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Acquisition tax is levied on persons who buy taxable objects such as real estate and vehicles. The tax must be paid within 6 months of the purchase date by visiting the competent district office, reporting the purchase and paying the calculated tax amount. Otherwise, a penalty will be imposed on the person concerned for filing an incorrect tax declaration (maximum of 20%) and an additional tax will be levied for unfaithful payment (2.5/10,000 of the original tax amount per day).
Persons who buy taxable objects such as land and vehicles have a duty to pay the acquisition tax.
Target of Taxation
Real estate, vehicles, machine equipment, standing trees, airplanes, ships, fishing rights, mining rights, golf club and condominium memberships, health facility membership.
- The taxes are assessed on the basis of the reported price (actual acquisition price). If this is less than the fair market price, then the taxes are assessed on the basis of the fair market price.
- Taxes are assessed on the basis of the actual acquisition price in any of the following cases.
- When the object is acquired from the national government or a local government or local government association.
- When the object is acquired by importation from overseas.
- When the acquisition price is verified through a company accounting book or judicial sentencing.
- When the object is acquired through public sale.
- When the acquired object has been reported and verified in accordance with Article 27 and Article 28 of “The Business of Realtors and Report of Real Estate Transaction Act” respectively.
The purchase must be reported and the acquisition tax paid at the relevant district office within 60 days of the date of purchase.
If you fail to report, you will be asked to pay an additional tax of 10%~20% as a penalty for incorrect filing. If a person pays the tax after the reporting deadline, he or she will have to pay an additional tax for unfaithful payment amounting to 2.5/10,000 of the tax per day.