The government would submit a revised tax law proposal with the National Assembly that includes the tax exemption provision.(image:Oveja/flickr)
SEOUL, Aug. 14 (Korea Bizwire) — Beginning January of next year, the government will exempt taxes on perfume, deer velvet antler, and royal jelly for purchases less than 150,000 won (US$145.60). With the new measure, it is expected more consumers to make online purchases of perfumes from overseas shopping sites.
According to the Ministry of Strategy & Finance on August 13, the government would submit a revised tax law proposal with the National Assembly that includes the tax exemption provision.
Once the proposal passes the floor, the excise tax of 7 percent would be exempted for these items, as well as the special tax for agriculture development (10% of the excise tax) and the special educational tax (30%). Currently anyone who buys the items from overseas is subject to these taxes.
For example, for a bottle of perfume whose retail price is 100,000 won the purchaser must pay a total of 9,800 won in taxes including 7,000 won for excise, 700 won for agricultural development special tax, and 2,100 won for educational special tax.
According to customs laws, however, a multiple number of identical items must be assessed taxes if the total purchase price is in excess of the threshold amount. For example, a buyer of three bottles of perfume whose unit price is 50,000 won is still subject to taxation under the newly revised law.
By Sean Chung (schung10@koreabizwire.com)
