[Amendment to Enforcement Decree of Tax Law] From Next Year, 'Travel Agencies and Pet Funeral Services' Must Also Issue Cash Receipts

Ministry of Economy and Finance's 'Follow-up Enforcement Decree Amendment for Tax Law Revision'
13 Mandatory Issuance Industries Added for Income Tracking and Tax Base Expansion
Corporate Business Passenger Cars Must Attach Exclusive License Plates to Be Recognized as Necessary Expenses

Starting next year, travel agencies, swimming pools, and pet funeral services will also be required to issue cash receipts for transactions of 100,000 won or more. This measure aims to facilitate income tracking and formalize the tax base. Additionally, corporate passenger cars must display exclusive license plates to have operating expenses and depreciation costs recognized as necessary expenses.

The Ministry of Economy and Finance announced the 'Amendment to the Enforcement Decree Following the Tax Law Revision' containing these details on the 23rd.

First, from January 1 next year, to expand the income base, 13 industries will be added to the mandatory cash receipt issuance sectors: ▲service industry ▲swimming pool operation ▲squash court and other sports facility operations ▲outdoor stadium operation ▲indoor stadium operation ▲comprehensive sports facility operation ▲bowling alley operation ▲ski resort operation ▲clothing accessories and imitation jewelry retail ▲computer and peripheral equipment repair ▲ambulance services ▲pet funeral and protection services. Study cafes will be included under the previously mandatory reading room operation sector. As a result, the number of mandatory issuance sectors will increase from 12 to 138.

The requirements for including corporate passenger car expenses as deductible will be strengthened. From the business year including January 1 of this year, only corporate passenger cars with exclusive license plates attached will have their operating expenses and depreciation costs recognized as deductible. This is intended to prevent private use of corporate passenger cars.

For preventing tax evasion, those subject to travel bans or suspension requests will now include "high-value customs evaders (with evaded customs duties of 200 million won or more) among those who have defaulted on customs duties of 50 million won or more and whose names have been publicly disclosed." Until now, the Customs Service Commissioner has requested travel bans or suspensions only for those whose spouses or direct ascendants/descendants have emigrated abroad, those found to have overseas assets equivalent to 50,000 USD or more, and high-value habitual tax delinquents whose names have been publicly disclosed.

The criteria for exempting small financial assets and wage claims from seizure will be raised. The Enforcement Decree of the National Tax Collection Act prohibits seizure of small financial assets necessary for livelihood, and this standard amount will be adjusted upward considering inflation. The seizure exemption criteria will increase from 1.85 million won to 2.5 million won for individual deposits and wage claims, from 10 million won to 15 million won for death insurance benefits, and from 1.5 million won to 2.5 million won for surrender or maturity refunds of protection-type insurance.