Written date: 2018/07/30
Written by: Selim Tax-Accounting Firm
 
<1>Tax Payer
Every July 1 (referred to as the tax base date), the taxpayer shall be the employer listed in the current taxpayer registry.

<2> object of Taxation
Establishments with a floor area (exclusive + public) exceeding 330 square meters
(If there is the same place of business in an adjacent building, report it as a combined area)
 
<3> Place of Tax Payment
As of the date of the tax base, each city and county that has jurisdiction over the location of the establishment shall be charged for each establishment.
 
For example, in judging the property taxpayers, in case there is a head office and a branch office, it is reasonable to judge whether each shop is duty free.
 

<4> Tax Rate
Establishment Total floor space 250 won per square meter (Gross area m² * 250 won)
 

<5> Area excluded from the gross area of ​​business buildings (range of non-taxable floor area)

Dormitory, residence hall, residence, cafeteria, medical room, library, gymnasium, rest room, bath room and dressing room which are directly used for employee health, welfare and cultivating culture.

<6> Report, payment period
July 1^st to July 31^st annually 

<7> Additional tax in case of unpaid, undeclared
Tax paid without declaration: additional tax on insincere tax declaration 20% + additional tax on insincere payment
Tax not paid after declaration: additional tax on insincere payment (tax amount * delayed days * 3/10,000 )
 
<8> Review of the tax obligation in case, some of the lease premises is rented, self-used or vacant

Lease Operator: The scope of the business refers to the place where the business or office is continuously carried out with human and physical equipment, so it refers to the place where the lease business occurs regardless of ownership of the building.

Tenant: In case gross area of the premises used by tenant exceeds 330m², there is a reporting obligation.

Vacant: Vacant space is not a place to operate business, therefore even if the place is owned by the lease operator, there is no tax liability by the following action.