Tax deadline in Korea (local tax)

Besides national taxes like income tax and value-added tax, you also have obligation to pay local taxes in Korea.
Local taxes are managed by district office unlike national taxes which are managied by tax authority like NTS.

 

*If you want to know national tax deadline, please click below links.

Tax deadline in Korea (National tax)

Another difference of these two taxes is way of deciding tax amounts.

Natioal taxes are typaically decided by filing tax retutn to tax office. On the other hand, local taxes are decided by district office and taxpayer. tax payer don't need to file tax return typically.

It's because local taxes are imposed to assets like house, land and buildings or vehcle. and local taxes are also imposed based on national taxes. for example, you shall pay 10% of your withholding taxes as local taxes.

Today I'm going to explain local tax deadline of each tax based on each tax law's article.

www.g-tax.kr

 

1.Local taxes based on incomes and withholding tax

Local income taxes on global income, corporation and capital gains have same tax base as national tax(income tax,corporation and capitals) and tax rates are 1/10 of national taxes.
Therefore, typically local tax amounts are 10% of national tax amounts.

1)Local income tax on global income

Article 91 (Tax Base)
The tax base for a personal local income tax on the global income of a resident shall be the amount calculated pursuant to Article 14 (2) through (5) of the Income Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base under the Restriction of Special Taxation Act and other Acts, is applied, the amount calculated according to such special taxatio

Article 95 (Final Return of Tax Base and Tax Payment)
Where a resident files a final tax base return of global income or retirement income pursuant to the Income Tax Act, he/she shall file a final tax base return of personal local income tax on global income or retirement income with the head of a local government having jurisdiction over a place for tax payment and pay the amount thereof to him/her by the deadline for filing the relevant return, as prescribed by Presidential Decree

->Tax deadline is same as national tax

 

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2)Local income tax on capital gains

Article 103 (Tax Base)
The tax base for personal local income tax on capital gains shall be the amount calculated pursuant to Article 92 of the Income Tax Act (where special provisions on taxation, such as tax reductions and exemptions or heavy taxation related to the calculation of the tax base, under the Restriction of Special Taxation Act and other Acts apply, the amount calculated pursuant to the special provisions on taxatio

Article 103-7 (Final Tax Base Return and Payment)
Within Two month after a resident files a final tax base return on capital gains pursuant to Article 110 of the Income Tax Act, he/she shall file a final return on tax base for personal local income tax on capital gains with and pay the tax amount to the head of a local government having jurisdiction over a place for tax payment by the deadline for filing the tax return, as prescribed by Presidential Decree

->Tax deadline is two month longer than national tax

 

 

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3)Local income tax on Korean corporation in each business year

Article 103-19 (Tax Base)
The tax base for corporate local income tax on the income of Korean corporations in each business year shall be the amount calculated pursuant to Article 13 of the Corporate Tax Act (where special taxation, such as a tax reduction or exemption or heavy taxation related to the calculation of the tax base, applies pursuant to the Restriction of Special Taxation Act and other Acts, referring to the amount calculated according to such special taxation)

Article 103-23 (Final Return and Payment concerning Tax Base and Tax Amount)
Korean corporation obliged to file a tax return under Article 60 of the Corporate Tax Act shall report the tax base and amount of corporate local income tax on income in the business year to the head of a local government having jurisdiction over a place for tax payment within four months from the end of a month to which the closing date of each business year belongs, as prescribed by Presidential Decree

->Tax deadline is a month longer than national tax

 

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4)Special collection concerning personal income

Article 103-13 (Obligations to Perform Special Collection)
Where a person obligated to withhold tax under the Income Tax Act or the Restriction of Special Taxation Act withholds income tax from residents, he/she shall specially collect the amount equivalent to 10/100 of income tax (where special provisions on taxation, such as a tax reduction or exemption or heavy taxation, apply pursuant to the Restriction of Special Taxation Act and other Acts, referring to income tax to which such special provisions on taxation apply) withheld as personal local income tax simultaneously with the withholding of income tax, as prescribed by Presidential Decree. In such cases, a person obligated to withhold tax under the said Act shall be a person responsible for special collection of personal local income tax (hereafter referred to as "person responsible for special collection" in the Section

>Tax deadline is same as national tax

 

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2.Local taxes based on assets

The period for payment of property tax shall be as follow

1.Land: From 16th to 30th day of September of each year

2.Building: From 16th to 31st day of July of each year

3.Housing: The payment period of a half of the amount of tax to be imposed and collected in the relevant year shall be from 16th to 31st day of July of each year, and the remaining one half from 16th to 30th day of September of each year: Provided, That where the amount of tax to be imposed in the relevant year is not more than 200,000 won, the amount of tax may be imposed and collected at the same time during the payment period from 16th to 31st day of July, as stipulated by the relevant municipal ordinan

4.Ships: From 16th to 31st day of July of each yea

5.Aircraft: From 16th to 31st day of July of each yea

6.Automobile : 1st term - From Jun 16 to Jun 30 / 2nd term - From Dec 16 to Dec 31
*Notwithstanding , if a person liable to pay tax intends to pay the annual amount of tax in lump sum, he/she may file a return and pay the amount after deducting 10/100 of the annual amount of tax (referring to the amount of tax for the period after the deadline for payment in lump sum) as the annual amount of tax within the following periods, as prescribed by Presidential Decree

 

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3.Local taxes based on business

1)Local taxes on pro rata property protion

Article 80 (Tax Base)
The tax base of the pro rata property portion shall be the total floor area of a place of business as of the tax base date

Article 83 (Methods of Collection, Payment Due Date, etc.)
1.The pro rata property portion shall be collected by means of a tax return and payment
2.The tax base date of a pro rata property portion shall be July 1
3.A person liable to pay the pro rata property portion shall file a tax return and pay tax annually to the head of the local government having jurisdiction over the place of tax payment, as prescribed by Presidential Decree from Aug 1 to Aug 31 of a year.

2)Local taxes on employee portion

Article 84-2 (Tax Base)
The tax base of the employee portion shall be the total amount of wages in the relevant month paid to employee

Article 84-6 (Methods of Collection and Period of Payment)
1.The employee portion shall be collected by means of a tax return and payment
2.A person liable to pay taxes on the employee portion shall file a tax return and pay tax monthly to the head of a local government having jurisdiction over a place for tax payment by the tenth day of the following month, as prescribed by Presidential Decreee

 

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