In general, if a company acquires real estate or establishes it’s headquarters or branch in a metropolitan area under overpopulation control, local taxes are levied. However, certain business sectors including theaters are not subject to registration tax.
Three-fold acquisition tax is levied on:
– new or additional establishment of factories (excluding industrial complex, FDI zones,
industrial zones);
– acquisition of real estate used for commercial purposes or as office by the
headquarters of the company.
industrial zones);
– acquisition of real estate used for commercial purposes or as office by the
headquarters of the company.
Three-fold registration tax is levied on:
– new or additional establishment of factories (excluding industrial complex, FDI zones,
industrial zones);
– establishment and setup of corporations and branches, corporate registration or real
estate registration due to moving-in (excluding industrial complex);
– Exception: acquisition of real estate after 5 years since business establishment or
moving into the metropolitan area. In such cases, no registration tax is levied.
industrial zones);
– establishment and setup of corporations and branches, corporate registration or real
estate registration due to moving-in (excluding industrial complex);
– Exception: acquisition of real estate after 5 years since business establishment or
moving into the metropolitan area. In such cases, no registration tax is levied.
However, if the real estate was notified as new or additional factory facility of the foreign- invested company by Dec. 31, 2003 then the three-fold acquisition tax and registration tax will not be applied.