Resident Tax System Simplified into 3 Types... Unified Payment Deadline in August

Integration and Reform of Resident Tax Equalization and Property Portions into Resident Tax Business Location Portion

[Asia Economy Reporter Lim Cheol-young] The Ministry of the Interior and Safety announced on the 29th that it has simplified the taxation system of the resident tax into three categories and unified the payment deadline to August starting this year.

The types of resident tax, which were previously complicated with five detailed categories such as equal division, property division, and employee division, have been simplified into three categories: individual division, business place division, and employee division, thereby streamlining the types of resident tax to be paid. The payment deadlines, which were previously in July (property division) and August (equal division), have been unified to August.

Accordingly, business owners who previously paid the resident tax property division in July will have their payment deadline changed to between the 1st and 31st of next month. In addition to the property division, the equal division must also be reported and paid together as the resident tax business place division. The resident tax business place division is based on the business place and its total floor area as the tax base, and the amount to be paid is the sum of the tax amounts calculated according to the basic tax rate and the floor area tax rate.

Meanwhile, to minimize inconvenience caused by taxpayers voluntarily reporting instead of receiving tax bills, payment slips with the tax amount indicated will be mailed during the payment period.

Park Jae-min, Director of the Local Finance and Economy Office, explained, “We simplified the resident tax taxation system to reduce the number of tax payments for business owners and unified the payment deadline to August,” adding, “We will strive to actively promote and guide so that taxpayers can pay the resident tax business place division in August without inconvenience.”