An easy guide to local taxes for multicultural families in Korea(3)-Property tax, Automobile tax

2021.11.30 - [지방세(local tax)/기타] - An Easy Guide to Local Taxes for Multicultural Families in Korea(2)-Acquisition tax

▣ Prorerty tax

Property tax is levied on persons who own a house(apartments included), a building(commercial buildings etc., not including houses), land(land appurtenant to a building included), a ship, a airplane etc., as of June 1 every year.
To calculate the tax amount, the rate of fair market value is multiplied by the declared value of the house, the declared land price, or the statutory standard price of the fair market value of a building.
※ The rate of fair market value is 60% for houses, and 70% for land and buildings.

 

building

house

land

ship

airplane

⊙ How to pay property tax
Property tax is paid at a bank or post office with the property tax payment notice, which is sent by the tax department of the local government with jurisdiction over the house, building, land, etc., in July and September every year.
For a house, property tax is paid in two installments a year, between July 16 and 31(first payment) and September 16 and 30(second payment).
For an ordinary building, a ship, an airplane, property tax should be paid between July 16 and 31. For land, property tax is paid between September 16 and 30.

⊙ What are the disadvantages of not paying?
If property tax(or automobile tax) is not paid within the payment period, an additional tax equivalent to 3% of the tax amount payable is levied for each non-payment.
For each month that passes after the expiration of the payment period, an additional tax equivalent to 0.75% of the unpaid local tax is added until 60 months after the said expiration.

▣ Automobile tax
An automobile tax serves as a property tax for car ownership, as well as a tax imposed on the burden of social costs of road damages, traffic congestion, and environmental pollution attributed to car ownership.

car

⊙ What is the tax base?
For automobiles registered under the Automobile Management
Act, as well as dump trucks and concrete mix trucks, tax is imposed in prescribed amounts based on engine displacement (cubic centimeter), etc.

⊙ How to pay automobile tax
The yearly tax amount is paid in two deferred installments, with a payment notice sent to the car owner as of the first day of the month when the payment is due (June and December).

⊙ How to save on automobile tax
If a yearly amount is paid in one installment, 10% of the automobile tax amount that should have been paid in the second installment is discounted.
※ The discount rate of the yearly amount will be adjusted, beginning in 2021, based on the interest rates on deposits in financial institutions and other factors: 10% (up to 2022) → 7%
(2023) → 5% (2024) → 3% (2025 and thereafter)
To pay the automobile tax in one installment, please request the relevant tax department for payment within the request period. You can also apply for payment through the Internet payment services of local taxes (wetax.go.kr).