The Threshold for Seizing Bank Deposits and Salaries of Local Tax Delinquents Raised to 1.85 Million Won

Amendment to the Enforcement Decrees of the Framework Act on Local Taxes, Local Tax Collection Act, and Local Non-Tax Revenue Act

[Asia Economy Reporter Jo In-kyung] The government has raised the seizure exemption threshold for deposits and wages of local tax delinquents, considering the minimum living expenses, from the previous 1.5 million won to 1.85 million won. Additionally, tobacco import sellers, who were previously unable to pay tobacco consumption tax by credit card, will now be able to make payments using credit cards.

The Ministry of the Interior and Safety announced that the 'Partial Amendment Ordinance of the Enforcement Decree of the Local Tax Basic Act,' the 'Partial Amendment Ordinance of the Enforcement Decree of the Local Tax Collection Act,' and the 'Partial Amendment Ordinance of the Enforcement Decree of the Act on the Collection of Local Non-Tax Revenues' were approved at the Cabinet meeting on the 24th and will be promulgated and enforced immediately.

First, according to the amendment of the Enforcement Decree of the Local Tax Collection Act, the seizure exemption threshold for deposits and wages of local tax delinquents has been raised to 1.85 million won, aligning with the standard set by the Enforcement Decree of the Civil Execution Act.

Along with this, the payment method for tobacco consumption tax has been improved to allow credit card payments, enhancing convenience for payers.

Regarding tobacco consumption tax, previously, tobacco removed from bonded areas was collected on behalf of the local government where the main office of the import seller was located (special withholding agent) and then apportioned to each local government. However, since January this year, the special withholding obligation has been abolished, and import sellers are now required to directly report and pay to each local government.

The obligation to submit a tax payment certificate proving no local tax delinquency related to foreigners’ departure has been adjusted more reasonably. Previously, foreigners had to submit a tax payment certificate when leaving the country, but from now on, only those who have registered as foreigners or reported their domestic residence must submit it when applying for an extension of their stay period or similar permissions.

Regarding the Enforcement Decree of the Local Tax Basic Act, the Ministry of the Interior and Safety expanded the number of civilian members in the 'Local Tax Law Interpretation Review Committee,' which deliberates on the interpretation of local tax-related laws, to enhance expertise and transparency. Additionally, to facilitate consultation and coordination with related agencies on the collection and provision of local tax data and to ensure smooth linked support, a basis for establishing and operating a Tax Data Submission Institution Council was prepared.

In the Enforcement Decree of the Act on the Collection of Local Non-Tax Revenues, the name of local non-tax revenues was changed to 'Local Administrative Sanctions and Impositions' to clarify the purpose of the legislation and its scope of application.

Ko Gyu-chang, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, said, "We expect that this amendment to the enforcement decrees will improve support for economically struggling livelihood delinquents and enhance convenience for taxpayers in making payments. We will continue to pay attention to even small inconveniences faced by taxpayers and work to improve the system."

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