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An Easy Guide to Local Taxes for Multicultural Families in Korea(4) - Local income tax, Resident tax, Registration license tax 본문

지방세(local tax)/기타

An Easy Guide to Local Taxes for Multicultural Families in Korea(4) - Local income tax, Resident tax, Registration license tax

icebergismelting 2021. 12. 30. 00:01

2021.12.27 - [지방세(local tax)/기타] - An easy guide to local taxes for multicultural families in Korea(3)-Property tax, Automobile tax

▣ Local income tax
National income tax or corporate income tax payers should report and pay local income tax for individuals and corporations to the tax dewpartment of the relevant local government.
Individual local income taxes are levied on comprehensive income (interest, dividend, business, earned, pension and other income), and retirement and property transfer income. Corporate local income taxes are levied on income for each business year, income from transfer of land and other properties, income that is not expended by the
corporation but retained as cash, bank deposits, etc., and liquidation income.

What is the tax base?
The tax base of local income tax is the same as that of the national income tax for individuals and corporations.

How to report and pay local income tax
Local income tax for individuals may be reported and paid along with the national income tax during the period of reporting the finalized comprehensive income tax in May, at the tax departments
of local governments and National Tax Service offices. Local governments send payment notices during the reporting
period to small business owners paying local tax on comprehensive income and persons reporting local tax on transfer income. When the person who receives a notice pays the stated amount, it is
considered that the person also reported the tax amount. Local income tax for individuals on transfer income) may be reported tentatively and paid within four months from the last day of the month of the transfer, and the same shall be reported and paid conclusively by the end of July of the following year.
Local income tax for corporations shall be assessed based on the ratio of the number of employees and the floor area of the building of the corporation within the jurisdiction of the relevant local
government, out of the total number of employees and buildings of the corporation(the ratios of employees and floor area are added and divided by two), and reported and paid within four months from
the last day of the business year to the tax department of the local government where each place of business of the corporation is located(three months for the national income tax for corporations).

 Resident tax
Resident taxes consist of the following types: resident taxes on individuals(individuals whose address is within the relevant local district as of July 1 of each year) and on business owners (individuals or corporations
with a business place within the relevant local district as of July 1 every year; a business owner with a business place with total area of more than 330㎡ within the local district as of July 1 every year), and resident taxes on
business owners who pay wages to employees every month.

Tax base and payment method
Resident taxes on individuals are levied on individuals (the head of a household as defined in the Resident Registration Act) whose address as of July 1 every year is in the relevant
local district, as well as foreigners who are registered under the Immigration Act and have a place of stay in Korea. A taxpayer may pay the resident tax between August 16 and 31 in accordance with the tax payment notice issued by the local government.
Resident tax on a business place is levied on a business owner who had a value-added tax base of more than 48 million won in the preceding year, a corporation with a place of business, or a business owner with a place of business with a total area of more than 300㎡. A business owner reports and pays the resident tax to the local government between August 1 and 31 in the district where the business place is located.
For the resident tax paid by business owners for employees to whom the business owner pays wages, 0.5% of the total wages is reported and paid by the business owner to the relevant local government every month, by the tenth day of the following month.

Registration license tax
The registration license tax (registration) is tax on the act of recording on the document of the national institution of registration the fact of establishing, changing or extinguishing rights on real estate, vehicles, etc.

Tax base
The registration license tax (license) refers to the tax on the act of receiving from an administrative agency a license, permit, etc., prescribed in various laws.
The tax base for the registration license tax (registration) is the reported price at the time of registering the ownership of real estate, automobiles, etc. The tax base for the registration license tax to establish collateral, provisional registration, etc., is the amount of debt.

How to report and pay
Those who wish to register real estate, vehicle, etc., shall report and pay the registration license tax before registration. The registration license tax (license) should be reported and paid
to the tax department of the relevant local government before a license certificate, etc., is issued by the administrative agency. If no effective period of license is left, or if the effective period
exceeds one year, the tax should be paid at a bank between January 16 and 31, with the payment notice sent from the relevant local government.
※ If real estate or automobile registration or a license certificate is issued, a payment receipt for the registration license tax (registration) shall be submitted along with the application.

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