TRANSPORTATION TAX
1. Taxpayer
2. Tax Base and Rate
3. Return and Payment
4. Exemption
5. Tax Credit and Refund
1. Taxpayer
	Any person falling under one of the following categories is liable to transportation tax.
	a. A person who produces gasoline, similar substitute oils, and diesel oil
	b. A person who imports gasoline, similar substitute oils, and diesel oil
2. Tax Base and Rate
	a. Gasoline and similar substitute oils: 630 won/ liter
	b. Diesel oil and similar oil products: 363 won/ liter
	* Flexible rates are specified in the Presidential Decree.  Actual rates as of October 1,
	2004 are 545 won/l for gasoline, 287 won/l for diesel oil and 277 won/I for ultra low sulfur
	diesel.
3. Return and Payment
	a.  A person who sells taxable goods or manufactures and transports
		taxable goods from the manufacturing premises shall file a return which includes the
		volume and price of transaction, calculated tax amount, amount of unpaid tax or tax
		exemption, amount of tax credit and refund, tax amount payable, etc., by the end of
		the following month with the government, and pay one month's tax by the deadline to
		file the return.
	b.  When a person transports taxable goods out of a bonded area and
		makes an import declaration, he or she shall be regarded as complying with the
		obligation to file a return. In that case, he or she should pay the transportation tax
		along with the customs duties at the time of the import declaration.
	c.  With respect to goods subject to customs duties other than
		imported goods, the provisions of the Customs Duties Law are applicable mutatis
		mutandis.
4. Exemption
	a.  Exemption on exportation or supply to the military
		Goods exported or supplied to foreign military forces stationed in Korea shall be
		exempt from transportation tax upon application for exemption.
		(1)	In cases where a taxpayer fails to prove the facts of exportation or the facts of
			supply to a foreign army within the prescribed period, the transportation tax is
			charged retroactively.
		(2)	In cases where the goods exempted under the condition of supply to foreign
			military forces are transferred or owned by other persons, the transferee or the
			person who owns the goods is liable to transportation tax.
	b.  Exemption for diplomats:
		Goods being used for official use by foreign diplomatic offices, etc., are exempt from
		transportation tax.
	c.  Conditional exemption
		When the conditions required for exemption are not satisfied, the transportation tax is
		assessed retroactively.
		(1) Goods donated by foreign countries for religious services
		(2) Duty-free goods that are to be re-exported
		(3) Commodity goods to be used abroad in vessels, deep sea fishing vessels, or
			aircraft
		(4) Articles for medical care or manufacture of medical goods, fertilizers, or
			petro-chemicals
	d.  Unconditional exemption
		(1) Goods donated to a foreign charity or relief organization
		(2) Goods donated to the government, state, or local authorities
		(3) Goods imported by foreign aid or munitions made from such goods
		(4) Re-imported goods on which the transportation tax was imposed and credit or
			refund was not granted thereon
5. Tax Credit and Refund
	a. Tax Credit
		In cases where goods or raw materials on which the transportation tax was or will be
		charged, are imported from a bonded area and are directly used for manufacturing
		or processing of other taxable goods, the tax chargeable is credited against the
		concerned tax amount payable.
	b. Refund
		In cases where goods or raw materials on which the transportation tax was or will be
		charged fall under one of the following categories, the paid tax amount is refundable
		or deductible.
		(1)	Where the taxable goods or their products are exported or supplied to foreign
			military forces stationed in Korea
		(2)	Where the taxable goods are made of taxable raw materials
		(3) Where the taxable goods are returned
		(4)	Where the taxable goods are used for medical care, for the manufacture of
			medicines or fertilizers, for aircraft, vessels in foreign navigation, deep sea
			fishing vessels, or by foreign diplomatic corps or similar organizations
	c. Miscellaneous Rule
		(1) Where the transportation tax is collected with respect to the goods, which do not
			fulfill the conditions for exemption, the tax amount paid or payable on the raw
			materials of the said goods shall not be credited or refunded.
		(2)	Tax penalties chargeable on the goods subject to the transportation tax shall not
			be credited or refunded.