NATIONAL TAX COLLECTION ACT

영문법령 불러오는 중…

NATIONAL TAX COLLECTION ACT — 법갈피

Article 13(Extension of payment deadline due to disaster or other event) #

(1) If the head of the competent tax office finds that a taxpayer is unable to pay a national tax by the payment deadline or the deadline specified in the demand note (hereafter referred to as "payment deadline" in this Article and Articles 15 and 16) in any of the following cases, the head of the competent tax office may extend the payment deadline as prescribed by Presidential Decree (including permitting the payment of the tax amount in installments; hereinafter the same shall apply):

1. If a taxpayer has sustained a severe economic loss due to a disaster or theft;

2. If the business operated by a taxpayer has incurred a severe loss or is likely to be insolvent or bankrupt;

3. If a taxpayer or any of his or her cohabiting family members needs medical treatment for not less than six months for an illness or a serious injury or is dead and is still in the period of mourning;

4. Other cases specified by Presidential Decree as where it is found that a taxpayer has difficulty in paying a national tax by the payment deadline.

(2) If a taxpayer wishes to have the payment deadline extended due to a cause or event described in any subparagraph of paragraph (1), he she may file an application with the head of the competent tax office as prescribed by Presidential Decree.

(3) When the head of the competent tax office extends the payment deadline under paragraph (1), he or she shall notify the taxpayer of the extension immediately as prescribed by Presidential Decree.

(4) Upon the receipt of an application under paragraph (2), the head of the competent tax office shall notify the taxpayer of whether to approve the extension of the payment deadline as prescribed by Presidential Decree, no later than the payment deadline.

(5) If a taxpayer filed an application under paragraph (2) no later than 10 days before the payment deadline but the head of the competent tax office fails to notify the taxpayer of whether to approve the application, within 10 days of the filing date of the application, the application under paragraph (2) shall be deemed approved on the tenth day after the filing date of the application.

Article 20(Method of offering security) #

(1) A person who intends to offer cash or securities as security for tax payment shall deposit them and shall submit the deposit receipt to the head of the competent tax office (referring to the head of the competent customs office if the head of a customs office is responsible for administrative affairs relating to a national tax under this Act and other tax laws; hereafter the same shall apply in this Section); provided, in cases of recorded securities, the fact that the securities are offered as security shall be recorded, and a certificate of such recordation shall be submitted.

(2) A person who intends to offer a guarantee insurance policy for tax payment or a guarantee letter for tax payment as security for tax payment shall submit the insurance policy or guarantee letter to the head of the competent tax office.

(3) A person who intends to offer land, a building, a factory asset, a mining asset, a ship, an aircraft, or a construction machine as security for tax payment shall present a certificate of registration, a notice of completion of registration, or a certificate of completion of registration to the head of the competent tax office; and the head of the competent tax office shall commence the procedures for registration or recordation for establishing a mortgage accordingly. In such cases, a person who intends to offer a building, a factory asset, a mining asset, a ship, an aircraft, or a construction machine, which has been insured against fire, as security for tax payment shall submit the relevant fire insurance policy to the head of the competent tax office. <Amended on Dec. 21, 2021>

(4) The head of the competent tax office shall inspect whether the certificate of registration, the notice of completion of registration, or the certificate of completion of registration presented under the former part of paragraph (3) is in conformity with the facts and, in any of the following cases, require the relevant taxpayer to provide other security: <Added on Dec. 21, 2021>

1. Where the offering of an asset as security is either prohibited or restricted pursuant to statutes or regulations (excluding where such offering is made by obtaining permission from the competent administrative agency in accordance with relevant statutes or regulations);

2. Where it is deemed impracticable to attain the purpose of offering an asset as security because the use of and profit from such asset is restricted pursuant to statutes or regulations.

(5) Except as provided in paragraphs (1) through (4), matters necessary for the methods of providing security for tax payment, etc. shall be prescribed by Presidential Decree. <Added on Dec. 21, 2021>

Article 31(Requirements for attachment) #

(1) In either of the following cases, the head of the competent tax office shall attach the taxpayer’s property:

1. If a taxpayer fails to pay the full amount of national taxes by the deadline specified in demand note served under Article 10;

2. If a taxpayer fails to pay the full amount of national taxes by the shortened deadline after receiving a payment notice under Article 9(2).

(2) If the head of the competent tax office considers that it is impossible to collect a national tax after the national tax is determined, due to a cause or event described in any subparagraph of Article 9(1), he or she may attach the taxpayer’s property for a maximum amount estimated to be determined for the national tax.

(3) When the head of the competent tax office intends to attach property under paragraph (2), he or she shall obtain prior approval from the commissioner of the competent regional tax office and shall notify the taxpayer concerned of the attachment, in writing, after the property is attached.

(4) Where property is attached under paragraph (2), the head of the competent tax office shall release property from attachment immediately in either of the following cases: <Amended on Dec. 21, 2021>

1. If the taxpayer demands releasing property from attachment, offering security for tax payment;

2. If the amount of a national tax to be collected in accordance with the attachment is not determined until three months (where a tax investigation conducted for determining a national tax is suspended pursuant to Article 81-8(4) of the Framework Act on National Taxes, the period of suspension shall not be included) have elapsed from the date of attachment.

(5) If the national tax to be collected by attachment is determined after attaching property under paragraph (2) and the attached property falls under either of the following subparagraphs, the head of the competent tax office may deem that the determined nation tax has been collected up to the value of the attached property, upon the taxpayer’s request:

1. Cash;

2. A deposit or securities collectible by the payment deadline.

Article 41(Non-attachable property) #

None of the following property is attachable:

1. Clothes, bedding, furniture, kitchen utensils, and other daily necessities indispensable to the life of the delinquent taxpayer and his or her family members making a living together (including the person in a de facto marital relationship; hereafter referred to as "cohabiting family members" in this Article);

2. Food or fuel that the delinquent taxpayer or his or her cohabiting family members need for three months;

3. Registered seals or other seals necessary for occupations;

4. Articles necessary for religious rites or worship, stone monuments, or graveyard;

5. Articles necessary for the funeral of the delinquent taxpayer or his or her cohabiting family members;

6. Books of accounts or documents that the delinquent taxpayer or his or her cohabiting family members need, including genealogy and diaries;

7. Uniforms necessary for performing duties;

8. Medals and other tokens of honor;

9. Books and tools necessary for the schooling of the delinquent taxpayer or his or her cohabiting family members;

10. Unpublished inventions or works;

11. Tools, livestock, feed, seeds, fertilizer, and other similar articles indispensable to persons engaging in agriculture mainly with their own labor;

12. Fishing nets, tools, baits, fry, and other similar articles indispensable to persons engaging in fisheries mainly with their own labor;

13. Tools, equipment, and other similar articles indispensable to professional workers, engineers, laborers, or other persons engaging in an occupation or a business mainly with their own physical or mental labor;

14. Eyeglasses, hearing aids, dentures, artificial limbs, canes, wheelchairs for aiding persons with disabilities, other similar body-assist devices, and compact motor vehicles defined in the Motor Vehicle Management Act, necessary for daily life of the delinquent taxpayer and his or her cohabiting family members;

15. Fire-fighting systems, warning devices, escape facilities, and other similar articles that shall be installed in accordance with statutes and regulations for disaster prevention or security;

16. Benefits paid for death or injuries under statutes and regulations;

17. The amount eligible for preferential payment under Article 8 of the Housing Lease Protection Act;

18. Small financial assets specified by Presidential Decree as those necessary for the livelihood of the delinquent taxpayer.

Article 45(Procedure for attachment of real estate and other immovables) #

(1) When the head of the competent tax office intends to attach the property referred to in any of the following subparagraphs, he or she shall request the competent registry to register attachment. The same shall also apply to the registration of any modification thereto:

1. Real estate registered under the Registration of Real Estate Act;

2. Factory assets and mining assets registered under the Factory and Mining Assets Mortgage Act;

3. A ship registered under the Ship Registry Act.

(2) When the head of the competent tax office intends to attach the property referred to in any of the following subparagraphs, he or she shall request the head of the relevant administrative agency or the head of the competent local government to register attachment. The same shall also apply to the registration of any modification thereto:

1. A motor vehicle registered under the Motor Vehicle Management Act;

2. A ship registered under the Ship Act (excluding the ships registered under the Ship Registry Act);

3. An aircraft or a light sport aircraft registered under the Aviation Safety Act;

4. A construction machine registered under the Construction Machinery Management Act.

(3) When the head of the competent tax office intends to partition or divide real estate, factory assets, or mining assets for the purpose of attachment, he or she shall request the competent registry to register the partition or division. The same shall also apply to the registration of a merger or of any modification thereto.

(4) When the head of the competent tax office intends to attach unregistered real estate, he or she shall request the registration of preservation to the competent registry, with a certified copy of the relevant land cadastre, building register, or certificate of combined real estate.

(5) When the head of the competent tax office considers that the motor vehicle, ship, aircraft, or construction machine attached under paragraph (2) is likely to be hidden or damaged, he or she may order the delinquent taxpayer to deliver it to take possession of it.

(6) When the head of the competent tax office executes attachment under paragraph (1), (2), or (4), he or she shall notify the delinquent taxpayer of the attachment.

Article 55(Procedure for attachment of other property rights) #

(1) When the head of the competent tax office intends to attach any other property right that needs registration or recordation for a change in the right, he or she shall request the registration or recordation of attachment to the competent registry, the head of the relevant administrative agency, or the head of the competent local government (hereinafter referred to as "competent registry or other competent authority"). The same shall also apply to the registration or recordation of a modification thereto.

(2) When the head of the competent tax office intends to attach any other property right that does not need registration or recordation for a change in the right, he or she shall notify either of the following persons of his or her intention:

1. If a third party obligor exists: The third party obligor;

2. If no third party obligor exists: The delinquent taxpayer.

(3) Where the head of the competent tax office intends to have any virtual asset defined in subparagraph 1 of Article 2 of the Act on the Protection of Virtual Asset Users (hereinafter referred to as "virtual asset") attached pursuant to paragraph (2), he or she may request the delinquent taxpayer [referring to a third party, if the third party, such as a virtual asset service provider defined in subparagraph 2 of Article 2 of that Act (hereinafter referred to as "virtual asset service provider"), has custody of the virtual asset of the delinquent taxpayer] to transfer the relevant virtual asset, in writing, as prescribed by Presidential Decree; and the delinquent taxpayer or the third party who has been requested to do so shall comply therewith. <Added on Dec. 21, 2021; Jul. 18, 2023>

(4) Where the head of the competent tax office attaches a virtual asset pursuant to paragraph (1) or (2) 1 or requests a third party who keeps the virtual asset of a delinquent taxpayer to transfer the relevant virtual asset pursuant to paragraph (3), the head of the competent tax office shall notify the delinquent taxpayer of such fact. <Amended on Dec. 21, 2021; Dec. 31, 2023>

(5) When the head of the competent tax office attaches any other property right, he or she shall commence a sale and collection by applying Article 52(3) and (4) mutatis mutandis or under Article 64. <Amended on Dec. 21, 2021>

Article 57(Requirements for release from attachment) #

(1) The head of the competent tax office shall immediately release the attachment in any of the following cases: <Amended on Dec. 31, 2023>

1. Where the delinquent amount subject to attachment is fully paid or collected (referring to setting off an amount refundable from a national tax or any other amount payable by the head of the competent tax office in cash under tax laws against the amount equivalent to the delinquent amount; hereafter the same shall apply in this Article and Articles 60(1) and 71(5));

2. Where the imposition of a national tax is completely canceled;

3. Where a number of assets were put on a public auction in a package and the delinquent amount fully collected from the price for some assets on the public auction;

4. Where it is necessary to terminate forced collection because no amount is expected to be left over after collecting the forced collection charge (including the amount of claims under Article 35(1)3 of the Framework Act on National Taxes, senior to the national tax associated with attachment if such claims exist) from the estimated value of total assets; provided, the cases where the head of the competent tax office has made a request for delivery under Article 59 or has participated in attachment under Article 61 and a certain amount is expected to be left over for the delinquent amount associated with the request for delivery or the participation in attachment shall be excluded herefrom;

5. Where he or she attaches property prohibited from seizure under Article 41;

6. Where the property of a third party is seized;

7. Where it is no longer necessary to attach a seizure due to any other grounds corresponding to those referred to in subparagraphs 1 through 4.

(2) In any of the following cases, the head of the competent tax office may release property from attachment, in whole or in part:

1. If the value of the property considerably exceeds the total delinquent amount due to a change in the value after attachment;

2. If the delinquent amount associated with attachment has been partially paid or collected;

3. If the imposition of a national tax is partially canceled;

4. If other attachable asset offered by the delinquent taxpayer has been attached.

(3) When the head of the competent tax office intends to release property from attachment for the reason described in the main clause of paragraph (1)4, he or she shall refer the case to the competent national tax nonpayment readjustment committee under Article 106 for deliberation.

Article 62(Effect of participation in attachment) #

(1) If the prior attaching institution releases the property attached by it from after the head of a tax office participated in the attachment under Article 61, the participation in attachment shall be effective as attachment retroactively from the time specified in either of the following subparagraphs:

1. Property that needs registration or recordation for a change in any right: When the registration of participation in attachment was completed;

2. Property that does not need registration or recordation for a change in any right: When the notice of participation in attachment was served on the prior attaching institution.

(2) If two or more persons participated in attachment in applying paragraph (1), the attachment shall become effective retroactively from the time specified in either of the following subparagraphs:

1. Property that needs registration or recordation for a change in any right: When the registration or recordation of the first participation in attachment was completed;

2. Property that does not need registration or recordation for a change in any right: When the notice of the first participation in attachment was served.

(3) When the prior attaching institution releases attached property from attachment, it shall notify the release to the head of the tax office participating in the attachment, with a list of the property released from attachment.

(4) Where the property released for attachment consists of movables or securities possessed by the prior attaching institution or under the custody of a third party, the prior attaching institution shall deliver the property directly to the head of the tax office participating in attachment; provided, the direct delivery of property under the custody of a third party may be substituted by delivering the custody receipt issued by the third party.

(5) If the prior attaching institution has not sold attached property for a long period, the head of the tax office participating in attachment may demand the sale of such property to the prior attaching institution.

(6) If the prior attaching institution does not take any of the following actions within three months of the date of demand for the sale under paragraph (5), the head of the tax office participating in attachment may sell the attached property:

1. Notice to the delinquent taxpayer, etc. of its intention to sell the attached property under a negotiated contract under Article 67;

2. Public announcement of a public auction under Article 72;

3. Dispatch of a written request for the entrustment of the conduct of a public auction or the conclusion of a negotiated contract under Article 103(1).

(7) When the head of the tax office participating in attachment intends to sell attached property under paragraph (6), he or she shall notify the prior attaching institution of the details thereof.

(8) Upon the receipt of the notice under paragraph (7), the prior attaching institution shall deliver the movables or securities possessed by it or under the custody of a third party to the head of the competent tax office who demanded the sale under paragraph (5). In such cases, paragraph (4) shall apply mutatis mutandis to the method of delivery.

Article 71(Bid bond for public auction) #

(1) If the head of the competent tax office considers necessary for a public auction of attached property, he or she may require persons who intend to participate in the public auction to submit a bid bond.

(2) The amount of a bid bond for a public auction shall be at least 10/100 of the reserve price for the public auction.

(3) A bid bond for a public auction shall be submitted by any of the following means. Necessary requirements for the cases where a bid bond is submitted by any means specified in subparagraphs 2 through 4 (hereinafter referred to as "state or public bonds or other specified securities") shall be prescribed by Presidential Decree:

1. Cash;

2. State or public bonds;

3. Securities listed on a security market;

4. A guarantee insurance policy issued by an insurance company under the Insurance Business Act.

(4) In any of the following cases, the head of the competent tax office shall return a public auction guarantee provided by any of the following persons: <Amended on Dec. 31, 2023>

1. After opening bids: Purchase bidders other than the highest purchase bidder;

2. Where the delinquent taxpayer paid the delinquent amount associated with attachment, with the purchaser’s consent, before the purchaser pays the purchase price and consequently the decision to sell the attached property is canceled under subparagraph 1 of Article 86: The purchaser;

3. Where there is a next-highest purchase bidder and the purchaser fully paid the price: The next-highest purchase bidder.

4. Where a purchase bidder fails to obtain a decision to sell the attached property because he or she falls under Article 80(2): The purchase bidder.

(5) The head of the competent tax office shall pay delinquent taxpayers the amount left over out of the bid bond from a public auction after collecting the forced collection charge and the national tax associated with attachment in the aforementioned order from the bid bond, in either of the following cases: <Amended on Dec. 31, 2023>

1. Where the highest purchase bidder has not concluded the purchase contract after opening bids;

2. Where the decision to sell the attached property is canceled for the reason referred to in subparagraph 2 or 3 of Article 86.

Article 72(Public announcement of public auction) #

(1) When the head of the competent tax office intends to hold a public auction, he or she shall publicly announce the following matters:

1. The payment deadline for the purchase price (hereinafter referred to as "payment deadline for the price");

2. The name, location, quantity, quality, and reserve price of the property for public auction and other important matters;

3. The place, date, and time of submission of bids or auction (in cases of period bidding, the period for the submission of bids);

4. The place, date, and time of opening bids;

5. The amount of a bid bond for the public auction, if required;

6. If the property for public auction is a share in jointly owned property or movables or securities jointly owned by a couple, the fact that the co-owner (excluding the delinquent taxpayer; hereinafter the same shall apply) or spouse has the preemptive right to purchase them;

7. The closing date for filing a request for distribution;

8. The claims entitled to distribution only when a request for distribution is filed by the closing date for filing a request for distribution;

9. The date of decision on the sale;

10. The fact that a superficies, a right to lease on a deposit basis, a leasehold interest with opposing power, or provisional registration will remain unextinguished with respect to the property that the purchaser will acquire through public auction, if such right or interest exists;

11. The fact that a certain qualification is required to be the purchaser of the property for public auction, if such qualification is required;

12. The details of materials provided under the subparagraphs of Article 77(2) and the period of provision of such materials;

13. The period and procedure for submitting a purchase bid by the next-highest purchase bidder.

(2) When the head of the competent tax office publicly announces a public auction, he or she may publicly announce matters concerning subsequent public auctions to be held for the same property in the future, in a package.

(3) The public announcement of a public auction shall be made through an information and communication network and shall be concurrently posted or published as follows:

1. Posting the public announcement at the competent regional tax office, tax office, or customs office or in the relevant Special Self-Governing City, Special Self-Governing Province, Si/Gun/autonomous Gu or at any other appropriate place;

2. Publishing the public announcement in the Official Gazette or a daily newspaper.

(4) The closing date for filing a request for distribution under paragraph (1)7 shall be determined in consideration of the period necessary for proceedings but shall not be later than the date of commencement of the submission of initial bids; provided, if a public auction does not proceed due to a cause or event specified by Presidential Decree, such as a delay in, or an omission of, the registration or recordation of the public announcement of the public auction, the head of the competent tax office may defer the closing date for filing a request for distribution to a date not earlier than the deadline for the submission of initial bids.

(5) A date not later than seven days from the date of opening bids under paragraph (1)4 (excluding Saturdays, Sundays, public holidays under Article 2 of the Act on Public Holidays, and substitute public holidays under Article 3 of that Act) shall be determined as the date of decision on the sale under subparagraph 9 of that paragraph. <Amended on Dec. 31, 2022>

(6) Where property is put to a public auction by means of an auction, the head of the competent tax office may select an auctioneer and authorize the auctioneer to manage the auction as prescribed by Presidential Decree.

(7) Except as provided in paragraphs (1) through (6), matters necessary for the public announcement of a public auction shall be prescribed by Presidential Decree.

Article 76(Request for distribution) #

(1) When a person who has any of the following claims not registered or recorded before the public announcement of a public auction is registered or recorded under Article 74 intends to receive a distribution under Article 96(1) shall request the distribution to the head of the competent tax office by the closing date for filing a request for distribution:

1. A delinquent amount associated with the attached property;

2. A delinquent amount, local tax, or public charge associated with the request for delivery;

3. A claim secured by a right to lease on a deposit basis, a pledge right, a mortgage, or a provisionally registered security right on the attached property;

4. A claim for the return of a deposit for lease with a right to preferential payment under the Housing Lease Protection Act or the Commercial Building Lease Protection Act;

5. Wages, retirement benefits, accident compensation, and other claims arising from employment with a right to preferential payment under the Labor Standards Act or the Act on the Guarantee of Workers' Retirement Benefits;

6. A claim secured by provisional attachment of the attached property;

7. A claim under an authenticated copy of judgment with an execution clause.

(2) When a person who holds a right to lease on a deposit basis, which is not extinguishable by the sale of attached property, intends to receive a distribution, he or she shall request the distribution by the closing date for filing a request for distribution.

(3) If the burden to be borne by the purchaser varies, depending upon a request for distribution under paragraph (1) or (2), no person who requested distribution may withdraw the request after the closing date for filing the request for distribution.

(4) If the property for public auction is movables or securities jointly owned by a couple and attached under Article 48(4), the spouse of the delinquent taxpayer may request the head of the competent tax office to pay the sale price for his or her share in the jointly owned property by the closing date for filing a request for distribution.

(5) The head of the competent tax office shall urge persons who have a claim referred to in each subparagraph of paragraph (1) and registered or recorded before the registration or recordation of the public announcement of a public auction (hereinafter referred to as "creditors eligible for reporting claims") to report to the head of the competent tax office claims they have, the cause and amount of such claims (including principal, interest, expenses, and other incidental claims) by the closing date for filing a request for distribution.

(6) If a creditor eligible for reporting claims does not submit a report under paragraph (5), the head of the competent tax office shall calculate the amount of the claims of the creditor eligible for reporting claims according to evidencing materials contained in the records of execution of the public auction, such as a certificate of registered entries. In such cases, the creditor eligible for reporting claims shall not add an amount of claim.

(7) The head of the competent tax office shall inform the persons falling under paragraph (1) or (2) and the heads of the following agencies that a request for distribution shall be filed by the closing date for filing the request for distribution:

1. The Ministry of the Interior and Safety;

2. The Korea Customs Service;

3. The National Health Insurance Service under the National Health Insurance Act;

4. The National Pension Service under the National Pension Act;

5. The Korea Workers’ Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act.

(8) If the notice of a public auction under Article 75 includes a statement of urging the reporting of claims under paragraph (5) or informing of a request for distribution under paragraph (7), it shall be deemed that the urging or information under the relevant paragraph has been done.

Article 84(Decision on sale and deadline for payment of price) #

(1) Except in the following cases, the head of the competent tax office shall render a decision to sell attached property for public auction on the date of decision on the sale, designating the highest purchase bidder under Article 82 as purchaser:

1. Where a co-owner or the spouse files an application for preferential purchase under Article 79;

2. Where the highest purchase bidder is subject to the restriction on purchasers under Article 80 or the restriction on participation in bidding under Article 81;

3. Where a ground for the cancellation or suspension of the public auction under Article 88 before rendering a decision on the sale exists;

4. Where the head of the competent tax office considers that he or she is unable to render a decision on the sale due to any other material fact.

(2) Where a highest purchase bidder fails to meet the qualifications prescribed in other statutes or regulations to become a buyer of property for public auction, the head of the competent tax office may postpone the date of decision on sale by up to ten days from the date of initial decision on sale, only once. <Added on Dec. 31, 2023>

(3) A decision on sale of property shall become effective at the time a decision of selling the property is made on the date of decision on sale. <Amended on Dec. 31, 2023>

(4) When the head of the competent tax office renders a decision on the sale of property, he or she shall deliver a notice of the decision on the sale to the purchaser, specifying the payment deadline on the notice; provided, such notice may be given orally if the purchase price for any asset that does not need registration or recordation for the transfer of rights is be paid immediately. <Amended on Dec. 31, 2023>

(5) The payment deadline for the price under paragraph (4) shall not exceed seven days from the date of decision on the sale; provided, if the head of the competent tax office considers it necessary, he or she may extend the payment deadline for the price by not more than 30 days. <Amended on Dec. 31, 2023>

Article 84-2(Payment of balance of purchase price) #

(1) A person prescribed by Presidential Decree who holds a mortgage or a counter-rental right, etc. with respect to the property for public auction may file an application with the head of the competent tax office for the payment of the purchase price with an amount obtained by deducting the amount to be distributed to the person pursuant to Article 96 (hereinafter referred to as "payment of balance") before the date of decision on sale.

(2) Upon receipt of an application under paragraph (1), the head of the competent tax office shall decide whether to permit the payment of balance when he or she designates the applicant as the purchaser and makes a decision on sale, and notify the applicant thereof.

(3) When the head of the competent tax office determines whether to pay the balance pursuant to paragraph (2), if a person who has applied for the payment of the balance falls under any of the following subparagraphs, the head of the competent tax office may choose not to permit the payment of the balance:

1. Where the person is not eligible to receive distribution because he or she fails to make a request for distribution by the closing date of request for distribution;

2. Where the payment is prohibited because the claims intended to be distributed are seized or provisionally seized;

3. Where there is no actual amount to be distributed in the light of the priority of distribution;

4. Where grounds similar to those specified in subparagraphs 1 through 3 exist.

(4) Notwithstanding Article 84(4), where the head of the competent tax office decides to permit the payment of the balance, he or she needs not fix the deadline for payment, and shall require the purchaser to pay the balance on the date of distribution under paragraph (5) of this Article.

(5) Notwithstanding Article 95(1), where the head of the competent tax office decides to permit the payment of balance, he or she shall distribute the balance by fixing the distribution date within 30 days from the date of such decision; provided, where it is impracticable to prepare a statement of distribution within 30 days, the head of the competent tax office may postpone the distribution date within 30 days.

(6) A purchaser who has received a decision from the head of the competent tax office to allow the payment of the balance shall, if an objection has been raised pursuant to Article 99(1) and (2) against the amount to be distributed to the purchaser, pay such amount on the date of distribution under paragraph (5) of this Article.

(7) Except as otherwise provided for in paragraphs (1) through (6), necessary matters concerning the procedure for application for the balance payment, the method of calculating the balance payment amount, etc. shall be prescribed by Presidential Decree.

[This Article Added on Dec. 31, 2023]

Article 96(Method of distribution) #

(1) The money under subparagraphs 2 and 3 of Article 94 shall be distributed to satisfy the delinquent amount and claims as follows. In cases of claims for which a request for distribution shall be filed by the closing date of the request for distribution under Article 76(1) and (2), the money shall be distributed only to the claims for which a request for distribution has been filed:

1. A delinquent amount associated with the attached property;

2. Delinquent amounts, local taxes, or public charges for which a request for delivery was filed;

3. Claims secured by a right to lease on a deposit basis, a pledge right, a mortgage, or a provisionally attached security right associated with attached property;

4. A claim for the return of a deposit for lease with a right to preferential payment under the Housing Lease Protection Act or the Commercial Building Lease Protection Act;

6. A claim secured by provisional attachment of the attached property;

7. A claim under an authenticated copy of judgment with an execution clause.

(2) The money under subparagraphs 1 and 4 of Article 94 shall be distributed to satisfy the delinquent amount associated with the attachment or the requests for delivery respectively.

(3) If there is an amount left over after distributing money under paragraphs (1) and (2), the head of the competent tax office shall pay the remainder to the delinquent taxpayer.

(4) If the sale price is less than the delinquent amount and the total amount of claims under the subparagraphs of paragraph (1), the head of the competent tax office shall determine the order of priority and the amounts to be distributed in accordance with the Civil Act or other statutes and regulations, for the purpose of distribution.

(5) If an amount of money was distributed to satisfy the delinquent amount due to a mistakenly determined order of priority, an unreasonable request for delivery, or any other similar cause or event in distributing a sale price under paragraphs (1), (2), and (4), although there is a claim senior to the national tax, the head of the competent tax office shall pay the distributed amount to the creditor who holds the claim senior to the national tax in the same manner as provided for the refund of an amount refundable from a national tax.

Article 99(Objection to statement of distribution) #

(1) The delinquent taxpayer or a creditor who does not attend the proceeding of the date of distribution may raise an objection to a claim of any other creditor or the order of priority of claims stated in the initial statement of distribution under Article 98(1) to the extent relevant to his or her claim before the end of the proceeding of the date of distribution.

(2) Notwithstanding paragraph (1), if the delinquent taxpayer does not attend the proceeding of the date of distribution, he or she may raise an objection, in writing, before the end of the proceeding of the date of distribution after the initial statement of distribution was prepared.

(3) The head of the competent tax office shall finally determine the statement of distribution, distribute money, and reserve distribution for undetermined portions as follows:

1. If an objection has been raised under paragraph (1) or (2):

a. Where the head of the competent tax office considers that the objection is reasonable or the delinquent taxpayer and creditors have reached an agreement on terms and conditions different from the initial statement of distribution: The statement of distribution shall be modified and finally determined according to such objection considered reasonable or such agreement;

b. Where the head of the competent tax office does not consider that the objection is reasonable and there is no agreement made by and among the delinquent taxpayer and creditors on terms and conditions different from the initial statement of distribution: Only the part to which no objection has been raised in the statement of distribution shall be finally determined;

2. Where there is no objection raised under paragraph (1) or (2): The initial statement of distribution shall be finally determined as it is.

(4) A creditor who does not attend the proceeding of the date of distribution shall be deemed to consent to distribution according to the initial statement of distribution, and a creditor who is involved in an objection raised by the delinquent taxpayer or other creditor shall be deemed to not consent to the objection.

Article 104(Entrustment of factual acts of specialized sale agencies relating to sale) #

(1) If it is difficult to determine the price of attached property uniformly because of its artistic and historical value and it is not appropriate for the head of the competent tax office to directly sell attached property because special knowledge is required for the sale of the attached property (hereafter referred to as "work of art or an equivalent object" in this Article), the head of the competent tax office may, ex officio or upon the request of the taxpayer, select a specialized sales agency, from among agencies that have expertise and experience in the sale of the work of art or equivalent object, to entrust it with factual acts relating to sale (hereafter referred to as "factual acts relating to sale" in this Article), including the appraisal of the work of art or equivalent object and the proceedings of the date or period of sale.

(2) Where the head of the competent tax office entrusts a specialized sales agency with factual acts relating to sale pursuant to paragraph (1), he or she may request the specialized sales agency to provide any security specified in the subparagraphs of Article 18(1), which is equivalent to the appraised value of the work of art or equivalent object. In such cases, "guarantee insurance policy for tax payment" in Article 18(1)3 shall be "guarantee insurance policy for performance". <Added on Dec. 21, 2021>

(3) Neither a specialized sales agency selected under paragraph (1) (hereafter referred to as "specialized sales agency" in this Article) nor any executive officer or employee of such specialized sale agency shall, directly or indirectly, purchase the work of art or equivalent object for which factual acts relating to sale are entrusted. <Amended on Dec. 12, 2021>

(4) Where a specialized sales agency is entrusted with factual acts relating to sale under paragraph (1), the head of the competent tax office may pay fees to it as prescribed by Presidential Decree. <Amended on Dec. 12, 2021>

(5) Procedures for making a request by a taxpayer under paragraph (1), criteria and procedures for selecting a specialized sales agency and canceling such selection, selection period of a specialized sales agency, and other necessary matters regarding the entrustment of factual acts relating to sale shall be prescribed by Presidential Decree. <Amended on Dec. 21, 2021>

(6) When a specialized sales agency performs entrusted factual acts relating to sale under paragraph (1), the executive officers and employees of such specialized sale agency shall be deemed public officials for the purpose of applying Articles 129 through 132 of the Criminal Act. <Amended on Dec. 21, 2021>

[Title Amended on Dec. 21, 2021]

Article 115(Court-ordered confinement of large amount and habitual delinquent taxpayers) #

(1) In cases that meet all the following criteria, the court may, upon the request of a prosecutor, render a decision to confine a delinquent taxpayer for not more than 30 days until delinquent national taxes are paid:

1. A delinquent taxpayer has been delinquent in the payment of national taxes three times or more and for each time one year has elapsed from the date such delinquency occurred, and the sum of the delinquent national taxes is 200 million won or more;

2. The delinquent taxpayer has been delinquent for tax payment, without good cause, although he or she is capable of paying delinquent national taxes;

3. It is considered necessary to confine the delinquent taxpayer according to a resolution adopted by the National Tax Information Committee under Article 85-5(2) of the Framework Act on National Taxes.

(2) In cases that meet all the criteria described in the subparagraph of paragraph (1), the Commissioner of the National Tax Service may apply a public prosecutor of the district prosecutors’ office or the prosecutors’ branch office having jurisdiction over a delinquent taxpayer’s domicile or abode for the confinement of the delinquent taxpayer.

(3) The Commissioner of the National Tax Service shall give to a delinquent taxpayer an opportunity to submit materials for explanation or express his or her opinions orally, as prescribed by Presidential Decree, before filing an application for the confinement of the delinquent taxpayer under paragraph (2).

(4) An immediate complaint may be filed in protest against a decision rendered under paragraph (1).

(5) A delinquent taxpayer confined under paragraph (1) shall not be confined again for the same delinquency case.

(6) When a delinquent taxpayer who has been tried for confinement under paragraph (1) pays delinquent national taxes while being confined, the execution of the confinement shall be terminated.

(7) The tax official who executes confinement under paragraph (1) shall explain matters concerning the decision of confinement, including the reason for confinement, the period of confinement, and the termination of execution of confinement under paragraph (6), to the delinquent taxpayer and shall cooperate in other procedures necessary for the execution of confinement.

(8) The procedure for the trial for confinement under paragraph (1), the execution of such confinement, and other necessary matters shall be prescribed by Regulations of the Supreme Court.

NATIONAL TAX COLLECTION ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Order of collection) #

Article 4(Relationship to other statutes) #

Article 5(Tax payment by self-assessment) #

Article 6(Payment notice to taxpayer) #

Article 7(Payment notice to secondary taxpayer) #

Article 8(Timing to issue payment notice) #

Article 9(Collection prior to payment deadline) #

Article 10(Demand for payment) #

Article 10-2(Verification of actual conditions) #

Article 11(Entrustment of factual acts for collection of delinquent amount) #

Article 12(Payment means) #

Article 13(Extension of payment deadline due to disaster or other event) #

Article 14(Deferment of payment notice) #

Article 15(Security for extension of payment deadline) #

Article 16(Revocation of extension of payment deadline) #

Article 17(Extension of designated payment deadline due to delay in service) #

Article 18(Kinds of security) #

Article 19(Appraisal of security) #

Article 20(Method of offering security) #

Article 21(Replacement and supplementation of security) #

Article 22(Payment by security and collection from security) #

Article 23(Release of security) #

Article 24(Forced collection) #

Article 25(Cancellation of fraudulent act and restoration of original state) #

Article 26(Forced collection of property under provisional attachment or provisional injunction) #

Article 27(Continuation of forced collection in case of inheritance or merger) #

Article 28(Third party claim of ownership) #

Article 29(Exemption from stamp tax and registration and license tax) #

Article 30(Entrustment of forced collection from goods imported by large amount and habitual delinquent taxpayers) #

Article 31(Requirements for attachment) #

Article 32(Prohibition of excessive attachment) #

Article 33(Protection of third party’s rights in selecting assets for attachment) #

Article 34(Attachment report) #

Article 35(Search) #

Article 36(Inquiry and inspection) #

Article 37(Participant) #

Article 38(Presentation of certificate) #

Article 39(Restriction on exit and entry while conducting attachment, search, or inquiry and inspection) #

Article 40(Notice of attachment to mortgagees and other right holders) #

Article 41(Non-attachable property) #

Article 42(Restriction on attachment of wage claims) #

Article 43(Restriction on disposal) #

Article 44(Effect of attachment on fruits) #

Article 45(Procedure for attachment of real estate and other immovables) #

Article 46(Effect of attachment on real estate and other immovables) #

Article 47(Use of or profit from attached real estate and other immovables) #

Article 48(Attachment of movables and securities) #

Article 49(Use of or profit from attached movables) #

Article 50(Attachment of cash and collection of claims on securities) #

Article 51(Procedure for attachment of claims) #

Article 52(Effect of attachment of claims and collection of claims) #

Article 53(Scope of attachment of claims) #

Article 54(Attachment of claims from continuing transactions) #

Article 55(Procedure for attachment of other property rights) #

Article 56(Attachment of rights to property of the state or local government) #

Article 56-2(Procedures for seizure of deposited securities) #

Article 56-3(Procedures for seizure of electronically registered stocks) #

Article 57(Requirements for release from attachment) #

Article 58(Procedure for release from attachment) #

Article 59(Request for delivery) #

Article 60(Cancellation of request for delivery) #

Article 61(Participation in attachment) #

Article 62(Effect of participation in attachment) #

Article 63(Cancellation of participation in attachment) #

Article 64(Timing to commence Sale) #

Article 65(Methods of sale) #

Article 66(Public auction) #

Article 66-2(Data matching for computerized information on family relations registration) #

Article 67(Negotiated contract) #

Article 68(Determination of reserve price for public auction) #

Article 69(Inspection of current conditions of property subject to public auction) #

Article 70(Place of public auction) #

Article 71(Bid bond for public auction) #

Article 72(Public announcement of public auction) #

Article 73(Period of public announcement of public auction) #

Article 74(Request for registration or recordation of public announcement of public auction) #

Article 75(Notice of public auction) #