Ulsan City to Receive First 'Leisure Tax' Revenue from Keirin and Kyungjeong... Local Tax Law Revised to Share Online Sales Revenue

Ulsan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ulsan City will have revenue from the 'leisure tax' starting this year.

The revised 'Local Tax Act' came into effect this year, resulting in leisure tax revenue for Ulsan City.

Since August last year, the 'Bicycle Racing and Motorboat Racing Act' was amended to allow online sales of winner betting tickets for bicycle and motorboat racing. With the revised Local Tax Act effective from January 1 this year, regulations on the tax payment location for online leisure tax sales were newly established.

Previously, sales were only made at the main venues and off-site sales offices where bicycle or motorboat racing tracks were located. In such cases, the business location was the tax payment location, and since Ulsan had no such business locations, it had no leisure tax revenue.

Under the new regulation, 50% of the tax revenue from online sales is attributed to the city or province where the business (main venue) is located, and the remaining 50% is distributed nationwide to cities and provinces based on population.

Accordingly, cities and provinces that previously had no leisure tax revenue will now have leisure tax revenue starting from the tax obligation established in January 2022.

The leisure tax is a local tax levied at 10% on the amount obtained from selling winner betting tickets or horse racing betting tickets for horse racing, bicycle racing, motorboat racing, etc.

Ulsan City plans to review the trend of reported payments starting in February, as taxpayers are required to report and pay by the 10th of the month following the month in which the winner betting ticket was sold, and reflect the tax revenue scale in the supplementary budget.

An official from Ulsan City said, “Although the tax revenue is expected to be minimal in the early stages of online sales for bicycle and motorboat racing, the demand for non-face-to-face services is gradually increasing, so we expect significant expansion of tax revenue.”

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