Suwon City Recovers 7.14 Billion KRW Through Tax Investigation Last Year

The city of Suwon in Gyeonggi Province collected an additional 7.14 billion KRW through tax audits last year. This amount represents an increase of 1.599 billion KRW (28.8%) compared to 2023.

On the 8th, Suwon City announced that it conducted regular tax audits on 135 corporations selected through the ‘Suwon City Local Tax Deliberation Committee’ and collected 4.25 billion KRW, and through planned tax audits that uncovered evaded or omitted tax sources, it collected 2.89 billion KRW.

Regarding the collected tax amounts, acquisition tax was the highest at 4.735 billion KRW (66.3%). This was followed by ▲local income tax at 1.21 billion KRW (16.9%), ▲resident tax at 861 million KRW (12.1%), and ▲other local taxes such as local education tax at 334 million KRW (4.7%).

The most common type of regular tax audit collection was underreporting of construction costs such as option fees and construction fund interest, amounting to 2.249 billion KRW, accounting for 52.9% of the total.

Suwon City Hall

Additionally, cases where corporations with headquarters in Seoul or other areas reported real estate acquired within the urban growth control zone at the general tax rate were subject to the ‘metropolitan area surtax rate,’ resulting in collections of 704 million KRW (16.5%). Other collections included ‘non-taxable and exemption recoveries’ at 451 million KRW (10.6%) and others at 850 million KRW (20%).

For planned tax audits, Suwon City developed and applied an investigative technique to identify ‘unregistered business sites’ located within the jurisdiction.

A Suwon City official stated, "We introduced multifaceted tax audit techniques to uncover evaded and concealed tax sources and made efforts to secure tax revenue stably, achieving good results," adding, "Local tax audits are the most powerful tool to encourage sincere tax payment."

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