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Framework Act On National Taxes


Published: 2014-01-01

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CHAPTER I GENERAL PROVISIONS
SECTION 1 Common Provisions
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 Article 1 (Purpose)   print
The purpose of this Act is to ensure the legal relations pertaining to the national taxes, to promote the impartiality of taxation, and to contribute to the smooth performance of nationals' liability for tax payment, by providing for the fundamental and common matters concerning the national taxes and the procedures for protesting against any unlawful or unjust disposition of national taxes.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 2 (Definitions)   print
The terms used in this Act shall be as defined as follows: <Amended by Act Nos. 2925 & 2932, Dec. 22, 1976; Act No. 3097, Dec. 5, 1978; Act No. 3471, Dec. 31, 1981; Act No. 3746, Aug. 7, 1984; Act No. 4177, Dec. 30, 1989; Act No. 4672, Dec. 31, 1993; Act No. 4743, Mar. 24, 1994; Act No. 4981, Dec. 6, 1995; Act No. 5189, Dec. 30, 1996; Act No. 5579, Dec. 28, 1998; Act No. 5993, Aug. 31, 1999; Act No. 6303, Dec. 29, 2000; Act No. 6782, Dec. 18, 2002; Act No. 7008, Dec. 30, 2003; Act No. 7329, Jan. 5, 2005; Act No. 8139, Dec. 30, 2006; Act No. 8521, Jul, 19, 2007; Act No. 8830, Dec. 31, 2007; Act No. 9911, Jan. 1, 2010; Act No. 10219, Mar. 31, 2010; Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. The term "national taxes" means any of the following taxes imposed by the State:
(a) Income tax;
(b) Corporate tax;
(c) Inheritance tax and gift tax;
(d) Value-added tax;
(e) Individual consumption tax;
(f) Liquor tax;
(g) Stamp tax;
(h) Securities transaction tax;
(i) Education tax;
(j) Special tax for rural development;
(k) Comprehensive Real Estate Holding Tax
2. The term "tax-related Acts" means the Acts which prescribe the items and rates of the national taxes, the National Tax Collection Act, the Restriction of Special Taxation Act, the Adjustment of International Taxes Act, the Punishment of Tax Evaders Act and the Procedure for the Punishment of Tax Evaders Act;
3. The term "collection of withholding taxes" means that an agent liable for withholding under tax-related Acts collects national taxes (excluding penalty taxes related thereto);
4. The term "penalty tax" means an amount collected in addition to the amount of tax calculated in accordance with tax-related Acts in order to ensure the faithful fulfillment of duties prescribed in the tax-related Acts: Provided, That additional dues shall not be included herein;
5. The term "additional dues" means an amount collected in addition to the amount of tax notified under the National Tax Collection Act when national tax is not paid within the due date for payment, and the amount collected in addition to the former, when the national tax is not paid within a certain period of time after the due date for payment expires;
6. The term "disposition fee for arrears" means expenses incurred in the seizure, safekeeping, transport and sale (if the sale is conducted by any agent, including commissions therefor) of any property under the National Tax Collection Act concerning the disposition for arrears;
7. The term "local taxes" means items of taxes prescribed under the Framework Act on Local Taxes;
8. The term "public charges" means claims collectable pursuant to the disposition for arrears under the National Tax Collection Act, other than national taxes, customs, provisional import surtax, local taxes, and additional dues and disposition fees for arrears related thereto;
9. The term "person liable to pay taxes" means persons liable to pay national taxes under tax-related Acts (excluding an obligation to collect and pay national taxes);
10. The term "taxpayer" means persons liable to pay taxes (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) and persons liable to collect and pay national tax under tax-related Acts;
11. The term "person secondarily liable for tax payment" means persons liable to pay taxes on behalf of a taxpayer when a taxpayer is unable to fulfill his/her tax liabilities;
12. The term "guarantor" means persons guaranteeing the payment by a taxpayer of any national tax, additional due or disposition fee for arrears;
13. The term "taxable period" means a period to be a basis for calculating tax base of a national tax under tax-related Acts;
14. The term "tax base" means the quantity or value of a taxable object to constitute a direct basis for calculating the amount of tax under tax-related Acts;
15. The term "return of tax base" means a return stating the tax base of national tax and other matters necessary for payment or refund of national tax;
15-2. The term "revised return of tax base" means a return to revise items in the return of tax base originally filed;
16. The term "statutory due date of return" means the term in which a return of tax base is to be submitted under tax-related Acts;
17. The term "tax officials" means the following persons:
(a) The Commissioner of the National Tax Service, the commisioner of a regional tax office, the head of a tax office or public officials under his/her control;
(b) Where the head of a customs office is in charge of the affairs related to national taxes under tax-related Acts, the head of the customs office or public officials under his/her control;
(c) Deleted; <by Act No. 11124, Dec. 31, 2011>
18. The term "information and communications networks" means information and communications system to collect, process, store, search, send, or receive information utilizing telecommunications facilities and equipment under subparagraph 2 of Article 2 of the Framework Act on Telecommunications or telecommunications facilities and equipment and computers as well as computer technologies;
19. The term "electronic filing" means a return made by means of the information and communications networks designated and publicly notified by the Commissioner of the National Tax Service (herein- after referred to as "national tax information and communications networks") of documents related to returns pursuant to this Act or other tax-related Acts, such as returns of tax base, etc.;
20. The term "related person" means a person who has relationship falling under any of the following items with the principal. In such cases, the principal shall be deemed the related person of such related person when this Act and other tax-related Acts apply:
(a) Relationship by blood prescribed by Presidential Decree such as blood relative, relative by marriage, etc.;
(b) Economic relationship prescribed by Presidential Decree such as officer, employer, etc.;
(c) Management control relationship prescribed by Presidential Decree such as shareholder, contributor, etc.
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 Article 2 (Definitions)   print
The terms used in this Act shall be as defined as follows: <Amended by Act Nos. 2925 & 2932, Dec. 22, 1976; Act No. 3097, Dec. 5, 1978; Act No. 3471, Dec. 31, 1981; Act No. 3746, Aug. 7, 1984; Act No. 4177, Dec. 30, 1989; Act No. 4672, Dec. 31, 1993; Act No. 4743, Mar. 24, 1994; Act No. 4981, Dec. 6, 1995; Act No. 5189, Dec. 30, 1996; Act No. 5579, Dec. 28, 1998; Act No. 5993, Aug. 31, 1999; Act No. 6303, Dec. 29, 2000; Act No. 6782, Dec. 18, 2002; Act No. 7008, Dec. 30, 2003; Act No. 7329, Jan. 5, 2005; Act No. 8139, Dec. 30, 2006; Act No. 8521, Jul, 19, 2007; Act No. 8830, Dec. 31, 2007; Act No. 9911, Jan. 1, 2010; Act No. 10219, Mar. 31, 2010; Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. The term "national taxes" means any of the following taxes imposed by the State:
(a) Income tax;
(b) Corporate tax;
(c) Inheritance tax and gift tax;
(d) Value-added tax;
(e) Individual consumption tax;
(f) Liquor tax;
(g) Stamp tax;
(h) Securities transaction tax;
(i) Education tax;
(j) Special tax for rural development;
(k) Comprehensive Real Estate Holding Tax
2. The term "tax-related Acts" means the Acts which prescribe the items and rates of the national taxes, the National Tax Collection Act, the Restriction of Special Taxation Act, the Adjustment of International Taxes Act, the Punishment of Tax Evaders Act and the Procedure for the Punishment of Tax Evaders Act;
3. The term "collection of withholding taxes" means that an agent liable for withholding under tax-related Acts collects national taxes (excluding penalty taxes related thereto);
4. The term "penalty tax" means an amount collected in addition to the amount of tax calculated in accordance with tax-related Acts in order to ensure the faithful fulfillment of duties prescribed in the tax-related Acts: Provided, That additional dues shall not be included herein;
5. The term "additional dues" means an amount collected in addition to the amount of tax notified under the National Tax Collection Act when national tax is not paid within the due date for payment, and the amount collected in addition to the former, when the national tax is not paid within a certain period of time after the due date for payment expires;
6. The term "disposition fee for arrears" means expenses incurred in the seizure, safekeeping, transport and sale (if the sale is conducted by any agent, including commissions therefor) of any property under the National Tax Collection Act concerning the disposition for arrears;
7. The term "local taxes" means items of taxes prescribed under the Framework Act on Local Taxes;
8. The term "public charges" means claims collectable pursuant to the disposition for arrears under the National Tax Collection Act, other than national taxes, customs, provisional import surtax, local taxes, and additional dues and disposition fees for arrears related thereto;
9. The term "person liable to pay taxes" means persons liable to pay national taxes under tax-related Acts (excluding an obligation to collect and pay national taxes);
10. The term "taxpayer" means persons liable to pay taxes (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) and persons liable to collect and pay national tax under tax-related Acts;
11. The term "person secondarily liable for tax payment" means persons liable to pay taxes on behalf of a taxpayer when a taxpayer is unable to fulfill his/her tax liabilities;
12. The term "guarantor" means persons guaranteeing the payment by a taxpayer of any national tax, additional due or disposition fee for arrears;
13. The term "taxable period" means a period to be a basis for calculating tax base of a national tax under tax-related Acts;
14. The term "tax base" means the quantity or value of a taxable object to constitute a direct basis for calculating the amount of tax under tax-related Acts;
15. The term "return of tax base" means a return stating the tax base of national tax and other matters necessary for payment or refund of national tax;
15-2. The term "revised return of tax base" means a return to revise items in the return of tax base originally filed;
16. The term "statutory due date of return" means the term in which a return of tax base is to be submitted under tax-related Acts;
17. The term "tax officials" means the following persons:
(a) The Commissioner of the National Tax Service, the director of a regional tax office, the head of a tax office or public officials under his/her control;
(b) Where the head of a customs office is in charge of the affairs related to national taxes under tax-related Acts, the head of the customs office or public officials under his/her control;
(c) Deleted; <by Act No. 11124, Dec. 31, 2011>
18. The term "information and communications networks" means information and communications system to collect, process, store, search, send, or receive information utilizing telecommunications facilities and equipment under subparagraph 2 of Article 2 of the Framework Act on Telecommunications or telecommunications facilities and equipment and computers as well as computer technologies;
19. The term "electronic filing" means a return made by means of the information and communications networks designated and publicly notified by the Commissioner of the National Tax Service (herein- after referred to as "national tax information and communications networks") of documents related to returns pursuant to this Act or other tax-related Acts, such as returns of tax base, etc.;
20. The term "related person" means a person who has relationship falling under any of the following items with the principal. In such cases, the principal shall be deemed the related person of such related person when this Act and other tax-related Acts apply:
(a) Relationship by blood prescribed by Presidential Decree such as blood relative, relative by marriage, etc.;
(b) Economic relationship prescribed by Presidential Decree such as officer, employer, etc.;
(c) Management control relationship prescribed by Presidential Decree such as shareholder, contributor, etc.
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 Article 3 (Relation to Tax-Related Acts, etc.)   print
(1) This Act shall precede other tax-related Acts in its application: Provided, That if other tax-related Acts provide special provisions on the following provisions, such tax-related Acts shall prevail: <Amended by Act No. 12162, Jan. 1, 2014>
1. Article 8 (2) of Section 3 of Chapter I;
2. Section 1 of Chapter II;
3. Sections 2, 3, Article 26 (limited to special cases of extinction of liability under Article 99-5 of the Restriction of Special Taxation Act) of Section 4, and Section 5 of Chapter III;
4. Section 2 of Chapter IV (limited to secondary liability for tax payment under Article 104-7 (4) of the Restriction of Special Taxation Act);
5. Section 1, Article 45-2 of Section 2, Article 45-3 of Section 2 (limited to special cases on return of tax base for non-profit domestic corporations under Article 62 of the Corporate Tax Act), and Section 3 (limited to penalty taxes under Article 100-10 of the Restriction of Special Taxation Act) of Chapter V;
6. Articles 51 and 52 of Chapter VI;
7. Article 55 of Section 1 of Chapter VII;
8. Chapter VIII.
(2) Where the Customs Act and the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export provide for special provisions on this Act with respect to the national taxes levied and collected by the head of a customs office, the special provisions of the aforementioned Acts shall be applied. <Amended by Act No. 12162, Jan. 1, 2014>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Period and Due Date
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 Article 4 (Computation of Period)   print
Except as otherwise provided for in this Act or other tax-related Acts, the computation of a period under this Act or other tax-related Acts shall be based on the Civil Act.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 5 (Special Cases concerning Due Date)   print
(1) If the due date for any return, application, claim, submission of other documents, notification, payment or collection under this Act or other tax-related Acts falls on a legal holiday, Saturday, or Workers' Day under the Designation of Workers' Day Act, the due date shall be the day following such holiday, Saturday or Workers' Day. <Amended by Act No. 9911, Jan. 1, 2010>
(2) Deleted. <by Act No. 7930, Apr. 28, 2006>
(3) Where an electronic filing or payment (referring to the payment of national taxes and additional dues to be paid under this Act or other tax-related Acts by means of information and communications networks) is made impossible on the due date for filing returns or making payment as prescribed by this Act or other tax-related Acts due to a suspension of operation of the national tax information and communications networks for failures prescribed by Presidential Decree, the due date shall be the day following the date when such return or payment can be made ordinarily after such failures are recovered. <Amended by Act No. 9911, Jan. 1, 2010>
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 Article 5-2 (Tax Return by Mail and Electronic Filing)   print
(1) Where a return of tax base, revised return of tax base, request for correction or documents related to such return of tax base, revised return of tax base or request for correction is filed by mail, the filing shall be deemed to be made on the date of postmark under the Postal Service Act (if no postmark exists or the mark is illegible, the date sent based on the number of days ordinarily required for delivery by mail).
(2) Where the return, etc. under paragraph (1) is filed by means of national tax information and communications networks, such return, etc. shall be deemed to be filed when it is entered in the national tax information and communications networks.
(3) Where the return is filed electronically pursuant to paragraph (2), the submission deadline for documents prescribed by Presidential Decree, among documents related to a return of tax base or revised return of tax base, may be extended up to ten days as prescribed by Presidential Decree.
(4) Detailed matters on procedures, etc. for an electronic filing of tax base, etc. shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 6 (Extension of Due Date for Natural Disaster, etc.)   print
(1) If it is deemed impossible to file any return, application and claim, to submit documents, or to make notification and payment prescribed in this Act or other tax-related Acts, within the fixed due date, due to a natural disaster or other grounds prescribed by Presidential Decree, or if any taxpayer applies for the extension of due date, the head of a competent tax office may extend the due date, as prescribed by Presidential Decree. <Amended by Act No. 9911, Jan. 1, 2010>
(2) Where the due date is extended pursuant to paragraph (1), the head of a competent tax office may make a request for a security equivalent to the amount to be paid: Provided, That the same shall not apply where any ground prescribed by Presidential Decree occurs. <Amended by Act No. 9911, Jan. 1, 2010>
(3) Where a taxpayer applies for the extension of due date pursuant to paragraph (1) ten days before the due date provided for in this Act or other tax-related Acts and the head of a tax office fails to notify whether the extension is approved within ten days from the date of application, the extension of the due date shall be deemed approved on the tenth day from the date of application. <Newly Inserted by Act No. 9911, Jan. 1, 2010>
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 Article 6-2 (Cancellation of Extension of Due Date for Payment)   print
(1) Where a taxpayer falls under any of the following subparagraphs after the head of a tax office has extended a due date under Article 6, the head of a tax office may cancel the extension of the due date for payment and immediately collect the national taxes which is subject to the cancellation of the extension of the due date for payment:
1. Where the taxpayer fails to comply with the requests of the head of a tax office, such as provision of a security, etc.;
2. Where the taxpayer falls under any ground under the subparagraphs of Article 14 (1) of the National Tax Collection Act so that he/she is recognized as unable to pay the total amount of national taxes by the extended due date for payment;
3. Where it is deemed unnecessary to extend the due date for payment on any ground prescribed by Presidential Decree, such as changes in the status of property, etc.
(2) The head of a tax office shall, when he/she cancels the extension of the due date for payment pursuant to paragraph (1), notify the taxpayer of such fact.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 7 (Extension of Payment Deadline for Delayed Service)   print
(1) Where a notification of payment, notice of payment, urging note, or notice of urge payment is served on, the due date for payment shall be 14 days from the date of delivery in any of the following cases:
1. Where the due date for payment is already expired before the date of delivery;
2. Where the due date for payment expires within 14 days from the date of delivery.
(2) Notwithstanding paragraph (1), with respect to the notice under Article 14 (2) of the National Tax Collection Act, the day falling under any of the following subparagraphs shall be the due date for payment:
1. Where the due date already expires on the date when the notice is delivered, the date of delivery;
2. Where the due date arrives after the notice is delivered, the due date.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 3 Service of Documents
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 Article 8 (Service of Documents)   print
(1) Documents prescribed in this Act or other tax-related Acts shall be served on the domicile, address, business office or place of business (in cases of the service by means of information and communications networks (hereinafter referred to as "electronic service"), referring to an electronic mail address of the designated person (if stored in national tax information and communications networks, referring to the place accessible using an identification mark of the designated person); hereinafter referred to as "domicile or business office") of the designated person (referring to the person designated as a recipient; hereinafter the same shall apply).
(2) Where documents are served on persons jointly and severally liable for tax payment, the representative thereof shall become the designated person, and, if no representative exists, a person against whom the collection of national taxes is convenient, among the persons jointly and severally liable for tax payment, shall become the designated person: Provided, That documents for the notice and urging notice of payment shall be served on all persons jointly and severally liable for tax payment.
(3) Where inheritance is commenced and an administrator of inherited property exists, documents shall be served on the domicile or business office of the administrator.
(4) Where a tax administrator exists, documents for the notice or urging notice of tax payment shall be served on the domicile or business office of the tax administrator.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 9 (Report on Place to be Served)   print
Where a person to receive documents pursuant to Article 8 reports to the Government a place to be served, either his/her domicile or business office, as prescribed by Presidential Decree, the documents shall be served on the reported place. When such place is changed, the same shall also apply.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 10 (Method of Service of Documents)   print
(1) Documents under Article 8 shall be served by delivering them in person, mailing them, or using electronic service.
(2) Documents for the notice or urging notice of tax payment, disposition for arrears or orders issued by the Government under tax-related Acts shall be served by mailing them by registered mail: Provided, That any notice of tax payment on the amount of interim tax prepayment under Article 65 (1) of the Income Tax Act and any notice of tax payment which is served on for the purposes of tax collection pursuant to Article 48 (3) of the Value-Added Tax Act with an amount falling short of the amount prescribed by Presidential Decree may be served by general mail. <Amended by Act No. 11873, Jun. 7, 2013>
(3) Service of documents in person shall be made upon the person authorized to receive service by a public official of the competent administrative agency at the place where the documents are to be delivered: Provided, That if the person authorized to receive documents does not object, such documents may be delivered at another place.
(4) In cases under paragraphs (2) and (3), if a person authorized to receive documents does not appear at the place where the documents are to be delivered, such documents may be served to his/her employee or any other worker or person who is a resident of the immediate household, who is able to make reasonable judgement, and if the person authorized to receive the documents, his/her employee or any other worker or person who is a resident of the immediate household, who is able to make reasonable judgement, refuses to receive the documents without any reasonable ground, the documents may be left at the place where they are to be delivered.
(5) With respect to service of documents under paragraphs (1) through (4), if a person authorized to receive documents moves his/her domicile or business place, the documents shall be served to the changed domicile or business place after such move is confirmed on the resident registration card.
(6) Where documents are delivered, a recipient shall sign or affix his/her seal on a delivery slip. In such cases, if the recipient refuses to sign or affix the seal, such fact shall be recorded on the delivery slip.
(7) When documents are delivered by regular mail, the head of a competent administrative agency shall prepare and keep a record to confirm the following matters:
1. Title of the documents;
2. Name of a person authorized to receive documents;
3. Place to be served;
4. Date of service;
5. Main details of the documents.
(8) Electronic service shall be provided only if a person authorized to receive documents files an application as prescribed by Presidential Decree: Provided, That where a taxpayer has made voluntary payment of taxes as determined by this Act or other tax-related Acts before payment notice is served, as prescribed by Presidential Decree, such taxpayer shall be deemed to have applied for the electronic service at the time of such voluntary payment for the amount paid. <Amended by Act No. 11604, Jan. 1, 2013>
(9) Notwithstanding paragraph (8), service of documents may be made either personally or by mail where the electronic service is unable to be made due to a failure of national tax information and communications networks or where any ground prescribed by Presidential Decree exists.
(10) Specific scope of documents to be provided through electronic service pursuant to paragraph (8) and necessary matters on methods of service shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 11 (Service by Public Notification)   print
(1) If a person authorized to receive the documents falls under any of the following subparagraphs, such documents shall be considered as served in accordance with Article 8 once 14 days have passed since the main contents of the documents were publicly notified:
1. Where domicile or business office is located overseas so that it is difficult to deliver documents;
2. Where domicile or business office is not evident;
3. Other cases prescribed by Presidential Decree, such as where the documents sent by registered mail is returned because the person prescribed in Article 10 (4) does not appear at the place where the documents are to be delivered.
(2) The public notification under paragraph (1) shall be posted or placed on any of the following subparagraphs. In such cases, if service by public notification is made by means of national tax information and communications networks, another method shall also be used: <Amended by Act No. 11604, Jan. 1, 2013>
1. National tax information and communications networks;
2. Bulletin board of tax offices or other proper place;
3. Web site or bulletin board of the Special Self-governing City, Special Self-governing Province, or Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) having jurisdiction over the place where the documents are to be delivered, or other appropriate place;
4. The Official Gazette or daily newspaper.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 12 (Taking Effect of Service)   print
(1) Any document served under Article 8 shall take effect when it reaches a person authorized to receive the document: Provided, That in cases of electronic service, such document shall be deemed to be delivered to the person authorized to receive the document when it is sent to the electronic mail address designated by such person (in cases of service by means of national tax information and communications networks, when it is stored therein).
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 4 Personality
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 Article 13 (Organization Deemed a Juristic Person)   print
(1) Any incorporate body, foundation or other organization (hereinafter referred to as "organization other than juristic person") which is not a juristic person (referring to domestic and foreign corporations under subparagraph 1 and 3 of Article 1 of the Corporate Tax Act; hereinafter the same shall apply), which falls under any of the following subparagraphs and does not distribute profits to its members, shall be deemed a juristic person and governed by this Act and other tax-related Acts: <Amended by Act No. 10405, Dec. 27, 2010>
1. Any unregistered incorporate body, foundation or other organization which has been established with permission or authorization by the competent government agency or registered therewith under Acts and subordinate statues,
2. Any unregistered foundation which has basic property contributed for the purposes of public interest.
(2) An organization approved by the head of a competent tax office upon request by its representative or manager, among an organization deemed a juristic person under paragraph (1), other than a juristic person, except for the incorporate body, foundation or other organization, meeting all the requirements of the following subparagraphs, shall be deemed a juristic person and, therefore, be governed by this Act or other tax-related Acts. In such cases, the continuity and homogeneity of such incorporate body, foundation or other organization shall be deemed maintained: <Amended by Act No. 10405, Dec. 27, 2010>
1. It shall have rules concerning the organizational structure and operation of the incorporate body, foundation or other organization and appoint a representative or manager;
2. It shall independently possess and manage the revenues and property for the account of and under the name of the incorporate body, foundation, or other organization;
3. It shall not distribute its profits to its members.
(3) Any organization, other than juristic person, which is deemed a juristic person pursuant to paragraph (2), shall not be changed to a resident under the Income Tax Act or nonresident during the period between the taxable period which includes the date its application is approved by the head of a competent tax office and the taxable period which includes the date on which three years have elapsed since the end of the former taxable period: Provided, That the same shall not apply to the cancellation of approval due to a failure to meet the requirements under each of the subparagraphs of paragraph (2). <Amended by Act No. 10405, Dec. 27, 2010; Act No. 11124, Dec. 31, 2011>
(4) The national tax obligation of an organization, other than a juristic person, which is deemed a juristic person under paragraphs (1) and (2), (hereinafter referred to as "organization deemed a juristic person") shall be fulfilled by its representative or manager. <Amended by Act No. 10405, Dec. 27, 2010>
(5) Any organization deemed a juristic person shall, when it appoints or changes its representative or manager to discharge national tax obligation, report thereon to the head of a competent tax office, as prescribed by Presidential Decree.
(6) Where an organization deemed a juristic person fails to report under paragraph(5), the head of a competent tax office may designate a person to fulfill the national tax obligation, among members or related persons of the organization.
(7) Necessary matters on the application of an organization deemed a juristic person and its approval, issuance of tax payment number, and cancellation of approval shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
CHAPTER II IMPOSITION OF NATIONAL TAXES AND APPLICATION OF TAX-RELATED ACTS
SECTION 1 Principles of Imposition of National Taxes
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 Article 14 (Actual Taxation)   print
(1) If any ownership of an income, profit, property, act or transaction which is subject to taxation, is just nominal, and there is other person to whom such income, etc., belongs, the other person shall be liable to pay taxes and tax-related Acts shall apply, accordingly.
(2) The provisions pertaining to the computation of tax base in the tax-related Acts shall be applied to a real income, profit, property, act or transaction, regardless of its title or form.
(3) Where it is recognized as a method of receiving unjust benefit pursuant to this Act or tax-related Acts, such as an indirect method through a third party or a method of involving two or more activities or transactions, this Act or tax-related Acts shall apply as if the relevant parties have made a direct transaction or have conducted an activity or transaction in succession, according to the economic substance of such activity or transaction.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 15 (Good Faith and Sincerity)   print
Any taxpayer shall perform his/her liability in good faith and sincerity. The same shall apply to any tax officials in performing their duties.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 16 (Grounds for Taxation)   print
(1) If any person liable to pay taxes keeps and enters a book under tax-related Acts, the examination and determination of assessment of the relevant national tax base shall be based on the book and evidence material related thereto.
(2) In examining and determining national taxes under paragraph (1), if the contents of entry of the book are different from facts, or any omission exists in the entry, only such part may be determined in accordance with the facts examined by the Government.
(3) When the Government examines and determines any fact different from the contents of entry or omission in the entry under paragraph (2), the fact examined and grounds for determination by the Government shall be stated additionally in the determination note.
(4) The head of an administrative agency shall, upon a request by the person liable to pay taxes or his/her representative, permit the inspection or copy of the determination note under paragraph (3), or verify that a transcript or extract of the note is identical to the original.
(5) Any request under paragraph (4) shall be made by oral statement: Provided, That if the head of an administrative agency deems it necessary, he/she may demand a signature of the person who inspects or copies a determination note.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 17 (Follow-Up Management of Tax Reduction and Examinations)   print
(1) In cases of tax reduction and examination, the Government may determine a range of the management of funds or assets equivalent to the amount of tax reduced or exempted, as prescribed by tax-related Acts, if it is deemed necessary to achieve the object of tax reduction or exemption or to implement national policies.
(2) The amount of tax reduced or exempted, which is equivalent to the funds or assets in excess of the range of management under paragraph (1), may be collected after cancelling the reduction or exemption therof, as prescribed by tax-related Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Principles for Application of Tax-Related Acts
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 Article 18 (Standards for Interpretation of Tax-Related Act and Prohibition of Retroactive Taxation)   print
(1) In interpreting and applying tax-related Acts, property rights of a taxpayer shall not be unreasonably infringed, in light of the equity in taxation and purposiveness of the relevant provisions. <Amended by Act No. 9911, Jan. 1, 2010>
(2) Any income, profit, property, act or transaction with a duty to pay national taxes already established (in cases of national tax for which the person responsible for collection is designated separately by tax-related Acts, the duty to collect and pay them; hereinafter the same shall apply) shall not be subject to taxation retroactively by new tax-related Acts enacted after such duty is established. <Amended by Act No. 9911, Jan. 1, 2010>
(3) Once any interpretation of a tax-related Act or practices in tax administration is accepted generally by taxpayers, any act or computation according to such interpretation or practices shall be considered to be correct, and no tax shall be retroactively imposed in accordance with new interpretation or practice. <Amended by Act No. 9911, Jan. 1, 2010>
(4) Deleted. <by Act No. 4672, Dec. 31, 1993>
(5) In applying paragraphs (1) through (3), any provisions of Acts, other than tax-related Acts, that provide for the imposition, collection, reduction, and exemption of national taxes and procedures therefor, shall be deemed those of tax-related Acts. <Amended by Act No.9911, Jan. 1, 2010>
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 Article 18-2 (Examination Committee on Established Rules for National Taxes)   print
(1) The Ministry of Strategy and Finance shall have the Examination Committee on Established Rules for National Taxes in order to deliberate on each of the following subparagraphs: <Amended by Act No. 11124, Dec. 31, 2011>
1. Matter on the interpretation of tax-related Acts, which meet the standards in Articles 18 (1) through (3);
2. Matters on the interpretation of the Customs Act, which meets the standards in Article 5 (1) and (2) of the Customs Act.
(2) Matters necessary for the establishment, organization and methods of operation of the Examination Committee on Established Rules for National Taxes under paragraph (1), and the procedures and methods, etc. for handling questions and answers concerning the interpretation of tax-related Acts shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 19 (Limitation of Discretion of Tax Officials)   print
In performing the duties of tax officials in their own discretion, the tax officials shall strictly observe the generally acceptable limitation in light of the equity of taxation and purpose of related tax-related Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 20 (Respect for Corporate Accounting)   print
In examining and determining the assessment of national tax base, standards or practices of corporate accounting which the person liable to pay taxes adopts continuously and are generally recognized as reasonable and proper, shall be respected: Provided, That the same shall not apply to cases specifically provided for in other tax-related Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 3 Medium and Long-Term Tax Policy and Administration Plan
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 Article 20-2 (Formulation, etc. of Medium and Long-Term Tax Policy and Administration Plan)   print
(1) In order to form efficient tax policies and enhance tax equity and fairness, the Minister of Strategy and Finance shall formulate each year a medium and long-term tax policy and administration plan for a period of not less than five years starting from the relevant year (hereinafter referred to as “medium and long-term tax policy and administration plan” in this Article). In such cases, the medium and long-term tax policy and administration plan shall be linked to the national financial management plan under Article 7 of the National Finance Act.
(2) The medium and long-term tax policy and administration plan shall include the followings:
1. Basic directions and objectives of tax policies;
2. Tax policy directions for each main taxable item;
3. Directions for the operation of tax exemption and reduction system;
4. Tax burden ratio;
5. Other matters prescribed by Presidential Decree.
(3) The Minister of Strategy and Finance shall hold consultations with the heads of relevant central government agencies when he/she formulates a medium and long-term tax policy and administration plan.
(4) The Minister of Strategy and Finance shall report the medium and long-term tax policy and administration plan that has been established to the competent standing committees of the National Assembly.
(5) Matters necessary for the formulation of a medium and long-term tax policy and administration plan, other than those provided for in paragraphs (1) through (4), shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12162, Jan. 1, 2014]
CHAPTER III TAX LIABILITY
SECTION 1 Creation and Determination of Tax Liability
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 Article 21 (Establishment Date of Tax Liability)   print
(1) The national tax liability arises at the time under the following classification: <Amended by Act Nos. 2925 & 2932, Dec. 22, 1976; Act No. 3097, Dec. 5, 1978; Act No. 3471, Dec. 31, 1981; Act No. 3746, Aug. 7, 1984; Act No. 4177, Dec. 30, 1989; Act No. 4672, Dec. 31, 1993; Act No. 4810, Dec. 22, 1994; Act No. 5579, Dec. 28, 1998; Act No. 7329, Jan. 5, 2005; Act No. 8139, Dec. 30, 2006; Act No. 8521, Jul, 19, 2007:Act No. 8830, Dec. 31, 2007; Act No. 9259, Dec. 26, 2008; Act No. 9911, Jan. 1, 2010; Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. Income tax or corporate tax: When the period of taxation expires: Provided, That a corporate tax liability on any income in liquidation shall come into existence at the time when the juristic person concerned is dissolved;
2. Inheritance tax: When inheritance begins;
3. Gift tax: When property is acquired by gift;
4. Comprehensive Real Estate Holding Tax: The base date of taxation;
5. Deleted; <by Act No. 7008, Dec. 30, 2003>
6. Deleted; <by Act No. 8521, Jul. 19, 2007>
7. Value-added tax: When the taxable period is terminated: Provided, That in cases of imported goods, when the declaration of import is made to a customs collector;
8. For individual consumption tax, liquor tax, or traffic tax, energy tax and environmental tax when a taxable item is carried out of the manufacturing place or sold at a selling place, or when anyone enters a taxable place or conducts an act for amusement, food and drink at a taxable amusement quarter or operates business at a taxable place of business: Provided, That in cases of an imported object, the tax liability shall come into existence when the declaration of import is made to a customs collector;
9. Deleted; <by Act No. 6299, Dec. 29, 2000>
10. Stamp tax: When a taxable document is prepared;
10-2. Securities transaction tax: When the relevant transaction becomes finalized;
10-3. Education tax: The time under the following classification:
(a) Education tax levied on the national tax: When the national tax liability comes into existence;
(b) Education tax levied on the revenue of financial and insurance businessmen: When taxable period is terminated;
10-4. Special tax for rural development: When a principal tax liability under Article 2 (2) of the Act on Special Rural Development Tax comes into existence;
10-5. Deleted; <by Act No. 11124, Dec. 31, 2011>
11. Penalty tax: When the national tax liability thereto arises.
(2) Notwithstanding paragraph (1), liability to pay following national taxes shall come into existence at the time specified below: <Amended by Act No. 9911, Jan. 1, 2010; Act No. 11604, Jan. 1, 2013>
1. Income or corporate tax collected by withholding; When the amount of income or proceeds is paid;
2. Income tax collected by a taxpayers' association or paid by an estimated return: The last day of the month in which the amount of tax base occurs;
3. Income or corporate tax prepaid intermediately or value-added tax for an estimated return period or estimated imposition period: When an interim prepayment period, or an estimated return period or estimated imposition period is terminated;
4. National tax collected by imposition whenever the occasion arises: When the ground for such imposition occurs.
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 Article 21 (Establishment Date of Tax Liability)   print
(1) The national tax liability arises at the time under the following classification: <Amended by Act Nos. 2925 & 2932, Dec. 22, 1976; Act No. 3097, Dec. 5, 1978; Act No. 3471, Dec. 31, 1981; Act No. 3746, Aug. 7, 1984; Act No. 4177, Dec. 30, 1989; Act No. 4672, Dec. 31, 1993; Act No. 4810, Dec. 22, 1994; Act No. 5579, Dec. 28, 1998; Act No. 7329, Jan. 5, 2005; Act No. 8139, Dec. 30, 2006; Act No. 8521, Jul, 19, 2007:Act No. 8830, Dec. 31, 2007; Act No. 9259, Dec. 26, 2008; Act No. 9911, Jan. 1, 2010; Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. Income tax or corporate tax: When the period of taxation expires: Provided, That a corporate tax liability on any income in liquidation shall come into existence at the time when the juristic person concerned is dissolved;
2. Inheritance tax: When inheritance begins;
3. Gift tax: When property is acquired by gift;
4. Comprehensive Real Estate Holding Tax: The base date of taxation;
5. Deleted; <by Act No. 7008, Dec. 30, 2003>
6. Deleted; <by Act No. 8521, Jul. 19, 2007>
7. Value-added tax: When the taxable period is terminated: Provided, That in cases of imported goods, when the declaration of import is made to a customs collector;
8. Individual consumption tax and liquor tax: When a taxable item is carried out of the manufacturing place or sold at a selling place, or when anyone enters a taxable place or conducts an act for amusement, food and drink at a taxable amusement quarter, or operates business at a taxable place of business: Provided, That in cases of an imported object, the tax liability shall come into existence when the declaration of import is made to a customs collector;
9. Deleted; <by Act No. 6299, Dec. 29, 2000>
10. Stamp tax: When a taxable document is prepared;
10-2. Securities transaction tax: When the relevant transaction becomes finalized;
10-3. Education tax: The time under the following classification:
(a) Education tax levied on the national tax: When the national tax liability comes into existence;
(b) Education tax levied on the revenue of financial and insurance businessmen: When taxable period is terminated;
10-4. Special tax for rural development: When a principal tax liability under Article 2 (2) of the Act on Special Rural Development Tax comes into existence;
10-5. Deleted; <by Act No. 11124, Dec. 31, 2011>
11. Penalty tax: When the national tax liability thereto arises.
(2) Notwithstanding paragraph (1), liability to pay following national taxes shall come into existence at the time specified below: <Amended by Act No. 9911, Jan. 1, 2010; Act No. 11604, Jan. 1, 2013>
1. Income or corporate tax collected by withholding; When the amount of income or proceeds is paid;
2. Income tax collected by a taxpayers' association or paid by an estimated return: The last day of the month in which the amount of tax base occurs;
3. Income or corporate tax prepaid intermediately or value-added tax for an estimated return period or estimated imposition period: When an interim prepayment period, or an estimated return period or estimated imposition period is terminated;
4. National tax collected by imposition whenever the occasion arises: When the ground for such imposition occurs.
<<Enforcement Date: Jan. 1, 2016>>
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 Article 22 (Determination of Tax Liability)   print
(1) The amount of a national tax shall be finally determined according to the procedure under the tax-related Acts concerned. <Amended by Act No. 9911, Jan. 1, 2010>
(2) Notwithstanding paragraph (1), the amount of national taxes under the following subparagraphs shall be finally determined without any special procedure, when liability to pay such tax comes into existence: <Amended by Act No. 2932, Dec. 22, 1976; Act No. 9911, Jan. 1, 2010>
1. Deleted; <by Act No. 2925, Dec. 22, 1976>
2. Stamp tax;
3. Withholding income or corporate tax;
4. Income tax collected by a taxpayers' association;
5. Interim prepayment of corporate tax (excluding cases where the Government examines and determines it under tax-related Acts).
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 Article 22-2 (Effect of Correction, etc.)   print
(1) Any correction which causes an increase in an amount of taxes originally determined under tax-related Acts shall not affect the relation of rights and duties provided for in this Act or other tax-related Acts, with respect to such amount of tax originally determined.
(2) Any correction which causes a decrease in an amount of tax originally determined under tax-related Acts shall not affect the relation of rights and duties provided for in this Act or other Tax-related Acts, with respect to the amount of tax, other than that decreased due to such correction.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Succession to Tax Liability
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 Article 23 (Succession to Tax Liability Due to Merger of Juristic Persons)   print
If juristic persons are merged, the one surviving the merger or the one newly established due to the merger shall be liable to pay any national tax, additional dues and disposition fee for arrears which were imposed upon or, are to be paid by, the juristic person disappearing due to the merger.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 24 (Succession to Tax Liability Due to Inheritance)   print
(1) When an inheritance is commenced, an heir (including testamentary donees; hereinafter the same shall apply) or any administrator of inherited property under Article 1053 of the Civil Act, shall be liable to pay national taxes, additional dues and disposition fees for arrears which were imposed upon or, are to be paid by, his/her ancestor within the limit of the value of property acquired by inheritance.
(2) In cases under paragraph (1), if two or more heirs exist, each heir shall be liable to jointly and severally pay national taxes, additional dues and disposition fees for arrears which were imposed upon, or are to be paid by, their ancestor within the limit of the value of property acquired by inheritance, which are calculated in proportion to their portion under Articles 1009, 1010, 1012 and 1013 of the Civil Act. In such cases, each heir shall, among heirs, determine a representative who will pay national taxes, additional dues, and disposition fees for arrears imposed to their ancestor, and then report thereon to the head of a competent tax office as prescribed by Presidential Decree.
(3) In cases under paragraph (1), if it is uncertain whether any heir exists, any notification or urging notice, and any other necessary matter to be made to the heir shall be made to an administrator of inherited property.
(4) In cases under paragraph (1), if it is uncertain whether any heir exists, and no administrator of inherited property exists, the head of a tax office may request a court having jurisdiction over the place where the inheritance is commenced to appoint an administrator of inherited property.
(5) Any disposition or procedure imposed to an ancestor shall have the same effect to the heir who will succeed to liability for tax payment by inheritance pursuant to paragraph (1) or administrator of inherited property.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 3 Joint and Several Tax Liability
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 Article 25 (Joint and Several Tax Liability)   print
(1) For any national tax, additional dues and disposition fees for arrears related to a jointly-owned property or enterprise or any property belonging to such enterprise, the owners of such property or enterprise shall be liable to pay them jointly and severally.
(2) If a juristic person splits up or is merged with another juristic person after split-up, the following juristic persons shall jointly bear the liability to pay national taxes, additional dues and disposition fees for arrears which are imposed on, or are to be paid by, the juristic person subject to split-up on or prior to the date of such split-up or merger after split-up:
1. A juristic person subject to split-up;
2. A juristic person established due to split-up or merger with another juristic person after split-up;
3. Where part of the juristic person subject to split-up is merged with another juristic person and the other juristic person continues to exist, the other juristic person (hereinafter referred to as "mergee continuing to exist after split and merger").
(3) If a juristic person is dissolved due to split-up or split and merger, the following juristic persons shall be jointly and severally liable to pay national taxes, additional dues and disposition fees for arrears which are imposed on, or are to be paid by, the juristic person dissolved:
1. A juristic person established due to split-up or split and merger;
2. A mergee continuing to exist after split and merger.
(4) Where a juristic person establishes a new company pursuant to Article 215 of the Debtor Rehabilitation and Bankruptcy Act, the new company shall be jointly and severally liable to pay national taxes, additional dues and disposition fees for arrears, which have been imposed on the existing juristic person or its liability of which comes into existence.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 25-2 (Application Mutatis Mutandis of Civil Act concerning Joint and Several Tax Liability)   print
Articles 413 through 416, 419, 421, 423 and 425 through 427 of the Civil Act shall apply mutatis mutandis to the joint and several liability to pay any national tax, additional due and disposition fee for arrears under this Act or other tax-related Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 4 Extinction of Tax Liability
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 Article 26 (Extinction of Tax Liability)   print
In any of the following cases, any liability to pay a national tax, additional dues or disposition fee for arrears shall become extinct:
1. Where the payment or appropriation is completed or the imposition is cancelled;
2. Where the period in which a national tax may be assessed under Article 26-2 expires without any assessment;
3. Where an extinctive prescription of the right to collect a national tax is completed under Article 27.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 26-2 (Limitation Period for National Tax Assessment)   print
(1) No national tax may be levied after any of the following periods expires: Provided, That where a mutual agreement procedure is in progress in accordance with the treaty for the prevention of double taxation (hereinafter referred to as "tax treaty"), Article 25 of the Adjustment of International Taxes Act shall apply: <Amended by Act No. 10405, Dec. 27, 2010; Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013; Act No. 11873, Jun. 7, 2013>
1. If a taxpayer evades any national tax, or receives a refund or deduction, by fraudulent or other unlawful means prescribed by Presidential Decree (hereinafter referred to as "unlawful means"), it shall be for ten years from the date on which national tax is assessable. In such cases, if the national tax which is evaded by unlawful means or refunded or deducted is a corporate tax, it shall be for ten years from the date on which income tax or corporate tax is assessable on the amount of disposition under Article 67 of the Corporate Tax Act;
1-2. If a taxpayer becomes liable to pay penalty tax under any of following categories due to unlawful means, it shall be for ten years from the date on which the relevant tax is assessable:
2. If a taxpayer fails to file a return of tax base within the statutory due date of return, it shall be for seven years from the date on which national tax is assessable;
3. If a taxpayer does not fall under subparagraphs 1, 1-2 and 2, it shall be for five years from the date on which the national tax is assessable;
4. Notwithstanding subparagraphs 1, 1-2, 2 and 3, in cases of an inheritance tax or gift tax, it shall be for ten years from the date on which it is assessable: Provided, That the period shall be 15 years from the date on which it is assessable, in any of the following cases:
(a) Where a taxpayer evades the inheritance tax or gift tax, or receives a refund or deduction by unlawful means;
(b) Where a return is not filed under Articles 67 and 68 of the Inheritance Tax and Gift Tax Act;
(c) Where a person who files a return under Articles 67 and 68 of the Inheritance Tax and Gift Tax Act that has any false statement or omission in the return, as prescribed by Presidential Decree (limited to the portion which is reported falsely or omitted);
4-2. If an income tax under the latter part of Article 88 (1) of the Income Tax Act is levied along with gift tax for any gift subject to charge, it shall be, for such income tax, the period determined with regard to the gift tax in accordance with subparagraph 4;
5. If loss carried forward is deducted under Article 45 (3) of the Income Tax Act, subparagraph 1 of Article 13, Article 76-13 (1) 1 or 91 (1) 1 of the Corporate Tax Act in the taxable period after the taxable period to which the expiry date of the period referred to in subparagraphs 2 and 3 belongs, notwithstanding subparagraphs 2 and 3, it shall be for one year from the statutory due date of return for the taxable period in which loss carried forward was deducted, in cases of income tax or corporate tax of the taxable period in which the relevant loss has occurred.
(2) Notwithstanding paragraph (1), a decision of correction or other necessary disposition may be made according to the relevant decision, judgment or mutual agreement, upon request for correction or recommendation for adjustment before one year elapses from the date a decision or judgment under subparagraph 1 becomes final or when mutual agreement under subparagraph 2 terminates, or before two months elapse from the date a request is filed for correction or a recommendation is made for adjustment pursuant to subparagraph 3: <Amended by Act No. 11124, Dec. 31, 2011>
1. When a decision or judgment is made on the objection, or request for examination or adjudgment under Chapter Ⅶ, request for examination under the Board of Audit and Inspection Act, or litigation under the Administrative Litigation Act;
2. When an application for mutual agreement is made pursuant to a tax treaty, and a mutual agreement is reached, it shall be within three years (if the tax treaty prescribes otherwise, the provisions of the treaty shall prevail) after the day on which the existence of the measure is known, which forms the ground for the imposition of tax, in conformity with the tax treaty;
3. When a request for correction pursuant to Article 45-2 (2) or pursuant to Articles 10-2 (1) and 19 (4) of the Adjustment of International Taxes Act is filed or a recommendation for adjustment is made pursuant to Article 10-3 (1) of the same Act.
(3) Notwithstanding paragraph (1), where it is confirmed that title has been lent at a decision or judgment in paragraph (2) 1, the disposition of imposition to the lender of title may be revoked, and a decision for correction or other necessary dispositions may be made to the person who has actually operated the business within one year from the date the decision or judgment becomes final.
(4) Where a taxpayer evades inheritance tax or gift tax by unlawful means in any of the following subparagraphs, the inheritance tax and gift tax may, notwithstanding paragraph (1) 4, be levied within one year from the date on which the inheritance or gift of the relevant property is known: Provided, That this shall not apply where a successor, donor or donee deceases, and where the property value which form a basis for calculating the amount of evaded tax (referring to the total of values of property falling under any of the following subparagraphs) is not more than five billion won: <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. Where a successor or donee possesses the property of the inheritee or donor concerned under a title of third party, or a conversion by real name is made under his/her name;
2. Where a property to be acquired by the inheritee under a contract has been acquired by a successor without making a registration, register or entry of a change of holders as the inheritance began during the period of contract execution;
3. Where an inherited or gifted property located overseas has been ac- quired by a successor or donee;
4. Where an inherited or gifted property such as securities, paintings and writings, curios, etc., for which a registration, register or entry of a change of holders is not required, has been acquired by a suc- cessor or donee.
5. Where financial assets of a donor as defined in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality, registered in the name of a donee, are held or used and profit-taken by the donee;
(5) The date on which any national tax referred to in the subparagraphs of paragraph (1) may be levied shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 27 (Extinctive Prescription of Right to Collect National Taxes)   print
(1) The State's right to collect national taxes shall be extinguished by prescription, if it is not exercised for either of the following periods from the time it is exercisable: <Amended by Act No. 11604, Jan. 1, 2013>
1. National taxes of 500 million or more: 10 years
2. National taxes other than those prescribed in subparagraph 1: 5 years
(2) Except as otherwise provided in this Act or other tax-related Acts, the provisions of the Civil Act shall be applied to the extinctive prescription prescribed in paragraph (1).
(3) The time when the State can exercise its rights to collect national taxes under paragraph (1) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 28 (Interruption and Suspension of Prescription)   print
(1) Extinctive prescription under Article 27 shall be interrupted by each of the following grounds:
1. Notification of tax payment;
2. Urging or demand notice of payment;
3. Request for delivery;
4. Seizure.
(2) Extinctive prescription interrupted under paragraph (1) shall resume when the period specified in the following subparagraphs expires:
1. Notified period of payment;
2. Period fixed by urging or demand notice of payment;
3. Period specified in the request for delivery;
4. Period until seizure is cancelled.
(3) Extinctive prescription under Article 27 shall not run during the period falling under any of the following subparagraphs:
1. Period for an installment payment under tax-related Acts;
2. Period for deferment of collection under tax-related Act;
3. Period for suspending disposition of tax in arrears under tax-related Act;
4. Period for yearly installment payment under tax-related Acts;
5. Period for which a lawsuit for the cancellation of a fraudulent act filed by a tax official pursuant to Article 30 of the National Tax Collection Act or a lawsuit for subrogation of creditor under Article 404 of the Civil Act is pending.
(4) The suspension of extinctive prescription due to a lawsuit for the cancellation of a fraudulent act filed, or a lawsuit for subrogation of creditor under paragraph (3) shall lose its effect when the lawsuit is rejected, dismissed or withdrawn.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 5 Security for Tax Payment
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 Article 29 (Kinds of Security)   print
Security to be offered under tax-related Acts (hereinafter referred to as "security for tax payment") shall be any of the following: <Amended by Act No. 11124, Dec. 31, 2011>
1. Money;
2. Securities prescribed by Presidential Decree such as the national bonds under Article 4 (3) of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "securities" in this Section);
3. Deleted; <by Act No. 11124, Dec. 31, 2011>
4. Insurance policy for guarantee of tax payment;
5. Written guarantee of tax payment of a person prescribed by Presidential Decree, such as a bank under the Banking Act;
6. Land;
7. Insured and registered building, factory or mining foundation, vessel, aircraft or construction machines.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 30 (Appraisal of Security)   print
The value of any security for tax payment shall be appraised on the basis of the following: <Amended by Act No. 11124, Dec. 31, 2011>
1. Securities: The value determined by taking into consideration of the current price as prescribed by Presidential Decree;
2. Deleted; <by Act No. 11124, Dec. 31, 2011>
3. Insurance policy for guarantee of tax payment: The amount of insurance;
4. Written guarantee of tax payment: The amount guaranteed;
5. Any land, building, factory or mining foundation, vessel, aircraft or construction machinery: The value determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 31 (Method to Offer Security)   print
(1) Any person who intends to offer any money or securities as security for tax payment shall deposit it and present the receipt of deposition to the head of a tax office (where the head of a customs office is in charge of the affairs related to national taxes under the tax-related Acts, referring to the head of the customs office; hereafter the same shall apply): Provided, That in cases of any registered securities, the purport to offer security shall be registered, and the certificate of registration shall be presented. <Amended by Act No. 11124, Dec. 31, 2011>
(2) Any person who intends to offer an insurance policy for guarantee of tax payment or written guarantee of tax payment as security for tax payment shall present the insurance policy or written guarantee to the head of a tax office.
(3) Any person who intends to offer land, building, factory or mining foundations, vessel, aircraft or construction machinery as security for tax payment shall present the certificate of its registration and the notice on registration completion to the head of a tax office, who shall thereby initiate a procedure of registration for the establishment of mortgage. <Amended by Act No. 10580, Apr. 12, 2011>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 32 (Change and Supplement of Security)   print
(1) Any person who has offered security for tax payment, may change the security with the approval of the head of a tax office.
(2) If the head of a tax office deems that the offered security is insufficient to secure the payment of any national tax, additional dues and disposition fee for arrears due to a reduction in the value of the security for tax payment or reduction in financial resources of the guarantor, he/she may demand the offerer of the security to submit an additional security or replacement of guarantor.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 33 (Payment and Collection by Security)   print
(1) Any person who offers money as security for tax payment may pay the secured national tax, additional dues and disposition fee for arrears with the money.
(2) If any national tax, additional dues and disposition fee for arrears for payment for which security is offered, is not settled within the period of such security, the head of a tax office shall collect such tax, dues and fee from the security as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 34 (Release of Security)   print
When any national tax, additional dues and disposition fee for arrears for payment for which security is offered, are settled, the head of a tax office shall initiate, without delay, a procedure for the release of the security.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
CHAPTER IV RELATION BETWEEN NATIONAL TAXES AND COMMON CLAIMS
SECTION 1 Priority of National Taxes
law view
 Article 35 (Priority of National Taxes)   print
(1) National taxes, additional dues or disposition fees for arrears shall be collected in preference to other public charges or obligations: Provided, That this shall not apply to public charges or other obligations falling under any of the following subparagraphs: <Amended by Act No. 10405, Dec. 27, 2010; Act No. 12162, Jan. 1, 2014>
1. In cases of a disposition for arrears of any local taxes or public charges, and where any national tax, additional dues or disposition fee for arrears is collected from the amount of disposition for arrears, the disposition fee for arrears of such local taxes or public charges;
2. In cases of selling property through the compulsory execution, public auction or bankruptcy, and where any national tax, additional dues or disposition fee for arrears is collected from the proceeds of sale, the expenses required for such procedure;
3. In cases of a sale of the property for which the fact that the establishment of the right of lease on deposit basis, the pledge right or the mortgage has been registered before any of the following dates (hereinafter referred to as "statutory deadline") is proved as prescribed by Presidential Decree, and where any national tax or additional dues (excluding national taxes and additional dues imposed on the property) is collected from the proceeds of sale, the obligation secured by the right of lease on deposit basis, the pledge right or the mortgage:
(a) If the tax liability (including the corporate tax subject to interim pre-payment and value-added tax subject to preliminary return and payment) is finalized by the return of tax base and tax amount, the date of filing such return for the returned tax amount;
(b) If the Government determines, corrects a tax base and tax amount or decides to make occasional imposition, the date of sending a payment notice for the notified tax amount;
(c) Notwithstanding (a) and (b), if any national tax or stamp tax is to be collected from a withholding agent or a taxpayers' association, the date of finalizing the liability to pay such taxes;
(d) Where any national tax is collected from the property of the person secondarily liable for tax payment (including a guarantor), the date of sending the taxpayer the notice of payment under Article 12 of the National Tax Collection Act;
(e) Where any national tax is collected from a transfer-secured property, the date of sending the notice of payment under Article 13 of the National Tax Collection Act to the taxpayer;
(f) Where the taxpayer's property is seized under Article 24 (2) of the National Tax Collection Act, for the amount of tax finally determined in connection with such seizure, the date on which the seizure is registered, regardless of items (a) through (e);
4. Where national taxes or additional dues are collected from sale of leased residence or building governed by Article 8 of the Housing Lease Protection Act or Article 14 of the Commercial Building Lease Protection Act, claims to the specified amount of deposit money for the lease which the lessee is entitled to preferentially recover under the aforementioned Article;
5. Where national taxes or the additional dues are collected from sale or collection of the employer's property, the wages, retirement allowances, accident compensation, or other claims derived from employment, which is paid preferentially to the national taxes and additional dues under Article 38 of the Labor Standards Act or Article 12 of the Guarantee of Workers' Retirement Benefits Act.
(2) In cases of seizing property provisionally registered (including provisional record; hereinafter the same shall apply) for the purpose of preserving a claim for rights of transfer on the basis of a pre-engagement for payment in substitutes where the person liable to pay taxes shall be responsible for registration and any default shall be the condition precedent, or other similar security that is provisionally registered, the person that a right to the provisional registration shall not claim any right based on the provisional registration against a disposition for arrears to the property if the principal registration on the basis of such provisional registration is effectuated after the seizure: Provided, That the same shall not apply to property provisionally registered before the statutory deadline for national tax or additional dues (excluding national tax and the additional dues imposed upon the property).
(3) When the head of a tax office seizes or sells by public auction any provisionally registered property provided for in paragraph (2), he/she shall immediately notify the person that has the right to the provisional registration thereof.
(4) If it is deemed difficult to collect national taxes or additional dues from any proceeds of the sale of property because a taxpayer falsely enters into a contract falling under any of the followings in conspiracy with a third person and register such contract, the head of a tax office may request to a court. a cancellation of such acts. In such cases, if the taxpayer enters into a contract to establish a right of lease on a deposit basis, the pledge right or the mortgage, a contract to effect a provisional registration or a contract to establish a security for transfer with a person prescribed by Presidential Decree from among related persons within one year before the statutory deadline for national tax, such contract shall be deemed to be falsely made in conspiracy: <Amended by Act No. 11124, Dec. 31, 2011>
1. Contract to establish a right of lease on deposit basis, the pledge right or the mortgage under paragraph (1) 3;
2. Contract to effectuate a provisional registration under paragraph(2);
3. Contract to establish a security for transfer under Article 42 (2).
(5) "National tax imposed on the property" in paragraph (1) 3, other than each item and the proviso to paragraph (2) refers to inheritance tax, gift tax, and Comprehensive Real Estate Holding Tax among national taxes. [This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 36 (Priority by Seizure)   print
(1) When any property of a taxpayer is seized by a disposition for arrears with payment of national tax, if a delivery of other national tax, additional dues, disposition fee for arrears or local tax is requested, the national tax, additional dues or disposition fee for arrears related to the seizure shall be collected in preference to others requested for delivery.
(2) When any property of a taxpayer is seized by a disposition for arrears with payment of local tax, if a delivery of national tax, additional dues or disposition fee for arrears is requested, the national tax, additional dues, and disposition fee for arrears requested for delivery shall be collected in the order following the local tax related to the seizure.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 37 (Priority of National Tax with Security)   print
When security for tax payment is sold, the national tax, additional dues or disposition fee for arrears shall, notwithstanding Article 36, be collected from the proceeds of sale, in preference to other national taxes, additional dues, disposition fees for arrears and local taxes.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Secondary Tax Liability
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 Article 38 (Secondary Tax Liability of Liquidators, etc.)   print
(1) When a juristic person is dissolved and distributes or transfers its residual property without paying national taxes, additional dues or disposition fees for arrears which were imposed upon, or are to be paid by, the juristic person, and if it is insufficient to pay the amount to be collected even after the execution of the disposition for arrears to it, a liquidator or a person who is distributed or transferred the residual property shall be subject to a secondary tax liability with regard to the shortage.
(2) The secondary tax liability under paragraph (1) shall be limited to the value of distributed or transferred property for a liquidator, and value of the share of property for each person who is distributed or transferred a portion of the property.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 39 (Secondary Tax Liability of Contributors)   print
If the whole property of a juristic person (excluding a juristic person whose stocks are listed in the securities market prescribed by Presidential decree; hereafter in this Article the same shall apply) is not sufficient for appropriating the national taxes, additional dues and disposition fees for arrears which were imposed upon, or are to be paid by, the juristic person, any person who falls under any one of the following subparagraphs as of the date of the occurrence of the national tax liability, shall be subject to the secondary tax liability with regard to the shortage: Provided, That in case of an oligopolistic stockholder under subparagraph 2, the shortage shall be limited to the amount calculated by multiplying that obtained by dividing the shortage by the total number of outstanding stocks (excluding non-voting stocks; hereinafter in this Article the same shall apply) or investments of the juristic person concerned by the number of stocks to which the relevant oligopolistic stockholder actually exercises the rights (excluding non-voting stocks) or the amount of investments of the oligopolistic stockholder: <Amended by Act No. 11845, May 28, 2013>
1. A general partner;
2. A stockholder or one limited partner and a person prescribed by Presidential Decree from among his/her related parties, whose total amount of stocks held or investments exceeds 50/100 of the total number of outstanding stocks or investments of the juristic person concerned and who actually exercise the rights thereto (hereinafter referred to as "oligopolistic stockholder").
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 40 (Secondary Tax Liability of Juristic Persona)   print
(1) If the whole property (excluding stocks issued or shares invested by the juristic person) owned by a general partner or oligopolistic stockholders (hereinafter referred to as "contributors") of a juristic person as of the due date for national tax payment (in cases of two or more national taxes, the national tax whose due date comes later) is not sufficient to discharge the national taxes, additional dues and disposition fee for arrears that are to be paid by the investors, the juristic person shall be subject to the secondary liability to pay the shortage within the limit of the value of stocks owned or shares invested by the contributors, only in cases falling under any of the following subparagraphs:
1. Even if the Government intends to sell the stocks owned or shares contributed by the contributors by auction or private contract, but no one desires to buy them;
2. When the transfer of stocks owned or shares contributed by the contributors are restricted by Acts or the articles of incorporation of the juristic person.
(2) The secondary tax liability of a juristic person under paragraph (1) shall be limited to the amount computed by dividing the value after deducting the total amount of its debts from the total amount of its assets by the total amount of outstanding stocks or investment, and then multiplying the quotient by the amount of stocks owned or the investment by the contributors.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 41 (Secondary Tax Liability of Transferee)   print
(1) When an enterprise is acquired or transferred, if the property of the transferor is insufficient to discharge the national tax, additional dues and disposition fee for arrears to the enterprise, for which the liability of the transferor to pay taxes becomes final before the transfer is made, the transferee of the enterprise prescribed by Presidential Decree shall assume the secondary tax liability with respect to such insufficient amount, within the limit of the value of the transferred property.
(2) The value of the transferred property under paragraph (1) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 3 Liability for Tax Payment in Kind
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 Article 42 (Liability for Tax Payment in Kind by Person with Right to Property Transferred for Security)   print
(1) When a taxpayer fails to pay any national tax, additional dues or disposition fee for arrears, if he/she has property transferred for security, the national tax, additional dues and disposition fee for arrears may be collected from such property as prescribed in the National Tax Collection Act, only in cases where there is a shortage in the amount to be collected after the execution of a disposition for arrears to its other properties: Provided, That the same shall not apply to the property transferred for security which has been established prior to the statutory deadline to pay the national tax.
(2) The term "property transferred for security" in paragraph (1) means the property substantially becoming the object of security for an obligation to the transferor, when a taxpayer transfers the property by a contract between the parties concerned.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
CHAPTER V TAXATION
SECTION 1 Competent Authorities
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 Article 43 (Jurisdiction over Returns of Tax Base)   print
(1) The return of tax base shall be submitted to the head of a tax office having jurisdiction over the place where the national tax is paid at the time of return: Provided, That in cases of an electronic filing, it may be submitted to the commisioner of a regional tax office or the Commissioner of the National Tax Service.
(2) Even if the return has been submitted to the head of a tax office, other than those under paragraph(1), it does not affect the validity of the return.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 44 (Jurisdiction over Decision or Decision of Correction)   print
A decision or decision of correction on the tax base and the amount of a national tax shall be made by the head of a tax office having jurisdiction over the place where the national tax shall be paid as at the time of disposition.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Revised Return and Request
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 Article 45 (Revised Return)   print
(1) Any person (including persons falling under Article 73 (1) 1 through 7 of the Income Tax Act) who has filed a written return of tax base within the statutory due date of return may file a revised return of tax base until the head of a competent tax office determines or corrects and notifies the tax base before the period under Article 26-2 (1) expires and the amount of national taxes pursuant to the provisions of tax-related Acts, in any of the following cases: <Amended by Act No. 9911, Jan. 1, 2010; Amended by Act No. 11124, Dec. 31, 2011>
1. Where the tax base and tax amount entered in the return of tax base is short of those to be reported under tax-related Acts;
2. Where the amount of deficit or amount of refundable taxes entered in the return of tax base exceeds the amount of deficit or that to be refunded under tax-related Acts;
3. Where incomplete returns are made due to grounds prescribed by Presidential Decree, such as an ommission in the course of exact calculation, tax adjustment, etc. by a withholding agent, other than subparagraphs 1 and 2 (excluding where a request for correction, etc. under Article 45-2 may be filed).
(2) Deleted. <by Act No. 4810, Dec. 22, 1994>
(3) Matters to be entered in a revised return of tax base and procedure of return shall be determined by Presidential Decree. <Amended by Act No. 9911, Jan. 1, 2010>
[This Article Wholly Amended by Act No. 3199, Dec. 28, 1979]
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 Article 45-2 (Request for Correction, etc.)   print
(1) Any person who has filed a return on tax base within the statutory due date of return may request the head of a competent tax office within three years after the elapse of the statutory due date of return to determine or correct the original tax base and the amount of taxes of the national tax on which he/she has filed a return and a revised return in any of the following cases: Provided, That he/she may request correction of tax base and the amount of taxes increased due to such determination or correction within 90 days by up to three years after the expiration of the statutory due date of return from the date on which he/she becomes aware of the relevant disposition (or on the date of receiving such disposition, if he/she is notified thereof; filing of such request shall be limited to three years after the statutory due date of return elapses). <Amended by Act No. 10405, Dec. 27, 2010>
1. Where the tax base and the amount of taxes on a return of tax base (referring to the tax base and tax amount after determination or correction is made, if such determination or correction is made pursuant to the tax-related Acts), exceed those to be declared under the tax-related Acts;
2. Where the amount of loss or refundable taxes on a tax base return (referring to the amount of loss or tax refund after the determination or correction is made, if such determination or correction is made pursuant to the tax-related Acts) is less than the amount of loss or refundable taxes to be declared under the tax-related Acts.
(2) Where any of the following grounds is established, a person who has filed a return on a tax base within the statutory due date of return, or who has the tax base and the amount of national taxes determined, may request the determination or correction within two months from the date on which he/she becomes aware of occurrence of such ground, regardless of the period under paragraph (1):
1. Where the transactions or act, etc. which forms the basis of calculation of the tax base and the amount of taxes in the initial return, determination or correction, is confirmed as a different one by a final judgment (including any reconciliation or other act having the same effect as the judgment) in the lawsuit against it;
2. Where a determination or correction exists, converting the ownership of the income or other taxable object to a third person;
3. Where mutual agreement procedure under a tax treaty is implemented differently from the details of the initial return, determination or correction;
4. Where the tax base and the amount of national taxes initially filed for the taxable period, other than a taxable period subject to determination or correction exceed the tax base and the amount of taxes to be declared under the tax-related Acts, due to such determination or correction;
5. Where the ground similar to those referred to in subparagraphs 1 through 4 and prescribed by Presidential Decree, occurs after the statutory due date of return of the national tax expires.
(3) Upon receiving a request for determination or correction under paragraphs (1) and (2), the head of a tax office shall determine or correct the tax base and the amount of taxes, or notify the person filing such request of the fact that no ground exists to make any determination or correction, within two months from the date such request is received.
(4) Paragraphs (1) through (3) shall apply mutatis mutandis to any person having income falling under Article 73 (1) 1 through 7 of the Income Tax Act or subparagraphs 1, 2, 4 through 8, and 10 through 12 of Article 119 of the Income Tax Act or domestic source income falling under subparagraphs 1, 2, 4 through 6, and 8 through 10 of Article 93 of the Corporate Tax Act (hereinafter referred to as "person liable to pay withholding tax" in this paragraph and Article 52) if he/she falls under any of the following subparagraphs. In such cases, "any person who files a return on tax base within the statutory due date of return" in paragraphs (1) and (2) other than each subparagraph, shall be deemed "a withholding agent or a person liable to pay withholding tax who submits his/her payment record within a submission deadline in accordance with Articles 164 and 164-2 of the Income Tax Act and Articles 120 and 120-2 of the Corporate Tax Act after paying income tax or corporate tax through the year-end settlement of income tax or tax withholding", "after the lapse of the statutory due date of return" in paragraph (1), other than each subparagraph shall be deemed "after the lapse of the due date for payment of the amount of taxes of year-end settlement or tax withholding", the "tax base and the amount of taxes entered on a tax base return" in paragraph (1) 1 shall be deemed "tax base and tax amount entered on a withholding tax receipt" and the "amount of loss or the refundable amount entered on a return of tax base" in paragraph (1) 2 shall be deemed "amount of refundable tax amount on a withholding tax receipt", respectively: <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. Where a withholding agent pays his/her income tax as a result of year-end tax settlement made in accordance with Articles 137, 138, 143-4 and 144-2 of the Income Tax Act and submits his/her payment record within the submission deadline in accordance with Article 164 or 164-2 of the same Act;
2. Where a withholding agent pays income tax withheld at source in accordance with Articles 146 and 156 of the Income Tax Act and submits a payment record within the submission deadline in accordance with Article 164 or 164-2 of the same Act;
3. Where a withholding agent pays corporate tax withheld at source in accordance with Article 98 of the Corporate Tax Act and submits a payment record within the submission deadline in accordance with Article 120 or 120-2 of the same Act.
(5) Matters necessary for the request for determination or correction and the procedure of notification thereof shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 45-3 (Return after Term)   print
(1) Any person who fails to file a return of tax base within the statutory due date of return may file the return of tax base after the term, prior to the notification of tax base and tax amount (including penalty taxes under this Act and tax-related Acts; hereinafter the same shall apply in this Article) of the relevant national tax determined by the head of a competent tax office pursuant to the tax-related Acts: Provided, That this shall not apply to the revaluation return pursuant to Article 15 of the Assets Revaluation Act. <Amended by Act No. 8139, Dec. 30, 2006>
(2) Any person who files a return of tax base after the due date pursuant to paragraph (1) and has a payable amount of taxes in accordance with the tax-related Acts shall pay the amount of taxes as soon as he/she files the return of tax base after the term.
(3) The head of a competent tax office shall, where a return of tax base after the due date is filed pursuant to paragraph (1) (limited to where the amount of payable taxes are paid), determine the tax base and the amount of the relevant national tax pursuant to the tax-related Acts.
(4) Matters necessary for items to be entered in a return of the tax base and the return procedure after the due date shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 46 (Voluntary Payment of Additional Amount)   print
(1) When a taxpayer submits a revised return of tax base prescribed by Article 45, with regard to the national taxes, for which an amount of taxes equivalent to the amount of return of tax base is to be paid voluntarily under tax-related Acts, if the amount of taxes already paid is less than that equivalent to the amount of the revised return of the tax base, he/she shall pay the shortage and penalty taxes determined by this Act or other tax-related Acts, at the time the revised return of tax base is submitted.
(2) If any person who should additionally pay a national tax under para- graph (1) fails to pay it, Article 48 (2) 1 shall not be applicable.
(3) Any person who has filed a return of tax base within the statutory due date of return, fails to pay the whole or part of the amount of taxes equivalent to the amount of return of tax base, may pay the relevant amount of taxes and the penalty tax determined by this Act or other tax-related Acts, prior to the notification from the head of a tax office.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 46-2 (Payment of National Taxes by Credit Cards, etc.)   print
(1) Where the amount of taxes on which a person liable to pay taxes has filed a return pursuant to tax-related Acts, or of which a tax authority has notified after decision or correction does not exceed ten million won, it may be paid by credit card, debit card, etc. (hereinafter in this Article referred to as "credit card, etc.") through a national tax payment agency prescribed by Presidential Decree. <Amended by Act No. 11124, Dec. 31, 2011>
(2) Where national taxes are paid by credit card, etc. pursuant to paragraph (1), the date of approval by the national tax payment agency shall be deemed the date of payment.
(3) Matters regarding the designation and operation of national tax payment agencies, fee for vicarious payment, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 3 Imposition, Reduction and Exemption
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 Article 47 (Imposition of Penalty Taxes)   print
(1) The Government may impose penalty taxes upon the person violating obligations prescribed in tax-related Acts, as prescribed in this Act or other tax-related Acts.
(2) Penalty taxes shall be an item of the relevant national tax under the tax-related Acts prescribing the obligation concerned: Provided, That in cases of reducing or exempting a relevant national tax, the penalty tax shall not be included in such reduced or exempted national tax.
(3) Penalty taxes shall be added to tax payable or deducted from the amount of taxes to be refunded. <Newly Inserted by Act No. 11124, Dec. 31, 2011>
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 Article 47-2 (Penalty Taxes on Non-Filing)   print
(1) Where a taxpayer fails to file a return (including scheduled return and interim return but excluding return under the Education Tax Act, the Act on Special Rural Development Tax and the Comprehensive Real Estate Holding Tax Act) on tax base of national tax pursuant to the tax-related Acts within the statutory due date of return, an amount equivalent to 20/100 of the amount pursuant to the classification in any of the following items (hereinafter referred to as "calculated tax, etc.") shall be the penalty tax: Provided, That where a person who fails to file a return (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) on tax base is a person subject to double-entry bookkeeping under Article 160 (3) of the Income Tax Act (hereinafter referred to as "person subject to double-entry bookkeeping") or a corporation, an amount equivalent to 20/100 of the amount under subparagraph 1 or 2 or an amount obtained by multiplying the amount of revenue by 7/10,000, whichever is larger, shall be the penalty tax. Where an enterprise under the Value-Added Tax Act fails to file a return under Articles 48 (1), 49 (1) and 67 of the same Act and there is a tax base to which zero tax rate under the Value-Added Tax Act or the Restriction of Special Taxation Act applies (hereinafter referred to as "zero -rate tax base"), the total of the amount equivalent to 20/100 of the amount under subparagraph 4 and the amount equivalent to 5/1,000 of the zero-rate tax base shall be the penalty tax: <Amended by Act No. 11873, Jun. 7, 2013>
1. Income tax: Calculated tax under the Income Tax Act;
2. Corporate tax: Calculated tax under the Corporate Tax Act (in cases of failing to file a return under Articles 84 and 85 of the same Act, referring to the corporate tax under Article 83 of the same Act);
3. Inheritance tax and gift tax: Calculated tax under the Inheritance Tax and Gift Tax Act (if there is an additional amount under Articles 27 and 57 of the same Act, such amount shall be added);
4. Value-added tax: Tax payable under the Value-Added Tax Act;
5. Individual consumption tax: An amount calculated by subtracting the deducted tax amount or refunded tax amount under Article 20 of the Individual Consumption Tax Act from the calculated tax under the same Act;
6. Traffic, energy and environment tax: An amount calculated by subtracting the deducted tax amount or refunded tax amount under Article 17 of the Traffic, Energy and Environment Tax Act from the calculated tax under the same Act;
7. Liquor tax: An amount calculated by subtracting the deducted tax amount or refunded tax amount under Articles 34 and 35 of the Liquor Tax Act from the calculated tax under the same Act;
8. Securities transaction tax: Tax calculated by applying the tax rate under Article 8 of the Securities Transaction Tax Act to the tax base under Article 7 of the same Act.
(2) Notwithstanding paragraph (1), where a taxpayer fails to file a return on tax base of national tax within the statutory due date of return by unlawful act, an amount equivalent to 40/100 of the calculated tax, etc. shall be the penalty tax: Provided, That, where a person who fails to file a return (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) on tax base by unlawful act is a person subject to double-entry bookkeeping or a corporation, an amount equivalent to 40/100 of the amount under paragraph (1) 1 or 2 or an amount obtained by multiplying the amount of revenue by 14/10,000, whichever is larger, shall be the penalty tax. Where an enterprise under the Value-Added Tax Act fails to file a return under Articles 48 (1), 49 (1) and 67 of the same Act and there is a zero-rate tax base, the total of the amount equivalent to 40/100 of the amount under paragraph (1) 4 and the amount equivalent to 5/1,000 of the zero-rate tax base shall be the penalty tax. <Amended by Act No. 11873, Jun. 7, 2013>
(3) Notwithstanding paragraphs (1) and (2), in any of the following cases, paragraphs (1) and (2) shall not apply: <Amended by Act No. 11873, Jun. 7, 2013>
1. Where tax is determined or corrected pursuant to Article 114 of the Income Tax Act or Article 76 of the Inheritance Tax and Gift Tax Act and there is no additional tax due (excluding penalty tax);
2. Where a taxpayer is exempted from the obligation to pay taxes pursuant to Article 69 of the Value-Added Tax Act.
(4) In applying paragraph (1) or (2), penalty tax under paragraph (1) or (2) shall not apply to the portion equivalent to the bad-debt tax amount under the proviso to Article 45 (3) of the Value-Added Tax Act. <Amended by Act No. 11873, Jun. 7, 2013>
(5) In applying paragraph (1), where there is an amount of tax prescribed by Presidential Decree as an amount of tax payable by deduction at the time of paying the relevant national tax such as the amount of interim tax prepayment, the amount of withholding tax and the amount of occasional levying tax (hereinafter referred to as "paid tax"), the paid tax shall be deducted from the calculated tax, etc. and the amount of revenue related to the paid tax shall be deducted from the amount of revenue.
(6) In applying paragraph (1) or (2), penalty tax under paragraph (1) or (2) in relation to the final return shall not apply to the portion on which penalty tax is levied in relation to the scheduled return and the interim return under this Article or Article 47-3.
(7) Where paragraph (1) or (2) concurrently applies with Article 81 (8), (13) or 115 of the Income Tax Act or Article 76 (1) of the Corporate Tax Act, only the larger of the calculated amount of penalty taxes shall be applicable, and if the amount of penalty taxes are the same, only the penalty tax provided for in paragraph (1) or (2) shall be applicable.
(8) The scope of revenue, the calculation of the amount of penalty tax and other matters necessary for the imposition of penalty tax shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 47-3 (Penalty Taxes for Underreporting or Penalty Taxes for Over-Refunding Return)   print
(1) Where a taxpayer has filed a return (including scheduled return and interim return but excluding return under the Education Tax Act and the Act on Special Rural Development Tax) on tax base of national tax pursuant to the tax-related Acts within the statutory due date of return but he/she has declared the tax base or tax payable less than the amount to be declared (hereinafter referred to as "underreporting" in this Article) or has declared the refunded tax amount more than the amount to be declared (hereinafter referred to as "overreporting" in this Article), an amount equivalent to 10/100 of the amount pursuant to the classification in any of the following items shall be the penalty tax: Provided, That where an enterprise under the Value-Added Tax Act has filed a return under Articles 48 (1) and (4), 49 (1), 66 and 67 of the same Act but he/she has underreported (including the case of failing to file a return) the zero-rate tax base, the total of the amount equivalent to 10/100 of the amount under subparagraph 2 and the amount equivalent to 5/1,000 of the underreported zero-rate tax base (referring to the amount which is short of the amount to be declared; hereinafter the same shall apply) shall be the penalty tax: <Amended by Act No. 11873, Jun. 7, 2013>
1. In cases of underreporting the tax base of income tax, corporate tax, inheritance tax, gift tax, securities transaction tax and Comprehensive Real Estate Holding Tax: An amount calculated by the following formula. In such cases, the calculated tax of the Comprehensive Real Estate Holding Tax shall be the amount calculated by subtracting the deducted tax amount under Article 9 (3) through (7) or Article 14 (3) or (6) of the Comprehensive Real Estate Holding Tax Act from the amount of tax under Article 9 (1) or 14 (1) or (4) of the same Act, which shall be within the amount under Article 10 or 15 of the same Act, respectively:
Calculated tax x underreported tax base/tax base
2. In cases of underreporting the tax payable or overreporting the refunded tax amount of the value-added tax, individual consumption tax, traffic, energy and environment tax and liquor tax: Total of the underreported tax payable and overreported (referring to the amount which exceeds the amount to be declared; hereinafter the same shall apply) refunded tax amount.
(2) Notwithstanding paragraph (1), in any of the following subparagraphs, an amount set out below shall be the penalty tax: <Amended by Act No. 11604, Jan. 1, 2013; Act No. 11873, Jun. 7, 2013>
1. In cases of underreporting the tax base of all or part of income tax, corporate tax, inheritance tax, gift tax, securities transaction tax and Comprehensive Real Estate Holding Tax (hereafter in this paragraph referred to as “income tax, etc.”) by unlawful act: Total of the following amounts:
(a) An amount (hereinafter referred to as "penalty tax for unlawful underreporting" in this paragraph) equivalent to 40/100 of the amount obtained by multiplying the ratio of underreported tax base by unlawful act (hereinafter referred to as "unlawfully underreported tax base") to the tax base by the calculated tax: Provided, That where the person who has underreported (limited to a return under Articles 70 and 124 of the Income Tax Act or Articles 60, 76-17 and 97 of the Corporate Tax Act) by unlawful act is a person subject to double-entry bookkeeping or a corporation, the penalty tax for such unlawful underreporting or the amount obtained by multiplying the amount of revenue (hereinafter referred to as "unlawfully underreported revenue") related to unlawfully underreported tax base by 14/10,000, whichever is larger, shall be the penalty tax;
(b) An amount (hereinafter referred to as "generally underreported calculated tax") equivalent to 10/100 of the amount obtained by multiplying the ratio of the amount calculated by subtracting the unlawfully underreported tax base from the underreported tax base to the tax base, by the calculated tax.
1-2. In cases of applying for reduction or deduction of the amount of income tax, etc. by unlawful act: An amount equivalent to 40/100 of the amount so reduced or deducted by such unlawful act;
2. In cases of underreporting the tax payable of value-added tax, individual consumption tax, traffic, energy and environment tax and liquor tax or overreporting the refunded tax amount: Total of the following amounts: Provided, That where an enterprise under the Value-Added Tax Act has filed a return under Articles 48 (1) and (4), 49 (1), 66 and 67 of the same Act but he/she has underreported the zero-rate tax base (including the case of failing to file a return), the total of the following amounts and the amount equivalent to 5/1,000 of the unreported zero-rate tax base shall be the penalty tax:
(a) An amount equivalent to 40/100 of the total of unlawfully underreported tax payable (hereinafter referred to as "unlawfully underreported tax payable") and the overreported refunded tax amount by unlawful act (hereinafter referred to as "unlawfully overreported refunded tax amount");
(b) An amount (hereinafter referred to as "generally underreported tax payable, etc.") equivalent to 10/100 of the total of an amount calculated by subtracting the unlawfully underreported tax payable from the underreported tax payable and an amount calculated by subtracting the unlawfully overreported refunded tax amount from the overreported refunded tax amount.
(3) Paragraphs (1) and (2) shall also apply to the case where a person other than an enterprise under the Value-Added Tax files a return on refunded tax amount.
(4) In applying paragraph (1) or (2), in any of the following subparagraphs, the penalty tax provided for in paragraph (1) or (2) shall apply to the underreported or overreported portion in relation thereto: <Amended by Act No. 11873, Jun. 7, 2013>
1. In cases of underreporting the tax base of inheritance tax or gift tax due to the any of the following causes:
(a) Where inherited tax or gifted tax is not confirmed due to the reasons such a lawsuit for its ownership at the time of filing a return;
(b) Where there is an error in the application of deduction under Articles 18 through 23, 23-2, 24, 53 and 54 of the Inheritance Tax and Gift Tax Act;
(c) Where a tax base is determined with the value appraised under Articles 60 (2) and (3) and 66 of the Inheritance Tax and Gift Tax Act.
2. Where the proviso to Article 45 (3) of the Value-Added Tax Act applies.
(5) Where there is any tax made, the calculation shall be made as follows:
1. In applying paragraph (1), the paid tax shall be deducted from the amount calculated in each subparagraph of paragraph (1);
2. In applying paragraph (2) 1, the paid tax shall be deducted from the generally underreported calculated tax payable;
3. In applying paragraph (2) 2, the paid tax shall be deducted from the generally underreported tax payable, etc.
(6) Article 47-2 (3) and (6) and (7) shall apply mutatis mutandis with respect to the imposition of penalty tax under this Article.
(7) Necessary matters concerning the calculation of unlawfully underreported tax base, unlawfully underreproted revenue and penalty tax and the imposition of penalty tax shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 47-4 (Penalty Taxes for Insincere Payment and Refunding Return)   print
(1) Where a taxpayer (including persons jointly and severally liable for tax payment and persons secondarily responsible for tax payment or guarantors if they become liable for tax payment on behalf of a taxpayer) fails to pay national tax (including interim pre-payment, payment by scheduled return and payment by interim return) within the due date pursuant to the tax-related Acts or has paid the tax less the tax to be paid (hereinafter referred to as "underpayment") or is refunded more than the amount to be refunded (hereinafter referred to as "excessive refund"), the total of the following amounts shall be the penalty tax: Provided, That where a stamp tax is not paid in violation of Article 8 (1) of the Stamp Tax Act or the amount of paid tax is short of the amount of taxes to be paid, an amount equivalent to 300/100 of the amount of unpaid tax or of the shortage (referring to the amount that is short of the amount to be paid; hereinafter the same shall) shall the penalty tax:
1. The amount of unpaid tax or the shortage (where there is any penalty amount corresponding to the interest to be paid by being added under the tax-related Acts, such amount shall be added) × The period from the next day of the time limit of payment through the voluntarily paid date or the day of notification of payment × The interest rate prescribed by Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans.
2. The excessively refunded amount of taxes (where there is any penalty amount corresponding to the interest to be paid by being added under the tax-related Acts, such amount shall be added) × The period from the next day of the refunded day through the voluntarily paid date or the day of notification of payment × The interest rate prescribed by the Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans.
(2) Paragraph shall also apply to the case where a person other than an enterprise under the Value-Added Tax is refunded the value-added tax.
(3) In applying paragraph (1), penalty tax under paragraph (1) shall not apply to the portion equivalent to the bad-debt tax amount under the proviso to Article 45 (3) of the Value-Added Tax Act. <Amended by Act No. 11873, Jun. 7, 2013>
(4) In applying paragraph (1), penalty tax under paragraph (1) in relation to the payment of national tax shall not apply to the portion on which the penalty tax is levied under Article 47-5 of the Value-Added Tax Act.
(5) In applying paragraph (1), penalty tax under paragraph (1) in relation to the final return and payment shall not apply to the portion on which the penalty tax under paragraph (1) is levied in relation to the interim pre-payment, payment by scheduled return and payment by interim return.
(6) Where a taxpayer files a return and pays national tax (limited to income tax, corporate tax and value-added tax) by erroneously applying the taxable period, he/she shall be deemed to voluntarily pay national tax with respect to the taxable period during which he/she should have filed a return and paid the national tax within the scope of the amount actually declared and paid on the date when he/she files a return and pays the national tax: Provided, That the same shall not apply to the case where filing a return on the relevant national tax falls under Article 47-2 (2) or 47-3 (2).
(7) Where an enterprise under the Value-Added Tax Act files a return and pays the value-added tax on a certain place of business in addition to the value-added tax on another place of business within the due date for payment pursuant to the Value-Added Tax, he/she shall be deemed to pay the value-added tax at the time of applying paragraph(1).
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 47-5 (Penalty Taxes for Insincere Payment of Withholding Tax)   print
(1) Where a person liable to collect and pay national taxes fails to pay, or underpays, the tax to be collected (in cases falling under paragraph (2) 2, the tax collected) by the due date set in any tax-related Act, the total of the following amounts shall be the penalty tax within the amount equivalent to 10/100 of the amount of such unpaid or underpaid tax: <Amended by Act No. 11604, Jan. 1, 2013>
1. An amount equivalent to 3/100 of the amount of unpaid tax or underpaid tax;
2. The amount of unpaid tax or underpaid tax x The period from the next day of the time limit of payment through the voluntarily paid date or the day of notification of payment × The interest rate prescribed by Presidential Decree in consideration of the interest rates, etc. that the financial institutions apply to overdue loans.
(2) "Obligation to collect and pay national taxes" in paragraph (1) refers to any obligation described below: <Amended by Act No. 11873, Jun. 7, 2013>
1. An obligation to withhold and pay the income tax or corporate tax under the Income Tax or the Corporate Tax;
2. An obligation to collect and pay the income tax under Articles 150 through 152 by a taxpayers' association under Article 149 of the Income Tax Act;
3. An obligation to collect and pay the value-added tax by a person who is provided the service, etc. under Article 52 of the Value-Added Tax Act.
(3) Notwithstanding paragraph (1), in any of the following subparagraphs, paragraph (1) shall not apply: <Amended by Act No. 11604, Jan. 1, 2013>
1. Where a person liable to withhold the income tax under the Income Tax Act is a US solider who resides in Korea;
2. Where a person liable to withhold the income tax under the Income Tax Act pays income under Article 20-3 (1) 1 or 22 (1) 1 of the Income Tax Act;
3. Where a person liable to withhold the income tax or corporate tax under the Income Tax Act or the Corporate Tax Act is the State, local government or association of local government (excluding the case of falling under Article 128-2 of the Income Tax Act).
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 48 (Reduction, Exemption, etc. of Penalty Taxes)   print
(1) Where penalty tax is to be imposed under this Act or any other tax-related Act, if the ground for such imposition corresponds to that for extending the due date under Article 6 (1) or the taxpayer has any justifiable grounds for non-fulfillment of the obligation concerned, the Government may choose not to impose penalty tax.
(2) In any of the following cases, the Government shall reduce or exempt penalty tax from an amount set forth in each of the following subparagraphs; <Amended by Act No. 10405, Dec. 27, 2010; Act No. 11124, Dec. 31, 2011>
1. Where a revised return is filed pursuant to Article 45 after the statutory due date of return elapses (limited to penalty tax referred to in Article 47-3 of this Act, excluding cases where the revised return of tax base is filed with a prior knowledge that the initial tax base and the amount would be corrected); amounts classified as follows:
(a) Where a revised return is filed within six months after the statutory due date of return elapses: An amount equivalent to 50/100 of the amount of the relevant penalty tax;
(b) Where a revised return is filed within one year, but more than six months after the statutory due date of return elapses: An amount equivalent to 20/100 of the amount of the relevant penalty tax;
(c) Where a revised return is filed within two years, but more than one year after the statutory due date of return elapses: An amount equivalent to 10/100 of the amount of the relevant penalty tax.
2. Where a return after the due date is filed and tax is paid thereby pursuant to Article 45-3 after the statutory due date of return elapses (limited to the penalty tax referred to in Articles 47-2, excluding cases where the return of tax base after the term is filed with a prior knowledge that the initial tax base and the amount would be determined): the amount in accordance with the classification set forth in the following categories;
(a) Where a return is filed and tax is paid thereby within one month after the statutory due date of return elapses: An amount equivalent to 50/100 of the amount of the relevant penalty tax;
(b) Where a return is filed and tax is paid thereby within six months, but more than one month after the statutory due date of return elapses: An amount equivalent to 20/100 of the amount of the relevant penalty tax;
3. Where it falls under any of the following categories: An amount equivalent to 50/100 of the amount of the relevant penalty tax;
(a) Where a result of the pre-assessment review is not notified under Article 81-15 within the period of determination and notification (limited to penalty tax under Article 47-4 which is imposed for the period for which such decision and notification are delayed);
(b) Where the obligation of the submission, filing, joining, registration or establishment pursuant to tax-related Acts (hereinafter referred to as "submission, etc." in this subparagraph) is fulfilled in compliance with the tax-related Acts within one month after the deadline for submission, etc. elapses (limited to penalty tax to be imposed pursuant to tax-related Acts for violation of the duty of such submission, etc.).
(3) Any person who intends to have penalty tax reduced or exempted under paragraph(1) or(2) may file an application therefor, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 49 (Upper Limit on Penalty Taxes)   print
(1) Any of the following penalty taxes shall be imposed up to 50 million won for each occasion (100 million won for an enterprise, other than small and medium enterprises under Article 2 (1) of the Framework Act on Small and Medium Enterprises), by type of violation of the obligation concerned: Provided, That the same shall not apply to any intentional violation of the obligation: <Amended by Act No. 10405, Dec. 27, 2010; Act No. 11604, Jan. 1, 2013; Act No. 11873, Jun. 7, 2013; Act No. 12162, Jan. 1, 2014>
3. Penalty taxes under Article 60 (1) (including cases applicable mutatis mutandis under Article 68 (2)), Article 60 (2) 1, 3 through 5 and (5) through (8) of the Value-Added Tax Act;
(2) In applying paragraph (1), the classification of violations of obligation, the period and methods for application of the upper limit on penalty tax, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 50 Deleted. <by Act No. 4810, Dec. 22, 1994>   print
CHAPTER VI REFUND AND ADDITIONAL DUES
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 Article 51 (Appropriation and Refund of National Tax Refund)   print
(1) If a taxpayer erroneously paid or overpaid national taxes, additional dues or disposition fees for arrears, or if there is an amount of tax to be refunded under tax-related Acts (when any amount of tax is to be deducted from the refundable amount under the tax-related Acts, referring to the remaining amount after deduction), the head of a tax office shall immediately determine such amount of erroneous payment, overpayment, or refundable amount as a refund of national tax. In such cases, any claim filed for the refund of any tax due to erroneous or double payment shall be governed by Presidential Decree.
(2) The head of a tax office shall appropriate the amount determined as refundable amount for the payment of national taxes, additional dues or disposition fees for arrears that fall under any of the following subparagraphs, as prescribed by Presidential Decree: Provided, That the appropriation of national taxes under subparagraph 1 (excluding cases falling under the cause for collection prior to the due date for payment under Article 14 of the National Tax Collection Act) and subparagraph 3 shall be made only if the taxpayer consent to the relevant appropriation: <Amended by Act No. 10405, Dec. 27, 2010>
1. National taxes to be paid by a notification of tax payment;
2. National taxes, and additional dues, that are in arrears, and disposition fee for arrears (including national taxes, additional dues and disposition fees for arrears in other tax offices);
3. National taxes to be paid voluntarily under tax-related Acts.
(3) Where appropriation is made under paragraph (2) 2, national taxes, additional dues, disposition fees for arrears, and refund of the national taxes shall be deemed to have become extinct in the equal amount, retroactive to the date between the statutory due date of national taxes in arrears and the occurrence date of refund of national taxes prescribed by Presidential Decree, whichever is later. <Newly Inserted by Act No. 10405, Dec. 27, 2010>
(4) Where a taxpayer is entitled to tax refund under tax-related Acts, the taxpayer may request that such tax amount be appropriated for the payment of national tax under paragraph (2) 1 and3. In such cases, it shall be deemed that national tax is paid when the taxpayer requests such appropriation.
(5) Where a withholding agent has any tax refund from the amount of tax paid after having it withheld at source, he/she shall be paid the remainder of taxes that the person appropriates for the payment of the amount of taxes payable by withholding taxes at source (appropriation of tax refund for the payment of withholding tax on any other taxable item may be allowed only when a report on processing status of tax withholding under the Income Tax Act includes details of appropriation and adjustment thereof): Provided, That in the event that the withholding agent claims immediate refund of taxes or has no amount of tax to pay by withholding taxes at source, the amount of taxes shall be immediately refunded.
(6) The amount of national tax refund remaining after appropriating under paragraph (2) shall be repaid to the taxpayer within 30 days after the refund of the national tax is determined, as prescribed by Presidential Decree.
(7) The repayment of the national tax refund under paragraph (6) shall be made by the Bank of Korea with revenues under the jurisdiction of the head of a tax office concerned, as prescribed by Presidential Decree. <Amended by Act No. 10405, Dec. 27, 2010>
(8) When the head of a tax office requests the return of the amount which has been already appropriated or paid upon revocation of the determination on refund of national tax, the provisions of the National Tax Collection Act concerning the notification, demand and disposition for arrears shall apply mutatis mutandis.
(9) Notwithstanding paragraph (1), in cases falling under the main sentence of Article 47-4 (6) or (7), paragraph (1) shall not apply. <Newly Inserted by Act No. 11124, Dec. 31, 2011>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 51-2 (Refund of Property Paid in Kind)   print
(1) Where any inheritance tax, gift tax, income tax, corporate tax or Comprehensive Real Estate Holding Tax is to be refunded according to a decision of correction to cancel the assessment of such tax or to reduce the amount of such assessment in whole or in part after a taxpayer paid it in kind under Article 73 of the Inheritance Tax and Gift Tax Act, Article 112-2 of the Income Tax Act, Article 65 of the Corporate Tax Act or Article 19 of the Comprehensive Real Estate Holding Tax Act, the property already paid in kind shall be refunded: Provided, That cases prescribed by Presidential Decree, such as where the property paid is already sold or being used for other purpose, shall apply mutatis mutandis.
(2) Where a refund is made under the main sentence of paragraph (1), Article 52 shall not apply.
(3) Detailed matters concerning the refund of the property paid in kind, such as the order of its refund and the determination as to who should bear management expenses incurred until the time of refund after it is received, shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 52 (Additional Refund of National Taxes)   print
When the head of a tax office appropriates or pays a national tax refund under Article 51, he/she shall add, to the national tax refund, the amount calculated according to the interest rate prescribed by Presidential Decree (hereinafter referred to as "additional refund of national tax") taking into consideration the period between the reckoning day of additional refund of national taxes prescribed by Presidential Decree and the day of appropriation or decision on payment, and the interest rate, etc. of deposits in financial institutions.
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 53 (Transfer of Rights to National Tax Refund)   print
A taxpayer may transfer to another person the rights to the national tax refund as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 54 (Extinctive Prescription of National Tax Refund)   print
(1) A taxpayer's right to any national tax refund or additional national tax refund shall become extinct by a prescription, if the taxpayer does not exercise them for five years from the time they are exercisable.
(2) The provisions of the Civil Act shall be applied to the extinctive prescription under paragraph (1), except as otherwise provided for in this Act or tax-related Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
CHAPTER VII EXAMINATION AND ADJUDGMENT
SECTION 1 Common Provisions
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 Article 55 (Protest)   print
(1) Any person whose rights or interests have been infringed on, by receiving an unlawful or unreasonable disposition or due to failure to receiving a required one under this Act or other tax-related Acts may request the cancellation or modification of such disposition or request other necessary disposition according to the provisions of this Chapter. <Amended by Act No. 59911, Jan. 1, 2010>
(2) An interested person falling under any of the following subparagraphs (hereinafter referred to as "interested person"), whose rights and interests are to be infringed on due to the disposition pursuant to this Act or other tax-related Acts, may request the cancellation or modification of an unlawful or unreasonable disposition and other necessary dispositions by requesting the examination or adjudgment pursuant to the provisions of this Chapter with respect to the disposition of a person who has been subject to an unlawful or unreasonable disposition: <Amended by Act No. 9911, Jan. 10, 2010>
1. A person secondarily liable to pay taxes who has received a notice of tax payment;
2. A person who has received a notice of tax payment as he/she has to bear the liability of tax payment in kind pursuant to Article 42;
3. A guarantor;
4. Other persons prescribed by Presidential Decree.
(3) Except for the cases of dispositions under paragraphs (1) and (2) which are to be or to have been examined, determined or managed by the Commissioner of the National Tax Service, an objection pursuant to the provisions of this Chapter may be filed before a request for examination or adjudgment against such dispositions is made. <Amended by Act No. 9911, Jan. 1, 2010>
(4) Deleted. <by Act No. 5993, Aug. 31, 1999>
(5) Following dispositions shall not be included in dispositions under paragraph (1): <Amended by Act No. 9911, Jan. 1, 2010>
1. Disposition on an objection, request for examination or adjudgment under this Chapter: Provided, That the cases of request for examina- tion or adjudgment on the disposition of objection shall be excluded;
2. Disposition of notice by the Procedure for the Punishment of Tax Evaders Act;
3. Disposition to which a request for examination is made under the Board of Audit and Inspection Act or disposition to such request for examination.
(6) through (8) Deleted. <by Act No. 9911, Jan. 1, 2010>
(9) Request for examination and adjudgment on the same disposition shall not be doubly filed. <Amended by Act No. 9911, Jan. 1, 2010>
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 Article 55-2 (Special Cases on Calculation of Period in Procedure of Adjustment of Taxes on International Trade Price, etc)   print
Special cases on the calculation of the period in the procedures of adjustment of taxes on the international trade price under Article 10-3 of the Adjustment of International Taxes Act and for mutual agreement under a tax treaty shall be governed by Articles 10-3 (3) and 24 (1) of the Adjustment of International Taxes Act.
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 56 (Relation to other Acts)   print
(1) The Administrative Appeals Act shall not apply to a disposition under Article 55: Provided, That Articles 15, 16, 20 through 22, 29, 36 (1), 39, 40, 42 and 51 of the Administrative Appeals Act shall be applicable mutatis mutandis to a request for examination or adjudgment, and in such cases, the "committee" shall be deemed the "National Tax Examination Committee", the "Council of Tax Judges", or the "Joint Session of Tax Judges." <Amended by Act No. 9968, Jan. 25, 2010; Act No. 11604, Jan. 1, 2013>
(2) Notwithstanding the main sentence of Article 18 (1), Article 18 (2) and (3) of the Administrative Litigation Act, any administrative litigation against an illegal disposition prescribed in Article 55 shall not be filed without making a the request for examination, or adjudgment under this Act and the decision thereof.
(3) Notwithstanding Article 20 of the Administrative Litigation Act, the administrative litigation under paragraph (2) shall be filed within 90 days after decision on the request for examination or adjudgment is notified: Provided, That where decision is not notified within the period of decision prescribed in Article 65 (2) or Article 81, the administrative litigation may be initiated from the date the prescribed period of decision expires even before the decision is notified.
(4) If a request for examination prescribed in Article 55 (5) 3 is made, it shall be considered as the request for examination or adjudgment under this Act and paragraph (2) shall be applicable mutatis mutandis.
(5) The period under paragraph (3) shall be an invariable term.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 57 (Effect of Request for Examination on Execution)   print
Except as otherwise provided for in tax-related Acts, any objection or re- quest for examination or adjudgment shall not affect the execution of the disposition concerned: Provided, That the ruling agency may, if necessary, suspend or order to suspend the execution of the disposition.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 58 (Rights to Inspect Related Documents and to Present Opinion)   print
Any person who has filed an objection or a request for examination or judgement may inspect documents related to the objection or request, and state his/her opinion to the ruling agency, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 59 (Representative)   print
(1) A person who files an objection or a request for examination or judgement and a disposition agency may, as his/her representative, nominate a lawyer, a certified tax consultant or a certified public accountant registered under Article 20-2 (1) of the Certified Tax Accountant Act.
(2) Where the object of the filing or request is a small amount under the proviso to Article 78 (1), any person who files an objection or a request for examination or judgement may, as his/her representative, nominate his/her spouse, blood relatives within the fourth degree of relationship, or his/her spouse's blood relatives within the fourth degree of relationship. <Newly Inserted by Act No. 10405, Dec. 27, 2010>
(3) The authority of a representative shall be certified in writing.
(4) Any representative may perform all the acts concerning an objection or request on behalf of the principal: Provided, That that any withdrawal of the objection or request shall be made only under a special mandate to do so.
(5) When a representative is dismissed, it shall be reported in writing to the ruling agency.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 60 (Notification of Methods of Protest)   print
(1) A ruling agency that makes a decision on an objection or a request for examination or adjudgment shall specify in a notice of decision that any person who has filed such objection may make a request for examination or adjudgment, and one who has filed such request for examination or adjudgment may institute an administrative litigation, respectively, within 90 days after he/she receives the notice of decision.
(2) When a ruling agency that makes decide on an objection or a request for examination or adjudgment has failed to decide after the expiration of the period of decision on such objection or request, the agency shall immediately notify, in writing, the person who has filed such objection that he/she may make a request for examination or adjudgment, and one who has filed such request for examination or adjudgment that he/she may institute an administrative litigation, once the prescribed period of decision elapses, even before he/she receives the notice of such decision.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
SECTION 2 Examination
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 Article 61 (Period of Request)   print
(1) Any request for examination shall be made within 90 days from the date when the disposition concerned is known (if notice of the disposition is issued, the date when such notice is received).
(2) If a person intends to file a request for examination after filing an objection, he/she shall file such request within 90 days after being notified of the decision on the objection: Provided, That he/she has not received the notice of the decision within the period of decision prescribed in the latter part of Article 66 (6), he/she may file a request for examination once the prescribed period of decision elapses, even before being notified of the decision.
(3) If a written request for examination submitted by mail within the period referred to in paragraphs (1) and the main sentence of paragraph (2) (based on the date prescribed in Article 5-2) arrives after the request period expires, it shall be considered that a lawful request has been made on the last day of such period.
(4) Where a person cannot file a request for examination within the period referred to in paragraph (1) due to reasons under Article 6 (only reasons for the extension of a due date concerning filing, application, claim, submission of documents, and notice), he/she may file such request for examination within 14 days from the day such reason ceases to exist. In such cases, he/she shall submit documents stating the reasons, the date on which the reasons occur, the date on which the reasons cease to exist, and other necessary matters.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 62 (Procedure of Request)   print
(1) Any request for examination shall be filed with the Commissioner of the National Tax Service through the head of a tax office who has made or should have made the disposition in question, with the ground for protest prepared, as prescribed by Presidential Decree.
(2) For computing the period of request for examination under Article 61, the request shall be deemed complete when it is filed with the head of a tax office under paragraph (1). The same shall apply even if it is filed with the head of another tax office, other than the head of a tax office referred to in paragraph (1), the commisioner of a regional tax office or the Commissioner of the National Tax Service.
(3) The head of a tax office, upon receiving a written request under paragraph (1), shall send it to the Commissioner of the National Tax Service with a statement of his/her opinion attached thereto, within seven days from the date of the receipt thereof: Provided, That in cases of any request for examination falling under the following subparagraphs, a written opinion by the commissioner of a regional tax office shall be attached to the request for examination:
1. Where the disposition subject to the request for examination was or should have been investigated, decided or settled by the commisioner of a regional tax office;
2. Where any person who has filed an objection with the commisioner of a regional tax office has an objection against the decision thereon or has failed to receive the decision thereon.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 63 (Supplementation or Correction of Request Form)   print
(1) If the Commissioner of the National Tax Service finds that the sub- stance or procedure of a request for examination does not conform to the provisions of this Act or other tax-related Acts, and that it can be supplemented or corrected, he/she may demand supplementation or correction thereof by fixing a period not exceeding 20 days: Provided, That if matters to be supplemented or corrected is insignificant, the Commissioner of the National Tax Service may supplement or correct them ex officio.
(2) Any person who has filed the request for examination may, upon receiving a demand under paragraph (1), supplement or correct it by appearing at the National Tax Service, orally stating the matters to be supplemented or corrected, and signing on a record of the oral statement, which is made by an official of the National Tax Service.
(3) The period of supplementation or correction under paragraph (1) shall not be counted in that of request for examination provided in Article 61.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 64 (Procedure of Decision)   print
(1) The Commissioner of the National Tax Service shall, upon receiving a request for examination, decide upon it following the deliberation of the National Tax Examination Committee: Provided, That this shall not apply where a request for examination, etc. has been filed after the period of request elapsed or any grounds prescribed by Presidential Decree occur.
(2) Meetings of the National Tax Examination Committee shall not be made public: Provided, That where the chairperson of the said Committee deems it necessary, they may be open to the public.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 65 (Decisions)   print
(1) A decision on a request for examination shall be rendered as follows: <Amended by Act No. 11604, Jan. 1, 2013>
1. When the request for examination is unlawful (including where the request for examination is filed after a request for adjudgment is filed (including where such filing is made on the same date as the request for adjudgment is filed)) or is filed after the period of request set out in Article 61 has elapsed, or when any supplementation or correction has not been complete within the period of supplementation or correction set out in Article 63 (1) after the request for examination was filed, a decision to reject such request shall be rendered;
2. When the request for examination is deemed groundless, a decision to dismiss such request shall be rendered;
3. When the request for examination is deemed reasonable, a decision for cancellation or correction of the disposition against which the request is rendered, or other necessary disposition shall be rendered.
(2) A decision under paragraph (1) shall be made within 90 days after the request for examination is received.
(3) When a decision under paragraph (1) is rendered, it shall be notified to the person who has filed the request, by a written decision with the reasons stated therein, within the period for decision provided under paragraph (2).
(4) The period of supplementation or correction prescribed in Article 63 (1) shall not be counted in the period for decision under paragraph (2).
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 65-2 (Correction of Decision)   print
(1) Where it is apparent that erroneously recorded items, erroneous calculations or other errors similar thereto exists in the decision on a request for examination, the Commissioner of the National Tax Service may correct them either ex officio or upon request of the applicant.
(2) Detailed procedures for correction under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 66 (Objections)   print
(1) An objection shall be filed with the head of a tax office who has issued or should have issued the relevant disposition, or with the commisioner of the competent regional tax office through the head of a tax office, with the ground for protest prepared, as prescribed by Presidential Decree: Provided, That if any of the following events occurs, an objection shall be filed with the commisioner of the competent regional tax office (in the case of subparagraph 2, the commisioner of the competent regional tax office who has issued the disposition of taxation), and an objection filed with the head of a tax office shall be deemed filed with the commisioner of the competent regional tax office (in the case of subparagraph 2, the commisioner of the competent regional tax office who has issued the disposition of taxation): <Amended by Act No. 39911, Jan. 1, 2010; Act No. 11604, Jan. 1, 2013>
1. Where the disposition of taxation has been issued according to the investigation by the commisioner of the competent regional tax office;
2. Where the head of a tax office who has investigated the case at issue is different from the head of a tax office who has issued the disposition of taxation;
3. Where a pre-assessment review has been requested to the head of a tax office.
(2) If the disposition subject to objection has been or should have been investigated, decided or settled by the commisioner of a regional tax office, the head of a tax office shall send the objection to the commisioner, with the statement of his/her opinion attached thereto, within seven days from the date of the receipt thereof and notify the person who has filed the objection. <Amended by Act No. 9911, Jan. 1, 2010>
(3) The head of a tax office who receives an objection addressed to the di- rector of a regional tax office shall send it to the commisioner, with the statement of his/her opinion attached thereto, within seven days from the date of the receipt thereof. <Amended by Act No. 9911, Jan. 1, 2010>
(4) The head of a tax office and the commisioner of a regional tax office, in receipt of the objection filed under paragraphs (1) and (2), shall respectively make a decision thereon, following the deliberation of the National Tax Examination Committee. <Amended by Act No. 9911, Jan. 1, 2010>
(5) Deleted. <by Act No. 9263, Dec. 26, 2008>
(6) Article 61 (1), (3) and (4), 62 (2), 63, the proviso to Article 64 (1), and Article 64 (2), 65 and 65-2 shall apply mutatis mutandis to an objection. In such cases, "90 days" in Article 65 (2) shall be deemed "30 days." <Amended by Act No. 9911, Jan. 1, 2010>
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 Article 66-2 (National Tax Examination Committee)   print
(1) Tax offices, regional tax offices and the National Tax Service shall each have a national tax examination committee to deliberate on matters concerning requests for examination under Article 64, filing an objection under Article 66 and requests for pre-assessment review under Article 81-15. <Amended by Act No. 9911, Jan. 1, 2010>
(2) The organization and operation of a national tax examination com- mittee, matters for deliberation by each committee and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9263, Dec. 26, 2008]
SECTION 3 Adjudgment
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 Article 67 (Tax Tribunal)   print
(1) In order to decide on requests for adjudgment, there is hereby established a Tax Tribunal under the jurisdiction of the Prime Minister.
(2) The Tax Tribunal shall independently perform duties under its authority.
(3) The Tax Tribunal shall have the commisioner and tax judges among its members; the director shall be appointed from among public officials in general service belonging to the Senior Civil Service, and the standing tax judges other than the director shall be appointed from among public officials in general service belonging to the Senior Civil Service that serve in fixed term positions under Article 26-5 of the State Public Officials Act, both by the President on the recommendation of the Prime Minister respectively; and non-standing tax judges shall be commissioned as prescribed by Presidential Decree. <Amended by Act No. 12162, Jan. 1, 2014>
(4) The tax judges shall have expertise and experience in the fields of tax, law, and accounting, as well as qualifications prescribed by Presidential Decree.
(5) The tax judges shall hold office for a term of three years, and may be appointed consecutively for two further terms only; and no tax judge shall be removed from office against his/her will, unless he/she falls under any of the following subparagraphs:
1. Where a tax judge is sentenced to imprisonment without prison labor or heavier punishment;
2. Where a tax judge is unable to perform his/her duties due to a prolonged mental or physical illness.
(6) Paragraph (5) shall not apply to a tax judge who is the director.
(7) Adjudication investigators in charge of investigating requests for adjudgment and assistant staff shall be assigned to the Tax Tribunal, and their qualifications shall be determined by Presidential Decree. <Amended by Act No. 10405, Dec. 27, 2010>
(8) Matters on personnel, organization and administration of the Tax Tribunal and other necessary matters shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 68 (Period of Request)   print
(1) Any request for adjudgment shall be filed within 90 days after the relevant disposition is known (when a notice of disposition is received, the date of its receipt).
(2) Article 61 (2) shall apply mutatis mutandis to the period of request where a request for adjudgment is made after filing an objection.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 69 (Procedure of Request)   print
(1) Any request for adjudgment shall be filed with the Director of the Tax Tribunal through the head of the relevant tax office who has made or should have made a disposition, with the grounds for appeal prepared, as prescribed by Presidential Decree.
(2) For calculating a period of request for adjudgment under Article 68, a request for adjudgment shall be deemed to have been made when a written request is filed with the head of the relevant tax office pursuant to paragraph (1). The same shall apply where a written request is filed with the head of a tax office, other than one referred to in paragraph (1), the commisioner of the relevant regional tax office, the Commissioner of the National Tax Service or the Director of the Tax Tribunal.
(3) The head of the relevant tax office who receives a written request under paragraph (1) shall send it to the Director of the Tax Tribunal, along with a reply within ten days from the date of receipt: Provided, That in cases of any disposition falling under Articles 55 (3) and the proviso to Article 62 (3), the reply of the Commissioner of the National Tax Service or a commisioner of a regional tax office shall be attached thereto. <Amended by Act No. 10405, Dec. 27, 2010>
(4) A reply under paragraph (3) shall be accompanied with a writ- ten decision on the filing of objection (limited to where a decision on such objection is made), a ground and reason for disposition, documents verifying the facts underlying the reason of disposition, evidence documents and evidences submitted by a claimant, and all data on examinations.
(5) Where a reply is submitted pursuant to paragraph (3), the Director of the Tax Tribunal shall immediately forward a copy thereof to a claimant for adjudgment.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 70 Deleted. <by Act No. 5993, Aug. 31, 1999>   print
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 Article 71 (Evidentiary Document or Exhibit)   print
(1) Where claimant for adjudgment intends to file a plea to the reply note received under Article 69 (5), he/she may submit evidentiary documents or exhibits to the Director of the Tax Tribunal.
(2) If the Director of the Tax Tribunal demands that the claimant for adjudgment submit evidentiary documents or exhibits under paragraph (1) by fixing a deadline, the claimant shall submit them by the fixed deadline.
(3) Where the evidentiary documents are submitted pursuant to paragraph (1), the Director of the Tax Tribunal shall immediately forward the copies thereof to the claimee.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 72 (Council of Tax Judges)   print
(1) The Director of the Tax Tribunal shall, upon request for adjudgment, designate a chief tax judge and two or more associate tax judges in order to take charge of investigation and examination on the request, and require them to form the Council of Tax Judges.
(2) The chief tax judge shall preside over the Council of Tax Judges under paragraph (1), and the chairperson shall assume the overall control over the affairs of the relevant adjudgment case: Provided, That where the chief tax judge is unable to perform his/her duties due to unavoidable reasons, the Director of the Tax Tribunal shall designate one to act for the chairperson, from among associate tax judges.
(3) The Council of Tax Judges shall convene with the attendance of two thirds or more of tax judges, and adopt resolutions by the affirmative vote of the majority of tax judges present.
(4) Meetings of the Council of Tax Judges are not open to the public: Provided, That where the chairperson of the Council of Tax Judges deems it necessary, they may be open to the public.
(5) The administration of the Council of Tax Judges and other necessary matters shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 73 (Exclusion and Refrainment of Tax Judges)   print
(1) Tax judges falling under any of the following subparagraphs shall be excluded from participating in the adjudgment: <Amended by Act No. 10405, Dec. 27, 2010>
1. A relative of a claimant for adjudgment or the representative under Article 59 (including cases where he/she has been the representative);
2. A person who is or was a blood relative;
3. A person who is or was an employer of a person prescribed in subparagraph 1;
4. A person who has provided a testimony to or made an appraisal of the disposition which is the object of an appeal or on the filing of an objection to the disposition;
5. A person who has participated in the disposition which is the object of an appeal or in filing of an objection to the disposition, or in tax investigation that has formed a basis of such appeal.
6. A person who participates or participated in the business of a claimant or claimant's representative.
(2) A national tax judge falling under any of the subparagraphs of paragraph (1) shall refrain himself/herself from being designated as a chief or an associate tax judge under Article 72 (1). <Amended by Act No. 10405, Dec. 27, 2010>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 74 (Challenge of Tax Judges in Charge)   print
(1) If a claimant deems it difficult to anticipate impartial adjudgment from tax judges in charge, he/she may challenge them.
(2) A request for challenge under paragraph (1) shall be made to the Director of the Tax Tribunal, as prescribed by Presidential Decree.
(3) When the Director of the Tax Tribunal finds the request for challenge is reasonable, he/she shall approve such request.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 74-2 (Exclusion, Refrainment or Challenge of Adjudication Investigator)   print
Articles 73 and 74 shall also apply mutatis mutandis to the adjudication investigator who participates in the adjudgment.
[This Article Newly Inserted by Act No. 10405, Dec. 27, 2010]
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 Article 75 (Joinder and Separation of Cases)   print
Tax judges in charge may, if necessary, merge several cases into one, or separate merged cases into several cases.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 76 (Rights to Question and Inspect)   print
(1) If it is necessary for investigation and examination into a request for adjudgment, tax judges in charge may, ex officio or upon request by a claimant perform any of the following conducts:
1. Questioning a claimant, agency which made a disposition, interested person or witness;
2. Demanding to present books, documents and other articles kept by those referred to in subparagraph 1;
3. Inspecting books, documents or other articles belonging to those referred to in subparagraph 1, or requesting appraisal to an appraisal institution.
(2) Any officials, other than tax judges, belonging to the Tax Tribunal may perform acts under paragraph (1) 1 and 3, by the order of the Director of the Tax Tribunal.
(3) When tax judges and other officials of the Tax Tribunal perform acts under paragraph (1) 1 and 3, they shall carry a certificate indicating their status and produce them to persons concerned.
(4) If tax judges in charge deems that it may be substantially difficult to judge the whole or part of request for adjudgment because a claimant does not respond, without any justifiable reason, to acts under subparagraphs of paragraph (1) or to a request under Article 71 (2), they may not admit any claim by the claimant with regard to that part.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 77 (Judgment of Fact)   print
Tax judges shall make decisions based on free will, taking into consideration the results of investigations and examinations concerning a request for adjudgment and the equality of taxation.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 78 (Procedure of Decision)   print
(1) Where the Director of the Tax Tribunal receives a request for adjudgment, the Council of Tax Judges shall decide thereon upon deliberation: Provided, That if the object of such request for adjudgment is a small amount less than that prescribed by Presidential Decree or any minor matter, or if such request is made after a period of request expires, the chief tax judge may examine and make a decision thereon without undergoing deliberation thereon by the Council of Tax Judges.
(2) In cases under paragraph (1), if the Council of Tax Judges makes a resolution to change the former interpretations or applications of the tax-related Acts of the Council of Tax Judges or in cases of falling under any of other grounds determined by Presidential Decree occur, a Joint Session of Tax Judges shall examine and make a decision thereon. <Amended by Act No. 10405, Dec. 27, 2010>
(3) The Joint Session of Tax Judges under paragraph (2) shall be comprised of the Director of the Tax Tribunal, all of standing tax judges, and non-standing tax judges designated by the Director of the Tax Tribunal in the same number as that of standing tax judges or more.
(4) Article 72 (2) through(4) shall apply mutatis mutandis to the Joint Session of Tax Judges under paragraph (2). In such cases, "the chief national tax judge" in paragraph (2) of the same Article shall be deemed "the Director of the Tax Tribunal", and "the Council of Tax Judges" to be "the Joint Session of Tax Judges."
(5) The decision on adjudgment shall be made in writing, and the text and reasons thereof shall be written in a decision, clearly stating the names of tax judges who have participated in examination, and the said decision shall be sent to the relevant claimant and the head of the relevant tax office.
(6) Matters necessary for the administration of the joint sessions of tax judges and the delivery, etc. of decision documents shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 79 (Nemo Judex Sine Actore and Prohibition of Disadvantageous Modification)   print
(1) In making a decision under Article 65 which applies mutatis mutandis to Article 81, the Council of Tax Judges or the Joint Session of Tax Judges shall not revoke or modify all or part of dispositions, other than the subject of tax appeals, or make a decision on a new disposition.
(2) In making a decision under Article 65 which applies mutatis mutandis to Article 81, the Council of Tax Judges or the Joint Session of Tax Judges shall not make a decision giving more disadvantage to the claimant than the disposition against which the request was made.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 80 (Effect of Decision)   print
(1) The decision under Article 65 applicable mutatis mutandis in Article 81 shall bind the administrative agencies concerned.
(2) When a decision on a request for adjudgment is made, the competent administrative agency shall immediately take necessary disposition in accordance with the intent of the decision.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81 (Application Mutatis Mutandis of Provisions Pertaining to Request for Examination)   print
Article 61 (3) and (4), Articles 63, 65 (in the case of paragraph (1) 1, excluding where a request for examination and a request for adjudgment are filed on the same date) and 65-2 shall apply mutatis mutandis to any request for adjudgment: Provided, That "period not exceeding 20 days" in Article 63 (1) shall be construed as "reasonable period". <Amended by Act No. 11604, Jan. 1, 2013>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
CHAPTER VII-2 RIGHTS OF TAXPAYERS
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 Article 81-2 (Establishment and Delivery of Taxpayers' Right Charter)   print
(1) The Commissioner of the National Tax Service shall establish and publicly notify the taxpayers' right charter which contains the matters prescribed in Articles 81-3 through 81-16 and other matters concerning the protection of taxpayers' rights.
(2) A tax official shall deliver a document that states the details of the taxpayers' rights charter under paragraph (1) to taxpayers, where the tax official falls under any of the following cases: <Amended by Act No. 11124, Dec. 31, 2011>
1. Where he/she asks questions in order to determine or correct the tax base of national tax and the amount of tax, inspects or investigates the relevant account books, documents or other articles or orders the submission thereof (including the investigation of tax offence under the Procedure for the Punishment of Tax Evaders Act; hereinafter referred to as "tax investigation" in this Chapter);
2. Deleted; <by Act No. 11124, Dec. 31, 2011>
3. Where he/she issues a business registration certificate;
4. Other cases prescribed by Presidential Decree.
(3) A tax official who undertakes tax investigation shall produce the investigator identification card to the relevant taxpayer or related persons; deliver the taxpayers' rights charter and read out the gist thereof; and explain the reason for investigation, investigation period, remedy procedures, etc. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-3 (Presumption of Taxpayer's Sincerity)   print
A tax official shall presume that a taxpayer is sincere and the return, etc. submitted by him/her is true, unless the taxpayer falls under any subparagraph of Article 81-6 (3). <Amended by Act No. 12162, Jan. 1, 2014>
[This Article Newly Inserted by Act No. 8139, Dec. 30, 2006]
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 Article 81-4 (Prohibition of Abuse of Right of Tax Investigation)   print
(1) Any tax official shall conduct a tax investigation within the minimum limit necessary to realizes appropriate and fair taxation and shall not abuse the right of tax investigation for any other purpose.
(2) Any tax officials shall not initiate reinvestigation for the same item of taxes and for the same taxable period, except in any of the following cases: <Amended by Act No. 11604, Jan. 1, 2013>
1. Where there exists obvious evidence that confirms a suspicion of tax evasion
2. Where it is necessary to investigate the other party to a transaction;
3. Where faults are found in connection with two or more taxable periods;
4. Where an investigation is carried out following the decision on necessary disposition pursuant to Article 65 (1) 3 (including cases applicable mutatis mutandis in Articles 66 (6) and 81);
5. Other cases similar to any of subparagraphs 1 through 4 prescribed by Presidential Decree.
(3) No person shall engage in an act that impedes an impartial tax investigation, including making a tax official violate any Act or subordinate statutes or abuse his/her power. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-5 (Right to Receive Help in Tax Investigation)   print
In conducting a tax investigation, a taxpayer may arrange for a lawyer, a certified public accountant or a licensed tax accountant to attend or state his/her opinion at the investigation. <Amended by Act No. 11124, Dec. 31, 2011>
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 81-6 (Jurisdiction over Tax Investigation and Selection of Persons Subject to Tax Investigation)   print
(1) A tax investigation shall be conducted by the head of a tax office or the commissioner of a regional tax office having jurisdiction over the place of tax payment: Provided, That the Commissioner of the National Tax Service (the commissioner of a regional tax office in cases of rearranging jurisdiction of tax offices under the jurisdiction of the same regional tax office) may rearrange the jurisdiction in cases prescribed by Presidential Decree, including where jurisdiction over the principal business place, etc. of the taxpayer is different from the jurisdiction over the place of tax payment, or it is not proper for the head of the competent tax office or the commissioner of a regional tax office to conduct the tax investigation. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
(2) In any of the following cases, a tax official may periodically select taxpayers (hereinafter referred to as "periodic selection") subject to tax investigation to verify the propriety of returns. In such cases, the tax official shall use objective criteria to select persons subject to tax investigation: <Amended by Act No. 11604, Jan. 1, 2013; Act No. 12162, Jan. 1, 2014>
1. Where the Commissioner of the National Tax Service acknowledges that a taxpayer is suspected to be non-compliant as a result of periodic compliance analysis of the taxpayer's tax returns;
2. Where it is necessary to verify whether a taxpayer that has not been subject to a tax investigation for the same taxable items for four or more taxable periods has filed tax returns in a compliant manner, as prescribed by President Decree, considering the category and size of his/her business, etc.;
3. Where a sample tax investigation is to be conducted under a random sampling method.
(3) In addition to investigation by a periodic selection under paragraph (2), a tax official may also conduct a tax investigation in any of the following cases: <Amended by Act No. 10621, May 2, 2011; Act No. 12162, Jan. 1, 2014>
1. Where a taxpayer fails to fulfill his/her tax compliance obligations under tax-related Acts, such as filing a return, submitting a document certifying compliant filing, preparing, delivering, and submitting a tax invoice or an invoice, or preparing and submitting a payment record;
2. Where a taxpayer is suspected of false transactions, such as transactions without authentic documentation or disguised or fictitious transactions;
3. Where concrete information on a taxpayer's tax evasion is reported;
4. Where evident material exists that confirms a suspicion of omissions or errors in the details of a return by a taxpayer exists.
(4) A tax official may conduct a tax investigation to determine the tax base and the amount for the taxable items fixed through investigation by tax authorities.
(5) A tax official may choose not to conduct a tax investigation for a person that satisfies both of the following requirements: Provided, That the same shall not apply where objective evidentiary materials obviously prove that the under-reported return has been filed:
1. An enterpriser whose amount of revenue by category of business does not exceed the amount prescribed by Presidential Decree;
2. An enterpriser whose books and records meet the requirements set by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-7 (Advance Notice of Tax Investigation and Request for Postponement)   print
(1) When a tax official conducts a tax investigation (excluding the investigation of tax offence under the Procedure for the Punishment of Tax Evaders Act), he/she shall notify the taxpayer to be investigated (where a taxpayer designates a tax manager pursuant to Article 82 and reports to the head of the competent tax office, referring to the tax manager; hereinafter the same shall apply in this Article) of the taxable items of investigation, the period of and reason for investigation, and other matters prescribed by Presidential Decree by ten days prior to the commencement of the investigation: Provided, That the same shall not apply where it is deemed that the purpose of investigation may be not attained because of the possible destruction of evidence, etc. in cases of giving an advance notice. <Amended by Act No. 11124, Dec. 31, 2011>.
(2) Where a taxpayer who has received the notice pursuant to para- graph (1) has difficulty in taking an investigation due to a natural disaster and other grounds prescribed by Presidential Decree, he/she may request that the head of the competent tax office shall postpone such investigation, as prescribed by Presidential Decree.
(3) The head of the competent tax office who is requested to postpone investigation under paragraph (2) shall decide on whether to accept such request and notify the taxpayer of the result thereof no later than the commencement of an investigation.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-8 (Tax Investigation Period)   print
(1) A tax official shall endeavor to shorten the tax investigation period to the minimum as possible, in consideration of the taxable items of investigation, the category and size of business, difficulty of investigation, etc.: Provided, That the tax investigation period may be extended in any of the following cases: <Amended by Act No. 9911, Jan. 1, 2010; Act No. 11124, Dec. 31, 2011; Act No. 12162, Jan. 1, 2014>
1. Where it is evident that a taxpayer has dodged investigation, such as hiding books or documents, etc. or delaying or refusing the submission thereof;
2. Where it is necessary to investigate transaction place and conduct the on-the-spot confirmation of the transaction place or financial transactions;
3. Where a suspicion of tax evasion is detected or the type of the investigation is converted into the investigation of a tax offense prescribed in Article 1 of the Procedure for the Punishment of Tax Evaders Act in the course of such investigation;
4. Where the investigation is suspended due to a natural disaster or a labor dispute;
5. Where an official for taxpayer advocate service or an official in charge under Article 81-16 (2) (hereinafter referred to as “official for taxpayer advocate service, etc.” in this Article) acknowledges that additional fact checking is required in relation to the suspicion of tax evasion;
6. Where a person subject to tax investigation applies for the extension of the tax investigation period to clarify the suspicion of tax evasion, etc. and the official for taxpayer advocate service, etc. accepts such application.
(2) Where a tax official sets a tax investigation period pursuant to paragraph (1), the tax investigation period shall not be more than 20 days for the taxpayers whose annual income or transfer amount is less than ten billion won in the taxable period with the largest annual income or transfer amount of the entire taxable periods subject to tax investigation. <Newly Inserted by Act No. 9911, Jan. 1, 2010>
(3) Where the tax investigation period set under paragraph (2) is extended pursuant to the proviso to paragraph (1), approval from the head of a competent tax office is required in cases of the first extension of the period, and approval from the head of a higher tax office is required after the first extension; and the period shall be extended within the range of 20 days, respectively: Provided, That restriction on the tax investigation period under paragraph (2) and restriction of the extended tax investigation period under the main sentence of this paragraph shall not apply in the following cases: <Newly Inserted by Act No. 9911, Jan. 1, 2010; Act No. 12162, Jan. 1, 2014>
1. Where investigation of the details of the actual transaction is required because of suspicion of untruthful description of transaction, such as undocumented transaction and disguised or fabricated transaction;
2. Where investigation is conducted on suspicion of tax evasion through the use of international trade as defined in Article 2 (1) 1 of the Adjustment of International Taxes Act or suspicion of irregular outflow of the earnings from tax evasion accrued in the Republic of Korea;
3. Where investigation is conducted on suspicion of tax evasion through the use of fake names, double-entry book-keeping, use of borrowed accounts, omission of cash transactions, etc.;
4. Where investigation is conducted on suspicion of tax evasion through property speculation using false contracts, unregistered transfer of property, etc.;
5. Where investigation of an inheritance tax or gift tax case, stake transfer, or tax offense is conducted, or simultaneous investigation is conducted for persons in an investment or trade relationship.
(4) Where it is difficult to continue a tax investigation due to grounds prescribed by Presidential Decree, such as delay in the submission of data by a taxpayer, a tax official may suspend the tax investigation. In such cases, the suspended period shall not be counted in the tax investigation period and the extended period of tax investigation under paragraphs (1) through (3). <Newly Inserted by Act No. 9911, Jan. 1, 2010>
(5) A tax official shall, when he/she suspends a tax investigation under paragraph (4), immediately resume the tax investigation when the grounds for suspension are eliminated: Provided, That the tax investigation may resume when it is necessary to do so urgently, such as securing tax claims, etc. <Newly Inserted by Act No. 9911, Jan. 1, 2010>
(6) When a tax official intends to extend a tax investigation period in accordance with the proviso to paragraph (1), he/she shall notify the reason and period of such extension in writing to the taxpayer; where he/she suspends or resumes a tax investigation under paragraphs 4 and 5, he/she shall notify the reasons thereof in writing to the taxpayer. <Amended by Act No. 9911, Jan. 1, 2010>
(7) A tax official shall endeavor to shorten the tax investigation period to the minimum as possible and may close the investigation prior to the expiration of the investigation period if he/she determines that further investigation is not necessary after reviewing the transparency of book-keeping and accounting and other taxation faithfulness of the relevant person. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
[This Article Newly Inserted by Act No. 8139, Dec. 30, 2006]
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 Article 81-9 (Restriction on Extending Scope of Tax Investigation)   print
(1) A tax official shall not extend the scope of a tax investigation under progress, except in cases prescribed by Presidential Decree, such as where it is confirmed that specific suspicion of tax evasion exists for several taxable periods or is related to other items of tax.
(2) A tax official shall, when he/she extends the scope of a tax investigation pursuant to paragraph (1), notify the reasons and scope thereof to a taxpayer in writing.
[This Article Newly Inserted by Act No. 9911, Jan. 1, 2010]
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 Article 81-10 (Prohibition from Keeping Books and Documents)   print
(1) A tax official shall not keep books, documents, etc. (hereinafter referred to as “books, etc.” in this Article) of a taxpayer discretionally at a tax office for the purpose of a tax investigation: Provided, That he/she may keep such books, etc. temporarily for the period during which the investigation is conducted within the minimum extent necessary to accomplish its intended purpose with the consent of the taxpayer. <Amended by Act No. 12162, Jan. 1, 2014>
(2) Where a taxpayer requests the return of the books, etc. temporarily kept pursuant to the proviso to paragraph (1), such books, etc. shall be returned immediately, unless it hinders the investigation. In such cases, a tax official may keep the copies of such books, etc. and may request that the taxpayer sign or affix a seal to confirm that the copies are identical to the originals. <Amended by Act No. 12162, Jan. 1, 2014>
(3) When a tax official intends to keep books, etc. of a taxpayer temporarily at a tax office in accordance with paragraph (1), he/she shall obtain a written consent on temporary keeping from a duly authorized person, such as the relevant taxpayer or the holder or keeper of such books, etc., and shall deliver a certificate of temporary keeping. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
[This Article Newly Inserted by Act No. 9911, Jan. 1, 2010]
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 Article 81-11 (Principle of Integrated Investigation)   print
In principle, a tax investigation shall be conducted by integrating the items of tax subject to the duty to return and pay in accordance with tax-related Acts with respect to the business of a taxpayer, except cases prescribed by Presidential Decree, such as where it is necessary to investigate specific items of tax only.
[This Article Newly Inserted by Act No. 9911, Jan. 1, 2010]
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 Article 81-12 (Notice on Result of Tax Investigation)   print
When a tax official completes the tax investigation, he/she shall notify the taxpayer of the result of such investigation in writing: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as the closing of a business. <Amended by Act No. 11124, Dec. 31, 2011>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-13 (Confidentiality)   print
(1) A tax official shall neither offer or disclose to others data that a taxpayer has submitted in order to fulfill his/her liability to taxation prescribed by tax-related Acts, or data that the tax official has obtained for the purpose of taxation or collection of national tax, etc. in discharging his/her duties (hereinafter referred to as "taxation information"), nor make use of it except for the prescribed purposes: Provided, That in cases falling under any of the following subparagraphs, the tax official may offer the taxation information of taxpayers, insofar as it is appropriate for the purpose of use: <Amended by Act No. 12162, Jan. 1, 2014>
1. Where a local government, etc. requests taxation information in order to use for taxation or collection of the taxes prescribed by Acts;
2. Where governmental authorities request taxation information to use for tax action or the prosecution of a tax evader;
3. Where taxation information is requested by the submission order of a court or a warrant issued by a judge;
4. Where taxation information is requested by another tax official as it is necessary for taxation and collection of the national tax, or for placing questions or the investigation;
5. Where the Commissioner of the Korea National Statistical Office requests taxation information for compiling national statistics;
6. Where an agency established for the operation of a social insurance system under subparagraph 2 of Article 3 of the Framework Act on Social Security requests taxation information to perform business activities assigned to the agency under applicable Acts;
7. Where a State administrative agency, local government, or public institution under the Act on the Management of Public Institutions requests taxation information necessary to investigate or examine qualifications of a candidate for the grant of benefits or subsidies with the consent of the relevant party;
8. When the taxation information is requested pursuant to the provisions of other Acts.
(2) A person who requests taxation information pursuant to paragraph (1) 1, 2, 5 through 8 shall make a request in writing to the head of the competent tax office. <Amended by Act No. 12162, Jan. 1, 2014>
(3) If the request for taxation information is made in violation of paragraphs (1) and (2), a tax official shall refuse such request.
(4) A person provided with taxation information under paragraph (1) shall not offer or disclose it to others, or shall not make use of it for purposes other than those prescribed.
(5) A person who is not a public official among those provided with taxation information under this Article shall be deemed a public official in the application of penal provisions under the Criminal Act and other Acts.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-14 (Offer of Information)   print
If a taxpayer requests information necessary for the exercise of taxpayer's right, a tax official shall provide it promptly.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-15 (Pre-assessment Review)   print
(1) A person who receives notification falling under any of the following subparagraphs may request a judgment on whether the content of notification is legal (hereinafter referred to as "pre-assessment review" in this Article) to the head of a tax office or the commissoner of a regional tax office who gave the notification concerned within 30 days from the date of its receipt: Provided, That the person may request a judgement to the Commissioner of the National Tax Service for the matters prescribed by Presidential Decree, such as cases where the authentic interpretation of the Commissioner of the National Tax Service is to be changed or a new interpretation is required in regard to Acts and subordinate statutes:
1. Written notice of audit results under Article 81-9;
2. Other advance notice of taxation prescribed by Presidential Decree.
(2) Paragraph (1) shall not apply to any of the following cases: <Amended by Act No. 10405, Dec. 27, 2010>
1. Where any causes for a collection prior to the due date for payment under Article 14 of the National Tax Collection Act or cause for occasional levying under the tax-related Acts exists;
2. Where an accusation is lodged or a disposition of notice is placed due to violation of the Procedure for the Punishment of Tax Evaders Act;
3. Where the period is not more than three months from the date of the notice of audit results and the advance notice of taxation to the expiration date of limitation period for assessment of national tax;
4. Other cases determined by Presidential Decree.
(3) Upon request for a pre-assessment review, the head of a tax office, the commissioner of a regional tax office, or the Commissioner of the National Tax Service shall make a decision thereon after an examination of each national tax examination committee, and notify the claimant of the relevant results within 30 days from the date of such request.
(4) The decision on a pre-assessment review shall be governed by the following subparagraphs:
1. Where the request for judgment is deemed groundless: Decision not to adopt it;
2. Where the request for judgment is deemed reasonable: Decision to adopt it: Provided, That where a part of the request for judgment is deemed reasonable, a decision on the partial adoption shall be made;
3. Where the period of request elapses or supplementation or correction is not made within the period of supplementation or correction: Decision not to examine it.
(5) Articles 58, 59, 61 (3), 62 (2), 63, the proviso to Article 64 (1), Article 64 (2) and 65 (4) shall be applicable mutatis mutandis to the pre-assessment review.
(6) Articles 15, 16, 20 through 22, 29, 39, and 40 of the Administrative Appeals Act shall be applicable mutatis mutandis with respect to the pre-assessment review. In such cases, the "committee" shall be read as the "National Tax Examination Committee." <Amended by Act No. 9968, Jan. 25, 2010>
(7) A person who has received notification falling under any of the subparagrpahs of paragraph (1) may request the head of a tax office or the commissioner of a regional tax office who gave such notification to determine tax base and tax amount early for all or part of the content that he/she was notified of, or to decide to make corrections thereof, without requesting a pre-assessment review. In such cases, the head of a tax office or the commissioner of a regional tax office shall immediately determine them or decide to make corrections thereof as requested. <Amended by Act No. 10405, Dec. 27, 2010>
(8) The request and methods of pre-assessment review and other necessary matters shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 81-16 (Protection of Taxpayers' Rights by Commissioner of National Tax Service)   print
(1) The Commissioner of the National Tax Service shall, in performing his/her duties, faithfully endeavor to protect and realize the rights of taxpayers.
(2) In order to protect taxpayers' rights, an official for taxpayer advocate service shall be assigned to the National Tax Service to control overall affairs of protecting taxpayers' rights, and one official in charge of performing the affairs for taxpayer advocacy shall be assigned in each tax office and regional tax office.
(3) The Commissioner of the National Tax Service shall assign an official for taxpayer advocate service under paragraph (2) on an open-type position and ensure that the official for taxpayer advocate service and officials in charge perform their duties in an independent manner.
(4) Necessary matters on the qualifications, duties, authorities, etc. of the official for taxpayer advocate service and officials in charge shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9911, Jan. 1, 2010]
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 Article 81-17 (Taxpayer’s Duty of Cooperation)   print
Every taxpayer shall cooperate in good faith with tax officials in their due inquiry, investigation, and submission order.
[This Article Newly Inserted by Act No. 12162, Jan. 1, 2014]
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 Article 81-18 (Taxpayer Protection Committee)   print
(1) There shall be hereby established a Taxpayer Protection Committee under each tax office and regional tax office for the consideration of the following agenda items:
1. Extension of the period of tax investigation (excluding investigation into tax offenses under subparagraph 3 of Article 2 of the Procedure for the Punishment of Tax Evaders Act: hereinafter the same shall apply in this Article) with regard to a taxpayer other than a taxpayer whose annual income or transfer amount is less than ten billion won (in the case of a tax investigation on value-added tax, the sum of the supplied values for any one taxable period is less than five billion won) in the taxable period with the largest annual income or transfer amount of the entire taxable periods subject to tax investigation (hereinafter referred to as “small and medium-size taxpayer” in this Article): Provided, That the foregoing shall not apply where the person subject to tax investigation makes an extension application for the purpose of clarification, etc. under Article 81-8 (1) 6;
2. Expansion of the range of investigation on taxpayers other than small and medium-size taxpayers;
3. Request for the temporary suspension or suspension of a tax investigation by a small and medium-size taxpayer with regard to the extension of the tax investigation period under Article 81-8 (3);
4. Request for the temporary suspension or suspension of a tax investigation with regard to its illegality and unlawfulness filed by a taxpayer in the course of the investigation;
5. An agenda item that requires consideration by the head of a tax office or the commissioner of a regional tax office;
6. Other agenda items, the consideration of which is deemed necessary by the official in charge of performing the affairs for taxpayer advocacy.
(2) Upon request under paragraph (1) 4, a Taxpayer Protection Committee may request a tax official to temporarily suspend or suspend a tax investigation by its resolution. In such cases, the Taxpayer Protection Committee may propose disciplinary action to the Commissioner of the National Tax Service against a tax official who refuses to comply with the Committee’s request without just cause.
(3) A person specified in the following classification shall take the chair of a Taxpayer Protection Committee; and members shall be comprised of not more than 18 persons, including one chairperson.
1. A Taxpayer Protection Committee within a tax office: A person who is not a public official and commissioned by the commissioner of a regional tax office on recommendation by the head of a tax office;
2. A Taxpayer Protection Committee within a regional tax office: A person who is not a public official and commissioned by the Commissioner of the National Tax Service on recommendation by the commissioner of a regional tax office.
(4) Members of a Taxpayer Protection Committee shall be appointed or commissioned by the Commissioner of the National Tax Service (in the case of members of a Taxpayer Protection Committee within a tax office, the commissioner of a regional tax office), from among persons with considerable expertise and experience in taxation and related public officials.
(5) No member of a Taxpayer Protection Committee shall provide any taxation information acquired in the course of duty to a third party, divulge, or use it for a purpose other than the intended purpose.
(6) Matters necessary for the constitution and operation of a Taxpayer Protection Committee shall be prescribed by Presidential Decree.
(7) An official for taxpayer advocate service shall supervise conformity to the matters resolved by the relevant Taxpayer Protection Committee.
[This Article Newly Inserted by Act No. 12162, Jan. 1, 2014]
CHAPTER VIII SUPPLEMENTARY PROVISIONS
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 Article 82 (Tax Manager)   print
(1) When a taxpayer has no domicile or residence within the country or intends to move his/her domicile or residence out of the country, he/she shall designate a tax manager to manage matters concerning national taxes.
(2) Any taxpayer may, as a tax manager, select a lawyer, a certified tax accountant, or a certified public accountant who has been registered pursuant to Article 20-2 (1) of the Certified Tax Accountant Act, in order to have him/her manage matters concerning national taxes.
(3) Any taxpayer who has designated a tax manager under paragraphs (1) and (2) shall report to the head of the competent tax office as prescribed by Presidential Decree. The same shall apply to where the tax manager is dismissed or replaced.
(4) When a taxpayer has failed to make a report pursuant to paragraph (3), the head of the competent tax office may designate the manager of taxpayer's property or business as a tax manager.
(5) Where a successor has not been determined or a successor does not have the right to dispose of inherited property when the head of a tax office or the commissioner of a regional tax office imposes an inheritance tax pursuant to the Inheritance Tax and Gift Tax Act, the provisions concerning successors or testamentary donee in the Inheritance Tax and Gift Tax Act shall apply to presumed successors, testament executors or managers of inherited property unless any specific provision exists.
(6) If a successor or testamentary donee who is a non-resident intends to request for the payment, transfer or change of title of inherited property to a financial institution, etc. he/she shall report thereon to the head of a tax office having jurisdiction over the place of tax payment after appointing a tax manager pursuant to paragraph (1) and shall have a certificate regarding the fact issued and submit it to the financial institution, etc.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 83 (Minimum Amount to be Notified)   print
If the total national taxes (excluding the stamp tax), the additional dues and the disposition fee for arrears which are to be notified are less than that prescribed by Presidential Decree, such amount shall be deemed non-existence.
[This Article Wholly Amended by Act No. 11124, Dec. 31, 2011]
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 Article 84 (Cooperation in National Tax Service)   print
(1) If it is necessary for performing duties, any tax official may request a governmental agency, local government or public officials thereunder to cooperate with the tax official.
(2) A person who receives the request for cooperation under paragraph (1) shall, unless any justifiable reasons exist, comply therewith.
(3) The Government may grant to an organization taking charge of the guidance for tax payment all or part of the expenses required for such guidance as a subsidy, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 84-2 (Payment of Bounty)   print
(1) The Commissioner of the National Tax Service may pay a bounty within the extent of two billion won to any of the following persons: Provided, That the amount collected through the report of tax evasion, illegal refund or deduction of tax or concealed property or the fine for the failure to perform the obligation to report on the overseas financial account comes short of the amount set by Presidential Decree, or a public official has supplied data in connection with his/her duty or has reported on concealed property, the bounty shall not be paid: <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013; Act No. 12162, Jan. 1, 2014>
1. A person that provides critical materials in calculating the tax evasion or the illegally refunded or deducted tax amount;
2. A person that reports on the tax delinquent's concealed property;
3. In any of the following cases, a person that reports on a credit card merchant (referring to a credit card merchant that has joined as a credit card member store under the Specialized Credit Financial Business Act pursuant to Article 162-2 (1) of the Income Tax Act) that has engaged in any of the following acts: Provided, That where the amount of transaction that is liable for settlement by credit card (including those similar to a credit card, as prescribed by Presidential Decree; hereinafter the same shall apply in this Article) is 5,000 won or less, such amount shall be excluded herefrom:
(a) Where a customer makes a request for settlement by credit card but the credit card member store has rejected such request;
(b) Where the credit card member store issues a credit card sales slip (including those prescribed by Presidential Decree as similar to credit card sales slips) containing a description different from the true facts, as prescribed by Presidential Decree;
4. In any of the following cases, a person who reports on a cash receipt merchant (referring to a member store of cash receipt service under Article 126-3 (1) of the Restriction of Special Taxation Act) that has engaged in any of the following acts: Provided, That where the amount of transaction subject to the issuance of cash receipt (hereinafter referred to as a "cash receipt") pursuant to Article 126-3 (4) of the Restriction of Special Taxation Act is 5,000 won or less, such amount shall be excluded herefrom:
(a) Where a cash receipt merchant refuses to issue a cash receipt;
(b) Where a cash receipt merchant issues a cash receipt differently from the actual facts, as prescribed by Presidential Decree;
5. A person who reports on any person operating business under another person’s name;
6. A person who provides critical materials in uncovering any violation of the obligation to report on overseas financial account under Article 34 of the Adjustment of International Taxes Act (excluding a person who is paid a bounty pursuant to subparagraph 1 or 2);
7. A person who declares financial assets as defined in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality, which are held by any of the following enterprisers under another person’s name;
(a) A corporation;
(b) A person liable for double entry bookkeeping under Article 160 (3) of the Income Tax Act.
(2) The critical materials referred to in paragraph (1) 1 and 6 shall be described as follows: <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. In cases falling under paragraph (1) 1: Any of the following items.
(a) Materials or books that contain specific facts about the place of transaction, the date or period of transaction, the items and amount of transaction, etc. that helps to confirm the details of tax evasion or illegal tax refund or deduction (excluding those for which a tax audit is being conducted at the time of submission of the materials or books; hereinafter referred to as "materials" in this Article);
(b) Specific information that helps to locate any material equivalent to that referred to in item (a);
(c) Other materials prescribed by Presidential Decree as worthy under the circumstances such as methods, details and scale, etc., of tax evasion and unjustified tax refund or deduction.
2. In cases falling under paragraph (1) 6: Materials usable as ground for punishment under Article 34-2 of the Adjustment of International Taxes Act, or for the imposition of an administrative fine under Article 35 of the same Act, by providing information on overseas financial account under Article 34 (1) of the same Act.
(3) The term "concealed property" in paragraph (1) 2 means cash, deposits, stocks and other tangible or intangible properties having property value, which are concealed by a tax delinquent: Provided, That the property falling under any of the following subparagraphs shall be excluded:
1. The property that is subject to litigation for revocation of fraudulent act pursuant to Article 30 of the National Tax Collection Act;
2. The property of which a tax official initiated an investigation or a procedure for delinquency disposition, with a knowledge of concealment thereof;
3. Other concealed property of tax delinquents deemed as unnecessary to be reported, which is prescribed by Presidential Decree.
(4) The provision of resource or reports under subparagraphs of paragraph (1) shall be made in writing by specifying the name and address, and signing or affixing a seal. In such cases, the evidence materials, etc. which are objectively verifiable shall be attached thereto.
(5) Public officials in charge of the affairs related to the payment of bounties under paragraph (1) shall not use matters related to report or information, such as identification of a reporter or informant, for any purpose other than the originally intended purposes, nor provide or divulge them to other persons.
(6) Necessary matters concerning standards and methods of bounty payment under paragraph (1), the report period, method of providing material and reporting, etc. under paragraph (4) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85 (Cooperation in Producing and Collecting Materials for Assessment)   print
(1) Any person who is required to produce material for assessment under tax-related Acts shall prepare it faithfully and submit it to the head of the competent tax office within a prescribed period: Provided, That when they are made by means of national tax information and communications networks, it may be submitted to the commisioner of the competent regional tax office or the Commissioner of the National Tax Service.
(2) A governmental agency, local government, financial institution or a person operating an electronic data processing system shall, when collecting or preparing material or statistics relating to taxation, inform such fact to the Commissioner of the National Tax Service.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85-2 (Use of Data on Payment Record)   print
The head of a tax office (including the commisioner of a regional tax office and the Commissioner of the National Tax Service) may use the payment record on the income from interest or dividends that has been submitted pursuant to Article 164 of the Income Tax Act or Article 120 of the Corporate Tax Act for the use falling under any of the following subparagraphs, notwithstanding Article 4 (4) of the Act on Real Name Financial Transactions and Confidentiality:
1. Confirmation of inherited or donated property;
2. Confirmation of data that prove clearly the suspicion of tax evasion;
3. Confirmation of qualifications for application for work bonus under Article 100-3 of the Restriction on Special Taxation Act.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85-3 (Keeping and Preservation of Books, etc.)   print
(1) A taxpayer shall faithfully prepare and keep books and documentary evidence related to all transactions, as prescribed by each tax-related Act.
(2) The books and documentary evidence under paragraph (1) shall be preserved for five years after the expiry of the statutory due date of return of the national tax for the taxable period in which relevant transactions are made: Provided, That in cases falling under Article 26-2 (1) 5, they shall be preserved until the date prescribed in the same subparagraph.
(3) A taxpayer may prepare the whole or part of books and documentary evidence under paragraph (1) by means of any computer system. In such cases, the taxpayer shall preserve the course of a process thereof by means of magnetic tapes, diskettes and other information preservation systems pursuant to the criteria prescribed by Presidential Decree.
(4) For the purpose of paragraph (1), where books and documentary evidence are deposited in an authorized electronic documents depository referred to in Article 31-2 of the Framework Act on Electronic Documents and Transactions after converting them into electronic documents under Article 5 (2) of the same Act, they shall be deemed kept as prescribed in paragraph (1): Provided, That this shall not apply to contracts or any books and documentary evidence that can be easily forged or falsified, as prescribed by Presidential Decree. <Amended by Act No. 11461, Jun. 1, 2012>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85-4 (Issuance of Receipt for Document)   print
(1) When a tax official receives the returns of tax base, revised returns of tax base and requests for correction, or the documents related thereto, and other documents prescribed by Presidential Decree from a taxpayer or a person liable to submit the data for taxation (hereinafter referred to as the "taxpayer, etc."), he/she shall issue the receipt thereof: Provided, That in cases prescribed by Presidential Decree, such as the return by postal service, the same shall not apply.
(2) When the returns, etc. under paragraph (1) are received from tax- payers, etc. by means of national tax information and communications networks, the fact of their receipt may be notified in an electronic form.
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85-5 (Publication of Large Case and Habitual Delinquent Taxpayer List)   print
(1) The Commissioner of the National Tax Service may publish the identification, etc. of any person described below, notwithstanding Article 81-13 and Article 36 of the Adjustment of International Taxes Act: Provided, That the same shall not apply where national taxes in arrears are under a request for appeal, such as objection, request for review, etc. or where any other ground prescribed by Presidential Decree exists: <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
1. Identification, amount in arrears, etc. of a delinquent taxpayer whose national taxes in arrears amount to not less than five hundred million won, and one year has elapsed from the date on which such delinquency occurred;
2. Identification, details of additional charge of national taxes, etc. of an organization that unfaithfully receives donations prescribed by Presidential Decree (hereafter referred to as "unfaithful donation receiving organization" in this Article);
3. Identification, amount of evaded taxes, etc. of a person who has been found guilty in a judgment which has been made definite for a crime under the Punishment of Tax Evaders Act, and who shall be aggravatingly punished under Article 8 of the Act on the Aggravated Punishment, etc. of Specific Crimes (hereinafter referred to as "criminal of tax evader");
4. Identification, amount of violation, etc. of a person liable to report on overseas financial accounts under Article 34 (1) of the Adjustment of International Taxes Act, who fails to report thereon by the due date of reporting or whose underreported amount exceeds five billion won (hereafter referred to as “person who has breached the duty to report on overseas financial accounts” in this Article).
(2) There shall be established a National Tax Information Disclosure Deliberative Committee (hereafter referred to as the "Committee" in this Article) under the National Tax Service in order to deliberate on the publication of the identification, amount in arrears, details of national taxes to charge additionally, amount of evaded taxes, amount of taxes subject to breach of the duty to report, etc. of a delinquent taxpayer, unfaithful donation-receiving organization, tax evader, or a person who has breached the duty to report on overseas financial accounts as provided for in paragraph (1). <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
(3) The Commissioner of the National Tax Service shall notify the persons subject to publication of the list, who have undergone deliberation by the Committee, that they are subject to publication of the list of delinquent taxpayers, unfaithful donation-receiving organizations, or persons who have breached the duty to report on overseas financial accounts, and provide them with an opportunity to explain their position, and shall select persons subject to publication taking into account whether they have paid national taxes in arrears, whether they have conducted the responsibilities of preparing and keeping the details of issuance of donation receipts, or whether they have performed the duty to report on overseas financial accounts after having the Committee re-deliberate on whether to publish the list of delinquent taxpayers, unfaithful donation-receiving organizations or persons who have breached the duty to report on overseas financial accounts after an elapse of six months from the date of notification. <Amended by Act No. 11604, Jan. 1, 2013>
(4) The publication under paragraph (1) shall be made by means of posting their list in the Official Gazette and in the national tax information and communications network or on the bulletin boards of competent tax offices.
(5) Necessary matters concerning the publication of the list of delinquent taxpayers, unfaithful donation-receiving organizations, tax evaders, or persons who have breached the duty to report on overseas financial accounts, and necessary matters concerning the constitution and operation of the Committee, etc. under paragraphs (1) through (4) shall be prescribed by Presidential Decree. <Amended by Act No. 11124, Dec. 31, 2011; Act No. 11604, Jan. 1, 2013>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 85-6 (Preparation and Publication of Statistical Data)   print
(1) The Commissioner of the National Tax Service shall compile and manage statistical data (hereinafter referred to as "statistical data") by analyzing and processing taxation information. In such cases, the statistical data shall be formulated in a way that makes it impossible to directly or indirectly verify a taxpayer's taxation information. <Amended by Act No. 12162, Jan. 1, 2014>
(2) In order to ensure the transparency of sources of tax revenue, guarantee the people’s right to know, and enhance trust and confidence in tax administration, the Commissioner of the National Tax Service shall disclose statistical data to the public on a regular basis, after deliberation by the National Tax Information Disclosure Deliberative Committee referred to in Article 85-5 (2). <Amended by Act No. 11604, Jan. 1, 2013; Act No. 12162, Jan. 1, 2014>
(3) In order to disclose national tax information pursuant to paragraph (2), the Commissioner of the National Tax Service may build and operate a national tax information system within budget. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
(4) In the following cases, the Commissioner of the National Tax Service shall provide statistical data within the extent of their intended use, and send copies of the provided statistical data to the Minister of Strategy and Finance:
1. Where the competent standing committee of the National Assembly requests by resolution statistical data necessary for the examination of a bill for the enactment of or amendment to tax-related Acts, or a budget bill of tax revenue, and other statistical data for parliamentary activities;
2. Where the Director of the National Assembly Budget Office requests statistical data necessary to analyze and estimate tax revenue or a budget bill of tax revenue for a bill for the enactment of or amendment to tax-related Acts after obtaining permission from the Speaker.
(5) When the competent standing committee of the National Assembly requests data by resolution, the Commissioner of the National Tax Service shall, notwithstanding Article 81-13, provide taxation information within the extent of its intended use, by processing them in a way to prevent from verifying or presuming personal information of taxpayers.
(6) Where the President of the Korea Institute of Public Finance established under Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutions requests statistical data for tax policy research, the Commissioner of the National Tax Service may provide such data within the extent of their intended use. In such cases, necessary matters concerning the scope of the statistical data, procedure to provide such data, confidentiality, etc. shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 12162, Jan. 1, 2014>
(7) Persons who have acquired statistical data (excluding those published pursuant to paragraph (2)) that have been provided or sent pursuant to paragraphs (4) and (6) shall not use them for any purpose other than the intended use. <Amended by Act No. 12162, Jan. 1, 2014>
(8) Matters necessary for the procedures of providing statistical data, etc. under paragraph (4) shall be prescribed by Presidential Decree. <Amended by Act No. 12162, Jan. 1, 2014>
[This Article Wholly Amended by Act No. 9911, Jan. 1, 2010]
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 Article 86 (Sharing of Computerized Information on Registration of Family Relationship)   print
The Commissioner of the National Tax Service, the commissioner of a regional tax office, the head of a tax office and the Director of the Tax Tribunal may, in conducting examination, adjudgment and pre-assessment review, may share (including management under subparagraph 2 of Article 2 of the Personal Information Protection Act) the computerized information under Article 11 (4) of the Act on the Registration, etc. of Family Relationship as prescribed by the Electronic Government Act, in order to deal with the assignment on notification or permit of succession to position of appellant under Article 16 of the Administrative Appeals Act as prescribed in the proviso to Article 56 (1) and Article 81-5 (6).
[This Article Newly Inserted by Act No. 11124, Dec. 31, 2011]
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on January 1, 1975: Provided, That the provisions of Chapter Ⅶ shall enter into force on April 1, 1975.
(2) (Repealed Act) The Request for National Tax Examination Act shall here- by be repealed on the day on which the provisions of Chapter Ⅶ of this Act enter into force.
(3) (Transitional Measures) For the settlement of cases that have been requested for a re-investigation, examination or re-examination under the Request for National Tax Examination Act, or for an examination under the Board of Audit and Inspection Act, before the provisions of Chapter Ⅶ of this Act come into effect, the previous provisions shall apply.
(4) (Transitional Measures) Any disposition, offer of a security, return, application, request or other procedure that has been carried out under tax-related Acts before the enforcement of this Act, and that conforms to the provisions of this Act, shall be considered to be carried out under this Act.
(5) (Transitional Measures) The special measure tax imposed at the time this Act comes into effect, under the previous Special Measure Tax for Repressing Speculation on Real Estate Act shall be considered as a national tax under subparagraph 1 of Article 2 of this Act.
(6) (Relation to other Acts or Subordinate Statutes) When the provisions of the previous National Tax Collection Act are cited in other Acts and subordinate statutes, if there are provisions corresponding to them in this Act, such provisions of this Act shall be considered to be cited in lieu of them.
ADDENDUM <Act No. 2925, Dec. 22, 1976>
This Act shall enter into force on January 1, 1977.
ADDENDA <Act No. 2932, Dec. 22, 1976>
Article 1 (Enforcement Date)
This Act shall enter into force on enforcement date of the Value-Added Tax Act.
Articles 2 through 12 Omitted.
ADDENDUM <Act No. 3097, Dec. 5, 1978>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3199, Dec. 28, 1979>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1980.
(2) (General Application) This Act shall be applied to the portion for which the first return on tax base is filed after this Act enters into force.
(3) (Applicability to Additional Refund of National Tax) Subparagraph 6 of Article 52 shall be applicable to the portion in the business year of the juristic person concerned, commencing after this Act enters into force.
ADDENDA <Act No. 3471, Dec. 31, 1981>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1982.
(2) (Applicability) Article 21 (2) 5 shall be applicable to the portion of telephone charges received by the Korea Telecommunications Corporation, and for the portion of telephone charges received by the postal service organization before the said Corporation begins its business, the previous provisions shall be applicable.
(3) (Applicability) Article 35 (2) and (3) shall be applicable to the portion registered provisionally first after this Act enters into force.
ADDENDA <Act No. 3746, Aug. 7, 1984>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1985.
Article 2 Omitted.
Article 3 (Applicability to Special Case of Return Period by Mail)
The revised provisions of Article 5-2 shall be applied to the portions with post marks under the Postal Services Act on or after the date on which this Act enters into force.
Article 4 (Applicability to Period of Exclusion of National Tax Assessment)
(1) The revised provisions of Article 26-2 shall be applied to the portion of taxes for which the day to levy national tax begins to run after the
enforcement of this Act.
(2) With respect to a portion of national taxes for which the day to levy them has begun to run before the enforcement of this Act, and the period referred to in Article 27 is not terminated as of the enforcement day of this Act, the previous provisions shall be applied: Provided, That they shall not be levied after the period of exclusion prescribed by the revised provisions of Article 26-2 after this Act enters into force.
Article 5 (Applicability to Suspension of Prescription for Postponement of Disposition of Tax in Arrears)
The revised provisions of Article 28 (3) shall be applied to a portion for which the disposition of tax in arrears is postponed for the first time after this Act enters into force.
Article 6 (Applicability to Small Guaranty Priority to National Taxes)
The revised provisions of Article 35 (1) 4 shall be applied to the portion of the due date for payment of which arrives first after this Act enters into force.
Article 7 (Applicability to Period of Tax Appeals)
The revised provisions of Articles 61 (2) and 81 shall be applied to portions which are subject to motion for correction, review or decision for the first time after this Act enters into force.
Article 8 (Applicability to Minimum of Amount Notified)
The revised provisions of Article 83 (1) shall be applied to the portions first notified after this Act enters into force.
ADDENDA <Act No. 3754, Dec. 15, 1984>
Article 1 (Enforcement Date)
This Act shall enter into force on October 1, 1985.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 3755, Dec. 15, 1884>
Article 1 (Enforcement Date)
This Act shall enter into force on October 1, 1985.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 4177, Dec. 30, 1989>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1990.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 4277, Dec. 31, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1991.
Article 2 (Applicability to Exclusion Period of Imposition of Inheritance or Gift Tax)
The revised provisions of the proviso of Article 26-2 (1) 1 shall apply to the national tax for which the date of imposing the inheritance or gift tax for the first time after this Act enters into force.
Article 3 (Applicability to Request of Cancellation)
The revised provisions of Article 35 (4) shall apply to the portion the statutory deadline of which arrives first after this Act enters into force.
Article 4 (Applicability to Statutory Deadline in Case of Seizure)
The revised provisions of Article 35-2 shall apply to the portion to be seized first after this Act enters into force.
Article 5 (Applicability to Secured Obligation Having Priority to National Tax)
With respect to a collection after September 3, 1990, of any national taxes or additional dues which become due pursuant to the revised provisions of each items of Article 35 (1) 3 before this Act enters into force, from the proceeds of sale of the property, the due date for payment shall be considered as the statutory deadline, and the revised provisions of Article 35 (1) 3, paragraph(2) of the said Article, and Article 42 (1) shall be applicable.
[This Article Wholly Amended by Act No. 4672, Dec. 31, 1993]
<This Article is amended by Act No. 4672 on December 31, 1993 following the decision of unconstitutionality made by the Constitutional Court on September 27, 1993>
Article 6 (Transitional Measures concerning Security Having Priority to National Tax)
The previous provisions of Article 35 (1) 4 shall apply to the priority small guaranty money to the national tax or additional dues, the due date for payment of which arrives before the enforcement of this Act.
ADDENDA <Act No. 4561, Jun. 11, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 4672, Dec. 31, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exclusion Period for Assessment of National Tax)
The revised provisions of Article 26-2 (1) shall apply to those which are subject to the imposition of national taxes after this Act enters into force, and the revised provisions of paragraph (2) of the said Article, to those of which mutual agreement is concluded for the first time after this Act enters into force.
Article 3 (Applicability to Appraisal of Security)
The revised provisions of Article 30 (5) shall apply to the portion of a security for the tax payment offered for the first time after this Act enters into force.
Article 4 (Applicability to Priority of National Tax)
The revised provisions of Article 35 (1) 3 (f) shall apply to the portion seized under Article 24 (2) of the National Tax Collection Act for the first time after this Act enters into force.
Article 5 (Applicability to Secondary Liability of Contributors, etc. for Tax Payment)
The revised provisions of Articles 39 and 41 shall apply to the portion of the secondary liability for tax payment notified to the contributor or transferee of an enterprise for the first time after this Act enters into force.
Article 6 (Applicability to Exemption from Additional Tax by Revised Return)
The revised provisions of Article 49 shall apply to the portion returned after revised for the first time after this Act enters into force.
Article 7 (Applicability to Additional Refund of National Tax)
The revised provisions of Article 52 shall apply to the portion to appropriate or pay any national tax refund for the first time after this Act enters into force.
Article 8 (Applicability to Period, etc. of Institution of Administrative Litigation)
The revised provisions of Articles 56, 60, 61 (2) and 68 shall apply to the objection, request for examination or tax appeals pending as of the enforcement day of this Act, and those of Articles 61 (3), 66 and 81, to the objection, request for examination or tax appeals made by mail for the first time after this Act enters into force.
Article 9 (Transitional Measures concerning Statutory Deadline in Case of Seizure)
Any national tax or additional dues for which the seizure registration date is considered as the statutory deadline pursuant to the provisions of the previous Article 35-2 before this Act enters into force, shall be governed by the previous provisions.
ADDENDA <Act No. 4743, Mar. 24, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1994.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 4810, Dec. 22, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1995: Provided, That the revised provisions of Article 56 shall enter into force on March 1, 1998.
Article 2 (Applicability to Succession to Tax Liability by Inheritance)
The revised provisions of Article 24 (2) shall apply to the portion the inheritance of which commences for the first time after this Act enters into force.
Article 3 (Applicability to Period of Exclusion from National Tax Assessment)
The revised provisions of Article 26-2 (1) shall apply to the portion to which the national tax is to be assessed for the first time after this Act enters into force.
Article 4 (Applicability to Revised Return and Reduction and Exemption by Revised Return)
The revised provisions of Articles 45 and 49 shall apply to the portion the revised return on which is made for the first time after this Act enters into force.
Article 5 (Applicability to Request for Correction)
The revised provisions of Article 45-2 shall apply to the portion of the taxable period which commences for the first time after this Act enters into force.
Article 6 (Applicability to Additional Refund of National Tax)
The revised provisions of Article 52 shall apply to the finally returned portion of the income accruing in 1995.
Article 7 (Applicability to Protest)
The revised provisions of Article 55-2 shall apply to those for which the procedure of mutual agreement is going on after this Act enters into force.
Article 8 (Applicability to Institution of Administrative Litigation)
The revised provisions of Article 56 shall apply to the portion of the request for examination or tax appeals pending on March 1, 1998.
ADDENDA <Act No. 4981, Dec. 6, 1995>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1996. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 5189, Dec. 30, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the revised provisions of Articles 81-2 (2) and 85-4 shall enter into force on July 1, 1997.
Article 2 (Applicability to Service on Persons Jointly and Severally Liable for Tax Payment)
The revised provisions of the proviso to Article 8 (2) shall apply to the portion to execute the notification and demand of tax payment for the first time after this Act enters into force.
Article 3 (Applicability to Service, etc. of Document Being Laid)
The revised provisions of Article 10 (4) shall apply to the document to be served for the first time after this Act enters into force.
Article 4 (Applicability to Exclusion Period of Imposition of National Taxes)
The revised provisions of the proviso to Article 26-2 (1) shall apply to the portion to commence on a mutual agreement procedure for the first time after this Act enters into force.
Article 5 (Applicability to Appropriation and Refund of National Taxes)
The revised provisions of Article 51 shall apply to the portion to appropriate or refund national taxes for the first time after this Act enters into force.
Article 6 (Applicability to Presentation of Request for Investigation, etc.)
The revised provisions of Articles 55 (2) and 66 (1) shall apply to the portion of the application for objection, request for investigation or request for judgement made for the first time after this Act enters into force.
ADDENDA <Act No. 5193, Dec. 30, 1996>
Article 1 (Enforcement Date)
This Act shall come into force on January 1, 1997.
Articles 2 through 15 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998: Provided, That the amended provisions of Article 56 (4) shall enter into force on March 1,1998.
ADDENDA <Act No. 5579, Dec. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1999.
Article 2 (Applicability to Service by Public Announcement)
The amended provisions of Article 11 (1) shall apply to the initial docu- ment which is publicly announced after this Act enters into force.
Article 3 (Applicability to Succession to Tax Liability by Inheritance)
The amended provisions of the former part of Article 24 (2) shall apply to the initial inheritance which commences after this Act enters into force.
Article 4 (Applicability to Joint Liability for Tax Payment)
The amended provisions of Article 25 (2) and (3) shall apply to any notice of the discharge of liability for tax payment given to the initial juristic person that splits up, is established, or exists due to split-up or merger with any other juristic person after split-up, after this Act enters into force.
Article 5 (Applicability to Period of Filing of Administrative Litigation)
(1) The amended provisions of Articles 55, 56, 60 through 63, 65, 66, 68 and 70 shall apply to the initial objection, request for examination or tax appeals or administrative litigation which is filed after this Act enters into force.
(2) With respect to any disposition to which an objection, request for examination or tax appeals or administrative litigation is not filed at the time when this Act enters into force and for which a period of filing thereof under the previous provisions expires, an objection, request for examination or tax appeals or administrative litigation may not be filed.
Article 6 (Applicability to Keeping and Preservation of Books, etc.)
The amended provisions of Article 85-3 shall apply to the initial taxation period or business year after this Act enters into force.
ADDENDA <Act No. 5993, Aug. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000: Provided, That the revised provisions of subparagraph 18 of Article 2 and Articles 5 (3), 5-2 (2), the proviso to Article 43 (1), the proviso to Article 85 (1), and Article 85-4 (2) shall enter into force from July 1, 2000.
Article 2 (Applicability to Request, etc. for Examination or Adjudgment)
This Act shall apply to the case of an objection or a request for examination or adjudgment raised after this Act enters into force.
Article 3 (Transitional Measures for Cases of Objection or Request for Examination)
(1) With respect to an objection raised under the previous provisions before the enforcement of this Act, of which a request for examination is not filed after receiving a notice of decision thereon, a request for examination and adjudgment may be filed under the previous provisions.
(2) With respect to a request for examination filed under the previous provisions before the enforcement of this Act, which is pending as of the enforcement date of this Act or on which a request for adjudgment is not raised after receiving a notice of decision thereon, a request for adjudg- ment may be raised under the previous provisions, and an administrative litigation may be instituted under the provision of this Act.
Article 4 (Transitional Measures for Reappointment of Tax Judges)
The previous provisions shall be applicable to the tax judges in active service at the time of enforcement of this Act during the remaining terms, notwithstanding the revised provisions of Article 67 (4).
ADDENDA <Act No. 6070, Dec. 31, 1999>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2000.
(2) (Applicability to Limitation Period of National Tax Levying) The revised provisions of Article 26-2 (3) shall be applicable from the case where the date of levying an inheritance tax or gift tax commences after the enforcement of this Act.
(3) (Applicability concerning Initial Date in Reckoning of Additional Refund of National Tax) The revised provisions of subparagraph 6 of Article 52 shall be applicable from the portion of first transfer after this Act enters into force.
ADDENDA <Act No. 6299, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2001.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6303, Dec. 29, 2000>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amendments to subparagraph 18 of Article 2 shall enter into force on July 1, 2001.
(2) (Applicability to Revised Returns and Request for Correction) The amendments to Articles 45 (1) 3 and 45-2 (1) shall be applicable from the portion of taxable period whereto the enforcement date of this Act belongs.
(3) (Applicability to Appropriation and Refund of National Tax Refund) The amendments to Article 51 (2) and (3) shall be applicable from the portion of appropriation or payment of national tax refund first made after this Act enters into force.
(4) (Applicability to Initial Date in Reckoning Additional Amount to National Tax Refund) The amendments to subparagraphs 1 and 6 of Article 52 shall be applicable from the portion of appropriation or payment of national tax refund first made after this Act enters into force.
(5) (Applicability to Succession of Status for Requesting Examination and Adjudgment) The amendments to Articles 56 (1) and 65-2 shall be applicable from the portion of filing objections or requesting examination or adjudgment in progress on the enforcement date of this Act.
ADDENDA <Act No. 6782, Dec. 18, 2002>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Applicability to Effect of Correction, etc.) The amendments to Article 22-2 shall be applicable to the revision which is made after this Act enters into force.
(3) (Applicability to Deposit Money for Lease of Commercial Building Taking Precedence over National Tax) The amendments to Article 35 (1) 4 shall be applicable beginning with the enforcement date of the Protection of Commercial Building Lend-Lease Act, Act No. 6542.
(4) (Applicability to Refund of Property Paid in Kind) The amendments to Article 51-2 shall be applicable to the application for payment in kind which is made after this Act enters into force.
ADDENDA <Act No. 7008, Dec. 30, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the portion related to the secondary tax payment liability provided for in Article 104-7 (4) of the Restriction of Special Taxation Act from among the proviso of Article 3 (1) shall enter into force on January 1, 2004.
Article 2 (Applicability to Revocation of Extension of Payment Deadline)
The amended provisions of Article 6-2 shall apply, starting with the
portion whose payment deadline is extended in accordance with Article 6 after this Act enters into force.
Article 3 (Applicability to Method of Delivering Documents)
The amended provisions of the proviso of Article 10 (2) shall apply, starting with the portion that is delivered first after this Act enters into force.
Article 4 (Applicability to Request for Correction, etc.)
The amended provisions of Article 45-2 (4) shall apply, starting with the taxable year to which the enforcement date of this Act belongs.
Article 5 (Applicability to Appropriation of Refunded National Tax Amount and Refund of National Tax)
The amended provisions of Article 51 (4) shall apply, starting with the portion for the refund of which an application is filed first after this Act enters into force.
Article 6 (Applicability to Date of Additional Amount to National Tax Refund)
The amended provisions of subparagraphs 6 and 7 of Article 52 shall apply, starting with the portion for which the refunded the
national tax is appropriated or paid first after this Act enters into force.
Article 7 (Applicability to Decision of Term for Claim Examination)
The amended provisions of Article 65 (2) shall apply, starting with the portion for which a claim is filed first for examination after this Act enters into force.
ADDENDA <Act No. 7032, Dec. 31, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 7329, Jan. 5, 2005>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 7582, Jul. 13, 2005>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Request for Correction, etc.) The amended provisions of Article 45-2 (1) shall apply with respect to the request for a decision or correction for which the term set in the previous provisions has not yet expired after this Act enters into force.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7930, Apr. 28, 2006>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 25 (4) shall apply on April 1, 2006.
(2) (Applicability to Joint Liability to Tax Payment following Establishment of New Company) The amended provisions of Article 25 (4) shall apply to a new company established for the first time after this Act enters into force.
(3) (Applicability to Payment of Bounty to Reporter of Concealed Property) The amended provisions of Article 84-2 shall apply to the first report of concealed property after this Act enters into force.
(4) (Transitional Measures concerning Extension of Deadline for Application for Judgment on Propriety before Tax Levying) The amended provisions of Article 81-10 (1) shall apply to a person who has been notified before the enforcement of this Act.
ADDENDA <Act No. 8139, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007: Provided, That the amended provisions of Article 3 (1) and the amended provisions of Articles 47-2 through 47-5 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall take effect on January 1, 2008; and the amended provisions of Article 84-2, on July 1, 2007.
Article 2 (Applicability to Prolongation of Due Date for Payment owing to Delayed Service)
The amended provisions of Article 7 shall also apply with respect to a notification of tax payment, a notice of payment, an urging note or a notice of demand of payment for which the due date for payment has come before this Act enters into force.
Article 3 (Applicability to Suspension of Prescription)
The amended provisions of Article 28 (3) and (4) shall apply with respect to a lawsuit for the cancellation of a fraudulent act which is filed after this Act enters into force.
Article 4 (Applicability to Secondary Liability for Tax Payment of Contributors)
The amended provisions of Article 39 shall apply with respect to the duty of tax payment which is owed after this Act enters into force.
Article 5 (Applicability to Extension of Scope of Persons Qualified for Request for Correction)
The amended provisions of Article 45-2 (4) shall apply starting with the taxable year to which the enforcement date of this Act belongs.
Article 6 (Applicability to Extension of Scope of Persons Qualified for Return after Due Date)
The amended provisions of Article 45-3 shall apply with respect to the statutory due date of return which comes after this Act enters into force.
Article 7 (Applicability to Additional Tax on Non-Filing, etc.)
(1) The amended provisions of Articles 47-2 through 47-5 concerning the income tax (limited to the income tax on the global income and including the special rural development tax the principal tax of which is the income tax) and the corporate tax (limited to the corporate tax on each business year's income and including the special rural development tax the principal tax of which is the corporate tax) shall apply with respect to the taxable year which commences after this Act enters into force.
(2) The amended provisions of Articles 47-2 through 47-5 concerning the income tax (including the special rural development tax the principal tax of which is the income tax) on the retirement income and transfer income shall apply with respect to the retirement income and transfer income which accrue after this Act enters into force.
(3) The amended provisions of Articles 47-2 through 47-5 concerning the corporate tax (including the special rural development tax the principal tax of which is the corporate tax) on the liquidation income shall apply with respect to the liquidation income which accrues due to any dissolution, merger or division made after this Act enters into force.
(4) The amended provisions of Articles 47-2 through 47-5 concerning the value-added tax shall apply with respect to the taxable period which commences after this Act enters into force.
(5) The amended provisions of Articles 47-2 through 47-5 concerning the inheritance tax and gift tax shall apply with respect to the inheritance and gift which are made after this Act enters into force.
(6) The amended provisions of Articles 47-2 through 47-5 concerning the special consumption tax (including the special rural development tax the principal tax of which is the special consumption tax), the traffic, energy and environment tax and the liquor tax shall apply with respect to the object of taxation which is carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after this Act enters into force.
(7) The amended provisions of Articles 47-2 through 47-5 concerning the securities transaction tax (including the special rural development tax the principal tax of which is the securities transaction tax) shall apply with respect to the stock certificate, etc. which is transferred after this Act enters into force.
(8) The amended provisions of Articles 47-2 through 47-5 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall apply with respect to the duty of tax payment which is owed after this Act enters into force.
(9) With respect to the amended provisions of Articles 47-2 through 47-5, the amended provisions of the educational tax assessed on the revenue of financial and insurance businessmen shall apply to the period of tax- ation which commences on or after the enforcement date of this Act, and the amended provisions of the educational tax assessed on the amount of the special consumption tax, the traffic, energy and environment tax and the liquor tax shall apply to the object of taxation which is carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after this Act enters into force.
(10) With respect to the amended provisions of Articles 47-2 through 47-5, the special rural development tax assessed on the reduced or ex- empted amount of the income tax on the income from interest or dividend under Article 5 (1) 2 of the Act on Special Rural Development Tax shall apply to the income from interest or dividend which is paid on or after the enforcement date of this Act, and the amended provisions of the special rural development tax the principal tax of which is the acquisition tax, registration tax or leisure tax, to the portion which is acquired, registered or sold after this Act enters into force.
(11) The amended provisions of Articles 47-2 through 47-5 concerning the special rural development tax assessed on the reduced or exempted amount of the customs duties and concerning the value-added tax, the traffic, energy and environment tax, the special consumption tax, the liquor tax, the educational tax and the special rural development tax assessed on imported goods shall apply with respect to the portion for which the declaration of import is made after this Act enters into force.
Article 8 (Applicability to Reduction or Exemption of Additional Tax)
(1) The amended provisions of Article 48 (2) 2 and 4 shall apply with respect to the duty of the return, submission, joining, registration or establishment for which the term of fulfillment arrives on or after the enforcement date of this Act.
(2) The amended provisions of Article 48 (2) 3 shall apply with respect to the notification of a decision on judgment of propriety before tax levying which is given after this Act enters into force.
Article 9 (Applicability to Upper Limit of Additional Tax)
The amended provisions of Article 49 shall apply with respect to a vio- lation of the obligation provided for in any tax-related Act which is com- mitted after this Act enters into force.
Article 10 (Applicability to Additional Refund of National Tax)
The amended provisions of subparagraph 7 of Article 52 shall apply beginning from a request for correction filed after this Act enters into force.
Article 11 (Applicability to Submission of Evidence Documents, etc.)
The amended provisions of Article 71 shall apply with respect to the evidence documents and other evidences which are submitted after this Act enters into force.
Article 12 (Applicability to Extension, etc. of Period of Advance Notice of Tax Investigation)
(1) The amended provisions of the main sentence of Article 81-7(1) shall apply with respect to the advance notice which is made after this Act enters into force.
(2) The amended provisions of Article 81-7 (3) shall apply with respect to the request for postponement of investigation which is made after this Act enters into force.
Article 13 (Applicability to Selection, etc. of Representative in Judgment on Propriety before Tax Levying)
The amended provisions of Article 81-12 (5) and (6) shall apply with respect to the request for judgment of propriety before tax levying which is made after this Act enters into force.
Article 14 (Applicability to Extension of Scope of Persons Deserve Bounty)
The amended provisions of Article 84-2 (1) 3 and 4 shall apply with respect to the report which is made after this Act enters into force.
Article 15 Omitted.
Article 16 (Transitional Measures Following Amendment to Other Acts)
With respect to the additional tax assessed or to be assessed pursuant to the provisions of any tax-related Act falling under any one of the fol- lowing subparagraphs before the enforcement of this Act, the previous provisions of the relevant tax-related Act shall apply, notwithstanding the amended provisions of the relevant tax-related Act amended in accordance with Article 15 (1) through (7) of the Addenda:
4. The Stamp Tax Act: Article 8-2 of the Stamp Tax Act;
5. The Liquor Tax Act: Article 27 of the Liquor Tax Act;
7. The Special Consumption Tax Act: Articles 13 and 24 (1) 1 of the Special Consumption Tax Act.
ADDENDA <Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 8521, Jul. 19, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 8830, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008: Provided, That the amended provisions of Article 46-2 shall enter into force on October 1, 2008, and the amended provisions of Article 85-6 shall enter into force on January 1, 2010.
Article 2 (Applicability to Exceptions to Exclusion Period of Imposition to Real Business Operator)
The amended provisions of Article 26-2 (3) shall apply beginning from the first decision or judgment made after this Act enters into force. <Amended by Act No. 9263, Dec. 26, 2008>
Article 3 (Applicability to Payment of National Taxes by Credit Card, etc.)
The amended provisions of Article 46-2 shall apply beginning from the first report or payment made after October 1, 2008.
Article 4 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply beginning from the first report made after this Act enters into force.
Article 5 Omitted.
ADDENDA <Act No. 8860, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures Concerning Succession of Request for Adjudgment)
A requested adjudgment that is proceeding at the time when this Act enters into force is deemed to be requested pursuant to this Act.
Article 3 (Transitional Measures Concerning Succession of Positions such as National Tax Judges, Permanent National Tax Judges and Non- Permanent National Tax Judges)
At the time this Act enters into force, national tax judges, permanent national tax judges, non-permanent national tax judges, the committee of national tax judges, the joint cession of national tax judges under the previous provisions are deemed as tax judges, permanent tax judges, non-permanent tax judges, the committee of tax judges, the joint cession of tax judges under this Act.
Article 4 (Transitional Measures Concerning Public Officials belonging to Tax Tribunal)
Public officials who belong to the Tax Tribunal is deemed to belong to the Tax Tribunal.
Article 5 Omitted.
Article 6 (Relations with other Acts or Subordinate Statutes)
In cases of the term "national tax judge" is quoted in other Acts or subordinate statues at the time this Act enters into force, the term "tax judge" shall be deemed to be quoted.
ADDENDA <Act No. 9131, Sep. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 9259, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009. (Proviso Omitted.) Article 9 of the Addenda shall enter into force on January 1, 2012.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 9263, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009: Provided, That the amended provisions of Article 39 (1) shall enter into force on February 4, 2009, and the amended provisions of Article 85-3 (4) shall enter into force on April 1, 2009.
Article 2 (Applicability to Assessment Period of National Taxes)
(1) The amended provisions of Article 26-2 (1) shall apply beginning from the deficit incurred in the taxable period first commencing after this Act enters into force.
(2) The amended provisions of Article 26-2 (2) shall apply beginning from the correction first requested after this Act enters into force.
Article 3 (Applicability to Request for Correction, etc.)
The amended provisions of Article 45-2 (4) shall apply beginning from the correction first requested after this Act enters into force.
Article 4 (Applicability to Reduction or Exemption, etc. of Additional Tax)
The amended provisions of Article 48 shall apply beginning from the revised return first filed after this Act enters into force.
Article 5 (Applicability to Judgment on Propriety before Tax Levying)
The amended provisions of Article 81-12 (7) shall apply beginning from the notification first given after this Act enters into force.
Article 6 (Applicability to Use of Data on Payment Records)
The amended provisions of Article 85-2 shall apply beginning from the work bonus first paid after this Act enters into force.
Article 7 (Transitional Measures Concerning Succession to Status of Deliberative Committee on Objections and Committee on Judgment of Propriety before Tax Levying)
(1) Any act done by the committee on the judgment of propriety before tax levying established in the National Tax Service and by the Deliberative Committees on Objections and the committees on the judgment of propriety before tax levying established in the regional tax offices and tax offices under the former provisions at the time when this Act enters into force shall be each deemed to be an act done by the National Tax Examination Committees established under this Act.
(2) Any act toward the committee on the judgment of propriety before tax levying established in the National Tax Service and by the Deliberative Committees on Objections and the committees on the judgment of propriety before tax levying established in the regional tax offices and tax offices under the former provisions at the time when this Act enters into force shall be each deemed to be an act toward the National Tax Examination Committees established under this Act.
ADDENDUM <Act No. 9412, Feb. 6, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9911, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Articles 81-8 through 81-11 shall enters into force on April 1, 2010, and the amended provisions of subparagraph 1 of Article 2, Article 21 (1) 8 and subparagraph 6 of Article 52 shall enters into force when the repealed Traffic, Energy and Environment Tax Act (Act No. 9346) enters into force.
Article 2 (Applicability to Interruption and Suspension of Prescription)
The amended provisions of Article 28 shall start applying to the first lawsuit for subrogation of creditor filed after this Act enters into force.
Article 3 (Applicability to Return after Term)
The amended provisions of Article 45-3 (3) shall start applying to the first return of tax base arriving after this Act enters into force.
Article 4 (Applicability to Payment for National Taxes by Credit Cards, etc.)
The amended provisions of Article 46-2 (1) and (3) shall start applying to the first return, payment or notification made after this Act enters into force.
Article 5 (Applicability to Additional Taxes)
The amended provisions of Article 47-2 (6) and 47-5 (5) shall start applying to the portion to which the transaction or transfer is made after this Act enters into force.
Article 6 (Special Cases concerning Application of Additional Taxes on Non-Filing)
With respect to income arising from the transfer of assets subject to the tax rate under Article 104 (1) 1 of the Income Tax act from January 1, 2010 to December 31, 2010, when a scheduled return of tax base of transfer income under Article 105 of the Income Tax Act is not made, the main sentence of Article 42-2 (1) shall apply after "20/100" shall be deemed "10/100."
Article 7 (Applicability to Tax Investigation)
The amended provisions of Articles 81-8 through 81-11 shall start applying to the first tax investigation conducted after this Act enters into force.
Article 8 Omitted.
ADDENDA <Act No. 9968, Jan. 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10405, Dec. 27, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Article 2 (Applicability to Limitation Period for National Tax Assessment)
The amended provisions of Article 26-2 (1) 1-2 shall apply beginning with the first invoice or tax invoice to be issued or failed to be issued, or issued copy thereof to be received after this Act enters into force.
Article 3 (Applicability to Preference of National Taxes to Additional Dues of Public Charges)
The amended provisions of Article 35 (1) 1 shall apply beginning with the first seizure to be made after this Act enters into force.
Article 4 (Applicability to Waiver of Levy of Penalty Taxes on Non-filing and Additional Taxes on Underreported Return)
The amended provisions of Articles 47-2 (7), (8) and 47-3 (3) shall apply beginning with the first return to be filed, determination or correction to be made after this Act enters into force.
Article 5 (Applicability to Extension of Period to Reduce or Exempt Penalty Tax for Return Filed after Statutory Due Date)
The amended provisions of Article 48-2 shall apply beginning with the first return to be filed where a payment by return is made after the statutory due date of return lapses after this Act enters into force.
Article 6 (Applicability to Decrease of Upper Limit on Penalty Tax for Small and Medium Enterprises, etc.)
The amended provisions of main sentence of Article 49 (1) except for each subparagraph thereof shall apply beginning with the first violation to be committed in relation to the relevant obligation after this Act enters into force.
Article 7 (Applicability to Application of Upper Limit on Penalty Tax for Failing to Submit Payment Record, etc.)
The amended provisions of Article 49 (1) 4 shall apply beginning with the case where the first determination or correction to be made after this Act enters into force.
Article 8 (Applicability to Retroactive Effect on Appropriation of National Tax Refund)
The amended provisions of Article 51 (3) shall apply beginning with the first national tax refund to be appropriated after this Act enters into force.
Article 9 (Applicability to Procedure for Protest)
The amended provisions of Articles 59 (2), 69 (3), 73 (1), (2), and 74-2 shall apply beginning with the first application or claim to be filed for the first time after this Act enters into force.
ADDENDA <Act No. 10580, Apr. 12, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10621, May 2, 2011>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Applicability to Selection of Persons Subject to Tax Investigation) The amended provision of Article 81-6 (2) shall apply beginning from the period of taxation under which the enforcement date of this Act falls.
ADDENDA <Act No. 11124, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2012: Provided, That the amended provisions of Articles 84-2 (1) 1, 85-5 (1) 3, (2) and (5) shall enter into force on July 1, 2012.
Article 2 (Applicability to Limitation Period for National Tax Assessment)
(1) The amended provisions in the latter part of Article 26-2 (1) 1 shall apply beginning with the amount to be first disposed of under Article 67 of the Corporate Tax Act after January 1, 2012.
(2) The amended provisions of Article 26-2 (2) shall apply beginning with the first request for correction or recommendation for adjustment after January 1, 2012.
Article 3 (Applicability to Secondary Tax Liability of Oligopolistic Stockholder)
The amended provisions of Article 39 shall apply beginning with the national taxes for which the national tax liability is first established after January 1, 2012.
Article 4 (Applicability to Payment of National Taxes by Credit Card, etc.)
The amended provisions of Article 46-2 shall apply beginning with the portion to be first filed, paid or notified after January 1, 2012.
Article 5 (Applicability to Penalty Taxes on Non-Filing, etc.)
(1) The amended provisions of Articles 47-2 through 47-4 concerning the income tax (limited to the income tax on the global income and including the special rural development tax the principal tax of which is the income tax) and the corporate tax (limited to the corporate tax on each business year's income and on capital gains from transfer of land, etc. and including the special rural development tax the principal tax of which is the corporate tax) shall apply with respect to the taxable period which first commences after January 1, 2012.
(2) The amended provisions of Articles 47-2 through 47-4 concerning the income tax (including the special rural development tax the principal tax of which is the income tax) on the retirement income and transfer income shall apply with respect to the first retirement income and transfer income which accrue after January 12, 2012.
(3) The amended provisions of Articles 47-2 through 47-4 concerning the corporate tax (including the special rural development tax the principal tax of which is the corporate tax) on the liquidation income shall apply with respect to the liquidation income which first accrues due to any dissolution, merger or division made after January 1, 2012.
(4) The amended provisions of Articles 47-2 through 47-4 concerning the inheritance tax and gift tax shall apply with respect to the first inheritance and gift which are made after January 1, 2012.
(5) The amended provisions of Articles 47-2 through 47-4 concerning the value-added tax shall apply with respect to the taxable period which first commences after January 1, 2012.
(6) The amended provisions of Articles 47-2 through 47-4 concerning the special consumption tax (including the special rural development tax the principal tax of which is the special consumption tax), the traffic, energy and environment tax and the liquor tax shall apply with respect to the object of taxation which is first carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after January 1, 2012.
(7) The amended provisions of Articles 47-2 through 47-4 concerning the securities transaction tax (including the special rural development tax the principal tax of which is the securities transaction tax) shall apply with respect to the stock certificate, etc. which is first transferred after January 1, 2012.
(8) The amended provisions of Articles 47-2 through 47-4 concerning the Comprehensive Real Estate Holding Tax (including the special rural development tax the principal tax of which is the Comprehensive Real Estate Holding Tax) shall apply with respect to the duty of tax payment which is first owed after January 1, 2012.
(9) With respect to the amended provisions of Articles 47-2 through 47-4, the amended provisions of the educational tax assessed on the revenue of financial and insurance businessmen shall apply to the period of taxation which first commences on or after the enforcement date of this Act, and the amended provisions of the educational tax assessed on the amount of the special consumption tax, the traffic, energy and environment tax and the liquor tax shall apply to the object of taxation which is first carried out of the manufacturing place or warehouse or sold at a selling place, or when entering a place of taxation or performing an act for amusement, food and drink at an amusement quarter after January 1, 2012.
(10) With respect to the amended provisions of Articles 47-2 through 47-4, the special rural development tax assessed on the reduced or exempted amount of the income tax on the income from interest or dividend under Article 5 (1) 2 of the Act on Special Rural Development Tax shall apply to the income from interest or dividend which is paid on or after the enforcement date of this Act, and the amended provisions of the special rural development tax the principal tax of which is the acquisition tax, registration tax or leisure tax, to the portion which is first acquired, registered or sold after January 1, 2012.
(11) The amended provisions of Articles 47-2 through 47-4 concerning the special rural development tax assessed on the reduced or exempted amount of the customs duties and concerning the value-added tax, the traffic, energy and environment tax, the special consumption tax, the liquor tax, the educational tax and the special rural development tax assessed on imported goods shall apply with respect to the portion for which the declaration of import is first made after January 1, 2012.
Article 6 (Applicability to Insincere Penalty Tax such as Payment, etc. of Withholding Tax)
The amended provisions of Article 47-5 shall apply beginning with the frist collection of national tax after January 1, 2012 and the national tax liability occurs.
Article 7 (Applicability to Reduction and Exemption of Penalty Tax)
The amended provisions of Article 48 (2) 2 apply beginning with the first return to be filed after statutory due date after January 1, 2012.
Article 8 (Applicability to Special Cases on Calculation of Period in Procedure, etc. of Adjustment of Taxes on International Trade Price)
The amended provisions of Article 55-2 apply beginning with the first application for the adjustment of tax on the international trade price after January 1, 2012.
Article 9 (Applicability to Establishment and Delivery of Taxpayers' Right Charter)
The amended provisions of Articles 81-2 (2) 1 and 2, 81-5, 81-7 (1) and the main sentence of Article 81-12 apply beginning with the first investigation that commences after January 1, 2012.
Article 10 (Applicability to Payment of Bounty)
(1) The amended provisions of Article 84-2 (1) 1 apply beginning with the first material to be provided after July 1, 2012.
(2) The amended provisions of the proviso to Articles 84-2 (1), 84-2 (1) 6 and (2) 2 shall apply beginning with the first material to be provided after January 1, 2012.
Article 11 (Applicability to Publication of List of Criminals of Tax Evasion)
The amended provisions of Articles 85-5 (1) 3 , (2) and (5) apply beginning with the person who will be first be found guilty in a judgment and such judgment will be made definite after July 1, 2012.
Article 12 Omitted.
ADDENDA <Act No. 11461, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 11604, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Article 2 (Applicability to Electronic Service of Voluntary Tax Payment)
The amended provisions of the proviso to Article 10 (8) shall apply to any voluntary payment made on or after the date this Act enters into force.
Article 3 (Applicability to Establishment Date of Value-Added Tax Liability for Estimated Imposition Period)
The amended provisions of Article 21 (2) 3 shall apply to any value-added tax, for which the estimated imposition period is due on or after the date this Act enters into force.
Article 4 (Applicability to Limitation Period for National Tax Assessment)
(1) The amended provisions of Article 26-2 (1) 1-2 (b) shall apply to any tax amount, for which the date the penalty tax is assessable commences on or after the date this Act enters into force.
(2) The amended provisions of Article 26-2 (1) 4-2 shall apply to any tax amount, for which the date the income tax is assessable commences on or after the date this Act enters into force.
(3) The amended provisions of Article 26-2 (4) shall apply to any tax amount, for which the date the gift tax is assessable commences on or after the date this Act enters into force.
Article 5 (Applicability to Extinctive Prescription)
The amended provisions of Article 27 (1) shall apply to any national tax reported or notified on or after the date this Act enters into force.
Article 6 (Applicability to Penalty Taxes for Reduction or Deduction of Tax Amount by Unlawful Act, etc.)
The amended provisions of Article 47-3 (2) shall apply to any tax amount, the reduction or deduction of which is applied for on or after the date this Act enters into force.
Article 7 (Applicability to Penalty Taxes for Insincere Payment of Withholding Tax, etc.)
The amended provisions of Article 47-5 (1) shall apply to any tax amount, for which a penalty tax is levied on or after the date this Act enters into force.
Article 8 (Applicability to Upper Limit on Penalty Taxes)
The upper limit for a penalty tax levied under Article 76 (3) of the Corporate Tax Act, of the amended provisions of Article 49 (1) 2, shall apply to any penalty tax levied on or after the date this Act enters into force; and the lifting of the upper limit for a penalty tax under Article 76 (9) 4 of the same Act shall apply to any tax amount, for which an invoice, etc. is issued on or after the date this Act enters into force.
Article 9 (Applicability to Double Filing of Request for Examination and Request for Adjudgment)
The amended provisions of Article 65 (1) 1 (including the provisions of Article 81 applied mutatis mutandis with regard to requests for adjudgment) shall apply to any filing of a request for examination or adjudgment on or after the date this Act enters into force.
Article 10 (Applicability to Filing of Objections)
The amended provisions of Article 66 (1) shall apply to any filing of an objection made on or after the date this Act enters into force.
Article 11 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply to any submission of relevant materials or reporting made on or after the date this Act enters into force.
Article 12 (Applicability to Publication of List of Persons Who have Breached Duty to Report on Overseas Financial Accounts)
The amended provisions of Article 85-5 shall apply beginning with cases where a person is liable to report on his/her overseas financial accounts held as of 2012 in 2013.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted).
Articles 2 through 17 Omitted.
ADDENDA <Act No. 11873, Jun. 7, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 12162, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014: Provided, That the amended provisions of Article 81-6 (2) shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Upper Limit on Penalty Taxes)
The amended provisions of Article 49 (1) 1 and 2 shall apply to the imposition of penalty taxes on or after the date this Act enters into force.
Article 3 (Applicability to Selection of Persons Subject to Tax Investigation)
The amended provisions of Article 81-6 (2) shall apply starting from the taxable period where the enforcement date of this Act belongs.
Article 4 (Applicability to Payment of Bounty)
The amended provisions of Article 84-2 (1) shall apply to the submission or filing a report of data on or after the date this Act enters into force.