Gyeonggi-do Provides Tax Benefits for Flood-Damaged Vehicles and Buildings

Cars, buildings, machinery, etc. rendered unusable due to flooding
Acquisition tax exemption if destroyed or damaged buildings, cars, etc. are replaced within 2 years

[Image source=Yonhap News]

[Asia Economy Reporter Ra Young-cheol] Gyeonggi Province has stepped up to provide tax benefits such as local tax reductions applied during disasters like floods for residents affected by the heavy rain concentrated in the metropolitan area.

According to the province on the 11th, if buildings (houses, commercial buildings, offices, factories, etc.), automobiles, machinery, and equipment are lost or damaged due to natural disasters such as floods, and replacement buildings or automobiles are newly purchased within two years, acquisition tax can be exempted.

In addition, if a vehicle is submerged and unusable, automobile tax will be exempted based on the date of flooding.

If buildings or vehicles suffer flood damage and the property tax or acquisition tax already notified or reported cannot be paid by the due date, submitting a report to the city or county tax office of the location can extend the payment deadline by up to one year.

For defaulters, collection can be deferred or the default disposition can also be postponed.

'Default disposition' refers to the seizure of the defaulter's property by the state or local government to forcibly collect overdue local taxes, followed by disposal through procedures such as public auction.

To receive local tax reduction benefits, a damage confirmation certificate issued by the head of the affected area’s eup, myeon, or dong must be submitted to the city or county tax department.

In the case of submerged vehicles, a total loss certificate issued by the head of the General Insurance Association or a scrapping receipt certificate issued by the scrapyard is also acceptable.

Choi Won-sam, head of the Taxation Division, said, "Local tax laws stipulate tax support measures to assist when property losses occur due to natural disasters or other force majeure," adding, "If you suffered flood damage from this heavy rain, you should inquire at your local city or county tax office about available tax support."