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Laws of the Republic of Korea |
1
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON NATIONAL TAXES
Presidential Decree No. 7459, Dec. 31, 1974
Amended by Presidential Decree No. 8352, Dec. 31, 1976 Presidential Decree No. 8650, Aug. 20, 1977
Presidential Decree No. 8749, Nov. 21, 1977
Presidential Decree No. 9228, Dec. 30, 1978
Presidential Decree No. 9693, Dec. 31, 1979
Presidential Decree No. 10118, Dec. 31, 1980
Presidential Decree No. 10696, Dec. 31, 1981
Presidential Decree No. 11577, Dec. 31, 1984
Presidential Decree No. 12882, Dec. 30, 1989
Presidential Decree No. 13192, Dec. 31, 1990
Presidential Decree No. 13539, Dec. 31, 1991
Presidential Decree No. 13895, May 27, 1993
Presidential Decree No. 14076, Dec. 31, 1993
Presidential Decree No. 14473, Dec. 31, 1994
Presidential Decree No. 14860, Dec. 30, 1995
Presidential Decree No. 14870, Dec. 30, 1995
Presidential Decree No. 14988, Apr. 27, 1996
Presidential Decree No. 15014, Jun. 4, 1996
Presidential Decree No. 15189, Dec. 31, 1996
Presidential Decree No. 15968, Dec. 31, 1998
Presidential Decree No. 16622, Dec. 28, 1999
Presidential Decree No. 17036, Dec. 29, 2000
Presidential Decree No. 17047, Dec. 29, 2000
Presidential Decree No. 17830, Dec. 30, 2002
Presidential Decree No. 18172, Dec. 30, 2003
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 18385, May 10, 2004
Presidential Decree No. 18849, May 31, 2005
Presidential Decree No. 19461, Apr. 28, 2006
Presidential Decree No. 19513, Jun. 12, 2006
Presidential Decree No. 19893, Feb. 28, 2007
Presidential Decree No. 20516, Dec. 31, 2007
Presidential Decree No. 20622, Feb. 22, 2008
Presidential Decree No. 20654, Feb. 29, 2008
CHAPTER GENERAL PROVISIONS
Article 1 (Definition)
Article 1-2 (Special Cases to Electronic Returns) Article 2 (Extension of Time Limit and Provision of Security) Article 2-2 (Extension of Time Limit and Limit of Installment Payment) Article 3 (Application for Extension of Time Limit) ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
2
Article 4 (Approval of Extension of Time Limit)
Article 4-2 (Revocation of Extension of Payment Time Limit) Article 4-3 (Revocation Notice about Extension of Payment Time Limit) Article 5 (Reporting of Place to be Served on)
Article 5-2 (Scope of Delivery by General Mail)
Article 6 (Letter of Service)
Article 6-2 (Application for Electronic Service)
Article 6-3 (Causes to Make Electronic Service Impossible) Article 6-4 (Scope of Documents to be Provided through Electronic Service) Article 7 (Confirmation of Unknown Address)
Article 7-2 (Service by Public Notification)
Article 8 (Application and Approval, etc. of Organization Deemed as Juristic Person) Article 9 (Reporting of Representative, etc. of Organization Deemed as Juristic Person) Article 10 (Notification of Designation of Representative, etc. of Organization Deemed as Juristic Person)
CHAPTER LIABILITY TO PAY TAX
Article 10-2 (Determination of Tax Liability)
Article 11 (Value of Inherited Property)
Article 12 (Report on Representative of Heirs)
Article 12-2 (Scope of False Report, etc. of Inheritance Tax or Gift Tax) Article 12-3 (Initial Date in Reckoning Exclusion Period for National Taxes) Article 12-4 (Initial Date in Reckoning Extinctive Prescription of National Taxes) Article 13 (Appraisal of Security for Tax Payment) Article 14 (Offering of Security for Tax Payment) Article 15 (Change and Supplementation of Security for Tax Payment) Article 16 (Payment and Collection through Security for Tax Payment) Article 17 (Cancellation of Security for Tax Payment) CHAPTER RELATIONS BETWEEN NATIONAL TAXES AND COMMON OBLIGATIONS
Article 18 (Priority of National Taxes)
Article 18-2 (Scope of Relatives, etc. Colluding in Presumed False Contract)
Article 19 (Limits of Secondary Tax Liability of Liquidator,
etc.)
Article 20 (Scope of Relatives and Other Specially-Related Persons)
Article 20-2 Deleted.
Article 24 (Disposition of Return Violating Jurisdiction)
Article 25 (Revised Return of Tax Base)
Article 25-2 (Ex Post Factor Causes)
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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Article 25-3 (Request for Revision, etc.)
Article 25-4 (Tax Base Return after Time Limit)
Article 26 (Additional Voluntary Payment)
Article 26-2 (Payment of National Taxes by Credit Card, etc.)
Article 27 (Surtax against Non-filed Tax Return)
Article 27-2 (Additional Tax against Understated Tax Return)
Article 27-3 (Additional Tax against Over-declared Refundable Tax)
Article 27-4 (Additional Tax against Insincere Payment or Refund)
Article 28 (Application for Abatement or Exemption of Additional
Tax, etc.)
Article 29 (Grounds for Exception from Abatement or Exemption upon Filing Revised
Tax Return)
Article 29-2 (Limits on Surtax)
CHAPTER REFUNDS OF NATIONAL TAXES AND ADDITIONAL
PAYMENTS ON REFUNDS OF NATIONAL TAXES
Article 30 (Determination of Additional Payment on National Tax Refund)
Article 31 (Notice of Appropriation of National Tax Refunds,
etc.)
Article 32 Deleted.
Article 37 (Procedures for Cash Payment for National Tax Refund)
Article 38 (Delivery, etc. of Refund Funds to Postal Service Office)
Article 39 (Settlement of Unpaid Funds by Postal Service Office)
Articles 40 and 41 Deleted.
Article 43 (Statement of Account of National Tax Refund Amount)
Article 43-2 (Refund of Property Paid in Kind)
CHAPTER EXAMINATION AND ADJUDICATION
SECTION 1 Common Provisions
Article 44 (Scope of Interested Persons with Objection)
Article 44-2 (Dispositions Exempted from Objection)
Article 45 (Suspension
of Execution of Disposition)
Article 46 (Application for Inspection of Related Documents)
Article 47 (Statement of Opinion)
Article 48 (Notice of Disposition by Commissioner of National Tax Service, etc.)
Article 49 (Relief for Mistake in Notice of Objection
Method)
SECTION 2 Examination
Article 50 (Written Examination Request)
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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Article 51 (Request for Examination via Director of Regional Tax Office)
Article 52 (Request for Correction)
Article 53 (National Tax Examination Committee)
Article 53-2 (Rectification of Decision)
Article 54 (Application for Objection)
Article 54-2 (Objection Review Committee)
SECTION 3 Adjudication
Article 55 (Request for Adjudication)
Article 55-2 (Required Qualifications of Tax Adjudicators)
Article 55-3 (Required Qualifications of Investigators)
Article 55-4
(Appointment and Commissioning of Tax Adjudicators)
Article 56 (Request for Submission of Defense Materials)
Article 57 (Notice
of Designation of Tax Adjudicators)
Article 58 (Council of Tax Adjudicators)
Article 59 Deleted.
Article 62-2 (Joint Session of Tax Adjudicators)
Article 63 (Delivery of Decision Papers)
SECTION 4 Rights Of Taxpayers
Article 63-2 (Prevention from Double Investigations)
Article 63-3 (Scope of Field Investigation for Tax Disposition)
Article 63-4
(Standards for Tax Investigation of Taxpayers Not Subjected to Tax
Investigation for Long Time)
Article 63-5 (Exemption of Honest Small Business Proprietors from Tax Investigation)
Article 63-6 (Advance Notification of Tax Investigation)
Article 63-7 (Application for Postponement of Tax Investigation)
Article 63-8 (Notification of Results of Tax Investigation)
Article
63-9 (Scope, etc. of Judgment on Propriety before Tax Levying)
Article 63-10 (Committee for Judgment on Propriety before Tax Levying)
CHAPTER SUPPLEMENTARY PROVISIONS
Article 64 (Report of Designation of Tax Manager)
Article 64-2 (Scope of Duties of Tax Manager)
Article 65 (Measures for Changing Tax Manager)
Article 65-2 (Tax Guidance Grant Money)
Article 65-3 (Minimum Level of Amount Notified)
Article 65-4 (Payment of Bounty)
Article 65-5 (Cooperation, etc. in Submission of Tax Data)
Article 65-6 Moved to Article 63-6.
Article 65-7 (Information Storage Device Recognizable as Documentary Evidence, and
Records and Books)
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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Article 65-8 (Delivery of Certificate of Receipt of Documents)
Article 66 (Publication of Roll of High and Habitually Delinquent
Taxpayers, etc.)
Article 67 (Publication of Statistical Data)
CHAPTER GENERAL PROVISIONS
Article 1 (Definition)
The definitions of the terms used in this Decree shall be as determined
by the Framework Act on National Taxes (hereinafter referred
to as the
"Act").
[This Article Wholly Amended by Presidential Decree No. 17830, Dec. 30, 2002]
Article 2 (Extension of Time Limit and Provision of
Security)
(1) The case falling under any of the following subparagraphs which
is deemed by the chief of tax office, shall be regarded
as being grounds
entitling an extension of the time limit pursuant to Article 6 of the
Act:
1. When the taxpayer suffers fire, damage from war, or other calamities,
or is robbed;
2. When the taxpayer or a family member who is living together with
him is critically ill, or has died and is in mourning;
ENFORCEMENT
DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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3. When the taxpayer suffers a serious loss to his business or his business
is faced with a major crisis (limited to cases of payment);
3-2. When the normal operation of information and communications
networks of the Bank of Korea (including its agencies) or a
communications
agency is impossible due to a power failure, an error
of programs or other unavoidable causes;
3-3. When the Commissioner of the National Tax Service deems that
it is difficult to pay tax normally due to the holiday of a financial
institution (limited to a financial institution which is a national treasury
agency or national treasury receipt agency of the
Bank of Korea) or
a communications agency or other unavoidable causes;
4. When the books and documents are seized or provisionally held by
a competent authoritative agency;
5. When a case arises which meets the criteria set by the Commissioner
of the National Tax Service on condition that it is accepted
as a case
for which it is necessary to extend the deadline of tax payment, in
consideration of the circumstance, economic condition,
etc. of a taxpayer
(limited to cases of payment); and
6. When there exists a cause corresponding to subparagraph 1, 2 or 4.
(2) The term "when there occur causes as prescribed by the
Presidential
Decree" in the proviso to Article 6 (2) of the Act means when it falls under
paragraph (1) 1, 3-2, and 3-3, or when
it falls under a cause corresponding
thereto.
(2) Notwithstanding the provisions of paragraph (1), the extension of time
limit related to a return and payment may be decided
by the chief of the
competent tax office within the limit not exceeding 9 months.
(3) The time limit and amount of payment in installments during the
period of extension under paragraph (2) may be determined by
the chief
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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of the competent tax office. In this case, if the extended period exceeds
six months, the chief of the competent tax office shall
make it possible
for a taxpayer to pay an equal amount in installments within three months
from the day that six months pass, as
the case may be.
[This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002]
Article 3 (Application for Extension of Time Limit)
A person who desires to have a time limit extended pursuant to Article
6 of the Act shall apply to the head of the administrative
body concerned
in writing stating the items of the following subparagraphs by not later
than three days prior to the expiration
of the time limit. In this case,
if the head of the administrative body deems that the person would be
unable to file such application
not later than three days prior to the expiration
of the time limit, he may allow such person to make such application not
later
than the expiration day of the time limit:
1. The name and domicile or temporary domicile of the person who desires
to have the time limit extended;
2. The time limit for which an extension is desired;
3. Cause for desiring an extension; and
4. Other necessary matters.
Article 4 (Approval of Extension of Time Limit)
(1) Where the time limit is extended pursuant to Article 6 of the Act,
the head of the administrative body shall, without delay,
notify the
persons concerned by a document stating the items corresponding to
each subparagraph of Article 3. Where the application
is made under the
former part of Article 3, he shall notify the applicant of whether he approves
or not before the expiration of
the time limit.
(2) The head of the administrative body may, in case where it falls under
one of the following subparagraphs, substitute the means
of a public notice
on the Official Gazette or the daily newspaper for the notification,
notwithstanding paragraph (1):
1. Where the cause corresponding to Article 2 (1) 3-2 occurs all at once
on a national scale;
2. Where the persons who are subject to the notification of extension
of time limit are many and unspecified persons; and
3. Where there exists no time for individual notification of the fact of
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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extension of time limit to the persons subject to it.
Article 4-2 (Revocation of Extension of Payment Time Limit)
"Grounds prescribed
by the Presidential Decree" as referred to in Article
6-2 (1) 3 of the Act means a case where the payment time limit is extended
on the grounds falling under Article 2 (1) 3-2 and 3-3, terminating the
relevant grounds that makes it possible to pay taxes normally.
[This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003]
Article 4-3 (Revocation Notice about Extension of
Payment Time Limit)
Any notice about the revocation of the extension of the payment time limit
provided for in Article 6-2 (2)
of the Act shall be served in the form of
document containing matters falling under each of the following
subparagraphs:
1. The date of revocation; and
2. The grounds of revocation.
[This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003]
Article 5 (Reporting
of Place to be Served on)
In case of reporting of the place on which a document is served under
Article 9 of the Act (including the report of changes), a
document stating
the items of the following subparagraphs shall be submitted to the head
of the administrative body concerned:
1. Name of the taxpayer;
2. Domicile or temporary domicile of the taxpayer, or location of his
place of business;
3. Location of the place on which documents are served;
4. Cause for designating a place on which documents are served; and
5. Other necessary matters.
Article 5-2 (Scope of Delivery by General Mail)
The term "amount prescribed by the Presidential Decree" in the proviso
to Article 10 (2) of the Act means the amount of 500 thousand
won.
[This Article Newly Inserted by Presidential Decree No. 18172, Dec. 30, 2003]
Article 6 (Letter of Service)
The following items shall be entered in the letter of service as referred
to in Article 10 (6) of the Act:
1. Title of the document;
2. Name of the recipient of the document;
3. Name of the person who received the document;
4. Place of delivery;
5. Date of delivery; and
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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6. Main contents of the document.
Article 6-2 (Application for Electronic Service)
(1) Any person who intends to file an application for electronic service
under Article 10 (8) of the Act or to withdraw such application
shall submit
to the head of the competent tax office a document stating the following
matters: 1. Matters relating to identity of a taxpayer, including his name and
citizen registration number;
2. Address or location of the principal office and place of business of
a taxpayer;
3. Electronic mail address or point of contact for electronic service of
information;
4. Method of notice on, and reasons for applying for (or withdrawing),
electronic service; and
5. Any other matter prescribed by Ordinance of the Ministry of Strategy
and Finance.
(2) The initiation and withdrawal of electronic service shall apply beginning
with the day following the date of receiving an application
filed under
paragraph (1).
(3) Where any person who has withdrawn an application for electronic
service intends to file a new application therefor, he may
do so at least
thirty days after the date of application for such withdrawal.
[This Article Newly Inserted by Presidential Decree
No. 17830, Dec. 30, 2002]
Article 6-3 (Causes to Make Electronic Service Impossible)
The term "cause prescribed by the Presidential
Decree" in Article 10 (9)
of the Act means any case which falls under any of the following subparagraphs:
1. Where it is impossible to render electronic service due to any obstacle
to information and communications networks; and
2. Other cases where it is impossible to render electronic service, as
prescribed by the Commissioner of the National Tax Service.
[This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002]
Article 6-4 (Scope of Documents to be Provided through
Electronic Service)
(1) The documents to be provided through electronic service under Article
10 (10) of the Act shall be limited
to notifications of tax payment or notices
of payment, notices of the amount of refund of national tax, notices of
return, and
other documents determined by the Commissioner of the
National Tax Service.
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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(2) Where the Commissioner of the National Tax Service provides by
means of electronic service a notification of tax payment, or
a notice of
payment, and a notice of the amount of refund of national tax among the
documents of paragraph (1), he shall make them
accessible to the taxpayer
concerned through national tax information and communications networks.
(3) Where the Commissioner of
the National Tax Service provides by
means of electronic service, documents other than those described in
paragraph (2), he shall
serve them on the electronic mail address designated
by the taxpayer concerned.
[This Article Newly Inserted by Presidential Decree No. 17830, Dec. 30, 2002]
Article 7 (Confirmation of Unknown Address)
The term "cases where his domicile or business office is not ascertainable"
in Article 11 (1) 2 of the Act means cases where the
domicile or business
office cannot be confirmed even by the citizen registration card or corporate
registry.
The term "cases prescribed by the Presidential Decree" in Article 11 (1)
3 of the Act means cases falling under any of the following
subparagraphs:
1. Where it is difficult to serve a document by the time limit for payment
because the document served by registered mail was returned
due to
the addressee's absence; and
2. Where it is difficult to serve a document by the time limit for payment
due to the addressee's absence, for all that a tax official
visited the taxpayer
two or more times to deliver the document.
[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996]
Article 8 (Application and Approval, etc. of Organization
Deemed as
Juristic Person)
(1) The representative or manager of an unincorporated association,
foundation, or organization (hereinafter referred to as an "unincorporated
organization") which desires to obtain approval pursuant to Article 13 (2)
of the Act shall submit a document stating the items
of the following
subparagraphs to the chief of the competent tax office:
1. Title of the organization;
2. Location of its main office;
3. Name and domicile or temporary domicile of its representative or
manager;
4. Business purposes;
5. Status of Property;
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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6. Articles of association or provisions relating to the organization and
its operations; and
7. Other necessary matters.
(2) Where the representative or manager of the unincorporated organization
submits a document under
paragraph (1), the chief of the competent tax
office shall notify the applicant of whether or not he approves, within
10 days from
the date of the application.
(3) Where the unincorporated organization has obtained approval pursuant
to paragraph (2), a proper number under Article 8 (2) of
the Enforcement
Decree of the Value-Added Tax Act shall be granted concurrently with
such approval: Provided, That this shall not
apply where the organization
concerned which desires to operate a profit-making business shall make
registration of the business
under Article 111 of the Corporate Tax Act.
(4) Where the unincorporated organization which has obtained approval
under paragraph (2) fails to meet the requirements under any
subparagraph
of Article 13 (2) of the Act, the chief of the competent tax office shall,
without delay, cancel the approval.
[This Article Wholly Amended by Presidential Decree No. 14473, Dec. 31, 1994]
Article 9 (Reporting of Representative, etc. of Organization
Deemed as
Juristic Person)
Where an unincorporated organization which is deemed as a juristic person
under Article 13 (1) and (2) of the Act (hereinafter referred
to as an
"organization deemed as a juristic person") desires to report on the selection
or change of its representative or manager
under Article 13 (5) of the
Act, it shall submit to the chief of the competent tax office the document
which includes the name
and domicile or temporary domicile of the
representative or manager (in cases of a change, the former and current
representative
or manager), and other necessary matters.
[This Article Wholly Amended by Presidential Decree No. 14473, Dec. 31, 1994]
Article
10 (Notification of Designation of Representative, etc. of
Organization Deemed as Juristic Person)
When a person who performs duties related to national taxes is designated,
pursuant to the provisions of Article 13 (6) of the Act,
the chief of the
competent tax office shall, without delay, notify the organization concerned
deemed as a juristic person, in writing
stating the items of the following
subparagraphs: 1. Name, and domicile or temporary domicile of the person performing
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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the duties related to national taxes;
2. Date of the designation;
3. Grounds for designation; and
4. Other necessary matters.
CHAPTER LIABILITY TO PAY TAX
Article 10-2 (Determination of Tax Liability)
The time when an amount of tax is finally determined in accordance with
the procedure under the relevant tax-related Act provided
for in Article
22 (1) of the Act shall be as follows:
1. For income tax, corporate tax, value-added tax, individual consumption
tax, liquor tax, securities transaction tax, education
tax, or traffic,
energy and environment tax, the time when the tax base and amount
of tax are reported to the Government: Provided,
That the cases falling
under subparagraph 2 shall be excluded;
2. For national taxes which fall under subparagraph 1 and whose tax
base and amount of tax are determined by the Government, the
time
when the Government makes such determination;
2-2. For gross real estate tax, the time when the tax base and amount of
tax are determined by the Government: Provided, That it
shall be the
time when the tax base and amount of tax are reported, in cases where
the taxpayer reports the tax base and amount
of tax of gross real estate
tax to the Government in accordance with Article 16 (3) of the Gross
Real Estate Tax Act; and
3. For national taxes, other than those of subparagraphs 1 and 2-2, the
time when the tax base and amount of tax of the relevant
national
taxes are determined by the Government.
[This Article Newly Inserted by Presidential Decree No. 8650, Aug. 20, 1977]
Article 11 (Value of Inherited Property)
(1) The term "property acquired by inheritance" in Article 24 (1) of the
Act means the values remaining after deducting the total
amount of debts
and inheritance tax which is either levied or is to be paid due to such
inheritance from the total amount of the
assets obtained through inheritance.
(2) The values of the total amount of assets and the total amount of debts
ENFORCEMENT DECREE
OF THE FRAMEWORK ACT ON
NATIONAL TAXES
13
pursuant to the provisions of paragraph (1) shall be appraised by applying
mutatis mutandis the provisions of Articles 60 through
66 of the Inheritance
Tax and Gift Tax Act.
(1) The report of the representative of heirs under the latter part of Article
24 (2) of the Act shall be made by a document (including
electronic
documents) in which the name, domicile and residence of the said
representative, and other necessary matters are entered,
within 30 days
after the inheritance concerned commences.
1. When the fabricated debts are deducted from the value of the inherited
or donated property, and reported;
2. When a property is omitted in the report of inherited or donated
property, such property not being registered, etc. in the name
of the
heir or donee, when registering, recording, change of title entry
(hereafter in this subparagraph referred to as "registration,
etc.") is
required for the transfer or exercise of the rights thereon; and
3. When deposits, stocks, bonds, insurance money, or other financial assets
are omitted in the report of inherited property or donated
property.
[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994]
Article 12-3 (Initial Date in Reckoning
Exclusion Period for National Taxes)
(1) The dates on which national taxes may be levied pursuant to the
provisions of Article
26-2 (4) of the Act shall be those set forth in the
following subparagraphs: 1. For the national taxes of which tax base and tax amount are reported
(excluding the gross real estate tax reported in accordance
with Article
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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16 (3) of the Gross Real Estate Tax Act), the date following the report
deadline or the deadline for the submission of a written
report
(hereinafter referred to as the "report deadline for tax base"), relating
to the tax base and the tax amount of the national
taxes concerned.
In this case, the report deadline and the amendment report deadline
relating to the periods of interim payments
and scheduled report shall
not be included in the report deadline for tax base; and
2. For the undue gain tax, gross real estate tax, and stamp tax, the date
when the liability to pay such national taxes comes into
existence.
(2) The dates of the following subparagraphs, notwithstanding the
provisions of paragraph (1), shall be dates on which
national taxes may
be levied:
1. For the national taxes levied upon the tax withholding agents or tax
associations, the date following the legal deadline for payment
of
the amount of the withholding tax concerned or the amount of the
tax collected from the tax associations;
2. If the legal deadline for payment, pursuant to the provisions of
subparagraph 1, or the report deadline for tax base is extended,
the
date immediately following such an extended period; and
3. If the tax amount is collected on the grounds of a failure to fulfill obligations,
etc. in accordance with deduction, exemption,
non-taxation or the
application of low tax rates, etc., the day on which the grounds that
make it possible to collect the relevant
deducted tax amount, etc. accrue
(in the case of benefiting any income deduction, it means the tax amount
equivalent to the deducted
income amount and in the case of benefiting
low tax rates, it means the tax amount equivalent to a difference from
general tax
rates; hereafter in this subparagraph referred to as the
"deducted tax amount, etc.").
[This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984]
Article 12-4 (Initial Date in Reckoning Extinctive
Prescription of National
Taxes)
(1) The term "time when the State may exercise its rights to collect the
national tax" in Article 27 (3) of the Act, means the dates
of the following
subparagraphs: 1. For the reported tax amount concerned, with respect to the national
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
15
taxes of which tax liability is finally determined by the report of the
tax amount and the tax base, the day immediately following
the
expiration of its legal deadline for report and payment; and
2. For the tax amount concerned, with respect to those of which tax
base and tax amount are determined, corrected or occasionally
decided
and imposed by the Government, the day immediately following the
expiration of the deadline for payment by the tax notification.
(2) On the dates set forth in the following subparagraphs, notwithstanding
the provisions of paragraph (1), the State may exercise
its rights to collect
national taxes:
1. In case of national taxes collected from taxpayers liable for withholding
taxes or tax associations, the next day of the payment
deadline notified
by a notice of tax payment concerning the amount of the withholding
tax concerned or the amount collected by
tax associations concerned;
2. In case of stamp taxes, the next day of the payment deadline notified
by a notice of tax payment concerning the amount of the
stamp tax
concerned; and
3. In case the statutory deadline for the payment under paragraph
(1) 1 is extended, the next day of such an extended deadline.
[This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984]
Article 13 (Appraisal of Security for Tax Payment)
(1) The appraisal of security for tax payment pursuant to the provisions
of subparagraphs 1 and 2 of Article 30 of the Act shall
be in accordance
with the following subparagraphs: 1. For the securities having the fact of trade from among the securities
listed in the securities market or KOSDAQ market under the
Korea
Securities and Futures Exchange Act: The final market values
announced at the securities market or KOSDAQ market on the day
preceding the day they are offered as security; and
2. For other securities than those of subparagraph 1: The values calculated
by applying mutatis mutandis the provisions of Article
58 (1) 2 of the
Enforcement Decree of the Inheritance Tax and Gift Tax Act on the
day preceding the day they are offered as security.
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
NATIONAL TAXES
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(2) The appraisal of security for tax payment, pursuant to the provisions
of subparagraph 5 of Article 30 of the Act, shall be in
accordance with
the following subparagraphs:
1. The values of lands or buildings shall be appraised by applying mutatis
mutandis the provisions of Article 61 of the Inheritance
Tax and Gift
Tax Act; and
2. The values of factory foundations, mining foundations, ships, aircraft,
or construction machinery shall be appraised by certified
public appraisers
pursuant to the Public Notice of Values and Appraisal of Real Estate
Act or shall be based on the current base
values pursuant to the Local
Tax Act.
Article 14 (Offering of Security for Tax Payment)
(1) In offering security for tax payment, pursuant to the provisions of Article
31 of the Act, security equivalent to the value of 120 percent (in the case
of cash or tax guarantee insurance policy, 110 percent)
or more of the national
taxes to be paid shall be offered: Provided, That in cases where the national
taxes are not finally determined,
the security amounts shall be prescribed
by the Commissioner of the National Tax Service.
(2) When a taxpayer desires to offer a land, a building, a factory foundation,
a mining foundation, a ship, an aircraft, or construction
machinery as
security for tax payment, the chief of tax office shall investigate whether
or not the relevant facts conform to those
in the certificate of completion
of registration or the registration certificate presented under Article 31 (3)
of the Act, and
in case it falls under one of the following subparagraphs,
the taxpayer shall offer other security:
1. When the offering of a security is either prohibited or restricted,
pursuant to Acts and subordinate statutes, except for the
case where
the offer is made by obtaining permission from the competent
administrative agency;
2. When it is deemed that the property cannot attain the purpose of security
as the use and profit of the property concerned is restricted,
pursuant
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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17
to Acts and subordinate statutes; and
3. When, other than subparagraphs 1 and 2, it is deemed that the property
cannot attain the purpose of security.
(3) A person offering a building, a factory foundation, a mining
foundation, a ship, an aircraft, or construction machinery, which
has
been insured, as security for tax payment, shall submit the fire insurance
policy. In such a case, the insured period shall
be longer than the period
required for security for tax payment by 30 or more days.
(4) The scope of the securities which the chief of tax office confirms to
be reliable under Article 29 (3) of the Act, shall be
prescribed by the
Commissioner of the National Tax Service.
(5) The period of a tax guarantee insurance policy offered as tax security,
pursuant to the provisions of Article 31 (2) of the
Act, shall be longer
than the period required for security for tax payment by 30 or more days:
Provided, That in case of a national
tax whose deadline for payment is
not finally determined, it shall be in accordance with a period prescribed
by the Commissioner
of the National Tax Service.
(6) For a registration or a record for the establishment of a mortgage under
the provisions of Article 31 (3) of the Act, a written
request stating the items
of the following subparagraphs shall be submitted to the administrative
agency concerned:
1. Description of the property;
2. Cause for registration or record, and the date;
3. Purpose of the registration or record;
4. Scope of the mortgage;
5. Registered or recorded holder of the title deed; and
6. Domicile and name of the obligor of the registration or record.
Article 15 (Change and Supplementation of Security for Tax Payment)
(1) In case a taxpayer applies to change the security already offered for
payment, pursuant to the provisions of Article 32 (1)
of the Act, if it falls
under one of the following subparagraphs, the chief of tax office shall approve
such application:
1. When other collateral is offered in replacement of the letter of guarantee
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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18
of the guarantor;
2. When the offered collateral, because of a change in its value, becomes
excessive; and
3. When for the stocks and bonds offered as collateral with redemption
period the period of redemption is reached.
(2) An application for approval of changes, pursuant to the provisions of
Article 32 (1) of the Act, or either an additional offering
of security for
tax payment or a request for change of the guarantor, pursuant to the
provisions of Article 32 (2) of the Act,
shall be made by necessary documents.
Article 16 (Payment and Collection through Security for Tax Payment)
(1) A person who desires
to pay national taxes, additional dues, and
disposition fees for arrears by money offered as security for tax payment
pursuant
to the provisions of Article 33 (1) of the Act shall submit a written
application to the chief of the competent tax office. In this
case, it shall
be regarded that he has paid national taxes, additional dues, and disposition
fees for arrears which corresponds
to the applied amount.
(2) When the chief of tax office desires to collect national taxes, additional
dues, and disposition fees for arrears through security
for tax payment,
pursuant to the provisions of Article 33 (2) of the Act; if the security
for tax payment is money, such money
shall be appropriated to the national
taxes, additional dues, or disposition fees for arrears concerned; in case
the security for
tax payment is something other than money, money which
is collected or realized under the following subparagraphs shall be
appropriated
to them:
1. In cases of government bonds, municipal bonds, other stocks and bonds,
lands, buildings, factory foundations, mining foundations,
ships,
aircraft, or construction machinery, they shall be sold pursuant to the
procedure for public sale prescribed by the National
Tax Collection
Act;
2. In cases of tax guarantee insurance policies, the payment of the insurance
money shall be requested to the tax guarantee insurer
concerned; and
3. In cases of the letters of guarantee for tax payment, they shall be
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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19
collected from the tax guarantors pursuant to the collection procedures
prescribed by the National Tax Collection Act.
(3) When the amount realized from security for tax payment, pursuant to
the provisions of paragraph (1), is appropriated to the
collectable national
taxes, additional dues, and disposition fees for arrears, and remains,
it shall be returned to the taxpayer,
after distributing it in accordance
with the method for disposition of public sale proceeds, prescribed by the
National Tax Collection
Act.
Article 17 (Cancellation of Security for Tax Payment)
(1) A cancellation of security for tax payment, pursuant to the provisions
of Article 34 of the Act, shall be carried out by notifying the person who
offered such security for tax payment, by a document
stating such intent.
In this case, when there are relevant documents, submitted in accordance
with the offering of security for
tax payment, these shall be appended
to the cancellation notification.
(2) In case of paragraph (1), when the registration or record of mortgage
was requested pursuant to the provisions of Article 14
(6), the cancellation
of such registration, or record, of mortgage shall be again requested to
the administrative agency concerned,
by a document with items stated
corresponding to the subparagraphs of the same paragraph of the same
Article.
NATIONAL TAXES AND
COMMON OBLIGATIONS
Article 18 (Priority of National Taxes)
(1) Deleted.
1. A copy of a real estate register;
2. Certification by a notary;
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3. A document recognized by the chief of tax office as a certification
pertaining to the pledge; and
4. A document recognized by the chief of tax office as a certification by
public documents or books of financial institutions.
(3)
When a property related to claims having priority to national taxes,
etc. is seized, pursuant to the provisions of Article 35 (1)
4 and 5 of the
Act, the chief of tax office shall notify the claimant concerned of such
fact, by a document stating the items of
the following subparagraphs:
Provided, That in case the number of claimants, pursuant to the provisions
of Article 35 (1) 5 of
the Act, is large, such fact may be notified to a
representative appointed by the chief of tax office, and the representative
who
receives such notification shall, through public notification or a posting,
inform the other claimants of such fact:
1. Name, and domicile or temporary domicile of the defaulted taxpayer;
2. The taxation year, items of taxation, amount of tax, and deadline for
payment of the national taxes related to the seizure;
3. The location, kind, quantity, and quality of the seized property; and
4. The date of the seizure.
(4) With respect to notification of seizure to the holder of provisionally
registered title deed, pursuant
to the provisions of Article 35 (3) of the
Act, the provisions of Article 49 of the Enforcement Decree of the National
Tax Collection
Act shall be applied mutatis mutandis.
NATIONAL TAXES
21
remaining assets concerned, on the day they are distributed or handed
over.
Article 20 (Scope of Relatives and Other Specially-Related Persons)
"Who is a relative or has other special relation...., as prescribed
by the
Presidential Decree" in Article 39 (2) of the Act means a person who falls
under one of the following subparagraphs: Provided,
That in case a
stockholder or a partner with limited liability is a woman married into
another family, the cases of subparagraphs
9 through 13 shall not apply,
and she will be subject to the relationship with her husband's family:
1. A paternal blood relative of not more than six degrees of relationship
and the wife of a paternal blood relative of not more than
four degrees
of relationship;
2. The husband and children of a paternal blood relative of not more
than three degrees of relationship;
3. A maternal blood relative of not more than three degrees of
relationship and the spouse and children of such person;
4. A paternal blood relative of not more than two degrees of relationship
of the wife and the spouse of such a person;
5. Spouse (including a person who is in a de facto marital relationship);
6. A lineal ascendant of the birth parents of an adoptee;
7. A person who enters a family as an adopted child and his spouse, and
a lineal descendant of an adoptive family of the person who
enters a
family as an adopted child;
8. The natural mother of a person born out of wedlock;
9. An employee or other person in an employment relationship;
10. Person sharing a livelihood with a person who maintains his livelihood
based on money or other property of a stockholder or a
partner with
limited liability;
11. In case a stockholder or a partner with limited liability is an individual,
a juristic person of which the total of the number
of owned stocks or
the amount of investments (hereinafter referred to as the "number of
owned stocks, etc.") of such a stockholder
or partner with limited liability
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and persons who have a relation as prescribed in subparagraphs 1 through
10 with such a stockholder or partner with limited liability,
is 50/100
or more of the total number of the issued stocks or the total amount
of investments (hereinafter referred to as the "total
number of issued
stocks, etc.");
12. In case a stockholder or a partner with limited liability is a juristic
person concerned, a juristic person (in case the Government
is the
stockholder, the Government shall be excluded) 50 per cent or more
of the total amount of shares, etc. issued by the juristic
person concerned;
and a juristic person (in case the Government is the stockholder, the
Government shall be excluded) or an individual
who owns 50 percent
or more of the total amount of shares, etc. issued by the juristic person
concerned; and
13. A non-profit juristic person having the stockholder or partner with
limited liability, and persons of subparagraphs 1 through
8 related to
such a stockholder or partner, as either a majority of its directors, or
as its founder: Provided, That it shall be
limited to cases where 20
percent or more of the total number of stocks issued by the juristic
person concerned is owned by such
persons.
Article 20-2 Deleted.
NATIONAL TAXES
23
taxes, additional dues, and disposition fees for arrears which have been
imposed on the business place acquired (in case where there
are national
taxes, additional dues, and disposition fees for arrears which are common
to two or more business places, the amount
distributed to the acquired
business place is included).
(2) "Value of the transferred property" in Article 41 (2) of the Act means
values of the following subparagraphs:
1. In case where the transferee of business either paid an amount or has
an amount to be paid to the transferor, that amount; and
2. In case where the amount under subparagraph 1 is either non-existent
or uncertain, or is considerably lower in comparison to the
market
value, the value derived by deducting the total amount of liabilities
from the total amount of assets, after appraising
such acquired assets
and liabilities by applying mutatis mutandis the provisions of Articles
60 through 66 of the Inheritance Tax
and Gift Tax Act.
CHAPTER TAXATION
Article 24 (Disposition of Return Violating Jurisdiction)
(1) As for a return of tax base submitted to the chief of tax office other
than the chief of tax office stipulated by Article 43 (1) of the Act, the
competent tax office shall be clarified, and the said
return shall be submitted
to the chief of relevant tax office.
(2) In a case of paragraph (1), after receiving the relevant return of
tax base, if it is found that such return falls outside of
one's jurisdiction,
it shall be forwarded without delay to the chief of competent tax office, and
the relevant taxpayer shall be
notified by a document stating thereof.
Article 25 (Revised Return of Tax Base)
(1) In the revised return of tax base stipulated under Article 45 of the
Act, the items of the following subparagraphs shall be
entered, and if there
are any documents to be attached to the original return of tax base relating
to the revised part, the documents
containing such revisions shall be
attached thereto:
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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24
1. Originally returned tax base and tax amount;
2. Revised return of tax base and tax amount; and
3. Other necessary matters.
(2) "Causes as prescribed by the Presidential Decree such as an ommission
in the process of tax adjustment"
in Article 45 (1) 3 of the Act means
a case where the treasury subsidies, etc., construction charges, and the
amount corresponding
to difference in revaluation of land under Articles
36, 37 and 39 of the Corporate Tax Act, are not concurrently included in
the
profits and losses in the process of tax adjustment.
(3) Deleted.
The term "where any cause prescribed by the Presidential Decree occurs
after the legal return term of national taxes" in Article
45-2 (2) 5 of the
Act means cases falling under any of the following subparagraphs:
1. When, concerning the original return, decision, or revision, the
permission or other disposition of the authorities related to
the validity
of transactions or actions, etc. which served as bases in the calculation
of the tax base and amount of tax, is cancelled;
2. When, concerning the original return, decision, or revision, the contract
related to the validity of transactions or actions,
etc. which served
as bases in the calculation of the tax base and amount of tax, is rescinded,
due to the exercise of the right
of rescission, or is either cancelled or rescinded
due to compelling cause which occurred after the conclusion of the
contract
concerned;
3. When, concerning the original return, decision, or revision, due to the
seizure of books and records and documentary evidence,
or other
compelling cause, the tax base and amount of tax could not be calculated,
but the cause concerned ceases to exist later;
and
4. When it falls under other causes similar to subparagraphs 1 through 3.
[This Article Newly Inserted by Presidential Decree No.
14473, Dec. 31, 1994]
Article 25-3 (Request for Revision, etc.)
When a person desires to request a decision or revision pursuant to the
provisions of Article 45-2 (1), (2), and (4) of the Act,
he shall submit
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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25
(including a submission via the national tax information and communications
networks) a written request for decision or revision,
entering the matters
of the following subparagraphs: 1. Name and domicile or temporary domicile of the applicant;
2. The tax base and amount of tax before the decision or revision;
3. The tax base and amount of tax after the decision or revision;
4. Grounds for requesting a decision or revision; and
5. Other necessary matters.
[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994]
Article 25-4 (Tax Base
Return after Time Limit)
(1) Any person who intends to file the a tax base return after the term
pursuant to Article 45-3 of the Act shall submit a tax base
return after
the time limit to the chief of the competent tax office.
(2) The provisions of tax-related Acts shall govern a tax
base return after
the term referred to in Article 45-3 of the Act.
[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999]
Article 26 (Additional Voluntary Payment)
(1) According to the provisions of Article 46 of the Act, persons making
additional national tax payments shall submit an invoice
of additional
voluntary payment, designated by tax-related Acts, by attaching the invoice
of voluntary payment with the revised
information of the original invoice
of payment appended.
(2) Deleted.
(2) The term "national tax payment agency prescribed by the Presidential
Decree" in Article 46-2 (1) of the Act means an entity
designated as a
national tax payment agency under the conditions prescribed by Ordinance
ENFORCEMENT DECREE OF THE FRAMEWORK ACT
ON
NATIONAL TAXES
26
of Ministry of Strategy and Finance as an institution which settles payments
made by credit card, etc., using information and communications
networks.
1. Income tax;
2. Value-added tax;
3. Gross real estate tax;
4. Liquor tax; and
5. Individual consumption tax.
(4) A national tax payment agency may receive payment agency commissions
in return for its service
of vicarious processing of taxpayer's payment of
national taxes by credit card, etc. under the conditions prescribed by
Ordinance
of the Ministry of Strategy and Finance.
(5) The Commissioner of the National Tax Service may prescribe matters
necessary for the payment of national taxes by credit card,
etc.
[This Article Newly Inserted by Presidential Decree No. 20622, Feb. 22, 2008] Enforcement
Date: Oct. 1, 2008
Article 27 (Surtax against Non-filed Tax Return)
(1) The term "person subject to double-entry bookkeeping as prescribed
by the Presidential Decree" in the proviso to Article 47-2
(1) of the Act
means a resident who has an income from leasing a real estate or business
income and who is a taxpayer subject to
bookkeeping by double entry under
Article 160 (3) of the Income Tax Act.
(2) The term "manner prescribed by the Presidential Decree" in the part
other than subparagraphs of Article 47-2 (2) of the Act
means a manner
falling under any of the following subparagraphs:
1. Double bookkeeping or entering false descriptions in account books;
2. Preparing false evidence or false documentation (hereafter referred
to as "false evidence or the similar" in this Article);
3. Receiving and accepting false evidence or the similar (applicable only
where knowingly receiving and accepting such false evidence
or the
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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27
similar);
4. Destroying account books or records;
5. Hiding assets or fabricating or hiding an income, earnings, acts, or
transactions; or
6. Evading a national tax, or committing a fraud with an intention to
have a national tax refunded or deducted or any other fraudulent
act.
(3) The revenue amount, to which Article 47-2 of the Act is applicable,
shall be the revenue amount of income falling under
either of the following
subparagraphs:
1. Private individual: The gross revenue amount of the individual as an
income from leasing a real estate or running a business as
calculated
in accordance with Articles 24 through 26 of the Income Tax; or
2. Corporation: The revenue amount of the corporation which shall be
entered on the return on tax base and tax amount of corporate
tax
in accordance with Article 60 of the Corporate Tax Act.
(4) The unjustly non-filed revenue amount, to which the proviso of
Article
47-2 (2) 1 of the Act is applicable, shall be calculated by adding up the
revenue amounts non-filed in any fraudulent manner
as set forth in
subparagraphs of paragraph (2).
(5) In applying Article 47-2 (2) of the Act, the proportion under either
of the following subparagraphs shall be deemed as 1 if
it is greater than
1, while such a proportion shall be deemed as zero if it is below the decimal
point:
1. Proportion of the unjustly non-filed tax base out of the tax base to
the tax base; or
2. Proportion of the amount equivalent to the tax base from which unjustly
non-filed tax base out of the tax base is subtracted to
the tax base.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007]
Article 27-2 (Additional Tax against
Understated Tax Return)
(1) The understated tax base, to which Article 47-3 of the Act is applicable,
shall be limited to the difference
between the tax base that shall be reported
in accordance with tax-related Acts and the tax base that a taxpayer actually
declared.
In this case, it shall be deemed that there is no deficit or refundable
tax amount in calculation of the tax base understated if
a tax return as
filed declares that there is a deficit in the tax base for income tax or corporate
tax or there is a tax amount
refundable in the tax base for value-added
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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28
tax.
(2) In case where the proviso of Article 47-3 (2) 1 of the Act is applicable,
the revenue amount unjustly understated shall be calculated
by adding
up the revenue amounts understated in any unjust manner set forth in
subparagraphs of Article 27 (2).
(3) In applying Article 47-3 (1) and (2) of the Act, a proportion under
either of the following subparagraphs shall be deemed as
1 if it is greater
than 1, while such a proportion shall be deemed as zero if it is below the
decimal point:
1. Proportion of the amount equivalent to the understated tax base to
the tax base (which means the amount calculated by adding the
deficit
amount declared or the refundable tax amount to the tax base, in case
where a tax return declares that there is a deficit
in reporting the tax
base of income tax or corporate tax or that there is a refundable tax
amount in reporting the tax base of
value-added tax; hereafter the
same shall apply in this paragraph);
2. Proportion of the unjustly understated tax base out of the tax base
to the tax base; or
3. Proportion of the tax base calculated by subtracting the amount
equivalent to the understated tax base from the amount equivalent
to the understated tax base to the tax base.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007]
Article 27-3 (Additional Tax against Over-declared
Refundable Tax)
(1) In case where Article 47-4 of the Act is applicable, the over-declared
refundable tax amount shall be limited
to the difference between the
refundable tax amount declared by the taxpayer and the refundable tax
amount that shall be declared
in accordance tax-related Acts.
(2) The refundable tax amount over-declared in an unjust manner out
of the over-declared refundable
tax amount under Article 47-4 (2) 1 of
the Act shall be determined by multiplying the refundable tax amount
declared by the taxpayer
by the proportion prescribed in Article 27-2 (3)
2. In this case, the proportion shall be deemed as 1 if it is greater than
1, while it shall be deemed as zero if it is below the
decimal point.
(3) The tax amount, excepting the refundable tax amount over-declared
in an unjust manner out of the over-declared
refundable tax amount under
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29
Article 47-4 (2) 2 of the Act shall be determined by multiplying the refundable
tax amount declared by the taxpayer by the proportion
prescribed in Article
27-2 (3) 3. In this case, the proportion shall be deemed as 1 if it is greater
than 1, while it shall be
deemed as zero if it is below the decimal point.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007]
Article 27-4 (Additional Tax against Insincere Payment or Refund)
"Interest rate prescribed by the Presidential Decree" in Article
47-5 (1)
or (2) of the Act means the rate of 3/10000 per day.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb.
28, 2007]
Article 28 (Application for Abatement or Exemption of Additional Tax,
etc.)
(1) A person who desires to have an additional tax abated or exempted
in accordance with Article 48 (1) or (2) of the Act shall
file an application
stating the following matters with the chief of the competent tax office
(including the chief of the competent
customs office or the head of the
competent local government; hereafter the same shall apply in this Article):
1. Items of taxation, year of imposition of national tax related to the
additional dues to be exempted or abated and type and amount
of
additional dues; and
2. The reason for failure to perform the duty (limited to the case of Article
48 (1) of the Act).
(2) In case of paragraph (1), if there are documents evidencing reasons
stated in subparagraph 2 of the said paragraph, it shall
be submitted.
(3) The chief of the competent tax office shall, upon receiving an application
under paragraph (1), notify the applicant
of whether the application is
approved or disapproved.
Article 29 (Grounds for Exception from Abatement or Exemption upon
Filing Revised Tax Return)
The term "cases where he files the revised return of tax base with a prior
knowledge that the initial tax base and amount would
be rectified" in Article
48 (2) 1 of the Act means cases where a taxpayer files a revised tax base
return, knowing that the tax
officials have initiated an investigation into
the national tax in question.
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[This Article Wholly Amended by Presidential Decree No. 19893, Feb. 28, 2007]
Article 29-2 (Limits on Surtax)
(1) The limits on surtax under Article 49 (1) of the Act shall be classified
in accordance with the substance of the obligations
imposed by tax-related
Acts.
(2) The applicable periods of the limits on surtax under subparagraphs
of Article 49 (1) of the Act shall be categorized as follows:
1. The surtax under the Income Tax Act, the Corporate Tax Act, and
the Value-Added Tax Act: Shall be categorized by the unit of the
taxable
period;
2. The surtax under the Inheritance Tax and Gift Tax Act: Shall be
categorized by the unit of the period during which the obligations
under
the said Act shall be fulfilled;
3. The surtax under Article 30-5 (5) of the Restriction of Special Taxation
Act: Shall be categorized by the unit of the period during
which the
obligations under the said Act shall be fulfilled; and
4. The surtax under Article 90-2 (1) of the Restriction of Special Taxation
Act: Shall be categorized by the unit of taxable period
for income tax.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007]
CHAPTER REFUNDS OF NATIONAL
TAXES AND ADDITIONAL
PAYMENTS ON REFUNDS OF
NATIONAL TAXES
Article 30 (Determination of Additional Payment on National Tax Refund)
(1) When the chief of a tax office intends to appropriate
national tax refunds
or refund national taxes according to the provisions of Article 51 of the
Act, he shall decide the additional
payment on the refund of national tax
as prescribed in Article 52 of the Act.
(2) The interest rate of additional payments on the refund of national
taxes under paragraph (1) shall be the interest rate prescribed
by Ordinance
of the Ministry of Strategy and Finance in view of the average deposit
interest rate for a term deposit with one-year
maturity in a commercial
bank.
31
No. 17036, Dec. 29, 2000; Presidential Decree No. 20654, Feb. 29, 2008>
(3) Deleted.
(3) Any claim filed for refund provided for in the latter part of Article
51 (1) of the Act shall be governed by a refund application
form prescribed
by Ordinance of the Ministry of Strategy and Finance.
(3) Upon receipt of the request referred to in paragraph (2), the Bank
ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON
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32
of Korea shall transfer the funds without delay and notify the head of
tax office concerned thereof.
[This Article Newly Inserted by Presidential Decree No. 8749, Nov. 21, 1977]
Article 34 (Payment of Refund of National Tax through
Account Transfer)
(1) The chief of tax office may pay the refund of national tax by means
of account transfer, with respect to
the taxpayers who have opened an
account with a financial institution or postal service office and reported
that account to the
chief of tax office.
(2) The chief of tax office shall, where intending to pay the refund of national
tax under paragraph (1), forward the request for
payment of the national
tax refund by means of account transfer (hereinafter referred to as the
"request for payment by means of
account transfer") to the Bank of Korea
or the postal service office.
(3) The Bank of Korea or the postal service office shall, upon receiving
the request for payment by means of account transfer, pay
the amount
necessary for the refund by transferring it to the account of tax payer,
and notify the chief of relevant tax office
of its details: Provided, That
if the payment is impossible due to the unknown account, etc., it shall
notify the chief of tax
office thereof not later than the day following the
date of receiving the request for payment by means of account transfer.
(4)
The chief of tax office shall, upon receiving the notification under the
provisions of paragraph (3) (proviso), verify without delay
the account
number of tax payer, and again forward the request for payment by
means of account transfer to the Bank of Korea or
the postal service office:
Provided, That the chief of relevant tax office may, where the account number,
etc. of tax payer is
unknown not later than the time when 30 days have
elapsed since the date of receiving the notification under the provisions
of
paragraph (3) (proviso), pay the refund of national tax by means of
cash payment under Article 35.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 34-2 Deleted.
NATIONAL TAXES
33
not be made by means of account transfer under Article 34, the chief of
tax office may pay it by means of cash payment.
(2) The chief of tax office shall, in case where he pays the refund of national
tax under paragraph (1), forward the request for
cash payment for refund
of national tax (hereinafter referred to as the "request for cash payment")
to the postal service office.
(3) The postal service office shall, upon receiving the request for cash
payment, pay the refund of national tax to the tax payer
under Article
37, and notify the chief of relevant tax office of its details.
(4) The chief of tax office may, in case where the
tax payer requests the
payment by means of account transfer when the procedures for paying
the refund of national tax by means
of cash payment are in progress, have
the refund of national tax paid by means of account transfer under Article
34.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 36 (Refund Notice to Taxpayer)
The chief of tax office shall, in case where he has requested the Bank
of Korea or the postal service office to pay the refund of
national tax
under Articles 34 and 35, forward to the taxpayer the notice of national
tax refund, specifying the relevant amount,
reasons, method of receipt,
place of payment, date of payment request and other necessary matters
(hereinafter referred to as the
"notice of national tax refund").
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 37 (Procedures
for Cash Payment for National Tax Refund)
(1) The postal service office shall, where the notice of national tax refund
is presented
by the taxpayer who relies upon the means of cash payment
under Article 35, without delay compare it with the request for cash payment
and verify, and then pay it according to the relevant contents: Provided,
That this shall not apply to the case where one year
has elapsed since
the date of requesting the payment which is indicated on the notice of
national tax refund.
(2) The postal service office shall, when it pays the national tax refund
under paragraph (1), have the tax payer present his resident
registration
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certificate or other identification cards, and verify whether the relevant
taxpayer is a lawful title holder.
(3) In the case of paragraph (2), the resident registration number of the
recipient shall be entered on the margin of the notice
of national tax refund,
and have him sign thereon.
(4) For cases falling under the proviso in paragraph (1), when the taxpayer
desires to receive the national tax refund, he shall
apply to the chief of
the competent tax office in writing with indications of the following
subparagraphs, along with the notice
of national tax refund. In this case,
the chief of tax office shall pay the refund by taking again the procedures
set forth in
this Chapter:
1. The year and amount of the national taxes, additional dues or fees
of disposition for arrears that are desired to be refunded;
and
2. The reason for failing to receive it until one year has elapsed from
receiving the notice of national tax refund.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 38 (Delivery, etc. of Refund Funds to Postal
Service Office)
The chief of tax office shall, where he forwards the request for payment
by means of account transfer or the request
for cash payment to the
postal service office, go through the Bank of Korea. In this case, the
Bank of Korea shall deliver the
amount necessary for the refund so
as to have the postal service office be able to pay the refund of national
tax to the taxpayer.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 39 (Settlement of Unpaid Funds by Postal Service
Office)
If there are any funds left unpaid within one year from the date of requesting
payment by the chief of tax office from
among the amount of refund
under Article 35, the postal service office shall cancel the relevant payment,
and pay it to the revenue
of the fiscal year whereto the date of cancellation
belongs.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Articles 40 and 41 Deleted.
(1) A taxpayer desiring to assign a right for the national tax refund to
another party pursuant to Article 53 of the Act, shall
request it to the
chief of the competent tax office in writing stating the matters of the following
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subparagraphs before the chief of tax office issues the notice of national
tax refund: 1. The name and address of the assignor;
2. The name and address of the assignee; and
3. The description of the rights to be assigned.
(2) When there are other national taxes, additional dues, disposition for
arrears,
to be paid by an assignor, the chief of tax office shall appropriate
such national taxes, additional dues and disposition for arrears
and the
remaining amount shall be assigned without delay upon request.
Article 43 (Statement of Account of National Tax Refund
Amount)
The chief of tax office shall submit to the Chairman of the Board of
Audit and Inspection the statement of account of national
tax refund
amount along with the attesting documents.
[This Article Wholly Amended by Presidential Decree No. 17036, Dec. 29, 2000]
Article 43-2 (Refund of Property Paid in Kind)
(1) Where the property paid in kind is refunded in accordance with the
main sentence of Article 51-2 (1) of the Act, it shall be
refunded by the
chief of the competent tax office according to the order of refund requested
by a taxpayer, or in the absence of
such request, according to the following:
1. For property paid in kind under the Inheritance Tax and Gift Tax Act:
It shall be refunded in the reverse order of the appropriation
of property
made in accordance with Article 74 (2) of the Enforcement Decree of
the Inheritance Tax and Gift Tax Act; and
2. For property paid in kind under the Income Tax Act or the Corporate
Tax Act: It shall be refunded with the property paid in kind
under
Article 112-2 of the Income Tax Act or Article 65 of the Corporate Tax
Act.
(2) "Cases as prescribed by the Presidential Decree" in the proviso of Article
51-2 (1) of the Act means any of the following cases:
1. Where it is difficult to refund the property paid in kind by division
from its nature;
2. Where the property paid in kind is on hire or being used for other
administrative purpose; and
3. Where it is deemed that it is difficult to refund the property paid in
kind due to the establishment of a plan for its use, or
it is determined
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by the Commissioner of the National Tax Service.
(3) In making refund under paragraph (1), the expenses disbursed by the
State for the maintenance or management of the property
paid in kind
shall be borne by the State: Provided, That where the State has made
a capital outlay under Article 31 (2) of the
Enforcement Decree of the
Corporate Tax Act with respect to property paid in kind, the expenses
therefor shall be borne by the
taxpayer concerned.
(4) In making refunds under paragraph (1), the yields (referring to legal
and natural yields) generated after the receipt of the
property paid in
kind shall revert to the National Treasury, not to the taxpayer.
[This Article Newly Inserted by Presidential
Decree No. 17830, Dec. 30, 2002]
CHAPTER EXAMINATION AND
ADJUDICATION
SECTION 1 Common Provisions
Article 44 (Scope of Interested Persons with Objection)
The term "interested person prescribed by the Presidential Decree" in Article
55 (2) of the Act means a person who falls under any of the following
subparagraphs:
1. A person who receives a notice of payment liable as a secondary taxpayer;
2. A person who receives a notice of payment as a taxpayer responsible
for payment in kind pursuant to Article 42 of the Act;
3. A tax surety; and
4. Other persons prescribed by Ordinance of the Ministry of Strategy and
Finance.
[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996]
Article 44-2 (Dispositions Exempted from Objection)
The term "disposition which were or shall have been examined and determined
or managed by the Commissioner of the National Tax
Service" in Article
55 (3) of the Act means any of the following subparagraphs:
1. Disposition according to the decision and investigation of tax base by
the Commissioner of the National Tax Service;
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2. Disposition following a corrective order according to the audit's results
by the National Tax Service;
3. Disposition according to the result of tax investigation by the National
Tax Service;
4. Disposition other than those stated in subparagraphs 1 through 3
following special order of the Commissioner of the National Tax
Service; and
5. Disposition required to be peformed by the Commissioner of the National
Tax Service according to tax-related Acts.
Article 45 (Suspension of Execution of Disposition)
The suspension of execution of disposition set forth in the proviso to
Article
57 of the Act shall be limited to the case the applicant for objection,
requester of examination or requester of adjudication has
suffered a grave
accident, and the Government determines that it will take a substantial
period of time to investigate.
Article 46 (Application for Inspection of Related Documents)
(1) Those who intend to inspect or copy the contents of documents related
to an application for an objection, request for examination, or request for
adjudication according to the provisions set forth
in Article 58 of the Act,
may make an oral request to the ruling agency.
(2) The ruling agency in receipt of the request stated in paragraph (1),
shall grant the inspection or copy of the documents or
verify the conformity
of the abstract and the copy with the original.
(3) When the ruling agency in receipt of the request stated in paragraph
(1) recognizes the need, it may request the signature of
the applicant of
the inspection or copy.
Article 47 (Statement of Opinion)
(1) Those who intend to make a statement of opinion according to the
provisions set forth in Article 58 of the Act, shall apply
to the ruling agency
concerned in writing providing the name, address or temporary domicile
of the person making the statement
and a summary of the terms of the
statement.
(2) The ruling agency in receipt of the application referred to in paragraph
(1) shall, excluding cases falling under any of the
following subparagraphs,
determine the date of attendance, place of attendance, and time deemed
necessary to make a statement,
and notify the applicant three days before
the opening date (in cases where an objection is filed, the date of its decision)
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of the Objection Review Committee, the National Tax Examination
Committee, the Council of Tax Adjudicators, or the Joint Session
of Tax
Adjudicators, thereby providing an opportunity for statement:
1. When the matters of the application for objection, request for
examination, request for adjudgment, are minor or when the application
or request is made after the expiration of the period; and
2. When the matters of the application for objection, request for
examination, request for adjudgment, are pertaining to legal
interpretation
of Acts and subordinate statutes, and it is determined
that the statement of opinion of the applicant is not necessary.
(3) In
the case of paragraph (2), when it is determined that the statement
of opinion is not necessary, the ruling agency shall notify
the applicant
in writing stating such reasons.
(4) The statement of opinion set forth in Article 58 of the Act shall be
simple and, when necessary, evidence and other materials
may be attached
thereto.
(5) The statement of opinion set forth in paragraph (4), may be substituted
with a submission of documents recording the opinion
to be stated.
Article 48 (Notice of Disposition by Commissioner of National Tax Service,
etc.)
When the chief of tax office makes a disposition pursuant to Article 44-2
or by a request for correction under the Board of Audit
and Inspection
Act, he shall add the purport thereof on the notice of relevant disposition.
Article 49 (Relief for Mistake in Notice of Objection Method)
(1) In notifying the method of objection, etc. according to the provisions
of Articles 60 of the Act and Article 48 of this Act, if the notice of objection
method designates the wrong administrative body
to receive objection, when
the designated administrative body receives the application or request,
it shall be considered that
the lawful administrative body has received
the concerned application for an objection, request for examination or request
for
adjudgment.
(2) In the case referred to in paragraph (1), the administrative body that
received the application or request due to incorrect
notification, shall
transfer it to the correct administrative body without delay and notify
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the concerned applicant or requester of this fact.
SECTION 2 Examination
Article 50 (Written Examination Request)
(1) Request for examination shall, via the chief of the competent tax office,
be made by a written examination request in which
the following matters
are entered. In this case, if there is any related documentary evidence
or article of evidence, it shall
be appended to the written examination
request: 1. The address, temporary domicile and name of the requester;
2. The date when the disposition became known (in case that the notice
of disposition was received, the date of the receipt);
3. The matters notified or the substance of the disposition; and
4. The reason for objection.
(2) When the examination request has been submitted to a chief of tax
office other than the chief of
tax office referred to in Article 62 (1) of the
Act, or the director of a regional tax office or the Commissioner of the
National
Tax Service, the examination request concerned must be sent
to the chief of the competent tax office without delay and must notify
the
requester concerned of this fact.
Article 51 (Request for Examination via Director of Regional Tax Office)
The provisions set forth in Article 44-2 shall be applied
mutatis mutandis
to the scope of matters that was or should have been investigated, decided
or settled by the director of the regional
tax office as provided in the proviso
of Article 62 (3) of the Act. In this case, the "Commissioner of the National
Tax Service"
as referred to in the said Article shall be deemed to be the
"director of a regional tax office".
Article 52 (Request for Correction)
(1) The request for correction of the substance or procedure of the request
for examination under Article 63 (1) of the Act (including
cases applicable
mutatis mutandis under Article 66 (5) and Article 81 of the Act) shall
be made by documents stating matters in
the following subparagraphs:
1. The matters to be corrected;
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2. The reason for request of correction;
3. The period for correction; and
4. Other necessary matters.
(2) When the ruling agency makes corrections according to the provisions
set forth in the proviso of
Article 63 (1) of the Act by its authority, it
shall notify the concerned objector, the requester of examination or
requester of
adjudgment in writing of this fact.
Article 53 (National Tax Examination Committee)
(1) The National Tax Examination Committee provided in Article 64 of
the Act, shall consist of thirty-one committee members or less
including
one Chairman. 1. Ten persons or less appointed by the Commissioner of the National
Tax Service from among Grade public officials under his control
or public officials in general service who are members of the Senior
Civil Service; and
2. Twenty persons or less commissioned by the Commissioner of the National
Tax Service from among the persons of abundant knowledge
and
experience in the field of law or accounting (excluding a public official
who is not a teacher of a national or public university
or college as
prescribed in Article 14 (2) of the Higher Education Act).
(3) The term of office of members referred to in paragraph
(2) 2 shall
be two years.
(7) When there is a request for examination, the Chairman shall set
a date and call a meeting of the National Tax Examination Committee
and preside over it.
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(8) When the Chairman sets the date referred to in paragraph (7), it
shall notify each member and the requester for the examination
concerned
seven days before the set date.
(9) The meetings of the National Tax Examination Committee shall be
formed with the Chairman and ten persons designated by the Chairman
for each meeting, in which at least six persons specified in paragraph
(2) 2 shall be included.
(10) The meeting of the National Tax Examination Committee shall open
with the attendance of the majority of the members specified
in paragraph
(9), and adopt a resolution by an affirmative vote of the majority of the
members present.
1. When the substance of the request for examination is such a trivial
matter as determined by the Commissioner of the National Tax
Service
through the deliberation of the National Tax Examination Committee;
and
2. When the request for examination is made after the expiration of the
set date.
(12) Matters resolved through the meeting of the National Tax
Examination Committee shall be reported by the Chairman to the
Commissioner
of the National Tax Service.
(13) Members referred to in paragraph (2) 2 attending the meeting of
the National Tax Examination Committee may be paid allowances
within
the budgetary limit.
(1) When the Commissioner of the National Tax Service intends to rectify
the decision under Article 65-2 of the Act, he shall go
through the resolution
by the National Tax Examination Committee.
(2) When the Commissioner of the National Tax Service has rectified
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the decision under paragraph (1), he shall prepare the written rectification
and notify without delay the applicant for the examination
thereof.
[This Article Newly Inserted by Presidential Decree No. 17036, Dec. 29, 2000]
Article 54 (Application for Objection)
(1) The provisions of Article 50 shall be applicable mutatis mutandis
to the application for an objection.
(2) The provisions of Article 51 shall be applicable mutatis mutandis to
the scope of matters to be or to have been investigated,
decided or settled
by the director of the regional tax office as provided in Article 66 (2)
of the Act.
Article 54-2 (Objection Review Committee)
(1) An Objection Review Committee established under a tax office shall
be comprised of 15 members or less including one chairman,
and the chief
of the tax office shall take the chair of the Committee, while the members
of the Committee shall be the persons
falling under the following
subparagraphs:
1. Four persons or less appointed by the chief of a tax office from among
the public officials in Grade or under his control; and
2. Ten persons or less commissioned by the chief of a tax office from
among persons of profound knowledge and experience in law or
accounting.
(2) An Objection Review Committee established under a regional tax office
shall be comprised of 22 members or less including one
chairman, and the
director of the regional tax office shall take the chair of the Committee,
while the members of the Committee
shall be the persons falling under
the following subparagraphs:
1. Six persons or less appointed by the director of a regional tax office
from among public officials in Grade or or public officials
in general
service belonging to the Senior Civil Service; and
2. Fifteen persons or less commissioned by the director of a regional tax
office from among persons of profound knowledge and experience
in
law or accounting.
(3) Meetings of the Objection Review Committee established under a
tax office shall be formed with the chairman and six persons
designated
by the chairman for each meeting, in which at least four persons specified
in paragraph (1) 2 shall be included.
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(4) Meetings of the Objection Review Committee established under a
regional tax office shall be formed with the chairman and eight
persons
designated by the chairman for each meeting, in which at least five persons
specified in paragraph (2) 2 shall be included.
(5) The tenure of the committee members as prescribed in paragraphs (1)
2 and (2) 2 shall be two years.
(6) The provisions of Article 53 (4) through (8) and (10) through (14)
shall apply mutatis mutandis to the dismissal of committee
members, the
convocation and notification of a meeting, the method of making decisions,
the payment of allowances, and the appointment
of the secretary of the
Objection Review Committee. In this case, "Commissioner of the National
Tax Service", "request for examination"
and "National Tax Examination
Committee" in Article 53 (4) through (8) and (10) through (14) shall be
deemed, respectively, as
"chief of a tax office or director of a regional tax
office", "objection raising" and "Objection Review Committee".
[This Article Newly Inserted by Presidential Decree No. 15968, Dec. 31, 1998]
SECTION 3 Adjudication
Article 55 (Request for Adjudication)
(1) The provisions set forth in Article 50 shall apply mutatis mutandis
to requests for adjudication.
(2) When a request for adjudication is directly submitted to the Director
of the Tax Tribunal without undergoing the chief of a
tax office, the
said Director shall send a copy of the relevant request for adjudication
to the chief of the competent tax office,
and notify the applicant of its purport.
(3) The chief of the tax office in receipt of a copy of the request for adjudgment
under paragraph (2) shall, pursuant to Article
69 (3) and (4) of the Act,
submit a reply note, etc. to the Director of the Tax Tribunal.
Article 55-2 (Required Qualifications of Tax Adjudicators)
(1) The tax adjudicator referred to in Article 67 (4) of the Act shall
be
one with the required qualifications set forth in any of the following
subparagraphs:
44
Decree No. 17830, Dec. 30, 2002; Presidential Decree No. 19513, Jun. 12, 2006; Presidential
Decree No. 20654, Feb. 29, 2008>
1. A national public official or local public official of Grade or higher
or a public official in general service belonging to the
Senior Civil Service
with service experience for three years or more in duties related
to taxes, or a national public official
or local public official of Grade
or higher with service experience for five years or more;
2. A judge, prosecutor, or military judicial officer with service experience
for five years or more;
3. An attorney-at-law, a certified public accountant, a licensed tax account-
ant, a licensed customs agent, or a certified public
appraiser with service
experience for at least six years; and
4. A person holding a position of assistant professor or higher rank in
the field of law, accounting, trade, finance, or real estate
appraisal
in a publicly certified university.
(2) No more than two permanent tax adjudicators and non-permanent
tax adjudicators, shall fall under any of the following subparagraphs,
respectively:
1. A person who is appointed to the post of tax adjudicator as meeting
the career qualifications under paragraph (1) 1, including
a period
of service in affairs concerning customs duties or local taxes; and
2. A person who is appointed to the post of tax adjudicator with service
experience for six years or more as a licensed customs agent
or certified
public appraiser.
[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994]
Article 55-3 (Required Qualifications of Investigators)
(1) The investigators referred to in Article 67 (7) of the Act shall be public
officials of Grade or , public officials in general
service belonging to
the Senior Civil Service, or public officials in contractual service equivalent
thereto, with the required
qualifications falling under any of the following
subparagraphs: 1. A person with service experience of two or more years in national tax
(including customs duties) or local tax affairs; and
2. A person who is qualified as an attorney-at-law, certified public
accountant, licensed tax accountant, or licensed customs agent.
(2) Deleted.
NATIONAL TAXES
45
Article 55-4 (Appointment and Commissioning of Tax Adjudicators)
(1) The Prime Minister may, when recommending the Director or permanent
tax adjudicators pursuant to Article 67 (3) of the Act, consider the opinions
of the Minister of Strategy and Finance and the Minister
of Public
Administration and Security.
(2) Non-permanent tax adjudicators required for performing adjudication
under Article 67 (3) of the Act shall be commissioned by
the Prime Minister
at the request of the Director within budgetary limits.
[This Article Newly Inserted by Presidential Decree
No. 20654, Feb. 29, 2008]
Article 56 (Request for Submission of Defense Materials)
The request for submission of evidential documents
and evidences
referred to in Article 71 (2) of the Act shall be made in writing.
Article 57 (Notice of Designation of Tax Adjudicators)
When the Director of the Tax Tribunal designates a tax adjudicator
in charge
according to the provisions of Article 72 (1) of the Act, he
shall notify the relevant tax adjudicator and the applicant of the
adjudication without delay in writing of such fact. The same shall apply
when a tax adjudicator in charge has been replaced.
(1) through (3) Deleted. 1. Name of the tax adjudicator in charge being challenged;
2. The reason for challenge; and
3. The date of receipt of the notice of designation or change of the tax
adjudicator in charge.
Article 61 (Application for Questioning and Inspection)
Application for inspection and questioning provided for in Article 76 (1)
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of the Act, shall be made within fourteen days from the date of having
received notification of designation of the tax adjudicator
in charge provided
for in Article 57, and by a document with the mentioned items of the following
subparagraphs stated therein:
1. Action requested;
2. Grounds for the request; and
3. Other necessary matters.
Article 62 (Small Sum Adjudication)
The term "those of which the amount of tax appeals is so small or minor"
in the proviso to Article 78 (1) of the Act means those
falling under any
of the following subparagraphs:
1. Requests for tax appeals, the amount of which is less than 30 million
won (10 million won in cases of local taxes), falling under
any of the
following items:
(a) The matters requested therein do not pertain to the interpretation
of Acts and subordinate statutes; and
(b) The matters requested therein pertain to the interpretation of
Acts and subordinate statutes and, for a similar request, the
Council
of Tax Adjudicators has already rendered a decision by resolution;
and
2. An adjudication request pertaining to matters other than determination
of the tax base and the tax amount and, for a similar request,
the Council
of Tax Adjudicators has already rendered a decision by resolution.
Article 62-2 (Joint Session of Tax Adjudicators)
(1) The term "other causes determined by the Presidential Decree" in
Article 78 (2) of the Act means cases falling under any of
the following
subparagraphs: 1. Where the Director of the Tax Tribunal deems it necessary to examine
and decide at the Joint Session of Tax Adjudicators in order
to maintain
consistency in decisions between the Councils of Tax Adjudicators;
2. Where the Director of the Tax Tribunal deems it necessary to examine
and decide at the Joint Session of Tax Adjudicators, as he
presumes
that the decision on the relevant case of a request for adjudication may
have a serious effect on the national tax administration;
and
3. Other cases where the Director of the Tax Tribunal deems it necessary
to examine and decide at the Joint Session of Tax Adjudicators.
(2) The chief tax adjudicator shall, when an examination of a case of request
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for adjudication is completed at the Council of Tax Adjudicators, notify without
delay the Director of the Tax Tribunal of the relevant
examination contents
so as to cause him to determine whether the relevant case of request for
adjudication is the case which has
to go through an examination by the
Joint Session of Tax Adjudicators pursuant to Article 78 (2) of the Act.
[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999]
Article 63 (Delivery of Decision Papers)
The delivery of a decision paper on adjudication to the applicant shall,
except for cases where the applicant or his agent directly
receives it at
the Tax Tribunal, be made by means determined by Ordinance of the Ministry
of Strategy and Finance.
Article 63-2 (Prevention from Double Investigations)
The term "other cases similar to subparagraphs 1 through 4, as prescribed
by the Presidential Decree" in Article 81-4 (2) 5 of the Act means cases
falling under any of the following subparagraphs:
1. If a general investigation is undertaken against a person suspected
of disturbing the economic order through speculative investment
in
real estate, cornering and hoarding, undertaking transactions without
authentic documentation, etc., leading to evasion of taxes;
and
2. Either a reinvestigation for the handling of all kinds of assessment
data, or a confirmation investigation for determination of
the national
tax refund and re-revision without recourse to field investigation for
tax disposition pursuant to the provisions
of Articles 81-5 and 81-9
of the Act.
[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996]
Article 63-3 (Scope of Field Investigation for Tax
Disposition)
The term "field investigation for taxation dispositions prescribed by the
Presidential Decree" in Articles 81-5 and
81-9 of the Act means an
investigation falling under any of the following subparagraphs:
48
2007>
1. Investigation of violation incident;
2. Investigation conducted to determine and correct the tax base and
amount of tax of national taxes; and
3. Deleted.
The tax investigation under Article 81-6 (1) 2 of the Act shall be conducted
according to the standards as set by the Commissioner
of the National
Tax Service in consideration of the records of tax payment, tax information,
etc. of a taxpayer.
(1) The term "enterpriser the amount of whose revenue is not more than
that prescribed by the Presidential Decree by the category
of business"
in Article 81-6 (4) 1 of the Act means a person falling under either of
the following subparagraphs:
1. Private individual: A person subject to simple book-keeping as defined
in Article 160 (3) of the Income Tax Act; or
2. Corporation: A corporation whose revenue amount that shall be stated
in the return on tax base and amount of corporate tax in
accordance
with Article 60 of the Corporate Tax Act (or the revenue amount converted
on a yearly basis if the taxable period is
less than one year) is not
more than one hundred million won.
(2) The term "enterpriser the entry, etc. in whose account book meets
the requirements prescribed by the Presidential Decree" in
Article 81-6 (4)
2 of the Act means a business proprietor who meets all the following
requirements:
1. Account books shall be kept and maintained by the double-entry
book-keeping method so that all the details of transactions can
be grasped
objectively;
2. He shall acquire the membership of credit card merchant under the
Specialized Credit Financial Business Act before the beginning
of the
taxable year, and shall not commit any act set forth in each item of
Article 84-2 (1) 3 of the Act during the corresponding
taxable year
(applicable only to the business proprietors who are obligated to acquire
the membership of cash receipt merchant
in accordance with Article
162-3 (1) of the Income Tax Act and Article 117-2 (1) of the Corporate
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Tax Act);
3. He shall acquire the membership of cash receipt merchants under Article
126-3 of the Restriction of Special Taxation Act before
the beginning
of the taxable year, and shall not commit any act set forth in each
item of Article 84-2 (1) 4 of the Act during
the corresponding taxable
year (applicable only to the business proprietors who are obligated to
acquire the membership of cash
receipt merchants in accordance with
Article 162-3 (1) of the Income Tax Act and Article 117-2 (1) of the
Corporate Tax Act);
4. He shall open and use a banking account for business in accordance
with Article 160-5 of the Income Tax Act (applicable only to
private
individuals);
5. The revenue amount, etc. shall meet the guidelines for return as
prescribed and publicly notified by the Commissioner of the National
Tax Service, taking into consideration the increase rate of the average
revenue amount by business type, etc.;
6. He shall not have any record of having been punished on account of
a tax crime during the latest three years as of the end of
the statutory
time limit on filing a tax return and payment for the corresponding taxable
year; and
7. He shall not have any record of default on national taxes as of the
end of the statutory time limit on filing a tax return and
payment for
the corresponding taxable year.
[This Article Newly Inserted by Presidential Decree No. 19893, Feb. 28, 2007]
Article 63-6 (Advance Notification of Tax Investigation)
Where an advance notice relating to a tax investigation is given to a taxpayer
or a tax manager pursuant to the provisions of Article
81-7 (1) of the
Act, it shall be made by a document with the items of the following
subparagraphs stated therein: 1. Name, and domicile or temporary domicile of the taxpayer or the tax
manager;
2. Period of investigation;
3. Cause for investigation, and the taxation items subject to the
investigation;
4. Deleted; and 5. Other necessary matters.
[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994]
Article 63-7 (Application
for Postponement of Tax Investigation)
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(1) "Other matters as prescribed by the Presidential Decree" in Article
81-7 (2) of the Act means causes falling under any of the
following
subparagraphs:
1. When, owing to a fire or a natural disaster, business is faced with
extreme difficulty;
2. When it is judged that, due to sickness or a long-term business trip,
etc. of the taxpayer or the tax manager, a tax investigation
is difficult;
3. When the books and records, and/or documentary evidence is seized
or provisionally held by a competent administrative body; and
4. When there is a cause corresponding to subparagraphs 1 through 3.
(2) A person who desires to receive a postponement, pursuant
to the provisions
of Article 81-7 (2) of the Act, shall submit a document with the items
of the following subparagraphs stated
therein to the head of the
administrative body concerned: 1. Name, and domicile or temporary domicile of the person who desires
to receive a postponement of the tax investigation;
2. The desired period of postponement of the tax investigation;
3. Cause for desiring a postponement of the tax investigation; and
4. Other necessary matters.
[This Article Newly Inserted by Presidential Decree No. 14473, Dec. 31, 1994]
Article 63-8 (Notification
of Results of Tax Investigation)
"Cases as prescribed by the Presidential Decree" in the proviso of Article
81-9 of the Act means
cases falling under any of the following subparagraphs:
1. When the business has closed down; and
2. When the tax manager has not been designated, and a domicile or
temporary domicile is not set up within the territory of Korea.
[This Article Newly Inserted by Presidential Decree No. 15189, Dec. 31, 1996]
Article 63-9 (Scope, etc. of Judgment on Propriety
before Tax Levying)
(1) "Matters as prescribed by the Presidential Decree" in the proviso,
other than subparagraphs, of Article
81-12 (1) of the Act means the
matters falling under any of the following subparagraphs: 1. Matters for which the authentic interpretation of the Commissioner
of the National Tax Service is to be changed or a new interpretation
is required with respect to Acts and subordinate statutes;
2. Matters for which a new interpretation is required with respect to
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the instruction, regulation, public notice, etc. of the Commissioner
of the National Tax Service;
3. Matters related to the advance notice of taxation given by the chief
of a tax office or the director of a regional tax office
as a result of
the duties inspection (excluding the corrective measures taken on the
spot) by the Commissioner of the National
Tax Service on the tax office
or the regional tax office; and
4. Matters, not falling under subparagraphs 1 through 3, for which the
amount of request for judgment on propriety before tax levying
is not
less than one billion won.
(2) The term "other advance notice of taxation prescribed by the
Presidential Decree" in Article 81-12 (1) 2 of the Act means any
of the
following subparagraphs: 1. The advance notice of taxation given by the chief of a tax office or
the director of a regional tax office as a result of the
duties inspection
(including the corrective measures taken on the spot) by the director
of the regional tax office or the Commissioner
of the National Tax Service
on the tax office or the regional tax office;
2. The advance notice of taxation given by the chief of a tax office or
the director of a regional tax office as a result of the
investigation
of tax data and the field investigation, of such other person than the
taxpayer as confirmed by the field investigation
under Article 63-3;
and
3. The advance notice of taxation of the tax amount that is not less than
5 million won.
(3) The term "other cases determined by the Presidential Decree" in Article
81-12 (2) 4 of the Act means the case where the counterpart
state which
has concluded a tax treaty pursuant to the Adjustment of International
Taxes Act requests the commencement of procedures
mutually agreed upon.
(4) The chief of a tax office, the director of a regional tax office, or the
Commissioner of the National Tax Service in receipt
of the written request
for judgment on propriety before tax levying under Article 81-12 (1) of the
Act shall reserve a decision
on the tax base and tax amount or a rectified
decision thereon until the decision is made pursuant to the provisions of
paragraph
(3) of the same Article: Provided, That this shall not apply to
the case falling under any subparagraph of paragraph (2) of the
same Article.
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(3) The committee for judgment on propriety before tax levying installed
in each tax office shall be composed of fifteen members
or less including
one chairman, and the chief of the tax office shall take the chair of the
committee, while the persons of the
following subparagraphs shall be
appointed as its members: 1. Four persons or less appointed by the chief of the tax office from
among the subordinate public officials of Grade or ; and
2. Ten persons or less commissioned by the chief of the tax office from
among the persons of abundant learning and experience in
the law
or accounting.
(4) The committee for judgment on propriety before tax levying installed
in each regional tax office shall be composed of twenty-two
members
or less including one chairman, and the director of the regional tax office
shall take the chair of the meeting, while
the persons falling under each
of the following subparagraphs shall be appointed as its members: 1. Six persons or less appointed by the director of the regional tax office
from among the subordinate public officials of Grade
or or public
officials in general service belonging to the Senior Civil Service; and
2. Fifteen persons or less commissioned by the director of the regional
tax office from among the persons of abundant learning and
experience
in the law or accounting.
(5) The committee for judgment on propriety before tax levying installed
in the National Tax Service shall be composed of thirty-one
members or
less including one chairman, and the Deputy Commissioner of the National
Tax Service shall take the chair of the committee,
while the persons falling
under each of the following subparagraphs shall be appointed as its members:
NATIONAL TAXES
53
1. Ten persons or less appointed by the Commissioner of the National
Tax Service from among Grade public officials under his control
or public officials in general service belonging to the Senior Civil Service;
and
2. Twenty persons or less commissioned by the Commissioner of the National
Tax Service from among the persons of abundant learning
and experience
in the law or accounting.
(6) The tenure of the members pursuant to paragraphs (3) 2, (4) 2 and
(5) 2 shall be two years.
(7) Where the chairman is unable to discharge his duties due to unavoidable
reasons, the person falling under any of the following
subparagraphs shall
act as chairman on his behalf:
1. In case of a tax office or a regional tax office, the person who acts
on his behalf from among the subordinate public officials;
and
2. In case of the National Tax Service, the person designated by the
Commissioner of the National Tax Service.
(8) The meetings of the committee for judgment on propriety before tax
levying installed in each tax office shall be formed by the
chairman and
six persons designated by the chairman for each meeting, in which at
least four persons specified in paragraph (3)
2 shall be included.
(9) The meetings of the committee for judgment on propriety before tax
levying installed in each regional tax office shall be formed
by the chairman
and eight persons designated by the chairman for each meeting, in which
at least five persons specified in paragraph
(4) 2 shall be included.
(10) The meetings of the committee for judgment on propriety before tax
levying installed in the National Tax Service shall be formed
by the
chairman and ten persons designated by the chairman for each meeting,
in which at least six persons specified in paragraph
(5) 2 shall be included.
(12) The provisions of Article 53 (4), (5), (7), (8) and (10) through (14)
shall be applicable mutatis mutandis to the dismissal
of members of the
committee for judgment on propriety before tax levying, convening the
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meeting and notice thereof, method of resolution, payment of allowances,
appointment of a secretary, etc. In this case, the "Commissioner
of the
National Tax Service", "request for examination", "National Tax
Examination Committee" in Article 53 (4), (5), (7), (8)
and (10) through
(14) shall be respectively deemed as the "chief of a tax office, the director
of a regional tax office, or the
Commissioner of the National Tax Service",
"request for judgment on propriety before tax levying," and "committee
for judgment
on propriety before tax levying".
[This Article Newly Inserted by Presidential Decree No. 16622, Dec. 28, 1999]
CHAPTER SUPPLEMENTARY PROVISIONS
Article 64 (Report of Designation of Tax Manager)
(1) Report of designation of tax manager, pursuant to the provisions of
the former
part of Article 82 (3) of the Act, shall be submitted to the
chief of a tax office by a document with the following details stated
therein:
1. Name, and domicile or temporary domicile of the taxpayer;
2. Name, and domicile or temporary domicile of the tax manager; and
3. Reason(s) for designation of tax manager.
(2) Report of change of tax manager, pursuant to the provisions of the
latter part
of Article 82 (3) of the Act, shall be submitted to the chief
of a tax office by a document with the following details stated therein:
1. Matters as referred to in paragraph (1) 1 and 2;
2. Name, and domicile or temporary domicile of the tax manager, after
the change; and
3. Reason(s) for such change.
(3) When the chief of a tax office has designated the manager of assets
or business of a taxpayer
as a tax manager pursuant to Article 82 (4)
of the Act, he shall notify the relevant taxpayer and tax manager of such
fact without
delay.
A tax manager may perform the duties falling under each of the following
subparagraphs on behalf of a taxpayer:
1. Making reports, applications, or requests, or preparation and submission
of other documents as prescribed by this Act and tax-related
Acts;
2. Receipt of documents issued by the chief of a tax office, etc.; and
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3. Payment of national taxes, etc. or receipt of national tax refunds.
[This Article Newly Inserted by Presidential Decree No. 16622,
Dec. 28, 1999]
Article 65 (Measures for Changing Tax Manager)
(1) When the chief of a tax office deems that a tax manager is unfit,
he may, by prescribing a time limit, request the taxpayer
to change the
tax manager.
(2) When the taxpayer who receives the request under paragraph (1)
fails to file a report of change of tax manger within the prescribed
time
limit, it shall be deemed that no tax manager has been established.
Article 65-2 (Tax Guidance Grant Money)
(1) An organization which desires to receive grant money for tax guidance
under the provisions of Article 84 (3) of the Act (hereinafter
referred
to as "grant money") shall submit an application for grant money with the
following details stated therein to the Commissioner
of the National Tax
Service, by January 31 of the year for which such grant money is sought:
1. Title and address of the applicant organization, and the name of its
representative;
2. Details of the tax guidance business;
3. Expenditure required in such tax guidance and amount of grant money
requested;
4. Period of such tax guidance; and
5. A measure, in the event that the paid grant money falls short of the
required expenditure.
(2) Where an organization submits an application for grant money
pursuant to paragraph (1), the Commissioner of the National Tax
Service
shall make a decision on whether or not to pay the requested grant money
by the end of February of the year concerned,
by taking into account
the appropriateness, feasibility, and effect of the business.
(3) In making a decision on whether to pay
the requested grant money
pursuant to the provisions of paragraph (2), the Commissioner of the
National Tax Service may attach
conditions which it deems necessary in
attaining the purposes for payment of the grant money.
(4) When the Commissioner of the
National Tax Service makes a decision
on whether to pay the requested grant money, pursuant to the provisions
of paragraph (2),
or attaches conditions to granting of the grant money, pursuant
to the provisions of paragraph (3), he shall, without delay, notify
the applicant
for grant money.
(5) An organization which has received grant money shall submit to the
Commissioner of the National Tax Service a report on the
results of the
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tax guidance business, by January 20 of the year following the year in
which grant money was issued.
(6) When an organization uses the grant money for other purposes or
is in violation of the payment conditions on the grant money,
the
Commissioner of the National Tax Service shall partly or wholly revoke
the decision for the payment of the grant money or order
the return of the
grant money already paid.
(7) Other matters necessary with respect to the application for grant
money, and decision, payment, and repayment, etc. of grant
money, shall
be prescribed by Ordinance of the Ministry of Strategy and Finance.
The term "amount prescribed by the Presidential Decree" in Article 83
(1) of the Act means 10,000 won.
[This Article Newly Inserted by Presidential Decree No. 11577, Dec. 31, 1984]
Article 65-4 (Payment of Bounty)
(1) An amount obtained by multiplying the following payment rate by
the amount of tax evaded or the amount of tax illegally refunded
or deducted
(hereafter referred to as the "amount of tax evaded, etc." in this Article)
may be paid to anyone falling under Article
84-2 (1) 1 of the Act as
a bounty: Provided, That the portion that exceeds one hundred million won
shall not be paid:
Amount of Tax Evaded, etc. Payment Rate
Not less than 100 million won to
not more than 1 billion won
5/100
More than 1 billion won to not more
than 2 billion won
50 million won + 3/100 of the
amount exceeding 1 billion won
More than 2 billion won
80 million won + 2/100 of the
amount exceeding 2 billion won
(2) Where a margin of the tax amount accrues on the grounds falling
under each of the following subparagraphs, such margin of the
tax amount
shall not be included in the amount of tax evaded, etc.:
1. Where the margin of the tax amount accrues on the grounds of the
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difference between the tax accounting and the corporate accounting;
2. Where the margin of the tax amount accrues on the grounds of a mistake
in the appraised value provided for in the Inheritance
Tax and Gift
Tax Act; and
3. Where the margin of the tax amount accrues on the grounds of a mistake
in the reversion year of income and transaction, etc.
(3) An amount obtained by multiplying the following payment rate by
the amount that is collected by means of a report on the concealed
property
(hereafter referred to as the "collected amount" in this Article) may be
paid to the person falling under Article 84-2
(1) 2 of the Act as a bounty:
Provided, That the portion that exceeds 100 million won shall not be paid:
Not less than 20 million won to not
more than 200 million won
5/100
More than 200 million won to not
more than 500 million won
10 million won + 3/100 of the
amount that exceeds 200 million
won
More than 500 million won
19 million won + 2/100 of the
amount that exceeds 500 million
won
(4) Fifty thousand won per reported case per person may be paid as bounty
to a person who falls under Article 84-2 (1) 3 or 4 of
the Act: Provided,
That the amount of such bounty to which each person is entitled shall
be limited to two million won per year.
(5) The term "amount prescribed by the Presidential Decree" in the proviso
to Article 84-2 (1) of the Act means 100 million won
in cases of the amount
of tax evaded, etc. and 20 million won in cases of the amount collected
by means of a report on concealed
property.