◈  To enhance individual business owners’ income transparency, used car retail and dealership business, sports           goods retail business, sports education facilities, other education support service business, and catering service           business have been added to the scope of businesses required to issue cash receipts (Article 162-3 (4) of the           Income Tax Act, Attached Table 3-3 of the Enforcement Decree of the Act).

          Starting from Jul. 1, 2017, if such businesses make a cash transaction of KRW 100,000 or more and do not issue a           cash receipt, a fine of 50 percent of the transaction amount is imposed.

          When the transaction counterpart’s personal identification information is not known, individual business           owners should issue a cash receipt using the National Tax Service’s identification number (010-000-1234) within           five days of the date of transaction.

      ◈ Reward for reporting refusal to issue a cash receipt

          If a consumer makes a cash transaction of KRW 100,000 or more with a business obligated to issue a cash receipt           and the business refuses to issue a cash receipt, he/she can prepare the necessary documents of proof and report           the business to a tax office, etc. within five years of the date of transaction by mail or phone, or through the NTS           website.

          If it is confirmed that the business refused to issue a cash receipt, the consumer is rewarded 20 percent of the           amount of transaction for which a cash receipt was not issued.

        * Maximum reward amount: KRW 500,000 per transaction; KRW 2 million per year per person

        * Applicable to transactions on or after Jul. 1, 2017

       □ To ensure fairness in taxation between non-listed companies and listed companies, the scope of persons eligible            for non-taxation of benefit from housing provided by an employer is widened.

           ○ Formerly, non-taxation of benefit from housing provided by an employer applied to employees, an executive               who is not a shareholder of his/her company, and an executive of a listed company who is a minority               shareholder of the company.

           - However, starting from this year, an executive of an unlisted company who is a minority shareholder of the               company is also eligible for non-taxation.

        * Applicable to income generated on or after Feb. 3, 2017.

        * Minority shareholder (Article 38 (3) of the Enforcement Decree of the Income Tax Act): A shareholder who owns            lesser of the amount equivalent to: the value of shares at least 1 percent of the total amount of stocks issued, etc.            of the relevant company, or KRW 300 million

           ○ A business owner issued a tax invoice before the time of supply of goods for which a portion of the payment               due was not received, and did not issue a tax invoice in the following taxable period in which the time of               supply of the goods falls. In this case, penalty tax for non-issuance of tax invoice is imposed for the taxable               period in which the tax invoice was not issued. However, penalty tax for false preparation of list of total tax               invoice by customer is not imposed for the taxable period in which the tax invoice was issued in advance and               value added tax was filed and paid.

                 Related laws: Article 34 (Time of Issuance of Tax Invoices) and Article 60 (Penalty Taxes) of the Value Added                  Tax Act