LIQUOR TAX
1. Taxpayer
2. Tax Base
3. Tax Rates
4. Return and Payment
5. Exemption
1. Taxpayer
	a. Manufacturers of liquor and persons taking over liquor from a bonded area are liable
		to liquor tax on the liquor carried out of the manufacturing premises or taken out of the
		bonded area.
	b. A person who intends to manufacture or sell liquor must get a manufacturing license
		or a selling license from the government.
2. Tax Base
	The base of liquor tax is the quantity or price of liquor carried out of the brewery or taken
	out of a bonded area.
3. Tax Rates
a. Tax Rate by Quantity of Liquor
	Spirits (alcohol content 95% or more) : 57,000 won per kl (600 won is added for every
	additional 1% of alcohol content)
b. Tax Rates by Price of Liquor
	(1) Takju						5%
	(2) Yakju						30%
	(3) Beer *						90%
	(4) Cheongju	Cheongju					30%
	(5) Fruit wine **						30%
	(6) Distilled soju						72%
	(7) Diluted soju						72%
	(8) Whiskey						72%
	(9) Brandy						72%
	(10) General distilled spirits						72%
	(11) Liqueur						72%
	(12) Other liquors
		(a)	Liquors made by fermenting method other fermented liquor: 30%
		(b)	Liquors, except distilled liquor mixed with the fermented method and neutral
			spirits or distilled liquor:  72%
		* The tax rate on beer will be lowered, to 80% in 2006 and to 72% in 2007.
		* * Fruit wine's tax rate is 15% upto 200 kl for fruit wine produced by a small  sized
			farmer whose annual production is 500kl or less.
4. Return and Payment
	a.   A liquor tax return on the monthly quantity and the prices of liquor delivered must be
		filed by the last day of the month after the following month of the date in which the liquor is
		delivered from the brewer or distiller, and the tax must be paid within the time limit of the
		tax return.
	b.   With respect to liquor taken out of a bonded area, the return must be filed and the
		recipient must pay the tax at the time of takeover.
	c.   Where the return has not been filed, or the contents or filed return are not proper, the
		government will determine the tax base and the tax amount due.
5. Exemption
	The following items of liquor are exempt from liquor tax:
	(1) liquor to be exported;
	(2) liquor supplied to U. N. forces stationed in Korea;
	(3) liquor supplied to Korean forces stationed abroad;
	(4) liquor supplied to foreign diplomatic missions in Korea;
	(5) liquor supplied to lounges for foreign crews;
	(6) liquor imported by foreign diplomatic missions for official use and by diplomatic
		officials for self-use;
	(7) liquor presented from a foreign country for ceremonial use by temples, churches,
		and other religious institutions;
	(8) liquor collected for the purpose of examination;
	(9) liquor carried by tourists and exempted from customs duties;
	(10) liquor manufactured by a person who knows a secret method of brewing, and is
		designated as an intangible cultural asset.