the National Tax Service shall impose and collect an administrative fine not exceeding 20 million won on a person who has offered or divulged taxation information acquired under Article 81-13 (1) to another person, or uses such information for any purpose other than the intended purpose: Provided, That an administrative fine shall not be imposed if a criminal punishment is given under other statutes, such as the Criminal Act, but said imposition shall be revoked if a criminal punishment is given after the imposition of the administrative fine. [This Article Newly Inserted on Dec. 31, 2019]
ADDENDA <Act No. 2679, Dec. 21, 1974>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 1975: Provided, That the provisions of Chapter VII shall enter into force on April 1, 1975. |
| (2) | (Repealed Act) The Request for National Tax Examination Act shall hereby be repealed on the day on which the provisions of Chapter VII of this Act enter into force. |
| (3) | (Transitional Measures) For the settlement of cases that have been requested for a re-investigation, examination or re-examination under the Request for National Tax Examination Act, or for an examination under the Board of Audit and Inspection Act, before the provisions of Chapter VII of this Act come into effect, the previous provisions shall apply. |
| (4) | (Transitional Measures) Any disposition, offer of a security, return, application, request or other procedure that has been carried out under tax-related Acts before the enforcement of this Act, and that conforms to the provisions of this Act, shall be considered to be carried out under this Act. |
| (5) | (Transitional Measures) The special measure tax imposed at the time this Act comes into effect, under the previous Special Measure Tax for Repressing Speculation on Real Estate Act shall be considered as a national tax under subparagraph 1 of Article 2 of this Act. |
| (6) | (Relation to other Acts or Subordinate Statutes) When the provisions of the previous National Tax Collection Act are cited in other Acts and subordinate statutes, if there are provisions corresponding to them in this Act, such provisions of this Act shall be considered to be cited in lieu of them. |
ADDENDUM <Act No. 2925, Dec. 22, 1976>
This Act shall enter into force on January 1, 1977.
ADDENDA <Act No. 2932, Dec. 22, 1976>
Article 1 (Enforcement Date)
Articles 2 through 12 Omitted.
ADDENDUM <Act No. 3097, Dec. 5, 1978>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3199, Dec. 28, 1979>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 1980. |
| (2) | (General Application) This Act shall be applied to the portion for which the first return on tax base is filed after this Act enters into force. |
| (3) | (Applicability to Additional Refund of National Tax) Subparagraph 6 of Article 52 shall be applicable to the portion in the business year of the juristic person concerned, commencing after this Act enters into force. |
ADDENDA <Act No. 3471, Dec. 31, 1981>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 1982. |
| (2) | (Applicability) Article 21 (2) 5 shall be applicable to the portion of telephone charges received by the Korea Telecommunications Corporation, and for the portion of telephone charges received by the postal service organization before the said Corporation begins its business, the previous provisions shall be applicable. |
| (3) | (Applicability) Article 35 (2) and (3) shall be applicable to the portion registered provisionally first after this Act enters into force. |
ADDENDA <Act No. 3746, Aug. 7, 1984>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1985.
Article 2 Omitted.
Article 3 (Applicability to Special Case of Return Period by Mail)
The revised provisions of Article 5-2 shall be applied to the portions with post marks under the Postal Services Act on or after the date on which this Act enters into force. Article 4 (Applicability to Period of Exclusion of National Tax Assessment)
| (1) | The revised provisions of Article 26-2 shall be applied to the portion of taxes for which the day to levy national tax begins to run after the |
enforcement of this Act.
| (2) | With respect to a portion of national taxes for which the day to levy them has begun to run before the enforcement of this Act, and the period referred to in Article 27 is not terminated as of the enforcement day of this Act, the previous provisions shall be applied: Provided, That they shall not be levied after the period of exclusion prescribed by the revised provisions of Article 26-2 after this Act enters into force. |
Article 5 (Applicability to Suspension of Prescription for Postponement of Disposition of Tax in Arrears)
The revised provisions of Article 28 (3) shall be applied to a portion for which the disposition of tax in arrears is postponed for the first time after this Act enters into force. Article 6 (Applicability to Small Guaranty Priority to National Taxes)
The revised provisions of Article 35 (1) 4 shall be applied to the portion of the due date for payment of which arrives first after this Act enters into force. Article 7 (Applicability to Period of Tax Appeals)
The revised provisions of Articles 61 (2) and 81 shall be applied to portions which are subject to motion for correction, review or decision for the first time after this Act enters into force. Article 8 (Applicability to Minimum of Amount Notified)
The revised provisions of Article 83 (1) shall be applied to the portions first notified after this Act enters into force.
ADDENDA <Act No. 3754, Dec. 15, 1984>
Article 1 (Enforcement Date)
This Act shall enter into force on October 1, 1985.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 3755, Dec. 15, 1884>
Article 1 (Enforcement Date)
This Act shall enter into force on October 1, 1985.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 4177, Dec. 30, 1989>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1990.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 4277, Dec. 31, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1991.
Article 2 (Applicability to Exclusion Period of Imposition of Inheritance or Gift Tax)
The revised provisions of the proviso of Article 26-2 (1) 1 shall apply to the national tax for which the date of imposing the inheritance or gift tax for the first time after this Act enters into force. Article 3 (Applicability to Request of Cancellation)
The revised provisions of Article 35 (4) shall apply to the portion the statutory deadline of which arrives first after this Act enters into force. Article 4 (Applicability to Statutory Deadline in Case of Seizure)
The revised provisions of Article 35-2 shall apply to the portion to be seized first after this Act enters into force. Article 5 (Applicability to Secured Obligation Having Priority to National Tax)
With respect to a collection after September 3, 1990, of any national taxes or additional dues which become due pursuant to the revised provisions of each items of Article 35(1) 3 before this Act enters into force, from the proceeds of sale of the property, the due date for payment shall be considered as the statutory deadline, and the revised provisions of Article 35(1) 3, paragraph(2) of the said Article, and Article 42(1) shall be applicable. [This Article Wholly Amended by Act No. 4672, Dec. 31, 1993]
<This Article is amended by Act No. 4672 on December 31, 1993 following the decision of unconstitutionality made by the Constitutional Court on September 27, 1993>
Article 6 (Transitional Measures concerning Security Having Priority to National Tax)
The previous provisions of Article 35(1) 4 shall apply to the priority small guaranty money to the national tax or additional dues, the due date for payment of which arrives before the enforcement of this Act.
ADDENDA <Act No. 4561, Jun. 11, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 4672, Dec. 31, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exclusion Period for Assessment of National Tax)
The revised provisions of Article 26-2 (1) shall apply to those which are subject to the imposition of national taxes after this Act enters into force, and the revised provisions of paragraph (2) of the said Article, to those of which mutual agreement is concluded for the first time after this Act enters into force. Article 3 (Applicability to Appraisal of Security)
The revised provisions of Article 30 (5) shall apply to the portion of a security for the tax payment offered for the first time after this Act enters into force. Article 4 (Applicability to Priority of National Tax)
Article 5 (Applicability to Secondary Liability of Contributors, etc. for Tax Payment)
The revised provisions of Articles 39 and 41 shall apply to the portion of the secondary liability for tax payment notified to the contributor or transferee of an enterprise for the first time after this Act enters into force. Article 6 (Applicability to Exemption from Additional Tax by Revised Return)
The revised provisions of Article 49 shall apply to the portion returned after revised for the first time after this Act enters into force. Article 7 (Applicability to Additional Refund of National Tax)
The revised provisions of Article 52 shall apply to the portion to appropriate or pay any national tax refund for the first time after this Act enters into force. Article 8 (Applicability to Period, etc. of Institution of Administrative Litigation)
The revised provisions of Articles 56, 60, 61 (2) and 68 shall apply to the objection, request for examination or tax appeals pending as of the enforcement day of this Act, and those of Articles 61 (3), 66 and 81, to the objection, request for examination or tax appeals made by mail for the first time after this Act enters into force. Article 9 (Transitional Measures concerning Statutory Deadline in Case of Seizure)
Any national tax or additional dues for which the seizure registration
date is considered as the statutory deadline pursuant to the provisions of the previous Article 35-2 before this Act enters into force, shall be governed by the previous provisions.
ADDENDA <Act No. 4743, Mar. 24, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1994.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 4810, Dec. 22, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1995: Provided, That the revised provisions of Article 56 shall enter into force on March 1, 1998. Article 2 (Applicability to Succession to Tax Liability by Inheritance)
The revised provisions of Article 24 (2) shall apply to the portion the inheritance of which commences for the first time after this Act enters into force. Article 3 (Applicability to Period of Exclusion from National Tax Assessment)
The revised provisions of Article 26-2 (1) shall apply to the portion to which the national tax is to be assessed for the first time after this Act enters into force. Article 4 (Applicability to Revised Return and Reduction and Exemption by Revised Return)
The revised provisions of Articles 45 and 49 shall apply to the portion the revised return on which is made for the first time after this Act enters into force. Article 5 (Applicability to Request for Correction)
The revised provisions of Article 45-2 shall apply to the portion of the taxable period which commences for the first time after this Act enters into force. Article 6 (Applicability to Additional Refund of National Tax)
The revised provisions of Article 52 shall apply to the finally returned portion of the income accruing in 1995. Article 7 (Applicability to Protest)
The revised provisions of Article 55-2 shall apply to those for which the procedure of mutual agreement is going on after this Act enters into force. Article 8 (Applicability to Institution of Administrative Litigation)
The revised provisions of Article 56 shall apply to the portion of the request for examination or tax appeals pending on March 1, 1998.
ADDENDA <Act No. 4981, Dec. 6, 1995>
Article 1 (Enforcement Date)
This Act shall come into force on January 1, 1996. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 5189, Dec. 30, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the revised provisions of Articles 81-2 (2) and 85-4 shall enter into force on July 1, 1997. Article 2 (Applicability to Service on Persons Jointly and Severally Liable for Tax Payment)
The revised provisions of the proviso to Article 8 (2) shall apply to the portion to execute the notification and demand of tax payment for the first time after this Act enters into force. Article 3 (Applicability to Service, etc. of Document Being Laid)
The revised provisions of Article 10 (4) shall apply to the document to be served for the first time after this Act enters into force. Article 4 (Applicability to Exclusion Period of Imposition of National Taxes)
The revised provisions of the proviso to Article 26-2 (1) shall apply to the portion to commence on a mutual agreement procedure for the first time after this Act enters into force. Article 5 (Applicability to Appropriation and Refund of National Taxes)
The revised provisions of Article 51 shall apply to the portion to appropriate or refund national taxes for the first time after this Act enters into force. Article 6 (Applicability to Presentation of Request for Investigation, etc.)
The revised provisions of Articles 55 (2) and 66 (1) shall apply to the portion of the application for objection, request for investigation or request for judgement made for the first time after this Act enters into force.
ADDENDA <Act No. 5193, Dec. 30, 1996>
Article 1 (Enforcement Date)
This Act shall come into force on January 1, 1997.
Articles 2 through 15 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998: Provided, That the amended provisions of Article 56 (4) shall enter into force on March 1, 1998.
ADDENDA <Act No. 5579, Dec. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1999.
Article 2 (Applicability to Service by Public Announcement)
The amended provisions of Article 11 (1) shall apply to the initial document which is publicly announced after this Act enters into force. Article 3 (Applicability to Succession to Tax Liability by Inheritance)
The amended provisions of the former part of Article 24 (2) shall apply to the initial inheritance which commences after this Act enters into force. Article 4 (Applicability to Joint Liability for Tax Payment)
The amended provisions of Article 25 (2) and (3) shall apply to any notice of the discharge of liability for tax payment given to the initial juristic person that splits up, is established, or exists due to split-up or merger with any other juristic person after split-up, after this Act enters into force. Article 5 (Applicability to Period of Filing of Administrative Litigation)
| (1) | The amended provisions of Articles 55, 56, 60 through 63, 65, 66, 68 and 70 shall apply to the initial objection, request for examination or tax appeals or administrative litigation which is filed after this Act enters into force. |
| (2) | With respect to any disposition to which an objection, request for examination or tax appeals or administrative litigation is not filed at the time when this Act enters into force and for which a period of filing thereof under the previous provisions expires, an objection, request for examination or tax appeals or administrative litigation may not be filed. |
Article 6 (Applicability to Keeping and Preservation of Books, etc.)
The amended provisions of Article 85-3 shall apply to the initial taxation period or business year after this Act enters into force.
ADDENDA <Act No. 5993, Aug. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000: Provided, That the revised provisions of subparagraph 18 of Article 2 and Articles 5 (3), 5-2 (2), the proviso to Article 43 (1), the proviso to Article 85(1), and Article 85-4 (2) shall enter into force from July 1, 2000. Article 2 (Applicability to Request, etc. for Examination or Adjudgment)
This Act shall apply to the case of an objection or a request for examination or adjudgment raised after this Act enters into force.
Article 3 (Transitional Measures for Cases of Objection or Request for Examination)
| (1) | With respect to an objection raised under the previous provisions before the enforcement of this Act, of which a request for examination is not filed after receiving a notice of decision thereon, a request for examination and adjudgment may be filed under the previous provisions. |
| (2) | With respect to a request for examination filed under the previous provisions before the enforcement of this Act, which is pending as of the enforcement date of this Act or on which a request for adjudgment is not raised after receiving a notice of decision thereon, a request for adjudg- ment may be raised under the previous provisions, and an administrative litigation may be instituted under the provision of this Act. |
Article 4 (Transitional Measures for Reappointment of Tax Judges)
The previous provisions shall be applicable to the tax judges in active service at the time of enforcement of this Act during the remaining terms, notwithstanding the revised provisions of Article 67(4).
ADDENDA <Act No. 6070, Dec. 31, 1999>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 2000. |
| (2) | (Applicability to Limitation Period of National Tax Levying) The revised provisions of Article 26-2 (3) shall be applicable from the case where the date of levying an inheritance tax or gift tax commences after the enforcement of this Act. |
| (3) | (Applicability concerning Initial Date in Reckoning of Additional Refund of National Tax) The revised provisions of subparagraph 6 of Article 52 shall be applicable from the portion of first transfer after this Act enters into force. |
ADDENDA <Act No. 6299, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2001.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6303, Dec. 29, 2000>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amendments to subparagraph 18 of Article 2 shall enter into force on July 1, 2001. |
| (2) | (Applicability to Revised Returns and Request for Correction) The amendments to Articles 45 (1) 3 and 45-2 (1) shall be applicable from the portion of taxable period whereto the enforcement date of this Act belongs. |
| (3) | (Applicability to Appropriation and Refund of National Tax Refund) The amendments to Article 51 (2) and (3) shall be applicable from the portion of appropriation or payment of national tax refund first made after this Act enters into force. |
| (4) | (Applicability to Initial Date in Reckoning Additional Amount to National Tax Refund) The amendments to subparagraphs 1 and 6 of Article 52 shall be applicable from the portion of appropriation or payment of national tax refund first made after this Act enters into force. |
| (5) | (Applicability to Succession of Status for Requesting Examination and Adjudgment) The amendments to Articles 56 (1) and 65-2 shall be applicable from the portion of filing objections or requesting examination or adjudgment in progress on the enforcement date of this Act. |
ADDENDA <Act No. 6782, Dec. 18, 2002>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Effect of Correction, etc.) The amendments to Article 22-2 shall be applicable to the revision which is made after this Act enters into force. |
| (3) | (Applicability to Deposit Money for Lease of Commercial Building Taking Precedence over National Tax) The amendments to Article 35 (1) 4 shall be applicable beginning with the enforcement date of the Protection of Commercial Building Lend-Lease Act, Act No. 6542. |
| (4) | (Applicability to Refund of Property Paid in Kind) The amendments to Article 51-2 shall be applicable to the application for payment in kind which is made after this Act enters into force. |
ADDENDA <Act No. 7008, Dec. 30, 2003>
Article 1 (Enforcement Date)
Article 2 (Applicability to Revocation of Extension of Payment Deadline)
The amended provisions of Article 6-2 shall apply, starting with the portion whose payment deadline is extended in accordance with Article 6 after this Act enters into force. Article 3 (Applicability to Method of Delivering Documents)
The amended provisions of the proviso of Article 10 (2) shall apply, starting with the portion that is delivered first after this Act enters into force. Article 4 (Applicability to Request for Correction, etc.)
The amended provisions of Article 45-2 (4) shall apply, starting with the taxable year to which the enforcement date of this Act belongs. Article 5 (Applicability to Appropriation of Refunded National Tax Amount and Refund of National Tax)
The amended provisions of Article 51 (4) shall apply, starting with the portion for the refund of which an application is filed first after this Act enters into force. Article 6 (Applicability to Date of Additional Amount to National Tax Refund)
The amended provisions of subparagraphs 6 and 7 of Article 52 shall apply, starting with the portion for which the refunded the national tax is appropriated or paid first after this Act enters into force. Article 7 (Applicability to Decision of Term for Claim Examination)
The amended provisions of Article 65 (2) shall apply, starting with the portion for which a claim is filed first for examination after this Act enters into force.
ADDENDA <Act No. 7032, Dec. 31, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 7329, Jan. 5, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 7582, Jul. 13, 2005>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Request for Correction, etc.) The amended provisions of Article 45-2(1) shall apply with respect to the request for a decision or correction for which the term set in the previous provisions has not yet expired after this Act enters into force. |
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7930, Apr. 28, 2006>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 25 (4) shall apply on April 1, 2006. |
| (2) | (Applicability to Joint Liability to Tax Payment following Establishment of New Company) The amended provisions of Article 25 (4) shall apply to a new company established for the first time after this Act enters into force. |
| (3) | (Applicability to Payment of Bounty to Reporter of Concealed Property) The amended provisions of Article 84-2 shall apply to the first report of concealed property after this Act enters into force. |
| (4) | (Transitional Measures concerning Extension of Deadline for Application for Judgment on Propriety before Tax Levying) The amended provisions of Article 81-10(1) shall apply to a person who has been notified before the enforcement of this Act. |
ADDENDA <Act No. 8139, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007: Provided, That the amended provisions of Article 3 (1) and the amended provisions of Articles 47-2 through 47-5 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall take effect on January 1, 2008; and the amended provisions of Article 84-2, on July 1, 2007. Article 2 (Applicability to Prolongation of Due Date for Payment owing to Delayed Service)
The amended provisions of Article 7 shall also apply with respect to a notification of tax payment, a notice of payment, an urging note or a notice of demand of payment for which the due date for payment has come before this Act enters into force. Article 3 (Applicability to Suspension of Prescription)
The amended provisions of Article 28 (3) and (4) shall apply with respect to a lawsuit for the cancellation of a fraudulent act which is filed after this Act enters into force. Article 4 (Applicability to Secondary Liability for Tax Payment of Contributors)
The amended provisions of Article 39 shall apply with respect to the duty of tax payment which is owed after this Act enters into force. Article 5 (Applicability to Extension of Scope of Persons Qualified for Request for Correction)
The amended provisions of Article 45-2 (4) shall apply starting with the taxable year to which the enforcement date of this Act belongs. Article 6 (Applicability to Extension of Scope of Persons Qualified for Return after Due Date)
The amended provisions of Article 45-3 shall apply with respect to the statutory due date of return which comes after this Act enters into force. Article 7 (Applicability to Additional Tax on Non-Filing, etc.)
| (1) | The amended provisions of Articles 47-2 through 47-5 concerning the income tax (limited to the income tax on the global income and including the special rural development tax the principal tax of which is the income tax) and the corporate tax (limited to the corporate tax on each business year's income and including the special rural development tax the principal tax of which is the corporate tax) shall apply with respect to the taxable year which commences after this Act enters into force. |
| (2) | The amended provisions of Articles 47-2 through 47-5 concerning the income tax (including the special rural development tax the principal tax of which is the income tax) on the retirement income and transfer income shall apply with respect to the retirement income and transfer income which accrue after this Act enters into force. |
| (3) | The amended provisions of Articles 47-2 through 47-5 concerning the corporate tax (including the special rural development tax the principal tax of which is the corporate tax) on the liquidation income shall apply with respect to the liquidation income which accrues due to any dissolution, merger or division made after this Act enters into force. |
| (4) | The amended provisions of Articles 47-2 through 47-5 concerning the value-added tax shall apply with respect to the taxable period which commences after this Act enters into force. |
| (5) | The amended provisions of Articles 47-2 through 47-5 concerning the inheritance tax and gift tax shall apply with respect to the inheritance and gift which are made after this Act enters into force. |
| (6) | The amended provisions of Articles 47-2 through 47-5 concerning the special consumption tax (including the special rural development tax the principal tax of which is the special consumption tax), the traffic, energy and environment tax and the liquor tax shall apply with respect to the object of taxation which is carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after this Act enters into force. |
| (7) | The amended provisions of Articles 47-2 through 47-5 concerning the securities transaction tax (including the special rural development tax the principal tax of which is the securities transaction tax) shall apply with respect to the stock certificate, etc. which is transferred after this Act enters into force. |
| (8) | The amended provisions of Articles 47-2 through 47-5 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall apply with respect to the duty of tax payment which is owed after this Act enters into force. |
| (9) | With respect to the amended provisions of Articles 47-2 through 47-5, the amended provisions of the educational tax assessed on the revenue of financial and insurance businessmen shall apply to the period of tax- ation which commences on or after the enforcement date of this Act, and the amended provisions of the educational tax assessed on the amount of the special consumption tax, the traffic, energy and environment tax and the liquor tax shall apply to the object of taxation which is carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after this Act enters into force. |
| (10) | With respect to the amended provisions of Articles 47-2 through 47-5, the special rural development tax assessed on the reduced or ex- empted amount of the income tax on the income from interest or dividend under Article 5 (1) 2 of the Act on Special Rural Development Tax shall apply to the income from interest or dividend which is paid on or after the enforcement date of this Act, and the amended provisions of the special rural development tax the principal tax of which is the acquisition tax, registration tax or leisure tax, to the portion which is acquired, registered or sold after this Act enters into force. |
| (11) | The amended provisions of Articles 47-2 through 47-5 concerning the special rural development tax assessed on the reduced or exempted amount of the customs duties and concerning the value-added tax, the traffic, energy and environment tax, the special consumption tax, the liquor tax, the educational tax and the special rural development tax assessed on imported goods shall apply with respect to the portion for which the declaration of import is made after this Act enters into force. |
Article 8 (Applicability to Reduction or Exemption of Additional Tax)
| (1) | The amended provisions of Article 48 (2) 2 and 4 shall apply with respect to the duty of the return, submission, joining, registration or establishment for which the term of fulfillment arrives on or after the enforcement date of this Act. |
| (2) | The amended provisions of Article 48 (2) 3 shall apply with respect to the notification of a decision on judgment of propriety before tax levying which is given after this Act enters into force. |
Article 9 (Applicability to Upper Limit of Additional Tax)
The amended provisions of Article 49 shall apply with respect to a violation of the obligation provided for in any tax-related Act which is committed after this Act enters into force. Article 10 (Applicability to Additional Refund of National Tax)
The amended provisions of subparagraph 7 of Article 52 shall apply beginning from a request for correction filed after this Act enters into force. Article 11 (Applicability to Submission of Evidence Documents, etc.)
The amended provisions of Article 71 shall apply with respect to the evidence documents and other evidences which are submitted after this Act enters into force. Article 12 (Applicability to Extension, etc. of Period of Advance Notice of Tax Investigation)
| (1) | The amended provisions of the main sentence of Article 81-7(1) shall apply with respect to the advance notice which is made after this Act enters into force. |
| (2) | The amended provisions of Article 81-7 (3) shall apply with respect to the request for postponement of investigation which is made after this Act enters into force. |
Article 13 (Applicability to Selection, etc. of Representative in Judgment on Propriety before Tax Levying)
The amended provisions of Article 81-12 (5) and (6) shall apply with respect to the request for judgment of propriety before tax levying which is made after this Act enters into force. Article 14 (Applicability to Extension of Scope of Persons Deserve Bounty)
The amended provisions of Article 84-2 (1) 3 and 4 shall apply with respect to the report which is made after this Act enters into force. Article 15 Omitted.
Article 16 (Transitional Measures Following Amendment to Other Acts)
With respect to the additional tax assessed or to be assessed pursuant to the provisions of any tax-related Act falling under any one of the following subparagraphs before the enforcement of this Act, the previous provisions of the relevant tax-related Act shall apply, notwithstanding the amended provisions of the relevant tax-related Act amended in accordance with Article 15(1) through(7) of the Addenda:
ADDENDA <Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 8521, Jul. 19, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 8830, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 46-2 shall enter into force on October 1, 2008, and the amended provisions of Article 85-6 shall enter into force on January 1, 2010. Article 2 (Applicability to Exceptions to Exclusion Period of Imposition to Real Business Operator)
The amended provisions of Article 26-2 (3) shall apply beginning from the first decision or judgment made after this Act enters into force. <Amended by Act No. 9263, Dec. 26, 2008> Article 3 (Applicability to Payment of National Taxes by Credit Card, etc.)
The amended provisions of Article 46-2 shall apply beginning from the first report or payment made after October 1, 2008. Article 4 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply beginning from the first report made after this Act enters into force. Article 5 Omitted.
ADDENDA <Act No. 8860, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures Concerning Succession of Request for Adjudgment)
A requested adjudgment that is proceeding at the time when this Act enters into force is deemed to be requested pursuant to this Act.
Article 3 (Transitional Measures Concerning Succession of Positions such as National Tax Judges, Permanent National Tax Judges and Non- Permanent National Tax Judges)
At the time this Act enters into force, national tax judges, permanent national tax judges, non-permanent national tax judges, the committee of national tax judges, the joint cession of national tax judges under the previous provisions are deemed as tax judges, permanent tax judges, non-permanent tax judges, the committee of tax judges, the joint cession of tax judges under this Act.
Article 4 (Transitional Measures Concerning Public Officials belonging to Tax Tribunal)
Public officials who belong to the Tax Tribunal is deemed to belong to the Tax Tribunal.
Article 5 Omitted.
Article 6 (Relations with other Acts or Subordinate Statutes)
In cases of the term "national tax judge" is quoted in other Acts or subordinate statues at the time this Act enters into force, the term "tax judge" shall be deemed to be quoted.
ADDENDA <Act No. 9131, Sep. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 9259, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009. (Proviso Omitted.) Article 9 of the Addenda shall enter into force on January 1, 2012. Articles 2 through 9 Omitted.
ADDENDA <Act No. 9263, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009: Provided, That the amended provisions of Article 39 (1) shall enter into force on February 4, 2009, and the amended provisions of Article 85-3 (4) shall enter into force on April 1, 2009. Article 2 (Applicability to Assessment Period of National Taxes)
| (1) | The amended provisions of Article 26-2 (1) shall apply beginning from the deficit incurred in the taxable period first commencing after this Act enters into force. |
| (2) | The amended provisions of Article 26-2 (2) shall apply beginning from the correction first requested after this Act enters into force. |
Article 3 (Applicability to Request for Correction, etc.)
The amended provisions of Article 45-2 (4) shall apply beginning from the correction first requested after this Act enters into force. Article 4 (Applicability to Reduction or Exemption, etc. of Additional Tax)
The amended provisions of Article 48 shall apply beginning from the revised return first filed after this Act enters into force. Article 5 (Applicability to Judgment on Propriety before Tax Levying)
The amended provisions of Article 81-12 (7) shall apply beginning from the notification first given after this Act enters into force. Article 6 (Applicability to Use of Data on Payment Records)
The amended provisions of Article 85-2 shall apply beginning from the work bonus first paid after this Act enters into force. Article 7 (Transitional Measures Concerning Succession to Status of Deliberative Committee on Objections and Committee on Judgment of Propriety before Tax Levying)
| (1) | Any act done by the committee on the judgment of propriety before tax levying established in the National Tax Service and by the Deliberative Committees on Objections and the committees on the judgment of propriety before tax levying established in the regional tax offices and tax offices under the former provisions at the time when this Act enters into force shall be each deemed to be an act done by the National Tax Examination Committees established under this Act. |
| (2) | Any act toward the committee on the judgment of propriety before tax levying established in the National Tax Service and by the Deliberative Committees on Objections and the committees on the judgment of propriety before tax levying established in the regional tax offices and tax offices under the former provisions at the time when this Act enters into force shall be each deemed to be an act toward the National Tax Examination Committees established under this Act. |
ADDENDUM <Act No. 9412, Feb. 6, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9911, Jan. 1, 2010>
Article 1 (Enforcement Date)
Article 2 (Applicability to Interruption and Suspension of Prescription)
The amended provisions of Article 28 shall start applying to the first lawsuit for subrogation of creditor filed after this Act enters into force. Article 3 (Applicability to Return after Term)
The amended provisions of Article 45-3 (3) shall start applying to the first return of tax base arriving after this Act enters into force. Article 4 (Applicability to Payment for National Taxes by Credit Cards, etc.)
The amended provisions of Article 46-2 (1) and (3) shall start applying to the first return, payment or notification made after this Act enters into force. Article 5 (Applicability to Additional Taxes)
The amended provisions of Article 47-2 (6) and 47-5 (5) shall start applying to the portion to which the transaction or transfer is made after this Act enters into force. Article 6 (Special Cases concerning Application of Additional Taxes on Non-Filing)
Article 7 (Applicability to Tax Investigation)
The amended provisions of Articles 81-8 through 81-11 shall start applying to the first tax investigation conducted after this Act enters into force. Article 8 Omitted.
ADDENDA <Act No. 9968, Jan. 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10405, Dec. 27, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Article 2 (Applicability to Limitation Period for National Tax Assessment)
The amended provisions of Article 26-2 (1) 1-2 shall apply beginning with the first invoice or tax invoice to be issued or failed to be issued, or issued copy thereof to be received after this Act enters into force. Article 3 (Applicability to Preference of National Taxes to Additional Dues of Public Charges)
The amended provisions of Article 35 (1) 1 shall apply beginning with the first seizure to be made after this Act enters into force. Article 4 (Applicability to Waiver of Levy of Penalty Taxes on Non-filing and Additional Taxes on Underreported Return)
The amended provisions of Articles 47-2 (7), (8) and 47-3 (3) shall apply beginning with the first return to be filed, determination or correction to be made after this Act enters into force. Article 5 (Applicability to Extension of Period to Reduce or Exempt Penalty Tax for Return Filed after Statutory Due Date)
The amended provisions of Article 48-2 shall apply beginning with the first return to be filed where a payment by return is made after the statutory due date of return lapses after this Act enters into force. Article 6 (Applicability to Decrease of Upper Limit on Penalty Tax for Small and Medium Enterprises, etc.)
The amended provisions of main sentence of Article 49 (1) except for each subparagraph thereof shall apply beginning with the first violation to be committed in relation to the relevant obligation after this Act enters into force. Article 7 (Applicability to Application of Upper Limit on Penalty Tax for Failing to Submit Payment Record, etc.)
The amended provisions of Article 49 (1) 4 shall apply beginning with the case where the first determination or correction to be made after this Act enters into force. Article 8 (Applicability to Retroactive Effect on Appropriation of National Tax Refund)
The amended provisions of Article 51 (3) shall apply beginning with the first national tax refund to be appropriated after this Act enters into force. Article 9 (Applicability to Procedure for Protest)
The amended provisions of Articles 59 (2), 69 (3), 73 (1), (2), and 74-2 shall apply beginning with the first application or claim to be filed for the first time after this Act enters into force.
ADDENDA <Act No. 10580, Apr. 12, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10621, May 2, 2011>
| (1) | (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. |
| (2) | (Applicability to Selection of Persons Subject to Tax Investigation) The amended provision of Article 81-6 (2) shall apply beginning from the period of taxation under which the enforcement date of this Act falls. |
ADDENDA <Act No. 11124, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2012: Provided, That the amended provisions of Articles 84-2 (1) 1, 85-5 (1) 3, (2) and (5) shall enter into force on July 1, 2012. Article 2 (Applicability to Limitation Period for National Tax Assessment)
| (2) | The amended provisions of Article 26-2 (2) shall apply beginning with the first request for correction or recommendation for adjustment after January 1, 2012. |
Article 3 (Applicability to Secondary Tax Liability of Oligopolistic Stockholder)
The amended provisions of Article 39 shall apply beginning with the national taxes for which the national tax liability is first established after January 1, 2012. Article 4 (Applicability to Payment of National Taxes by Credit Card, etc.)
The amended provisions of Article 46-2 shall apply beginning with the portion to be first filed, paid or notified after January 1, 2012. Article 5 (Applicability to Penalty Taxes on Non-Filing, etc.)
| (1) | The amended provisions of Articles 47-2 through 47-4 concerning the income tax (limited to the income tax on the global income and including the special rural development tax the principal tax of which is the income tax) and the corporate tax (limited to the corporate tax on each business year's income and on capital gains from transfer of land, etc. and including the special rural development tax the principal tax of which is the corporate tax) shall apply with respect to the taxable period which first commences after January 1, 2012. |
| (2) | The amended provisions of Articles 47-2 through 47-4 concerning the income tax (including the special rural development tax the principal tax of which is the income tax) on the retirement income and transfer income shall apply with respect to the first retirement income and transfer income which accrue after January 12, 2012. |
| (3) | The amended provisions of Articles 47-2 through 47-4 concerning the corporate tax (including the special rural development tax the principal tax of which is the corporate tax) on the liquidation income shall apply with respect to the liquidation income which first accrues due to any dissolution, merger or division made after January 1, 2012. |
| (4) | The amended provisions of Articles 47-2 through 47-4 concerning the inheritance tax and gift tax shall apply with respect to the first inheritance and gift which are made after January 1, 2012. |
| (5) | The amended provisions of Articles 47-2 through 47-4 concerning the value-added tax shall apply with respect to the taxable period which first commences after January 1, 2012. |
| (6) | The amended provisions of Articles 47-2 through 47-4 concerning the special consumption tax (including the special rural development tax the principal tax of which is the special consumption tax), the traffic, energy and environment tax and the liquor tax shall apply with respect to the object of taxation which is first carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after January 1, 2012. |
| (7) | The amended provisions of Articles 47-2 through 47-4 concerning the securities transaction tax (including the special rural development tax the principal tax of which is the securities transaction tax) shall apply with respect to the stock certificate, etc. which is first transferred after January 1, 2012. |
| (8) | The amended provisions of Articles 47-2 through 47-4 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall apply with respect to the duty of tax payment which is first owed after January 1, 2012. |
| (9) | With respect to the amended provisions of Articles 47-2 through 47-4, the amended provisions of the educational tax assessed on the revenue of financial and insurance businessmen shall apply to the period of taxation which first commences on or after the enforcement date of this Act, and the amended provisions of the educational tax assessed on the amount of the special consumption tax, the traffic, energy and environment tax and the liquor tax shall apply to the object of taxation which is first carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after January 1, 2012. |
| (10) | With respect to the amended provisions of Articles 47-2 through 47-4, the special rural development tax assessed on the reduced or exempted amount of the income tax on the income from interest or dividend under Article 5(1) 2 of the Act on Special Rural Development Tax shall apply to the income from interest or dividend which is paid on or after the enforcement date of this Act, and the amended provisions of the special rural development tax the principal tax of which is the acquisition tax, registration tax or leisure tax, to the portion which is first acquired, registered or sold after January 1, 2012. |
| (11) | The amended provisions of Articles 47-2 through 47-4 concerning the special rural development tax assessed on the reduced or exempted amount of the customs duties and concerning the value-added tax, the traffic, energy and environment tax, the special consumption tax, the liquor tax, the educational tax and the special rural development tax assessed on imported goods shall apply with respect to the portion for which the declaration of import is first made after January 1, 2012. |
Article 6 (Applicability to Insincere Penalty Tax such as Payment, etc. of Withholding Tax)
The amended provisions of Article 47-5 shall apply beginning with the frist collection of national tax after January 1, 2012 and the national tax liability occurs. Article 7 (Applicability to Reduction and Exemption of Penalty Tax)
The amended provisions of Article 48 (2) 2 apply beginning with the first return to be filed after statutory due date after January 1, 2012. Article 8 (Applicability to Special Cases on Calculation of Period in Procedure, etc. of Adjustment of Taxes on International Trade Price)
The amended provisions of Article 55-2 apply beginning with the first application for the adjustment of tax on the international trade price after January 1, 2012. Article 9 (Applicability to Establishment and Delivery of Taxpayers' Right Charter)
The amended provisions of Articles 81-2 (2) 1 and 2, 81-5, 81-7 (1) and the main sentence of Article 81-12 apply beginning with the first investigation that commences after January 1, 2012. Article 10 (Applicability to Payment of Bounty)
| (1) | The amended provisions of Article 84-2 (1) 1 apply beginning with the first material to be provided after July 1, 2012. |
| (2) | The amended provisions of the proviso to Articles 84-2(1), 84-2(1) 6 and(2) 2 shall apply beginning with the first material to be provided after January 1, 2012. |
Article 11 (Applicability to Publication of List of Criminals of Tax Evasion)
The amended provisions of Articles 85-5 (1) 3 ,(2) and (5) apply beginning with the person who will be first be found guilty in a judgment and such judgment will be made definite after July 1, 2012. Article 12 Omitted.
ADDENDA <Act No. 11461, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 11604, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Article 2 (Applicability to Electronic Service of Voluntary Tax Payment)
The amended provisions of the proviso to Article 10 (8) shall apply to any voluntary payment made on or after the date this Act enters into force. Article 3 (Applicability to Establishment Date of Value-Added Tax Liability for Estimated Imposition Period)
The amended provisions of Article 21 (2) 3 shall apply to any value-added tax, for which the estimated imposition period is due on or after the date this Act enters into force. Article 4 (Applicability to Limitation Period for National Tax Assessment)
| (1) | The amended provisions of Article 26-2 (1) 1-2 (b) shall apply to any tax amount, for which the date the penalty tax is assessable commences on or after the date this Act enters into force. |
| (2) | The amended provisions of Article 26-2 (1) 4-2 shall apply to any tax amount, for which the date the income tax is assessable commences on or after the date this Act enters into force. |
| (3) | The amended provisions of Article 26-2 (4) shall apply to any tax amount, for which the date the gift tax is assessable commences on or after the date this Act enters into force. |
Article 5 (Applicability to Extinctive Prescription)
The amended provisions of Article 27 (1) shall apply to any national tax reported or notified on or after the date this Act enters into force. Article 6 (Applicability to Penalty Taxes for Reduction or Deduction of Tax Amount by Unlawful Act, etc.)
The amended provisions of Article 47-3 (2) shall apply to any tax amount, the reduction or deduction of which is applied for on or after the date this Act enters into force. Article 7 (Applicability to Penalty Taxes for Insincere Payment of Withholding Tax, etc.)
The amended provisions of Article 47-5 (1) shall apply to any tax amount, for which a penalty tax is levied on or after the date this Act enters into force. Article 8 (Applicability to Upper Limit on Penalty Taxes)
The upper limit for a penalty tax levied under Article 76 (3) of the Corporate Tax Act, of the amended provisions of Article 49 (1) 2, shall apply to any penalty tax levied on or after the date this Act enters into force; and the lifting of the upper limit for a penalty tax under Article 76 (9) 4 of the same Act shall apply to any tax amount, for which an invoice, etc. is issued on or after the date this Act enters into force. Article 9 (Applicability to Double Filing of Request for Examination and Request for Adjudgment)
The amended provisions of Article 65 (1) 1 (including the provisions of Article 81 applied mutatis mutandis with regard to requests for adjudgment) shall apply to any filing of a request for examination or adjudgment on or after the date this Act enters into force. Article 10 (Applicability to Filing of Objections)
The amended provisions of Article 66 (1) shall apply to any filing of an objection made on or after the date this Act enters into force. Article 11 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply to any submission of relevant materials or reporting made on or after the date this Act enters into force. Article 12 (Applicability to Publication of List of Persons Who have Breached Duty to Report on Overseas Financial Accounts)
The amended provisions of Article 85-5 shall apply beginning with cases where a person is liable to report on his/her overseas financial accounts held as of 2012 in 2013.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 11873, Jun. 7, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 12162, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014: Provided, That the amended provisions of Article 81-6 (2) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Upper Limit on Penalty Taxes)
The amended provisions of Article 49 (1) 1 and 2 shall apply to the imposition of penalty taxes on or after the date this Act enters into force. Article 3 (Applicability to Selection of Persons Subject to Tax Investigation)
The amended provisions of Article 81-6 (2) shall apply starting from the taxable period where the enforcement date of this Act belongs. Article 4 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply to the submission or filing a report of data on or after the date this Act enters into force.
ADDENDA <Act No. 12848, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 (Applicability to Exclusion or Challenge of Members of Examination Committee on Established Rules for National Taxes)
The amended provisions of Articles 18-2 (2), 66-2 (2), 81-18 (6) and 85-5 (3) shall apply to deliberations by the Examination Committee on Established Rules for National Taxes after this Act enters into force. Article 3 (Applicability to Succession to Tax Liability by Inheritance)
The amended provisions of Article 24 (1) and (2) shall apply to successions to tax liability of which inheritance after this Act enters into force. Article 4 (Applicability to Period of Exclusion from Imposition of National Taxes on Unlawful Acts Committed in International Trade)
The amended provision of Article 26-2 (1) shall apply to periods that the date on which national tax may be imposed after this Act enters into force. Article 5 (Applicability to Priority of National Taxes over Additional Dues)
The amended provision of Article 35 (1) 3 (d) shall apply to cases that the deadline for payment of which expire after this Act enters into force. Article 6 (Applicability to Secondary Tax Liability of Persons Who Made Investments in Corporation Listed in Securities Market)
The amended provisions of Article 39 shall apply to cases that the tax liability of a corporation is established after this Act enters into force. Article 7 (Applicability to Extension of Period of Requesting Corrections, etc.)
| (1) | The amended provision of Article 45-2 (1) shall apply to cases that a person who has filed a return requests a determination or correction after this Act enters into force. |
| (2) | Notwithstanding paragraph (1), the former provision shall apply to a tax base of which the period of requesting a determination or correction under the former Article 45-2 (1) expires before this Act enters into force, notwithstanding the amended provision of Article 45-2 (1). |
Article 8 (Applicability to Tax Liability Following Tax Return, etc. after Deadline and Reduction of or Exemption from Penalty Taxes)
The amended provisions of Articles 45-3 (2) and (3), 46 (1) and (2), and 48 (2) 2 shall apply to cases that a return of tax base after the deadline or amended return of tax base is filed after this Act enters into force. Article 9 (Applicability to Payment of National Taxes by Credit Card, etc.)
The amended provision of Article 46-2 (1) shall apply to national taxes paid after this Act enters into force. Article 10 (Applicability to Penalty Taxes on No-Filing, and Penalty Taxes on Underreporting or Excess Tax Refund Claims)
| (1) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisions on income tax (only applicable to income tax on gross income; including special rural development tax based on such income tax), corporate tax (including special rural development tax based on such corporate tax, but excluding corporate tax on income from liquidation), value-added tax, education tax imposed on earnings of financial or insurance services providers shall apply to penalty taxes for a tax period which begins after this Act enters into force. |
| (2) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on income tax on retirement income and capital gains (including special rural development tax based on such income tax) shall apply to income from retirement or transfer after July 1, 2105. |
| (3) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on corporate tax on liquidation income (including special rural development tax based on such corporate tax) shall apply to liquidation income as a result of dissolution, merger or division after July 1, 2105. |
| (4) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on inheritance tax and gift tax shall apply to property inherited or donated after July 1, 2105: Provided, That the amended provision of Article 47-3 (4) 1 (d) shall apply to property on which gift tax is corrected after this Act enters into force. |
| (5) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on individual consumption tax (including special rural development tax and education tax based on such individual consumption tax), traffic, energy and environment tax (including education tax based on such traffic, energy and environment tax) and liquor tax (including education tax based on such liquor tax) shall apply to the act of taking out, delivering, selling, entering, providing entertainment and food, or conducting business after July 1, 2015. |
| (6) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on securities transaction tax (including special rural development tax based on such securities transaction tax) shall apply to a transaction through which stock certificates, etc. are transferred after July 1, 2105. |
| (7) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisons on comprehensive real estate holding tax (including special rural development tax based on such comprehensive real estate holding tax) shall apply to comprehensive real estate holding tax for which tax liability is established after this Act enters into force. |
| (8) | Among the amended provisions of Articles 47-2 and 47-3, special rural development tax imposed on the reduced or exempted amount of income tax on interest and dividend income under Article 5 (1) 2 of the Special Rural Development Tax Act shall apply to interests and dividend income paid after this Act enters into force. |
| (9) | Among the amended provisions of Articles 47-2 and 47-3, the amended provisions on value-added tax, traffic, energy and environment tax, individual consumption tax, liquor tax, education tax and special rural development tax imposed on imported goods shall apply to goods for which an import declaration is made after July 1, 2015. |
Article 11 (Applicability to Reduction of or Exemption from Penalty Taxes on Unconscientious Payment or Unconscientious Tax Refund Claims)
The amended provision of Article 47-4 (3) 3 shall apply to a tax return for a tax period which begins after July 1, 2015, and the amended provision of subparagraph 4 of the aforesaid paragraph shall apply to a tax return by which a gift tax is determined or corrected after this Act enters into force. Article 12 (Applicability to Right to Read Related Documents and Demand Statement of Opinions)
The amended provisions of Article 58 shall apply to an application for reading documents or application for a statement of opinion related to a demand for examination is filed after this Act enters into force. Article 13 (Applicability to Public Representative)
The amended provisions of Article 59-2 shall also apply to cases that a formal objection or demand for examination was filed before this Act enters into force and a request for appointment of a public representative is made after this Act enters into force. Article 14 (Applicability to Tax Judges)
| (1) | The amended provision of Article 67 (3) shall apply to tax judges appointed after this Act enters into force. |
| (2) | Notwithstanding the amended provision of Article 67 (5), the former provision shall apply to the reappointment of those who are tax judges at the time this Act enters into force. |
Article 15 (Applicability to Grounds for Exclusion and Challenge of Tax Judges)
The amended provision of Article 73 (1) 6 shall apply to a meeting that an examination is conducted after this Act enters into force. Article 16 (Applicability to Payment of Prize Money)
The amended provisions of the main sentence of Article 84-2 (1) and subparagraph 6 of the aforesaid paragraph shall apply to cases that data are provided after this Act enters into force. Article 17 (Applicability to Preparation and Disclosure of Statistical Data)
The amended provision of Article 85-6 (5) shall apply to cases that data are provided after this Act enters into force.
ADDENDA <Act No. 13552, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2016: Provided, That the amended provision of Article 85-5 (1) 1 shall enter into force on March 1, 2016, and the amended provision of subparagraph 3 of the aforesaid paragraph on July 1, 2016, respectively. Article 2 (Applicability, etc. to Request for Correction, etc.)
| (1) | The amended provision of Article 45-2 (2) shall apply beginning with a tax return of which determination or correction is requested after this Act enters into force. |
| (2) | Notwithstanding paragraph (1), the former provision of Article 45-2 (2) shall apply to a tax base in which case the period for making a request under the former provision of Article 45-2 (2) expires before this Act enters into force, notwithstanding the amended provision of Article 45-2 (2). |
Article 3 (Applicability to Exceptions to Prohibition on Reinvestigation)
The amended provision of Article 81-4 (2) 5 shall apply beginning with cases where a taxpayer provides a tax official with money and other valuables or helps a person provide a tax official with money and other valuables after this Act enters into force. Article 4 (Applicability to Selection of Persons Subject to Tax Investigation)
The amended provision of Article 81-6 (3) 5 shall apply beginning with where a taxpayer provides a tax official with money and other valuables or helps a person provide a tax official with money and other valuables after this Act enters into force. Article 5 (Applicability to Pre-Assessment Review)
The amended provision of Article 81-15 (6) shall apply beginning with where a person makes a request for pre-assessment review after this Act enters into force. Article 6 (Applicability to Publication of List of Tax Evaders)
The amended provision of Article 85-5 (1) 3 shall apply beginning with the first person who is declared guilty after the aforesaid amended provision enters into force.
ADDENDA <Act No. 14382, Dec. 20, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2017: Provided, That the amended provisions of Article 59-2 (1) shall enter into force on January 1, 2018. Article 2 (Applicability to Extension of Deadline for Payment)
The amended provisions of the proviso to Article 6 (2) shall begin to apply from the portions, the deadline for payment for which is extended after this Act enters into force. Article 3 (Applicability to Return-Related Penalty Taxes)
The amended provisions of Articles 47-2 (1) and 47-3 (1) shall begin to apply from the portions reported for the periods for taxation beginning after this Act enters into force. Article 4 (Applicability to Decisions on Re-Investigation)
| (1) | The amended provisions of the proviso to Article 55 (5), of the proviso to Article 56 (2) and of paragraph (4) of the same Article, shall begin to apply from the portions, for which a request for examination, a request for adjudication or an administrative litigation is filed after this Act enters into force. |
| (2) | The amended provisions of the proviso to Article 65 (1) 3 (including cases applied mutatis mutandis in Articles 66 (6) and 81), of Article 65 (5) (including cases applied mutatis mutandis in Articles 66 (6) and 81), of Article 81-4 (2) 4 and of the proviso to Article 81-15 (4) 2, shall begin to apply from the portions for which a decision is rendered after this Act enters into force. |
Article 5 (Applicability to Public Representatives)
The amended provisions of Article 59-2 (1) shall apply even where a request for adjudication is filed before the said amended provisions enter into force and a request for public representative is filed after the said amended provisions enter into force. Article 6 (Applicability to Periods for Decision on Objections)
The amended provisions of Article 66 (6) and (7) shall begin to apply from the pleas filed by persons who have filed objections after this Act enters into force. Article 7 (Applicability to Deliberations and Decisions by Joint Session of Tax Judges)
The amended provisions of Article 78-2 shall begin to apply where a request for adjudication is filed after this Act enters into force. Article 8 (Transitional Measures concerning Exclusion from Imposition of National Taxes)
| (1) | Notwithstanding the amended provisions of Article 26-2 (2) 1-2, the former provisions shall prevail where a decision or an adjudication prescribed in Article 26-2 (2) 1 is made final and conclusive or where the period for exclusion prescribed in Article 26-2 (1) expires before this Act enters into force. |
| (2) | Notwithstanding the amended provisions of Article 26-2 (2) 3 and (4) 6, the former provisions shall prevail where the period for exclusion expires under Article 26-2 (1) before this Act enters into force. |
Article 9 (Transitional Measures concerning Refund of Property Paid in Kind)
Notwithstanding the amended provisions of Article 51-2 (1), the former provisions shall prevail where a payment is made in kind before this Act enters into force.
ADDENDA <Act No. 15220, Dec. 19, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018: Provided, That the amended provisions of Articles 81-12, 81-18 and 81-19 shall enter into force on April 1, 2018; and the amended provisions of Article 46-2 shall enter into force on January 1, 2019. Article 2 (Applicability, etc. to Period of Exclusion from Imposition of National Taxes)
| (1) | The amended provisions of Article 26-2 (2) 4 and 5 shall apply, starting from cases where a request for the correction is filed, or adjustment is recommended or a court decision is made final and conclusive after this Act enters into force. |
| (2) | Notwithstanding the amended provisions of Article 26-2 (2) 4 and 5, cases where the period of exclusion has expired pursuant to Article 26-2 (1) before this Act enters into force, shall be governed by the former provisions. |
Article 3 (Applicability to Extinctive Prescription)
The amended provisions of Article 28 (3) shall apply, starting from portions reported or notified after this Act enters into force. Article 4 (Applicability to Penalty Taxes on Non-Filing, Penalty Taxes on Underreporting or Excess Tax Refund Claims, and Penalty Taxes on Insincere Payment and Refunding Return)
| (1) | The amended provisions of Article 47-2 (6) shall apply, starting from the portions of taxable periods that commence after this Act enters into force. |
| (2) | The amended provisions of Article 47-3 (1) shall apply, starting from the portions for which the duty to pay taxes is established after this Act enters into force. |
| (3) | The amended provisions of Articles 47-3 (4) 3 and 47-4 (3) 5 shall apply, starting from the portions for which a transfer income tax is reported for correcting, determined, or reported to correct overreporting after this Act enters into force. |
Article 5 (Applicability to Reduction of, Exception from, etc. of Penalty Taxes)
The amended provisions of Article 48 (2) 3 (c) and (d) shall apply, starting from the portions reported or reported for correcting by the deadline for final return that has to arrive after this Act enters into force. Article 6 (Applicability to Appropriation of National Tax Refund)
The amended provisions of Article 51 (8) shall apply, starting from the portions for which the first national tax refund the payment of which is determined after this Act enters into force is appropriated. Article 7 (Applicability to Tax Investigations)
| (1) | The amended provisions of Articles 81-2 (1) and (3), 81-4 (2) 6, 81-7 (1) and (4), 81-10 and 81-11 (2) through (4), shall apply, starting from tax investigations that are commenced after this Act enters into force. |
| (2) | The amended provisions of Articles 81-4 (3) and 81-8 (5) shall also apply to tax investigations in progress as at the time this Act enters into force. |
| (3) | The amended provisions of Article 81-12 shall also apply to tax investigations in progress as of April 1, 2018. |
Article 8 (Applicability to Taxpayer Protection Committees)
The amended provisions of Articles 81-18 (2) and (3) and 81-19 shall apply, starting from cases where deliberation by a taxpayer protection committee is requested after April 1, 2018. Article 9 (Applicability to Payment of Monetary Rewards)
The amended provisions of Article 84-2 (1) shall apply, starting from materials provided after this Act enters into force.
ADDENDA <Act No. 16097, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019. Provided, That the amended provisions of subparagraphs 4, 5, 8, and 12 of Article 2, Articles 5 (3), 23, 24 (1) and (3), 25 (1) and (4), 25 (2) and (3) (limited to amendments related to penalty taxes), 25-2, 26, 32 through 34, 35 (1) and (2), 35 (4) (limited to amendments related to penalty taxes), 36 through 42, 47-4, 51, 83 shall enter into force on January 1, 2020 (as for amended provisions of Article 47-4 regarding special rural development tax the principal tax of which is acquisition tax, registration and license tax, or leisure tax prescribed in Article 5 (1) 1, 6, and 7 of the Act on Special Rural Development Tax, February 3, 2022), and the amended provisions of Article 21 of the Framework Act on National Taxes (Act No. 9911) shall enter into force on the date the repealed Act of the Traffic, Energy and Environment Tax Act, enter into force. <Amended on Dec. 31, 2019> Article 2 (Applicability to Service of Documents)
The amended provisions of Article 8 (5) shall begin to apply to documents serviced after this Act enters into force. Article 3 (Applicability to Joint and Several Tax Liability)
| (1) | The amended provisions of Article 25 (2) and (3) shall begin to apply to divisions or mergers through divisions after this Act enters into force. |
| (2) | In applying the amended provisions of Article 25 (2) and (3), "national taxes and disposition fees for arrears" in the same paragraph shall be construed as "national taxes, additional dues, and disposition fees for arrears" from January 1, 2019 through to December 31, 2019. |
Article 4 (Applicability to Limitation Period for Imposition of National Taxes)
| (1) | The amended provisions of Article 26-2 (2) 6 shall begin to apply to requests for tax information to the competent authority of a foreign country after this Act enters into force. |
| (2) | The amended provisions of Article 26-2 (5) shall begin to apply to decisions or judgments becoming final and conclusive after this Act enters into force (excluding cases where the limitation period under previous Article 26-2 (1) before this Act enters into force). |
Article 5 (Applicability to Priority of National Taxes)
Article 6 (Applicability to Request for Correction)
The amended provision of Article 45-2 (4) shall begin to apply to requests for correction made after this Act enters into force. Article 7 (Applicability to Return after Due Date)
The amended provisions of Article 45-3 (3) shall begin to apply to returns filed after this Act enters into force. Articles 8 (Applicability to Procedures for Request for Adjudgment)
The amended provisions of Article 69 (7) and (8) shall also apply to cases where procedures for requests for adjudgment are underway as at the time this Act enters into force. Article 9 (Applicability to Principle of Integrated Investigation)
The amended provisions of Article 81-11 (3) 1 shall begin to apply to requests for correction made after this Act enters into force. Article 10 (Transitional Measures concerning Limitation Period for Imposition of National Taxes)
Notwithstanding the amended provisions of Article 26-2 (1), the previous provisions shall apply to the portions of a tax liability that arise before this Act enters into force. Article 11 (Transitional Measures concerning Penalty Taxes for Delayed Payment)
Notwithstanding the amended provisions of subparagraphs 4, 5, 8, and 12 of Article 2, Articles 5 (3), 23, 24 (1) and (3), 25 (1) and (4), 25 (2) and (3) (limited to amendments related to additional dues), 25-2, 26, 32 through 34, 35 (1) and (2), 35 (4) (limited to amendments related to additional dues), 36 through 42, 47-4, 51, and 83, the previous provisions shall apply with respect to the portion of a tax liability that arises before the enforcement date under the proviso of Article 1 of the Addenda. In such cases, notwithstanding the amended provisions of Article 47-4,the previous provisions shall also apply to a person secondarily liable for tax payment where the tax liability of a principal taxpayer under the previous provisions of Articles 38 through 41 arises before the enforcement date prescribed in the proviso of Article 1 of the Addenda. <Amended on Dec. 31, 2019>
ADDENDA <Act No. 16841, Dec. 31, 2019>
Article 1 (Enforcement Date)
Article 2 (Applicability to Methods of Service of Documents)
The amended provisions of Article 10 (2) shall begin to apply to notices of tax payment issued after this Act enters into force. Article 3 (Applicability to Tax Liability of National University Corporations)
| (1) | The amended provisions of Article 13 (8) shall also apply to national university corporations converted before this Act enters into force. |
| (2) | The amended provisions of Article 13 (8) shall begin to apply to tax liabilities that arise after this Act enters into force. |
Article 4 (Applicability to Extinctive Prescription of Right to Collect National Taxes)
The amended provisions of Article 27 (1) shall begin to apply to portions reported or notified after this Act enters into force. Article 5 (Applicability to Requests for Revised Return and Correction by Persons Who File Return after Due Date)
The amended provisions of Articles 45 (1) and 45-2 (1) and (4) (limited to amendments related to the tax base return after the due date) shall also apply to cases where a revised tax base return after the due date is submitted or where a request for determination or correction of the tax base and amount of the national tax is made after this Act enters into force. Article 6 (Applicability to Request for Correction)
The amended provisions of the former part, with the exception of the subparagraphs of Article 45-2 (4) shall begin to apply to requests for correction made after this Act enters into force. Article 7 (Applicability to Penalty Taxes for Non-Filing, Underreporting, or Excess Tax Refund Claims)
The amended provisions of Articles 47-2 (1) 1 and 47-3 (1) 1 (a) shall begin to apply to transactions conducted after this Act enters into force. Article 8 (Applicability to Reduction of, Exception from, of Penalty Taxes)
The amended provisions of Article 48 (2) shall also apply to revised returns or returns after the due date filed after this Act enters into force, where the statutory due date of return expires before this Act enters into force. Article 9 (Applicability to Appropriation and Refund of National Tax Refund)
The amended provisions of Article 51 (11) shall begin to apply to refunds made after this Act enters into force. Article 10 (Applicability to Public Representatives)
The amended provisions of Article 59-2 (1) shall apply begin to apply to requests for pre-assessment review made after this Act enters into force. Article 11 (Applicability to Procedures of Decision in Response to Requests for Adjudgment)
The amended provisions of Article 64 (1) and (2) shall begin to apply to requests for adjudgment made to the Commissioner of the National Tax Service after this Act enters into force. Article 12 (Applicability to Qualifications for Members of National Tax Examination Committee)
The amended provisions of Article 66-2 (2) shall begin to apply to cases where non-public official members are commissioned after this Act enters into force. Article 13 (Applicability to Tax Judges' Rights to Question and Inspect Development Charges)
The amended provisions of Article 76 (1) 1 shall also apply where requests for adjudgment are made before this Act enters into force. Article 14 (Applicability to Tax Investigation Period and Notification of Results thereof)
The amended provisions of Article 81-8 (3) 2 and 81-12 (2) and (3) shall begin to apply to tax investigations conducted after this Act enters into force. Article 15 (Applicability to Confidentiality)
The amended provisions of Article 81-13 (1) 1 shall begin to apply to requests for taxation information made after this Act enters into force. Article 16 (Transitional Measures concerning Timing when Penalty Tax Liability Arises)
Notwithstanding the amended provisions of Article 21-2 (11), the previous provisions shall apply to the portions of the national tax liability related to penalty taxes that arise before this Act enters into force. Article 17 (Applicability to Determination of Tax Liability)
Notwithstanding the amended provisions of Article 22 (4) 5, the previous provisions shall apply to the portions of tax liability that arise before this Act enters into force. Article 18 (Transitional Measures concerning Limitation Period for Imposition of National Taxes)
Notwithstanding the amended provisions of Article 26-2 (5), the previous provisions shall apply where limitation period for imposition has expired pursuant to Article 26-2 (1) 4 before this Act enters into force. Article 19 (Applicability to Request for Correction)
Notwithstanding the amended provisions of the latter part of Article 45-2 (4) (limited to amendments related to requests for correction by nonresidents or foreign corporations), the previous provisions shall apply to portions of income paid before this Act enters into force. Article 20 (Transitional Measures concerning Penalty taxes for Delayed Payment)
Article 21 (Applicability to Penalty Taxes for Insincere Payment of Withholding Tax)
Notwithstanding the amended provisions of Article 47-5 (1), (4), and (5), the previous provisions shall apply to the portion of the tax liability that arises before this Act enters into force. The same shall also apply to a person secondarily liable for tax payment where the principal taxpayer's tax liability arises under the previous provisions of Articles 38 through 41 before this Act enters into force. Article 22 (Applicability to Reduction of, Exception from, of Penalty Taxes)
Notwithstanding the amended provisions of Article 48 (2), the previous provisions shall apply to a revised return or return after due date before this Act enters into force. The same shall also apply to cases where a revised return or return after due date is filed before this Act enters into force, or where a revised return or return is filed again after this Act enters into force. Article 23 (Transitional Measures concerning Raising Objections)
With respect to raising objections under the previous Article 66 (1) 2 before this Act enters into force, notwithstanding the amended provisions of Article 66 (1), the previous provisions shall apply. Article 24 Omitted.
ADDENDUM <Act No. 17339, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 17354, Jun. 9, 2020>A
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 17650, Dec. 22, 2020>
Article 1 (Enforcement Date)
Article 2 (Applicability to Secondary Tax Liability of Investors)
The amended provisions of Article 39 shall apply to cases where the tax liability of a corporation is established after this Act enters into force. Article 3 (Applicability to Request for Correction)
The amended provisions of Article 45-2 (4) shall begin to apply to requests for determination or correction after this Act enters into force. Article 4 (Applicability to Penalty Taxes for Non-Filing, Penalty Taxes for Underreporting or Excess Tax Refund Claims, and Penalty Taxes for Delayed Payment Related to Payment of Value-Added Tax by Simplified Business Entities)
The amended provisions of Articles 47-2 (3) 1, 47-3 (6), and 47-4 (3) 3 shall begin to apply where services are provided after this Act enters into force. Article 5 (Applicability to Penalty Taxes for Delayed Payment)
| (1) | The amended provisions of Article 47-4 (3) 6 shall begin to apply to determinations or corrections made after this Act enters into force. |
| (2) | The amended provisions of Article 47-4 (9) shall apply begin to apply to cases where a taxable document is prepared after this Act enters into force. |
Article 6 (Applicability to Upper Limit on Penalty Taxes)
The amended provisions of Articles 49 (1) 4 shall begin to apply to penalty taxes imposed after this Act enters into force. Article 7 (Applicability to Additional Refund of National Tax)
The amended provisions of Article 52 (3) shall begin to apply to refunds of national taxes made after this Act enters into force.
ADDENDA <Act No. 17651, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Articles 2 through 32 Omitted.
ADDENDA <Act No. 17758, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 26 Omitted.