Detention for up to 30 Days in Holding Cells for Local Tax Delinquents Owing Over 10 Million Won

[Asia Economy Reporter Hyungsoo Park] The government will introduce a system that allows detention of high-amount and habitual local tax delinquents who owe more than 10 million won in a detention center.

The Ministry of the Interior and Safety announced on the 11th that it will give legislative notice on the 12th for the '2020 Local Tax Related Laws (Framework Act on Local Taxes, Local Tax Collection Act, Local Tax Act, Local Tax Special Cases Act) Amendment Bill.'

The amendment includes provisions to detain high-amount and habitual local tax delinquents in a detention center for up to 30 days. Those who have the ability to pay but have failed to pay local taxes three or more times, with each delinquency occurring over a year ago, and whose total delinquent local taxes amount to 10 million won or more, will be subject to detention. The delinquent detention system currently exists for national taxes. To enhance the effectiveness of delinquent tax collection, it will be introduced for local taxes as well.

The amendment also establishes the basis for entrusting the authority to seize and sell imported goods of high-amount and habitual delinquents to the customs office chief. This allows for compulsory collection at the import customs clearance stage.

The amendment also includes an extension of acquisition tax and property tax reductions for the agriculture and fishery sectors, which are struggling due to the novel coronavirus infection (COVID-19). Additionally, acquisition tax and property tax reductions for industrial complex facilities housing venture companies will be extended for three years. To support small business owners, personal local income tax deductions and reductions will also be extended for one year.

This content was produced with the assistance of AI translation services.