Tax Payment via Credit Card Possible
By Do Je-hae
Staff Reporter
Paying local taxes will become much more convenient starting next year as banks expand the acceptance of credit card payments, according to the Ministry of Public Administration and Security, Wednesday.
Under the plan, taxpayers will no longer be required to bring a written tax notice issued by local administrations to make the payment.
``We have come up with the new payment system for local taxes after discussions with local governments and banks and will implement it starting January 2010," said Second Vice Minister of Public Administration and Security Kang Byung-kyu.
To pay local taxes with credit cards, a taxpayer can either do so by logging on to https://www.wetax.go.kr/ or visiting an ATM.
The Korean tax system is comprised of both national and local taxes.
There are 16 kinds of local taxes, including those for property, automobiles, and licenses and registration. Local taxes are collected by the 230 local administrations of cities, counties and provinces across the country.
Electronic payment of local taxes has been implemented for some time, but there were many restrictions ― certain credit cards were not accepted or it was mandatory to bring a written tax notice.
Some local administrations have imposed commission fees for credit card payments, but the practice will be abolished next year.
The new scheme reflects the increasing trend for Koreans to use credit cards in everyday life.
A recent survey conducted by the National Tax Service showed that 86.1 percent of taxpayers wanted to pay their local taxes with credit cards.
The ministry projected that Korea will save around 400 billion won in expenses with the abolishment of written notices and increased electronic payment.
``The plan is expected to increase efficiency in our tax collection system and the convenience of taxpayers," Kang said.