Tax regulations for foreigners
The tax is assessed on acquisition of the title of taxable assets, having a characteristic of transaction tax.
- Taxable subjects and subject persons
- Person who acquires real estate, vehicles, machinery, living trees, ships, mining rights, golf course membership, condominium membership, or sports facilities membership
- Period within which to report and pay tax
- Within 30 days of acquisition
- Tax rates
- Regular transaction: 2% of the acquisition price
- Housing transaction: 1% of the acquisition price
- Supplemental tax rate: 10% of the acquisition price for luxury goods
- ※ Luxury goods include summer home, golf course, luxury house, luxury boat, luxury club
- Additional tax
- If the self-reporting requirement is not fully complied with, there is additional tax of 10% for up to 30 days and 20% if the non-compliance period exceeds 30 days. Plus additional tax for non-compliance = number of days delayed ×3/10,000
- If the voluntary reporting is made but not paid, then the non-payment of tax is calculated number of delay in payment ×3/10,000.
When the title to property or other rights is acquired, transferred, changed, or extinguished and the change resulting from such transaction is recorded on the public record, a tax is assessed. The tax takes the characteristic of a tax on transaction or distribution, which is assessed to protect the rights of the owner.
- Subject property and persons subject to tax
- Person who registers and records the rights to property or any changes thereof
- Payment is due at the time of registering and recording is made on the basis of self-assessment.
- Tax reates
- Prior to transfer of title: regular transaction is assessed 2% and residential property 1%.
- When registering and recording construction of a new building or building addition, tax rate is 0.8%.
Property tax is assessed for holding land, residential building, building, ship, aircraft, and other properties and is an important source of revenue for our district.
- Persons subject to tax
- Person who owns the property as of June 1, which is the date on which property is assessed for tax purposes.
- Properties subject to tax
- Land, vacant lot, land for commercial use, land auxiliary to building
- In assessing residential building, land and building are assessed together.
- For buildings other than residential housing, land and building are assessed separately.
- Payment due date
- Property tax is assessed on building, ship, and aircraft and is to be paid on the basis of tax assessed as of the assessment date, June 1.One half of the tax due is to be paid between July 16 and July 3 by accessing the website http://etax.busan.go.kr using credit card or by funds transfer. It may be paid in person at the district office or a bank.
- The second installment is to be paid between September 16 and September 30. Tax payment is due Property tax is assessed on land and is to be paid on the basis of tax assessed as of the assessment date, June 1. The tax due is to be paid between September 16 and September 31 by accessing the website http://etax.busan.go.kr using credit card or by funds transfer. It may be paid in person at the district office or a bank.
Resident tax takes the characteristic of membership due and is assessed at a rate proportionate to the resident’s income.
- Persons subject to resident tax
- Person who domiciles in Dongnae-gu as of August 1 is assessed resident tax at a rate per the resident tax table of the preceding year in accordance with the value added tax law. Individual or corporation that has income of least 48,000,000 won a year that maintains a place of business, whether it is an office or a branch, in Dongnae-gu
- Individual and corporation that fall into the criteria of assessing income tax, corporation tax, or farm land tax.
- Payment due date
- Tax is to be paid between August 16 and August 31 based on the assessment as of August 1.
- Income tax is to be paid by the due date of filing income tax.
- Corporation tax is to be paid by April 30 for the preceding business year.
- Special assessment is to be paid by the 10th of the following month of wage payment.
- Tax rates
- The same amount of resident tax is assessed to every resident, 4,800 won, and every business in Dongnae-gu, 50,000 won.
- Resident tax is assessed to corporations ranging from 50,000
- Income tax rate of 10% is assessed on income, corporation income, and agricultural income
Vehicle tax is a form of property tax for the ownership of automobile and is assessed to the owner. The tax also is an assessment of the costs of road usage and environmental pollution.
- Property and person subject to tax
- Vehicle tax is assessed on automobiles registered under the automobile administration law and dump trucks and concrete mixer trucks that are registered under the law of construction vehicle administration law. The tax is to be paid by the registered owner of the vehicle.
- Tax assessment period and payment due date
- Vehicle tax may be paid in two installments. The first installment is for the assessment as of June 1 and is to be paid between June 16 and June 30.
- The second installment is for the assessment as of December 1 and is to be paid between December 16 and December 31.
- If the taxpayer pays the entire amount for the year, there will be a 10% reduction from the amount of tax.
- The tax amount due for the entire year may be paid in two installments. However, the vehicle owner may apply to pay the entire amount and will be entitled to 10% reduction in tax. The vehicle owner may elect to pay the tax in four installments, the first two in March and the last two in Septembers on the dates he designates.