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5. Tax Return and Payment
a.  General
		Under the 1994 tax reform, the individual income tax assessment system was
		converted into a self-assessment system under which each taxpayer is required to
		file a return and pay the proper amount of tax by the due date as prescribed by the
		individual income tax law.
b.  Interim Prepayment for Global Income
	(1)	A resident with global income is subject to interim prepayment of global income tax
		for interim prepayment periods (from January 1 through June 30) in the amount
		equivalent to half of the global income tax amount paid or payable in the preceding
		year, by the end of November.
	(2)	The "income tax paid or payable in the preceding year" is the aggregate of the tax
		amount payable for interim prepayment in the preceding year, the tax amount payable
		upon filing of the return, together with penalty taxes owed.
c.  Pre-returns and Estimated Payment of a Real Estate Dealer
	(1)	A real estate dealer is required to file a return to report any taxable profit from the sale
		of land or buildings within two months from the end of the month that the profit was
		incurred. The real estate dealer should include the payment with the filed return,
		calculated by applying the basic tax rates on capital gains to the taxable profit as
		income tax from a real estate dealing business. A 10% tax credit is allowed if
		payments together with the return are properly made.
	(2)	The taxable profit is calculated by deducting necessary expenses incidental to the
		sale of land or buildings.
d.  Pre-returns and Estimated Payment for Capital Gains
	(1)	A resident who transfers assets subject to the capital gains tax is required to file a
		return and pay the tax due on the capital gains within two months from the month of
		transfer.
	(2)	The amount of tax payable at the time of the interim return is calculated by applying
		the basic tax rates on capital gains to the profit derived from the transfer. If the tax
		return including the payment is  properly made, 10% of tax credit is allowed from the
		tax due.
e.  Final Return and Payment
	(1)  Return on tax base
		A resident who has global income, retirement income, capital gains, or timber income
		during the applicable taxable period is required to file a return on the respective tax
		base between May 1 and May 31 of the following year.
	(2)  Documentation
		Tax returns should include the following documents :
		(a) supporting documents in order to be eligible for personal exemptions and special
			deductions,
		(b) documents in which gross receipts and necessary expenses are recorded
			together with statements of income amount in the form prescribed by the Ministerial
			Decrees,
		(c)  for those having rental income or business profits, a balance sheet, a profit and
			loss statement, a compound trial balance, and a reconciliation format, or a summary
			of income statement, and
		(d)	particulars of tax free reserves.
	(3)  Residents not required to submit a final return
		The following residents are not required to submit final returns. However, a resident
		who has Class B wage and salary income and/or retirement income is not excluded
		hereunder:
		(a)	A resident who has only:
			i) wage and salary income,
			ii) retirement income, or
			iii) pension income
			iv) a combination of both i) and ii) or both ii) and iii)
		(b)	A resident with only capital gains and one who has filed a preliminary return thereon
		(c) A resident with only:
			i)  interest income subject to separate taxation,
			ii)  dividend income subject to separate taxation, and
			iii)  separate taxation on pension income
			iv)  other income subject to separate taxation.
		(d)	A resident with only the types of income enumerated in (a), (b), and (c).
	(4)  Payment of tax
		(a)  A resident who has submitted a tax return shall pay any amount remaining after
			deducting the following items from the amount calculated as tax due on global
			income, retirement income, capital gains, or timber income for each taxable period.
			i)  Interim prepayment of tax
			ii) Estimated taxes paid by real estate dealers, or with respect to capital gains
			iii) Additional taxes paid as a result of occasional assessments of tax
			iv) Taxes withheld at source
			v)  Taxes paid through a taxpayers association
		(b)   A resident whose taxable amount exceeds 10 million won may pay the tax
		accrued in installments within 45 days from the closing date of the payment period.
			i)  In case of tax due less than 20 million won, the amount more than 10 million
				won can be paid in the extended period of payment.
			ii)  In case of tax due of more than 20 million won, 50% or less of the amount of tax
				can be paid in the extended period of payment.
f.  Taxpayer Associations
	(1)  Organization
		Class B wage and salary income earners, meat sellers, grain dealers, and vendors
		may organize taxpayer associations through which they may pay taxes.
	(2)  Obligation to collect tax
		A taxpayer association shall collect income tax from the members each month.
	(3)  Payment of tax
		Income tax for each month collected by a taxpayer association will be paid to the
		government by the 10th day of the following month.
	(4)	Tax credit for payment of tax by taxpayer association : 10%
	(5)	Penalty tax for non-payment of tax by taxpayer association: 5%
g.  Taxpayer Address
	A domicile or a residence of a taxpayer is the tax address for the purpose of income tax.