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Article 1 (Purpose)
The purpose of this Ordinance is to contribute to the equitable development of communities by providing for matters concerning the reduction of or exemption from taxes of the Seoul Metropolitan Government pursuant to the Restriction of Special Local Taxation Act, supplementing statutory functions and ensuring fair taxation.
Article 2 (Relationship to Other Statutes and Regulations)
Except as otherwise provided in this Ordinance, the terms used in this Ordinance shall be as defined in the Restriction of Special Local Taxation Act (hereinafter referred to as the ¡°Act¡±) and the Enforcement Decree of the Restriction of Special Local Taxation Act (hereinafter referred to as the ¡°Decree¡±).
Article 3 (Tax Reduction or Exemption for Motor Vehicles Owned by Visually Impaired Persons)
(1) With respect to a visually impaired person under any of the following subparagraphs as at the time of registration of such person as a person with a disability (excluding persons of distinguished services to the State, etc. defined in Article 29 (4) of the Act, but including persons who were registered as having visual impairment Grade IV prior to the enforcement date (July 1 of 2019) of the Act on Welfare of Persons with Disabilities (Act No. 15270) and are maintaining the relevant disability grade as of the date of formation of tax liability for such person for the tax item applied for tax reduction or exemption; hereafter in this Article referred to as ¡°person with a disability¡±), among the visually impaired persons registered as a ¡°person with a mild disability¡± pursuant to Article 32 of the Act on Welfare of Persons with Disabilities, Article 2 of the Enforcement Decree of the same Act, and Articles 3 through 7 of the Enforcement Rule of the same Act, the acquisition tax and the motor vehicle tax shall be exempt respectively until December 31, 2021 for one motor vehicle under any of the subparagraphs of Article 17 (1) of the Act, which is registered for supplemental use or business purposes under the name of such person with a disability or jointly with the spouse, lineal ascendants (including the remarried spouse of such lineal ascendant), lineal descendants (including children of the remarried spouse of such lineal descendant), siblings, or the spouse of a lineal descendant of such person stated on the family relation register defined in the Act on Registration of Family Relations (limited to where the spouse or the spouse of a lineal descendant of such person is not a Korean citizen) or the resident registration card by household defined in the Resident Registration Act (hereinafter referred to as "resident registration card by household") as a member of the household of such person, if such tax reduction or exemption is first applied for either of the tax items of acquisition tax or motor vehicle tax under Article 125 (1) of the Local Tax Act (hereinafter referred to as "motor vehicle tax"): <Amended by Ordinance No. 7137, May 16, 2019>
Article 4 (Tax Reduction or Exemption for Medical Practice of Religious Organizations)
"Rate prescribed by municipal ordinance" in Article 38 (4) 1 of the Act means any of the following rates:
Article 5 (Tax Reduction or Exemption for Performance Halls)
(1) Real property acquired to establish and operate a performance hall registered pursuant to Article 9 of the Public Performance Act shall be exempt from acquisition tax until December 31, 2021; and real property (excluding the part of the relevant facilities also used for other purposes, if any) directly used as a performance hall as of the tax base date shall be exempt from property tax under Article 112 (1) 2 of the Local Tax Act and local resource and facility tax under Article 146 (2) of the same Act respectively, until December 31, 2021.
Article 6 (Tax Reduction or Exemption for Recommended Facilities in Cultural Districts)
(1) The acquisition tax on real property acquired for use (including lease) as recommended facilities under subparagraph 2 of Article 2 of the Seoul Metropolitan Government Ordinance on the Management and Promotion of Culture Districts in the Insa-dong Cultural District designated pursuant to Article 18 of the Regional Culture Promotion Act shall be reduced by 50/100 until December 31, 2021; and the property tax under Article 112 (1) 2 of the Local Tax Act on any building and land appurtenant thereto directly used for the relevant purpose as of the tax base date shall be reduced by 50/100 for three years from the date the first tax liability occurs.
Article 7 (Tax Reduction or Exemption for Promotion of Foreign Investment)
With regard to property acquired by a foreign-invested firm to operate business it has reported, the reduction period and the reduction rate of its acquisition tax under Article 121-2 (4) 1 of the Restriction of Special Taxation Act shall be as follows: the aggregate computed by multiplying the amount of tax assessed on the relevant property by the percentage of foreign investment (hereafter in this Article referred to as "amount of tax deductible") shall be exempt for ten years from the commencement of business; and the amount of tax equivalent to 50/100 of the amount of tax deductible shall be reduced for the next five years.
Article 8 (Tax Reduction or Exemption for Urban Factories in Quasi-Industrial Areas)
The acquisition tax on real property acquired to build or expand an urban factory under Article 28 of the Industrial Cluster Development and Factory Establishment Act in a quasi-industrial area under Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act shall be reduced by 50/100 until December 31, 2021: Provided, That the amount of reduced acquisition tax on the relevant part shall be collected additionally in any of the following cases:
Article 9 (Tax Reduction or Exemption for Urban Improvement Projects)
(1) Where a specified unauthorized building defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Government Ordinance on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter referred to as ¡°specified unauthorized building¡±) is demolished, such specified unauthorized building shall be exempt from property tax under Article 112 (1) 2 of the Local Tax Act and local resource and facility tax under Article 146 (2) of the same Act respectively, until December 31, 2021.
Article 10 (Tax Reduction or Exemption for Traditional Markets)
Where a subsidy or local subsidy is provided for a project for modernizing commercial infrastructure pursuant to Article 20 of the Special Act on the Development of Traditional Markets and Shopping Districts, a building acquired to implement the relevant project shall be exempt from acquisition tax until December 31, 2021; and a building directly used for the purpose of the relevant project as of the tax base date shall be exempt from property tax under Article 112 (1) 2 of the Local Tax Act and local resource and facility tax under Article 146 (2) of the same Act respectively, until December 31, 2021: Provided, That the exempted acquisition tax on the relevant part shall be collected additionally in any of the following cases:
Article 11 (Tax Reduction or Exemption for Social Cooperatives)
(1) The acquisition tax on real property which a social cooperative authorized under Article 85 or 105-2 of the Framework Act on Cooperatives (hereafter in this Article referred to as "social cooperative") acquires to directly use such real property for its own business shall be reduced by 50/100 until December 31, 2021: Provided, That the reduced acquisition tax on the relevant part shall be collected additionally in any of the following cases:
Article 12 (Tax Reduction or Exemption for Housing Redevelopment)
In cases of the following real property acquired on or before March 11, 2008 in a housing redevelopment project zone or residential environment improvement project zone designated as an improvement zone pursuant to the previous Act on the Improvement of Urban Areas and Residential Environments (referring to the Act on the Improvement of Urban Areas and Residential Environments before being amended by Act No. 8974), acquisition tax shall be exempt until December 31, 2021: Provided, That the exempted acquisition tax shall be additionally collected when the real property becomes subject to taxation under Article 13 (5) of the Local Tax Act within five years from the date of acquisition thereof or when it is constructed in violation of any of the relevant statutes or regulations:
Article 13 (Tax Reduction or Exemption for Industrial Complexes)
"Rate prescribed by municipal ordinance" in Article 78 (8) of the Act means any of the follow rates:
Article 14 (Tax Reduction or Exemption for Urban Natural Park Zones)
With respect to any land, building and housing (the definition of each term shall be as defined in subparagraphs 1 through 3 of Article 104 of the Local Tax Act) that is altered to and designated as an urban natural park zone under Article 38-2 of the National Land Planning and Utilization Act among the urban planning facilities under subparagraph 7 of Article 2 and Article 5 (1) of the same Act, of which topographic map was publicly notified pursuant to Article 32 of the same Act and which has remained as a park unexecuted for at least 10 years, property tax under Article 112 (1) 2 of the Local Tax Act shall be exempt until December 31, 2021.
Article 15 (Reduction of or Exemption from Property Tax Belonging to the Seoul Metropolitan Government)
The reduction of or exemption from property tax belonging to the Seoul Metropolitan Government under Article 9 (1) and (2) of the Framework Act on Local Taxes shall be as prescribed by ordinance on tax reduction and exemption of an autonomous Gu in which the property subject to the relevant property tax is located.
Article 16 (Tax Credit for Payment by Automatic Transfer)
(1) The amount of tax credit classified under the subparagraphs of Article 92-2 (1) of the Act shall be as follows:
Article 17 (Delegation of Administrative Affairs)
Administrative affairs regarding the reduction of or exemption from the Seoul Metropolitan Government taxes under this Ordinance shall be delegated to and conducted by the head of each Gu.
Article 18 (Property Subject to Exclusion from Tax Reduction or Exemption)
Real property, etc. under Article 13 (5) of the Local Tax Act shall be excluded from property eligible for tax reduction or exemption, where the application of tax reduction or exemption under this Ordinance occurs.
Article 19 (Applications for Tax Reduction or Exemption)
(1) Any person who wishes to be granted a reduction of or exemption from a Seoul Metropolitan Government tax under this Ordinance shall submit an application for reduction of or exemption from local taxes in attached Form 1 of the Enforcement Rule of the Restriction of Special Local Taxation Act to the head of a Gu, along with other documents that may evidence such fact: Provided, That where the head of a Gu can verify the eligibility for tax reduction or exemption, such head may grant a tax reduction or exemption ex officio even where no application has been filed therefor.
Article 20 (Submission of Information for Tax Reduction or Exemption)
Any person granted the reduction of or exemption from a Seoul Metropolitan Government tax pursuant to this Ordinance shall submit information relating to such tax reduction or exemption to the head of a Gu. In such cases, Article 184 of the Act shall apply mutatis mutandis to the submission of information on tax reduction and exemption.
Article 21 (Return and Payment of Amount of Tax Exempted or Reduced)
Where any taxable property granted a reduction of or exemption from acquisition tax pursuant to this Ordinance becomes subject to taxation or additional collection, Article 20 (3) of the Local Tax Act shall apply thereto; and where a person fails to file a tax return and to pay the relevant tax or where the amount of tax which such person has filed a return on and paid is less than the amount of tax assessment, Article 21 (1) of the same Act shall apply thereto.
Article 22 (Exclusion from Double Tax Reduction or Exemption)
Where at least two provisions on tax reduction or exemption apply to reducing or exempting local taxes pursuant to statutes, regulations and this Ordinance on the same taxable property, Article 180 of the Act shall apply thereto.
Article 23 (Restriction on Special Cases concerning Local Tax Reduction or Exemption)
Where acquisition tax is exempt (including where acquisition tax is exempt by applying an additional reduction rate provided by this Ordinance to the reduction rate prescribed in the Act) in this Ordinance pursuant to Article 177-2 (3) of the Act, the main sentence of Article 177-2 (1) of the Act, with the exception of its proviso, shall not apply.
Article 24 (Scope of Direct Use)
For the purposes of the provisions on reducing or exempting property tax on land under Article 112 (1) 2 of the Local Tax Act, the scope of direct use shall include the construction of a building to be used for affairs eligible for the relevant reduction or exemption.
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