When we violate deadlines or regulations related to taxes, we often incur additional taxes, right?
Today, we will take a look at the representative additional taxes related to reporting 💁🏻♀️
There are three main types of additional taxes related to tax reporting.
① Failure to report tax within the deadline results in the additional tax to report without notice. ② A reduced declaration compared to the amount that should have been reported results in the additional tax of assessment of unfair underreport. ③ Failure to pay taxes on time results in the additional tax to insincere payment.
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1. Additional tax to report without notice
If the obligor under double entry system is an individual's comprehensive income tax, the larger of ① and ② below is levied as a surcharge.
If the reason for non-reporting is not a simple mistake, but fraudulent behavior, the surcharge rate in parentheses is applied.
Additional tax to report without notice
(In case of non-reporting due to fraudulent behavior)
| ① Additional tax amount without report × 20% (40%)
② Income tax amount without report × 0.07% (0.14%)
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2. Penal tax on underestimation of income
Penal tax on underestimation of income
(in case of underreporting due to fraudulent behavior)
| Amount of tax payment on underestimation of income × 10% (40%)
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3. Additional tax to insincere payment
The additional tax to insincere payment is calculated by calculating interest on taxes for the delayed period in case of failure to meet the payment deadline.
The elapsed days refer to the period from the day after the payment deadline to the payment date (or notification date).
Additional tax to insincere payment
| Default tax amount × Elapsed days × 22/100,000*
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*The above calculation formula will be applied from February 15, 2022, and until February 14, 2022, it will be calculated as "Default tax amount × Elapsed days × 25/100,000"
View the additional tax guide on the National Tax Service website
Related regulations: National Tax Basic Act Article 47 and Income Tax Enforcement Standards 81-0-1
When we violate deadlines or regulations related to taxes, we often incur additional taxes, right?
Today, we will take a look at the representative additional taxes related to reporting 💁🏻♀️
There are three main types of additional taxes related to tax reporting.
① Failure to report tax within the deadline results in the additional tax to report without notice.
② A reduced declaration compared to the amount that should have been reported results in the additional tax of assessment of unfair underreport.
③ Failure to pay taxes on time results in the additional tax to insincere payment.
1. Additional tax to report without notice
If the obligor under double entry system is an individual's comprehensive income tax, the larger of ① and ② below is levied as a surcharge.
If the reason for non-reporting is not a simple mistake, but fraudulent behavior, the surcharge rate in parentheses is applied.
(In case of non-reporting due to fraudulent behavior)
② Income tax amount without report × 0.07% (0.14%)
2. Penal tax on underestimation of income
(in case of underreporting due to fraudulent behavior)
3. Additional tax to insincere payment
The additional tax to insincere payment is calculated by calculating interest on taxes for the delayed period in case of failure to meet the payment deadline.
The elapsed days refer to the period from the day after the payment deadline to the payment date (or notification date).
*The above calculation formula will be applied from February 15, 2022, and until February 14, 2022, it will be calculated as "Default tax amount × Elapsed days × 25/100,000"
View the additional tax guide on the National Tax Service website
Related regulations: National Tax Basic Act Article 47 and Income Tax Enforcement Standards 81-0-1