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Local taxes are levied primarily to raise capital needed to provide administrative services to local residents. The additional objectives of local taxes are income redistribution, regional industrial and economic growth, and balanced development of the country. Local taxes are divided into taxation of property, taxation of income, and taxation of consumption. Property taxation includes property tax, aggregate land tax, automobile tax, acquisition tax, and registration tax. Income taxation is comprised of agricultural income tax, income-proportional resident tax, etc. Consumption taxation includes license tax, leisure tax, motor fuel tax, tobacco consumption tax, butchery tax, regional development tax, and local education tax. Do tax, Si tax, and Gun tax are the categories of tax at the local level.
(1)Acquisition Tax
Acquisition tax is levied on individuals when acquiring certain assets. The tax base of the acquisition tax is the value of the asset at the time of acquisition. In principle, the value at the time of acquisition shall be as reported by the acquirer, but when there is no such declaration, mark of a declared price, or when the declared price does not meet the standard market value, the standard market value shall be applied. However, the acquisition price will be recognized as the tax base in cases of an acquisition from the national/local government, an acquisition from overseas, an acquisition in which the acquisition price is proven by corporate account books/rulings, or an acquisition through public auction. In addition, in cases of construction (new construction and reconstruction excluded) and repair, change of the type of vehicle/machinery, and change of land category, the value increased from such occurrence shall be the tax base.
(2)Registration Tax
Persons who register particulars concerning acquisition, creation, transfer, alteration, or lapse of property rights, or other titles in the official book are liable to registration tax.
(3)License Tax
Persons who have obtained licenses enumerated under Article 124 of the Presidential Decree are annually liable to the License Tax for each kind of license.
(4)Resident tax
Per capita refers to resident tax imposed on individuals whose address is in the jurisdiction of a given Si/Gun and corporation which own business places in the jurisdiction of Si/Gun.
Pro rata property tax is imposed based on the total area of work places.
(5)Local income tax
Local income tax is divided into pro rata income and pro rata employee taxes.
The tax base for pro rata income is income tax amount, corporate tax amount and agriculture income tax amount.
Pro rata employee income taxes are imposed on persons with business places within the jurisdiction of Si/Gun.
(6)Property tax
Property tax is a Si/Gun tax levied on the owners of land, buildings, vessels, and aircraft.
The taxable objects for land are divided into three categories: general aggregate taxable objects, special aggregate taxable objects and separate taxable objects.
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