Chapter 1.
Understanding the Korean Tax System

1.
Let's take a look at the big picture of the tax system.
- Why on earth do we have to pay taxes?
- Taxes follow the flow of money and harass it.
- What is the difference between national and local taxes?
- What is the difference between direct and indirect taxes?
- There are taxes I have to report and taxes imposed by the government.
There are risks involved in entrusting your tax return to someone else.
- Why the tax burden becomes heavier as you get older
There is a big difference between paying taxes knowingly and paying taxes unknowingly.

2.
Let's start by learning some confusing tax terms.
- Tax payment location, tax period, and reporting deadline
- What is the difference between income and revenue?
- Non-taxable and tax-reduced income
- What is the difference between income deduction and tax deduction?
- The taxable standard is the base amount for taxation.
- What does deficit mean?
- Proportional and progressive tax rates
- What is the difference between calculated tax amount, determined tax amount, and voluntary tax payment amount?
- If the tax amount to be paid is large, you can pay it in installments.
- After withholding tax, a payment statement is sent to the National Tax Service.
- Separate taxation and comprehensive taxation income
- Difference between a correction report and a correction request
- How far does a special relationship extend?

3.
Who is the sovereign taxpayer, A or B?
- This is what happens if you don't file your taxes properly and on time.
- If a taxpayer cannot explain (explain) the National Tax Service's questions, he or she must pay the tax.
- What happens if you don't pay your taxes?
- The final destination for unpaid taxes is public auction and liquidation.
- The state has the first right to the delinquent's property, but there are exceptions.

4.
Pursue tax savings, but don't dream of tax evasion!
- What is the difference between tax avoidance and tax evasion?
- Punish tax evaders and reward whistleblowers.
- You who pay your taxes faithfully, collect tax points!
- A corporation's representatives and shareholders bear heavy responsibilities.
- After a long time, the government will not be able to impose taxes.
- There is virtually no statute of limitations on taxes.

5.
How to respond to unfair tax bills!
- Request for pre-taxation review, objection, request for examination, request for adjudication, administrative litigation
- How much will it cost to file an appeal and have it accepted?

Chapter 2.
Taxes you pay when you earn money - income tax

1.
Income tax and retirement income tax are taxes paid by office workers.
- The life cycle is included in the 6-piece comprehensive income set.
- This is how income tax is calculated.
- Why earned income is a plus for your wallet
- Here's what you need to do to get a refund at the end of the year
- Daily workers are given special treatment in tax law.
- Receiving retirement pay like this will reduce your taxes.

2.
Deducting income tax from deposit interest doesn't mean everything is over.
- Income tax on interest and dividends is calculated as follows:
- When investing in financial products, if it is tax-exempt, you must subscribe.
- Beware of tax-exempt traps!

3.
Income tax is also deducted from stock and fund profits.
- Deposits are not safe either.
- The tax calculation methods for dividends received by individuals and dividends received by corporations are different.
- Taxes vary depending on the investment method, whether it is domestic or foreign stocks.
- Be careful about comprehensive taxation of financial income!

4.
Income tax is also deducted from pensions received after retirement.
- You must know the exact meaning of pension amount, total pension amount, and pension income.
- Pension income tax is calculated like this.
- It is best to receive a pension, but not have it included in your comprehensive income.
- The best way to save for retirement and join a retirement pension

5.
If you work two jobs or receive monthly rent, you need to know about business income tax.
- This is how to calculate and report business income tax.
- It is not necessary for a business owner to keep books.
- For business owners, managing documentation is paramount.
- You need to include as much necessary expenses as possible to reduce your taxes.
- You must take good care of your deficit.
Freelancers and YouTubers are business owners, not employees.
- This is how to calculate and report income tax for a rental business, a dream for office workers.
- There are significant tax differences between residential rental businesses and commercial rental businesses.

6.
Taxes are also deducted from temporary income.
- Other income is income that comes from chance.
- Other income tax is calculated and reported as follows.
- How to distinguish between earned income, daily wage income, business income, and other income

7.
What to do to save on comprehensive income tax
- Who must file a comprehensive income tax return?
- I completed my year-end tax settlement as a salaried worker, but do I still need to file a comprehensive income tax return?
Income deductions and tax credits are the key to tax savings.

8.
Health insurance premiums are scarier than income tax
- All income is subject to health insurance premiums, which are like taxes, not taxes.
- Prepare for health insurance premiums for non-salary income like this!

▶ Questions I was too embarrassed to ask

Chapter 3.
Tax paid when spending money - Value Added Tax

1.
Value-added tax is a tax paid only by businesses.
- This is the kind of tax that value-added tax is.
2.
Taxable and tax-exempt businesses
3.
What is the difference between general taxpayers and simplified taxpayers?

▶ Questions I was too embarrassed to ask

Chapter 4.
When you own property such as real estate, you pay taxes in stages.


1.
Acquisition tax paid when purchasing property
- This is how acquisition tax is calculated and reported.
- Even if acquired through inheritance or gift, acquisition tax must be reported and paid.

2.
Property tax and comprehensive real estate tax paid while owning property
- Property tax is calculated and levied every year as follows:
- Comprehensive real estate tax is calculated and levied every year as follows.
- It is advantageous to register real estate under joint names.

3.
Capital gains tax paid when selling property
- What do I need to sell to pay capital gains tax?
- There is no capital gains tax on a single-family home with a transfer price of 1.2 billion won or less.
- How can I get exemption from capital gains tax if I temporarily own two houses due to moving, marriage, or inheritance?
- How do you determine whether something is a house, is not a house, or looks like a house?
- This is how to calculate and report capital gains tax.
- There's a reason I prefer a smart one.
- Transactions between parents and children that are significantly different from the market price are not recognized.
- It is better to register the property under joint names of the couple from the time of purchase.

▶ Questions I was too embarrassed to ask

Chapter 5.
Taxes are also deducted when inheriting property.
- Inheritance and gift tax

1.
If you inherit an estate, you have to pay inheritance tax.
- Inheritance or gift, which is more advantageous?
- Inheritance tax, even the middle class can be subject to it.
- Who among the bereaved family members has the right to inherit and how much?
- They say debt is inherited, so what if I don't want to inherit my parents' debt?
- There is no inheritance tax on overseas inheritance received from immigrant parents.
- Gifts made within 10 years prior to death are ineffective.
- The tax rate is determined by how inherited or gifted property is valued.
- Tax saving methods are hidden in the inheritance tax calculation structure.

- Who, how much, where, and by when must inheritance tax be reported?
Selling inherited real estate right away can lead to a tax bomb.
- If you have a large inheritance, you must be careful even after receiving it.
- Things to prepare in advance to save on inheritance tax

2.
If you inherit property in advance, you must pay gift tax.
- Gift tax has a simple calculation structure.
- What amount can be gifted without gift tax?
- Why you should donate as soon as possible, every 10 years
- Do I have to file a gift tax return?
- I heard there are things that don't require gift tax?
- The National Tax Service is looking into the PCI system.
- Are all account transfers between family members affected?
- When buying real estate, be prepared for the National Tax Service's investigation into the source of funds!
- Do I have to pay gift tax on deposits made in my child's name?
- Presumptive gifts and indirect gifts are not simply passed over.
- Who, how much, where, and by when must gift tax be reported?
- Donated property must be sold after 10 years.
- Even if your child is a foreign citizen, you cannot avoid gift tax.

▶ Questions I was too embarrassed to ask

How much do we know about taxes, as we pay taxes every day?

Chapter 1, “Understanding the Tax System,” explains Korea’s tax system, including national and local taxes, direct and indirect taxes, in an easy-to-understand manner so that even beginners can easily understand it.
In particular, for taxes that taxpayers report themselves rather than taxes imposed and notified by the government, tax-saving strategies to reduce taxes are just as important as the accuracy of the report.
However, most taxpayers do not know much about taxes, so they pay experts to handle comprehensive income tax, capital gains tax, inheritance tax, gift tax, etc.
Even if you entrust your tax return to someone else, you should prepare in advance what you need to save taxes, and you should also have a basic level of tax knowledge to ensure smooth communication with experts.


This chapter explains why general tax knowledge is necessary for everyone, and provides step-by-step explanations of basic tax-related terms so that you can easily obtain the information you need through blogs and YouTube videos.
In addition, it explains from a neutral standpoint the difference between tax avoidance and tax evasion, the disadvantages of tax delinquency, and the appeal procedures and effects of unfair taxes.


Chapter 2, “Income Tax,” provides workers with the ability to find tax-saving points on their own through the calculation structure of earned income tax and retirement income tax.
It also explains interest and dividend income tax arising from savings and stock investments for wealth accumulation.
For business owners, we provide information on income calculation methods and tax-saving tips for business income. In particular, for rental business owners, we explain how to report business income tax and value-added tax, focusing on the differences between residential and commercial rentals.
Lastly, regarding pension income, it provides the calculation structure of pension income, including income amount and necessary expenses, and suggests pension receipt methods for tax savings.


Chapter 3, “Value Added Tax,” explains in what cases value added tax is levied and in what cases it is not required from the perspective of consumers, who are the ones who actually pay value added tax, through taxable and tax-exempt businesses.
In addition, we explain the basic principles of value-added tax and the flow of calculating tax payable, such as sales tax and purchase tax, and also examine the differences between general taxpayers and simplified taxpayers.


Chapter 4, “Taxes Paid When Owning Property,” covers acquisition tax, property tax, comprehensive real estate tax, and capital gains tax.
In particular, if the real estate value exceeds a certain amount, you must also pay comprehensive real estate tax, and we will inform you of the taxation standards and taxation methods.
In addition, the capital gains tax standards for officetels, commercial housing, and condominiums for investment purposes are also explained, as they are common tax knowledge that we often encounter in our daily lives.
In particular, the number of people required to file capital gains tax returns has been rapidly increasing due to the recent increase in the number of US stock investors, known as "Seohak Ants." In such cases, the calculation structure of capital gains tax is also explained in an easy-to-understand manner so that the person can file the return themselves.


In Chapter 5, “Inheritance Tax and Gift Tax,” you will learn about pre-gifted property and presumed gift property that are included in the inheritance even though they were not part of the estate at the time of death, so that you can prepare for the inheritance tax bomb.
Among the inheritance deductions, the spousal inheritance deduction, lump sum deduction, and financial asset inheritance deduction are important, so you must know the meaning and amount of each.
If you know the inheritance tax calculation structure and prepare in advance, you can save a lot of money on taxes.
In addition, to prevent inheritance disputes between heirs, the system of claiming inheritance shares and reserved portions under civil law is also explained.


It also explains the gift tax risks associated with inter-family account transfers, cash withdrawals, and deposits in children's names, which the general public fears the most.
In particular, issues such as immigration to avoid inheritance tax or children acquiring foreign citizenship to avoid gift tax have recently become social issues, and it also informs us whether these are the ultimate solutions.