If Public Golf Course Weekend Green Fee Exceeds 247,000 Won, Individual Consumption Tax Must Be Paid

Government Announces 'Follow-up Enforcement Decree Amendment for Tax Reform'

[Asia Economy Sejong=Reporter Lee Jun-hyung] Starting this year, the disclosure period for the list of tax evaders will be reduced to a basic period of 5 years. The maximum fine for false statements related to tax evasion and refusal to perform duties will increase from the existing 20 million KRW to 50 million KRW. Additionally, non-member golf courses, excluding public golf courses, will be excluded from the individual consumption tax exemption.

On the 18th, the Ministry of Economy and Finance announced the "2022 Tax Reform Follow-up Enforcement Decree Amendment" containing these details. This is a follow-up measure following the government's tax reform plan passing the National Assembly at the end of last year. The Ministry plans to announce the enforcement decree amendment for public comment from the 19th of this month until the 3rd of next month. The enforcement decree amendment is expected to be promulgated at the end of next month after the Cabinet meeting.

Tax Evaders Disclosed for 5 Years

The Ministry of Economy and Finance set the disclosure period for the list under the Framework Act on National Taxes in the enforcement decree amendment. Previously, the list of tax evaders was disclosed indefinitely without a specific time limit. However, according to the enforcement decree amendment, starting this year, the list of tax evaders will, in principle, be disclosed for only 5 years. This is intended to prevent excessive infringement of the rights of those on the list.

However, the disclosure period for habitual tax evaders and those involved in illegal distribution of duty-free fuel is set at 10 years. The lists of organizations receiving insincere donations and issuers of fabricated or false tax invoices will be disclosed for 3 years and 5 years respectively. A Ministry official explained, "To enhance the effectiveness of the list disclosure system, we have set disclosure periods for tax evaders and others."

The maximum fine for false statements related to taxes will increase from the existing 20 million KRW to 50 million KRW. This means that those who make false statements to tax authorities or refuse or evade duty execution can be fined up to 50 million KRW. According to the enforcement decree amendment, the current fine amount will be maintained for income up to 20 billion KRW. However, if income exceeds 20 billion KRW, the fine will increase by 10 million KRW for every 10 billion KRW unit, up to a maximum of 50 million KRW.

Individual Consumption Tax Imposed on Non-Member Golf Courses

The taxation system for non-member golf courses will also be reformed. Previously, golf courses other than member courses were exempt from individual consumption tax, but non-member golf courses with usage fees exceeding 188,000 KRW on weekdays and 247,000 KRW on weekends will be subject to individual consumption tax starting from July. The Ministry explained that, in line with the purpose of imposing individual consumption tax, non-member golf courses charging higher fees than member golf courses will be taxed. Individual consumption tax is an indirect tax imposed on expenses consumed at luxury venues such as golf courses and casinos.

The number of industries required to issue cash receipts mandatorily will increase from the existing 112 to 125. Thirteen industries with a high proportion of cash sales and high cash transaction amounts per transaction, including department stores, large supermarkets, convenience stores, and automobile brokerage, have been added. The mandatory membership for credit card and cash receipt merchants will expand from 197 to 200 industries. Ambulance services, fishing boat businesses, and study cafes are among the three newly added industries.

Meanwhile, the Ministry of Economy and Finance expects tax revenue to decrease by about 20 billion KRW due to this enforcement decree amendment. Although individual consumption tax and liquor tax will increase by 210 billion KRW and 20 billion KRW respectively, corporate tax will decrease by 250 billion KRW as a result.

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