Seoul city zeroes in on foreign residents' unpaid taxes

The Korea Times

The Korea Times

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Sun, October 1, 2023 | 21:27

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Seoul city zeroes in on foreign residents' unpaid taxes

Posted : 2023-02-07 14:55

Updated : 2023-02-08 18:23

Seoul city government has recently claimed 1.6 billion won of unpaid taxes from foreigners in the city. But it is only part of the 16.3 billion won unpaid by 83,000 foreigner residents with taxes owing as of last December. Gettyimagesbank

By Ko Dong-hwan

Seoul Metropolitan Government has placed focus on the city's foreign residents who have not settled their taxes. The move came after the city government settled over 32,000 cases of tax delinquency through a special investigation conducted from last October to January, claiming 1.6 billion won ($1.27 million) in total.

The city government said the renewed stance comes after the authority's chronic loophole which failed to track foreigners residing in the country against tax delinquency records. A particular issue was the registering of incorrect billing addresses in the city's system.

The authority said they will strengthen monitoring of delinquent foreign taxpayers by slapping them with credit delinquency tags, seizing property, imposing travel bans and sending agents to their residential locations. Simultaneously, they will begin informing foreigners of their tax duties through different languages via social media and print advertising.

"As our society is becoming more multicultural with an increasing number of foreign residents, we will advertise more aggressively their tax-paying duties to raise awareness," Finance Bureau Chief Han Young-hee from the city government said. "We need distinguished guidelines to collect taxes from the foreigners in this country who don't pay them. We will see to it that our government's tax claim over delinquent foreigners won't have any loose ends."

The city government last December counted overdue tax bills. Over 130,000 tax items were unpaid by about 83,000 foreigners, amounting to 16.3 billion won. The most common unpaid tax item was Local Income Tax, with over 10 billion won owing. Property Tax and Automobile Tax each counted over 2.2 billion won, Resident's Tax 943 million won and other tax items 355 million won.

Over 160 nationalities were found among delinquent taxpayers as of last December. Among them, Chinese topped the ranks in number, followed by Americans, Vietnamese, Mongolians, Canadians, Taiwanese, Uzbekistanis and Japanese in order.

As a result of the investigation over the past four months, the city government has received 568 million won in overdue Property Taxes. Local Income Taxes that went back to the city coffer counted 490 million won, Automobile Taxes 384 million won, Resident's Taxes 157 million won and other tax items 39 million won.

A notable fact was that the tax item foreigners mostly failed to pay was Resident's Tax. Over 102,000 cases of delinquency for the item were reported as of last December, a whopping figure when considering other unpaid tax items each counted less than 20,000. Among the unpaid Resident's Taxes, 25,635 delinquency cases have been settled at the end of the city authority's latest investigation.

The authority said they will distribute leaflets and posters to raise awareness in places frequented by foreigners including Seoul Global Center in Jongno District, over 40 foreigner-supporting local public centers, immigration offices, embassies and district offices.

Foreigners in Korea who want to extend their stay should settle all their unpaid taxes.

The authority said that there are over 4,800 foreigners who had not paid their due taxes and left the country as of last December. The government said they will continue contacting the country's Ministry of Justice, which controls immigration offices, to track the delinquent foreigners' whereabouts and, if found to be inside the country, will take all necessary measures to secure payment.

aoshima11@koreatimes.co.kr