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Busan Metropolitan City Ordinance on City Tax

By Tax Administration Division 2018. 2. 28 642  Views
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BUSAN METROPOLITAN CITY ORDINANCE ON CITY TAX

Wholly Amended by Busan Metropolitan City Ordinance No. 5335, Jun. 8, 2016

CHAPTER I GENERAL PROVISIONS

  • Article 1 (Purpose)
  • The purpose of this Ordinance is to prescribe matters stipulated by the Local Tax Act to be prescribed by an ordinance as well as those necessary for the enforcement thereof.
  • Article 2 (Application)
  • Except as otherwise expressly provided for in the Local Tax Act (hereinafter referred to as the "Act") and the Enforcement Decree of the Local Tax Act, this Ordinance shall apply to the imposition and collection of the city tax of the Busan Metropolitan City (hereinafter referred to as the “city tax”).

CHAPTER II ACQUISITION TAX

  • Article 3 (Tax Rates)
  • The acquisition tax rates, as prescribed by this Ordinance pursuant to Article 14 of the Act, shall be the standard tax rates referred to in Articles 11 and 12 of the Act.
  • Article 4 (Reporting by Oligopolistic Stockholders)
  • “As stipulated by the relevant municipal ordinance” in the latter part of Article 10 (4) of the Act means that an oligopolistic stockholder provided for in Article 7 (5) of the Act files a report with the head of a Gu/Gun having jurisdiction over the place for tax payment for the relevant objects of taxation (hereinafter referred to as “the head of a Gu”) along with the documents evidencing the following matters, to verify the tax base for acquisition tax and other necessary matters:
    • 1. The location of the head office or branch of a corporation;
    • 2. The list of stockholders or employees (including the changed matters);
    • 3. The date of, and reason for, acquiring property;
    • 4. The tax base and the basis of calculation thereof;
    • 5. Other reference details, such as changes in stocks or investment shares.
  • Article 5 (Tax Return and Payment for Leased Ships)
  • Where a lessor specified in the Specialized Credit Financial Business Act engages in leasing a ship, a lessor or lessee shall file a return and pay the acquisition tax to the head of the relevant Gu, according to the following classifications, corresponding to Article 7 (9) and (10) of the Act, irrespective of the titleholder recorded in the registry or registration document of the ship:
    • 1. Where a registry or registration document is made in the name of a lessor:
      • (a) Where the location of the head office, branch or business office (hereafter referred to as “location” in this Article) of a lessor is in Busan Metropolitan City (hereinafter referred to as “City”): A Gu/Gun having jurisdiction over the location;
      • (b) Where the location is not in the City: Joong-gu;
    • 2. Where a registry or registration document is made in the name of a lessee:
      • (a) In cases of a corporation: A Gu/Gun having jurisdiction over the location of the corporation;
      • (b) In cases of an individual: A Gu/Gun having jurisdiction over the individual's place of domicile;
      • (c) Where the location or the place of domicile is not in the City: Joong-gu.

CHAPTER III REGISTRATION AND LICENSE TAX

  • Article 6 (Tax Bases and Rates)(1) The registration and license tax base on registration, as prescribed by this Ordinance pursuant to the main sentence of Article 27 (2) of the Act, shall be the value reported by the relevant registrant: Provided, That where the registrant does not report the value or the reported value is less than the statutory standard price described in Article 4 of the Act, such tax base shall be the statutory standard price.
  • (2) The registration and license tax rates for registration of real estate, as prescribed by this Ordinance pursuant to Article 28 (6) of the Act, shall be the standard tax rates referred to in paragraph (1) 1 of the same Article.
  • Article 7 (Period for Payment)
  • The period for payment of registration and license tax on licenses, as prescribed by this Ordinance pursuant to Article 35 (2) of the Act, shall be between January 16 and January 31, each year.

CHAPTER IV LEISURE TAX

  • Article 8 (Duties to Keep Books of Account)
  • “As stipulated by the relevant municipal ordinance” in Article 44 of the Act means that persons liable to pay tax keep the books of account which state the following matters regarding the implementation of bicycle racing, etc. pursuant to Article 41 of the Act for five years. In such cases, where the persons liable to pay tax manage the books of account by preparing and handling them with computerized data processing devices, they shall be deemed to have kept the books of account:
    • 1. The methods and types of issuing betting tickets or horse racing tickets, the number of tickets and the amount thereof issued by face value of a ticket;
    • 2. The amount of leisure tax calculated under Article 42 of the Act;
    • 3. The number of winning tickets by face value of a betting ticket or horse racing ticket;
    • 4. Where there is no person who chooses the winner or winning horse, the reasons therefor.

CHAPTER V RESIDENT TAX (PER CAPITA PORTION)

  • Article 9 (Tax Rates)
  • The tax rates for per capita portion, as prescribed by this Ordinance pursuant to Article 78 (1) 1 (a) and (2) of the Act, shall be as follows:
    • 1. The tax rates for individuals:
      • (a) The tax rates for individuals having the places of domiciles in the Gu under the jurisdiction of the City: 10,000 won;
      • (b) The tax rates for individuals having business offices in the Gu under the jurisdiction of the City: 75,000 won;
    • 2. The tax rates for corporations:
      • Classification Tax Amount
      A corporation with capital or investment amount (referring to the capital or investment amount as of the tax base date; hereafter the same shall apply in this Article) of more than ten billion won, and with more than 100 employees (referring to the employees described in subparagraph 9 of Article 85 of the Act; hereafter the same shall apply in this Article) in the relevant place of business as of the tax base date. 750,000 won
      A corporation with capital or investment amount of more than five billion won and not more than ten billion won, and with more than 100 employees in the relevant place of business as of the tax base date. 525,000 won
      A corporation with capital or investment amount of more than five billion won, and with not more than 100 employees in the relevant place of business as of the tax base date, and a corporation with capital or investment amount of more than three billion won and not more than five billion won, and with more than 100 employees in the relevant place of business as of the tax base date. 300,000 won
      A corporation with capital or investment amount of more than three billion won and not more than five billion won, and with not more than 100 employees in the relevant place of business as of the tax base date, and a corporation with capital or investment amount of more than a billion won and not more than three billion won, and with more than 100 employees in the relevant place of business as of the tax base date. 150,000 won
      Other corporations 75,000 won

CHAPTER VI LOCAL INCOME TAX

  • Article 10 (Tax Rates)(1) The personal local income tax rates for gross income, as prescribed by this Ordinance pursuant to Article 92 (2) of the Act, shall be the standard tax rates referred to in paragraph (1) of the same Article.
  • (2) The personal local income tax rates for capital gains, as prescribed by this Ordinance pursuant to Article 103-3 (4) of the Act, shall be the standard tax rates referred to in paragraph (1) of the same Article.
  • (3) The corporate local income tax rates for income of Korean corporations in each business year, as prescribed by this Ordinance pursuant to Article 103-20 (2) of the Act, shall be the standard tax rates referred to in paragraph (1) of the same Article.

CHAPTER VII AUTOMOBILE TAX ON POSSESSION OF AUTOMOBILES

  • Article 11 (Tax Rates)
  • The automobile tax (referring to the annual tax per automobile) rates for the possession of automobiles, as prescribed by this Ordinance pursuant to Article 127 (3) of the Act, shall be the standard tax rates referred to in paragraph (1) of the same Article.

CHAPTER VIII LOCAL RESOURCE AND FACILITY TAX

  • Article 12 (Tax Rates)
  • The local resource and facility tax rates, as prescribed by this Ordinance pursuant to Article 146 (4) of the Act, shall be as follows:
    • 1. Water used for power generation: The standard tax rate described in Article 146 (1) 1 of the Act;
    • 2. Underground water: The standard tax rate described in Article 146 (1) 2 of the Act;
    • 3. Underground resources: The standard tax rate described in Article 146 (1) 3 of the Act:
      • (a) The value of mined minerals which is the tax base means the value of concentrate, which is the amount determined and publicly announced by the Busan Metropolitan City Mayor based on the market price as of January 1 and July 1, each year: Provided, That where no mine lot is set in the City, he/she need not publicly announce it;
      • (b) In cases of a corporation, notwithstanding the main sentence of subparagraph (a), the value of mined minerals means the book value of the corporation prescribed by Article 18 (3) 2 of the Enforcement Decree of the Local Tax Act: Provided, That where there is no book value of the corporation or it is not verified, the value of mined minerals shall be the value determined and publicly announced by the Busan Metropolitan City Mayor pursuant to item (a);
    • 4. Specific real estate: The standard tax rate described in Article 146 (2) of the Act.
  • Article 13 (Tax Returns and Payment, and Imposition and Collection)
  • The method of tax returns and payment, and imposition and collection of the local resource and facility tax, as prescribed by this Ordinance pursuant to Article 147 (1) 1 and 2 of the Act, shall be as follows:
    • 1. Water used for power generation: For water used for power generation from the first day to the last day of each month, persons liable to pay tax shall file a return and pay the tax calculated by applying the tax rates under subparagraph 1 of Article 12 to the head of the relevant Gu, by the last day of the next month;
    • 2. Underground water:
      • (a) For underground water pumped up from the first day to the last day of each month, persons liable to pay tax shall file a return and pay the tax calculated by applying the tax rates under subparagraph 2 of Article 12 to the head of the relevant Gu, by the last day of the next month;
      • (b) Notwithstanding item (a), the head of a Gu may collect the local resource and facility tax by means of ordinary collection from persons who pump up underground water in each of the following periods pursuant to the proviso to Article 147 (1) 1 of the Act, by each of the following payment deadlines:
        Classificatio Period Payment Deadline
        1st quarter From January to March From April 16 to 30
        2nd quarter From April to June From July 16 to 31
        3rd quarter From July to September From October 16 to 31
        4th quarter From October to December From January 16 to 31 of the next year
      • (c) Notwithstanding item (b), the head of a Gu may collect the tax occasionally by calculating the used amount of underground water in any of the following cases:
        • (i) Where the water pumping hole is newly established;
        • (ii) Where the water pumping hole is transferred;
        • (iii) Where the water pumping hole is closed;
      • (d) Where the verification of the used amount of underground water is possible since a water pumping meter linked to the water pumping hole is installed, it shall be based on the amount checked pursuant to the Busan Metropolitan City Ordinance on Use of Sewage; and where a water pumping meter is not installed or it is impossible to verify the used amount of underground water due to the breakdown of or damage to a water pumping meter, it shall be based on the amount calculated by multiplying the number of days using underground water by the maximum amount of underground water that may be pumped up;
      • (e) Each person, who intends to produce drinking water from underground water for sale, or use underground water for bath, shall install a water pumping meter, which enables verification of the used amount, in the water pumping pipe linked to the water pumping hole, and report it to the head of the relevant Gu;
    • 3. Underground resources: For minerals mined from the first day to the last day of each month, persons liable to pay tax shall file a return and pay the tax calculated by applying the tax rates under subparagraph 3 of Article 12 to the head of the relevant Gu, by attaching the form No. 38 of the Enforcement Rule of the Mining Industry Act, by the last day of the next month;
    • 4. Nuclear power generation: For nuclear power generation each month, persons liable to pay tax shall file a return and pay the tax calculated by applying the tax rates under Article 146 (1) 5 of the Act to the head of the relevant Gu, by the last day of the next month;
    • 5. Thermal power generation: For thermal power generation each month, persons liable to pay tax shall file a return and pay the tax calculated by applying the tax rates under Article 146 (1) 6 of the Act to the head of the relevant Gu, by the last day of the next month.
  • Article 14 (Areas Subject to Imposition of Tax)
  • Among the areas in which water used for power generation, underground water, underground resources, nuclear power generation, thermal power generation, or fire-fighting facilities of specific real estate are located, the area subject to the imposition of local resource and facility tax, as prescribed by this Ordinance pursuant to Article 147 (3) of the Act, shall be the entire City.
  • Article 15 (Application Mutatis Mutandis of Imposition and Collection of Property Tax)
  • Except as otherwise expressly provided for in this Ordinance, the local resource and facility tax on specific real estate shall be imposed and collected in the same manner as property tax is imposed and collected pursuant to Article 147 (3) of the Act.

CHAPTER IX LOCAL EDUCATION TAX

  • Article 16 (Tax Rates)
  • The local education tax rates, as prescribed by this Ordinance pursuant to Article 151 (2) of the Act, shall be the standard tax rates referred to in paragraph (1) of the same Article.

CHAPTER X SUPPLEMENTARY RULES

  • Article 17 (Delegation of Imposition and Collection)
  • Article 3 of the Busan Metropolitan Framework Ordinance on City Tax shall apply to the delegation of imposition and collection of the city tax.
  • Article 18 (Enforcement Rules)
  • Matters necessary for the enforcement of this Ordinance shall be prescribed by Rules.

ADDENDA

  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2 (General Applicability)
  • This Ordinance shall begin applying to the portion for which the duty to pay tax is established first after this Ordinance enters into force.
  • Article 3 (General Applicability)
  • The former Ordinance shall apply to the city tax which has been imposed or is liable to be imposed according to the former Ordinance as at the time this Ordinance enters into force.
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