HOMETAX

World-Class Electronic Tax

Administration Service

Republic of Korea

AX
e -T Republic of Korea
Hometax
World-Class Electronic Tax
Administration Service
Contents

06 Overview - Summary of Hometax

- Structure of Hometax

07 Background - Background of Establishment

- Objectives of Establishment

08 
Birth and - Introduction of Hometax (1999-April 2002)

Development - Development

of Hometax Year 2002-2004 (Stage 1)

Year 2005-2006 (Stage 2)
Year 2007-2010 (Stage 3)
Year 2011-Present (Stage 4)
<Appendix 1>
Details on Stage-by-Stage Expansion of Hometax Services
15 Main Services - How to Subscribe
- E-Tax Filing
- E-Notice
- E-Payment
- E-Filing of Taxation Data
- E-Tax Certificate
- Cash Receipt Service
- E-Tax Invoice Service
- Year-end Tax Settlement Service
- My-NTS Service (one account per taxpayer)
- National Tax Law Information Service
- Simulated Tax Calculation Service
- Other Services
< Appendix 2> Mobile Service

28 Accomplishments - Contributing to the Reduction of Tax Compliance Costs

- Ensuring Economic Transparency
- Contributing to Voluntary Tax Filing

31 Direction for - Expanding Interactions with National Institutions

Future - Providing Better Mobile Services
Development - Using the Latest ICT Including Big Data
- Developing into a More User-friendly System
Overview Summary of Hometax
 ometax is a high-tech tax administration service widely used in Korea, which enables
● H
taxpayers to conveniently take care of their tax affairs online (www.hometax.go.kr) without
having to visit a tax office.
- Hometax not only allows tax filing and payment and application for and issuance of tax
certificates, it also enables checking and issuance of tax invoices and cash receipts as
proofs of payment.
- Taxpayers can submit online various attached documents for tax filing, explanatory
data for taxation documents, requests for appeal against taxation, and so on. They can
also set up their own plan for reducing tax payments by using services such as
Simulated Tax Calculation and Previewed Year-End Tax Settlement.

 ometax allows taxpayers to save tax compliance costs incurred in visiting a tax office
● H
or seeking the help of a tax agent to take care of their national tax payment.
- Hometax is a high-tech system contributing to the expansion of stable tax bases by
solidifying the taxation infrastructure that provides convenient functions necessary
for tax payment, thereby leading to voluntary and faithful tax filing and easier
obtainment of various tax-related documents, the basis of national tax administration.

Structure of Hometax
 y simply logging into Hometax once, taxpayers can benefit from a one-stop service that
● B
helps them take care of most of their national tax affairs, such as tax filing and payment,
and application for and issuance of tax certificates.
- After its launch in April 2002, Hometax had been constantly expanding its services for
10 years until 2012, when it was upgraded to the Next-Generation Hometax.
⇒ While the services of Hometax were expanding, various changes in the tax
administration environment gave rise to a number of other new systems including
Cash Receipt System (2005), Simplified Year-End Tax Settlement System (2006),
and E-Tax Invoice System (2008).
⇒ With the passage of time, the Hometax system became too complicated to interact
with the separately established systems. Moreover, the increasingly outdated
systems were unable to meet the changing and diversifying tax administration
conditions.
- To resolve the issue, Next-Generation Hometax was newly established to bring
innovative improvements to the tax payment service by applying the accumulated tax
administration knowhow and communications technologies and integrating the eight
online systems established between 2012 and 2015 into one system.

06 World-Class Electronic Tax Administration Service

 Overview

E-Filing & E-Tax

Payment Certificate

Earned Income Tax

Credit & Child Tax
Credit
Cash Receipts

Simplified
Year-End Tax
e-Sero Settlement
(Electronic Tax
Invoice System)

National Tax Law

Information Service
Public-Service Corporation NTS Call Center at 126
Disclosure Service

[ Main Services of Hometax ]

Background Background of Establishment

 ntil the late 1990s, the National Tax Service (NTS) sent tax payment notices to taxpayers
● U
by mail and taxpayers had to visit a tax office to prepare and file their tax returns.
- To pay taxes, taxpayers had to personally visit a bank or use online banking service
that involved the work of checking and entering a lot of lesser-used information, such
as the user number, password, and other payment information.

o mitigate such inconvenience, the NTS developed the National Tax E-Filing System
● T
from 1999 to 2000, enabling tax agents to e-file withholding and value-added taxes.
- Following this improvement, more tax items became available for e-filing so that not
only tax agents but taxpayers were also allowed to e-file their taxes by themselves.
- However, the existing system faced limitations in coping with the rapidly changing tax
administration environment, including ever-advancing information technologies,
taxpayers’ demand for diversified services, and the increasingly complicated economic
environment.

● In response, as part of the pan-governmental E-Government Project initiated in 2001, the
NTS embarked on the implementation of the Home Tax Service (HTS) by expanding and
strengthening the National Tax E-Filing System.
- The total amount spent for Hometax was approximately KRW 17.7 billion (USD 13.70
million), all of which was covered by the Informatization Promotion Fund, and the
service was launched on April 2004, laying a new foundation for e-tax administration.

National Tax Service 07

 Background

Objectives of Establishment

Objectives of Hometax

To Enhance Efficiency and

To Enable Handling To Provide Best National
Transparency of Tax
National Tax Affairs Online Tax Administration Service
Administration

Allowing taxpayers to Enhancing work efficiency to

take care of most of their Providing taxpayers create an environment where
tax affairs online, including with a high-tech e-tax tax officials can focus their
tax filing and payment and administration service efforts on important tasks
application for and by integrating the such as analyzing tax revenue
issuance of tax certificates widely-used Internet and sources and standardizing
without requiring them tax administration. services to strengthen
to visit a tax office and transparency and fairness
a bank. of tax administration.

Advanced National Tax Administration Trusted by People

Birth and Introduction of Hometax (1999-April 2002)

Development  he origin of Hometax is the abovementioned National Tax E-Filing Service established in
● T
of Hometax December 1999.

 onsidering the then Internet environment and people’s awareness of tax payment,
● C
there was a concern that it was still too early to expand the National Tax E-Filing Service
to cover most of the tax affairs including tax notice and payment, and the issuance of tax
certificates.
- The Internet technology back then was not advanced enough to smoothly provide
services in demand because 56k modems hooked up to telephone lines were mainly
used. Moreover, people were still unfamiliar to using a user certificate that was
indispensable for information protection.
- In addition, it was difficult to encourage active participation from both tax agents and
taxpayers because of costs incurred in using the Internet and replacing old PCs.

● Internally as well, the government officials lacked experience and knowledge in

undertaking a large-scale informatization project, and the complicated filing procedures
required by the tax law made it difficult to convert them into an electronic format.

 oreover, there was a concern that potential errors in the electronic system might
● M
cause frequent conflict with taxpayers, which was the reason why only a few advanced
countries, such as Australia, were operating online tax administration service.

08 World-Class Electronic Tax Administration Service

Birth and Development
of Hometax
 he NTS, however, decided that implementing an electronic tax administration service
● T
was the best response to the changing tax administration environment and adopted a
step-by-step implementation strategy, beginning with the types of services that could
take root easily.
- At the right moment, the project (Internet Taxpayer Service) was given impetus in
2011 by being selected as one of the 11 key tasks for the pan-governmental
E-Government Project.

 he first thing the NTS did to establish the Hometax system was to test-operate the
● T
E-Filing Service designed for tax agents.
-To identify and minimize any unexpected problems that might occur in early stages of
the Hometax system, the NTS test-operated the E-Filing Service to take care of value-
added and withholding taxes from July 2000 for tax agents in Seoul.

 ased on the results of the test-operation of the service, the Hometax project
● B
commenced in earnest in December 2001, and the system was launched in April 2002,
starting to provide services by stages according to the project plan.

● In the early stages of Hometax, various efforts were made to mitigate inconveniences
and imperfections.
-The NTS asked for the cooperation of the Association of Tax Professionals in raising
awareness of and using Hometax and strengthened relevant training programs for tax
agents provided by NTS regional and district tax offices. It also promoted the
advantages and necessity of the use of Hometax by holding a number of meetings and
discussions.
-In addition, the NTS continued to make efforts to reduce any imperfections in the
e-filing system by constantly receiving feedback on the Hometax system.

Before Hometax Present

·Taxpayers or tax agents hired by taxpayers ·Taxpayers can conveniently prepare and file their
prepared tax returns and filed them by visiting tax returns online using Hometax.
a tax office or by mail.
·Taxpayers can apply for e-notice service to receive
·Taxpayers received a tax notice a tax notice via text message or email.
at their house or workplace.
·Taxpayers can check their tax notice on Hometax
·Taxpayers visited a bank or a tax office and pay by bank transfer.
to pay their taxes.
·Taxpayers apply for the issuance of their tax
·Taxpayers had to visit a district tax office certificates online, inform the related agency of the
to have tax certificates issued to submit issuance number, and then the agency can simply
them to related agencies check it on Hometax.

▶Tax administration service made a new leap with a remarkable reduction in the inconvenience
experienced by taxpayers by enabling them to take care of most of their tax affairs online, such as
tax filing and payment and the issuance of tax certificates.
▶Hometax enhanced fairness and transparency of tax administration by minimizing unnecessary
direct contact between taxpayers and the tax authorities.
[ Changes in National Tax Administration after the Launch of Hometax in April 2002 ]

National Tax Service 09

Birth and Development
of Hometax
Development
Year 2002-2004 (Stage 1)
 fter the launch of Hometax in April 2002, based on the previous experience gained
● A
from the test-operation of the e-Filing Service, its services were expanded to cover
more various tax affairs.
- In June 2002, the e-Notice System that had been applied only to value-added taxes
was expanded to encompass all the tax items.
- In November 2002, improvements were made so that taxpayers themselves, without
the help of a tax agent, could e-file their special excise taxes and liquor taxes.
- The e-Filing Service was expanded to include value-added and withholding taxes in
January 2003 and corporate and composite income taxes in 2004.
⇒ Starting from 2003, efforts were made to make the attached documents for
corporate income tax and income tax available for e-Filing. The service for checking
tax certificates was expanded to enable issuance as well in 2004. In addition, an
e-Filing practice page allowed taxpayers to use the service more conveniently.

o promote the use of the e-Filing System, the e-Filing Tax Credit System was introduced
● T
in 2004, according to which when taxpayers e-filed their taxes, they were allowed KRW
20 thousand (USD 18) worth of deduction from their income tax and corporate income
tax, respectively, and KRW 10 thousand (USD 9) worth of deduction from their value-
added tax.
- When tax agents e-filed their taxpayer clients’ income, corporate, and value-added
taxes, they were also allowed to benefit from tax deductions up to KRW 10 thousand
(USD 9) per client within the limits of tax amount of KRW 1 million (USD 900).

 ith the help of institutional support and active promotional activities targeting
● W
taxpayers and tax agents, Hometax took root quickly with the number of subscribers
increasing rapidly by more than a million every year.

(Unit : Thousand)

Year 2002 2003 2004

Accumulated Number
605 1,548 2,681
of Subscribers

Subscription Rate 12.4 30.0 47.7

※ Subscription Rate: Number of Business Subscribers / Total Number of Business Taxpayers

[ Accumulated Number of Hometax Subscribers, 2002-2004 ]

10 World-Class Electronic Tax Administration Service

Birth and Development
of Hometax
Year 2005-2006 (Stage 2)

 he NTS worked hard to expand and advance the existing service functions such as
● T
e-Filing, e-Notice, and e-Payment, and to improve user satisfaction by reflecting user
feedback.
- The NTS also enhanced the system quality by providing additional services, such as a
checking service for tax-free capital gains for one house per household, an automatic
gift tax calculation service, mobile application for the issuance of tax certificates, an
online tax filing and payment checking service, and e-filing of monthly early VAT
rebates.

 s a result, the e-Filing usage rate increased to 96.9% for corporate income tax, 92.9%
● A
for withholding tax, and 78% for value-added tax, which usually involves a large number
of self-employed taxpayers.
- In addition, e-Filing user satisfaction increased by more than twice from 35% in 2004
to 74%, suggesting Hometax services improved in terms of not only quantity but also
quality perceived by users.
(Unit : %)
Year 2003 2004 2005 2006
Corporate
Not Applied 92.7 97.1 96.9
Income Tax

Income Tax Not Applied 43.5 74.3 81.2

Withholding Tax 58.3 80.9 88.5 92.9

VAT 24.6 49.9 69.7 77.9

[ e-Filing Usage Rate by Year and Tax Item, 2003-2006 ]

Year 2007-2010 (Stage 3)

 tarting from 2007, with Hometax services advanced, more taxation documents
● S
retained by the NTS were provided for taxpayers, and an exclusive Hometax counseling
center was established, laying a foundation for quick response to future environmental
changes.
- The NTS enabled national tax payment by credit card (2008) and implemented MY-
NTS service, an account-by-taxpayer service providing taxation documents directly
for each taxpayer (2010).
- Moreover, more advanced services were newly introduced to significantly improve
convenience, such as the Pre-Filled Service (2010) that fills out taxpayers’ tax returns
in advance using the taxation data retained by the NTS.
- In addition, the e-National Tax Return Storage and Restoration Service enabling
e-filing anytime, anywhere using a portable storage device was launched.

National Tax Service 11

Birth and Development
of Hometax
 y this time, the Hometax system became more widely used among taxpayers with a
● B
higher e-filing usage rate than comparable services in other advanced countries, taking
a leap forward and becoming a world-leading e-tax administration service.

(Unit : %)
Year 2007 2008 2009 2010
Corporate
96.9 96.1 96.0 96.1
Income Tax

Income Tax 80.1 80.7 80.0 83.4

VAT 76.9 74.5 74.4 76.9

[ Hometax e-Filing Usage Rates by Year and Tax Item, 2007-2010 ]

(Unit : %)
Corporate Income Tax Income Tax VAT
Country
Introduced in E-filing rate Introduced in E-filing rate Introduced in E-filing rate

USA 2004 25 1986 65 - -

UK 2004 16 2001 73 2003 20

Australia 1994 92 1990 92 2000 49

Canada 2002 21 1992 58 2002 22

Germany - - 1999 30 2000 25

Japan 2004 38 2004 31 2004 57

Denmark 2005 18 1994 96 1999 95

France 1991 77 2001 27 2001 28

※ Source : OECD Annual Report

[ E-Filing Usage Rates in Major OECD Member Countries, 2009 ]

Year 2011-Present (Stage 4)

 ew policies resulting from changes in the tax administration environment had to be

● N
reflected in national tax administration, leading to a number of separate data processing
systems.

12 World-Class Electronic Tax Administration Service

Birth and Development
of Hometax
- As a result, taxpayers had to log into a number of different websites including Hometax
to take care of their various tax affairs such as E-Sero, simplified year-end tax
settlement, and cash receipt. This complexity also cost the NTS a great deal of money
and time in promoting each of the separate systems.
- Moreover, the IT environment changed increasingly faster over time, and there was
also a growing need for hardware, such as servers, for effective data management.
⇒ There was an increasing need to establish a system that can provide an upgraded
tax payment service, significantly improve work efficiency, and have flexible and
strengthened security features to respond to the rapidly changing IT environment.

 tarting with Information Strategy Planning (ISP) for an overall reorganization of the
● S
NTS data processing systems in 2010, the Business Process Reengineering in 201l, and
the Next-Generation National Tax Administration System project in 2012, the NTS
launched NTIS in July 2015.

※T
 he Next-Generation National Tax Administration System project was a large-scale
informatization project, carried out using the big-bang method by investing KRW 202 billion
(USD 172.35 million), where all the systems were reorganized at one time including 22,300
programs developed and 180 billion pieces of data processed.

- The NTIS is comprised of the abovementioned Next-Generation Hometax, an online

portal tax payment service, and Tax Administration Portal, an integrated service for
internal employees.

 he Next-Generation Hometax is a portal service for taxpayers (www.hometax.go.kr)

● T
that integrates various individual websites and mobile websites, including Hometax,
Cash Receipt System, E-Tax Invoice System, Simplified Year-End Tax Settlement
System, Earned Income Tax Credit & Child Tax Credit System, Public-Service
Corporation Disclosure System, Tax Law Information System, and Customer Satisfaction
Center.

- With the launch of the Next-Generation Hometax system, taxpayers can take care of
all their tax affairs by simply logging in just once to Hometax on their PC or smartphone.
- As taxpayers started to use tax payment services regardless of time and place, the
transition from a face-to-face tax payment culture to an electronic tax payment
culture accelerated.

 ven though taxpayers had to adapt themselves to the new system and underwent
● E
inconvenience due to some program errors in the beginning of Next-Generation
Hometax, the service was successfully stabilized soon with quick handling of related issues.

- After reorganizing the system, the accumulated number of visitors is 1.3 billion a year
and the e-payment usage rate increased from about 30% to about 50%.

National Tax Service 13

Birth and Development
of Hometax

Before Present

· Taxpayers had to use a number of websites · Eight independent websites have integrated
established and operated independently. into one portal.
· Each of these websites required different · The standardized user authentication system
login and authentication procedures. enables customized services.

· E-Filing is available for all tax items except for

inheritance tax.
· Services for after-due-date filing, amended
· E-Filing was only available for periodic tax filing and request for correction are available
filing (excluding some tax items), and for key tax items.
the pre-filled service that automatically fills
in tax returns was limited. · The Pre-Filled service was expanded.
·
The e-filing page has been made to look
similar to the legal paper tax returns and the
information of preparation steps is provided.

· Some attached documents and evidential · Any attached documents or evidential

documents were unable to be submitted documents required can be submitted in
through e-filing. PDF format for e-filing.

· Taxpayers can e-file their taxes on Hometax

· Taxpayers had to separately install an e-filing
(web-based) without separately installing a
program on their PCs.
program.

· Online tax certificate issuance hours were · Tax certificates can be issued 24/7
limited · Issuance service available even on Sundays
Weekday 09:00~19:00, Sat. 09:00~13:00 and holidays
· The number of tax certificates issuable online · The number of tax certificates issuable
was limited to 20. online increased to 41.

· Taxpayers can immediately confirm the

· Taxpayers had to wait for a day or two to
details of what they paid for, have tax
confirm their payment details at the Bank of
certificates issued, and check whether they
Korea.
have any delinquent taxes.

[ Main Changes Brought by Next-Generation Hometax Launched in July 2015 ]

14 World-Class Electronic Tax Administration Service

 Birth and Development
of Hometax <Appendix 1> Details on Stage-by-Stage Expansion of Hometax Services
Class. Period Description of Main Services
Introduction 2000~2001 · July 2000 E-Filing of value-added tax and withholding tax

· April 2002 Hometax website launched

· April 2002 E-Filing service (advance e-Notice for value-added tax)
· April 2002 Tax certificate online checking service
· June 2002 Expanded items available for e-Payment
(every tax item)
· Oct. 2002 Tax affair information checking service
· Nov. 2002 Expanded items available for e-Filing (indirect tax)
Stage 1 2002~2004 · Nov. 2002 Online civil petition service
· Nov. 2002 Civil petition progress disclosure service
· Feb. 2003 Taxation data e-Filing service
· Mar. 2003 E-Notice service
· May 2003 Daily life tax service
(automatic calculation of capital gains tax)
· Jan. 2004 Online tax certificate issuance service
· Mar. 2004 Expanded items available for e-Filing (direct tax)

· Jan. 2005 Cash Receipt System (separate system)

· Dec. 2005 Expanded daily life tax service
(tax-free capital gains for one house per household checking service,
Stage 2 2005~2006 gift tax automatic calculation service, etc.)
· Feb. 2006 E-Filing and payment checking service
· Dec. 2006 Simplified Year-End Tax Settlement System
(separate system)
· Dec. 2006 Mobile application service for tax certificate issuance

· Oct. 2008 National tax e-Payment by credit card

· May 2009 Earned Income Tax Credit System (separate system)
· July 2009 Established an exclusive Hometax counseling center
· Oct. 2009 E-Payment available 24/7
· Oct. 2009 Statement of payments available to be submitted 24/7
Stage 3 2007~2010 · Nov. 2009 E-Filing became available for capital gains
tax and gift tax
· Jan. 2010 My-NTS service (personal tax account per person)
· J an. 2010 e-Sero System (separate system)
·A  pril 2010 Pre-filled return service
·D  ec. 2010 E-Filing of proofs for income tax deductions
in year-end tax settlement

· July 2011 Mobile cash receipt service

· Feb. 2012 Mobile Hometax service
· May 2012 Convenient mobile filing of global income tax
· Jan. 2013 Mobile e-Tax invoice issuance and checking service
· Feb. 2015 Expanded My-NTS service (34 types-> 62 types)
Stage 4 2011~Present · July 2015 Expanded items available for mobile filing
(value-added tax for no sales)
· July 2015 Launched Next-Generation Hometax
(integrated eight separate systems)
· Oct. 2015 Convenient year-end tax settlement service
· July 2016 Simple mobile service for capital gains tax filing and
attached documents submission

Main Services How to Subscribe

 n Hometax, users are allowed to use different types of services depending on whether
● O
they are a member or are logged in through their user certificate. If they are not logged
in, they are limited to using only some of the services available, such as tax law
information, tax evasion report, and simulated tax calculation.

National Tax Service 15

Main Services

Member Non-Member

Class. User ID/PW + Real Name No

ID+PW User Certificate
Certificate Security Card Authenticated Authentication

E-Filing of income,
Available capital gains, and gift
E-Filing, Counseling
Services All tax, and checking of Guidance
E-Tax Invoice E-Application, and posting
· services deductible amounts page
cash receipt up questions
Authority from year-end tax
settlement

[ Authentication System for Hometax Users ]

 sers can log in either as a member or a non-member. Member login is to log in using
● U
a user certificate or a set of ID and password, and non-member login is to use Hometax
services through identity authentication (user certificate) without being registered as a
member.
- Member users can use all the services available if they log in through their user
certificate, while they are limited to using some services such as E-Filing and
E-Application if they are logged in through their ID and Password.
- Users who are not business operators can log in as a non-member through their user
certificate without being registered as member and use the services available to
them, such as tax certificate issuance, composite income tax E-Filing, and the service
for checking the available income tax deductions from year-end tax settlement.

Items Services Available

Tax Certificate Issuance Tax Clearance Certificate, Certificate of Fact of Tax Clearance, etc.

Checking of available income tax deductions from year-end tax settlement

Year-End Tax Settlement
Application for consent to data provision

Composite income tax filing and payment

Filing and Payment
Capital gains tax and gift tax filing and payment

Earned Income Tax Credit

Application, income data viewing, etc.
& Child Tax Credit

[ Services Available Through Non-Member Login ]

● In early stages of Hometax (April 2002), taxpayers experienced the inconvenience of
visiting a tax office for identity authentication if they wanted to be a registered member
of Hometax.
- After continuous efforts to mitigate such inconvenience experienced by taxpayers
without violating their right to personal information protection, an improvement was
made in October 2002 to allow those who hold a user certificate to be registered as a
member of Hometax without having to visit a tax office.

16 World-Class Electronic Tax Administration Service

 Main Services

- In addition, in January 2004, taxpayers who did not have a user certificate were given
a Personal Identification Number (PIN) through various tax guidance notices and
were allowed to be registered on Hometax with that PIN. Starting from November
2006, taxpayers’ convenience was even more enhanced with a smartphone PIN
issuance service.

E-Tax Filing
 he E-Tax Filing Service allows taxpayers to prepare and file their tax returns and any
● T
attached documents along with them on Hometax.
- E-Tax filing methods include: ①Return preparation and transmission method
whereby taxpayers prepare and transmit tax returns themselves on Hometax; and ②
Return file conversion and transmission method whereby taxpayers themselves or
have a tax agent prepare a tax return file using popular tax accounting software and
then convert the file using National Tax Service’s conversion program to transmit the
return to Hometax.
- The service is available from 6:00 to 24:00 during the tax filing period and after this
period is over, after-due-date filing and amended filing services are available.

Filing & · Available for : the tax items that can be e-filed
transmission · Mainly used by : Taxpayers who do not have their own tax accounting software,
method including self-employed taxpayers

Connect to Internet Login

Hometax

Prepare
a return
Transmit
The filing receipt
issued
Receive the
filing receipt

[ Flow Chart of E-Filing a Tax Return ]

 n Hometax, taxpayers can e-file all the tax items except for inheritance tax. For some
● O
main tax items, including income tax and corporate income tax, services for after-due-
date filing, amended filing and request for correction are available as well.
- In addition, taxpayers can e-file in PDF format any documents to be attached to their
tax returns without the need to visit a tax office.

National Tax Service 17

Main Services

 oreover, the e-filing page has been made to look similar to the legally required paper
● M
tax return form for taxpayer’s convenience and better understanding.
- The Pre-Filled service is provided to automatically fill out part of a tax return based on
the taxation data retained by NTS, while for taxpayers who are subject to simple
expense rates (for composite income tax, etc.), the Full-Filled service is provided so
all they need to do is simply transmit their tax returns.

● If a taxpayer filed both an electronic return and a paper return at the same time or filed
by mistake a tax that was not subject to filing, he or she can request Hometax to delete
it within two days after the legal filing period.
- To ensure legal validity of e-filing, the Framework Act on National Taxes (Article 5,
Clause 2) was newly established and the tax items available for e-filing were stipulated
in The Regulations on the Use of Hometax (Article 9, Clause 1).

E-Notice
 -Notice is a service that delivers tax notices to taxpayers electronically via Hometax
● E
and those who have applied for periodic e-notices can log into Hometax to check the
details.
- Taxpayers who use the E-Notice Service are notified of the delivery of an e-notice via
email and text message.
⇒ Before Hometax was introduced, taxpayers received a tax notice by registered mail
or national tax officials personally visited each household. However, with an
increase in double-income families and various changes in conditions, a lot of
people were unavailable to receive a registered mail, so the service was introduced
to resolve the difficulty of delivering a tax notice.

● In November 2002, the income-proportional resident tax, a local tax imposed along with
the composite income tax, was also included in the service, enhancing taxpayers’
convenience.
- In December 2002, a legal basis was formed by establishing a regulation on E-Notice
in the Framework Act on National Tax (Article 10, Clause 8), and there was no need to
deliver a paper notice to taxpayers who used the E-Notice Service.

● In the beginning, since most of the taxpayers preferred a paper notice and experienced
inconvenience of having to access the Internet, not many tax payers applied for the
service.
- With the launch of Next-Generation Hometax in 2015, people were now able to check
their tax notice on smartphones and pay taxes more conveniently by credit card,
attracting more Hometax users and doubling the E-Notice service usage rate
compared to the year before.

18 World-Class Electronic Tax Administration Service

 Main Services

E-Payment
 n Hometax, the E-Payment Service allows taxpayers to conveniently pay national
● O
taxes by bank transfer or credit card.
- Taxpayers can use the service all year round (07:00-23:30). After payment, they can
immediately confirm their tax clearance details and have a tax clearance certificate
issued or check any taxes in arrears.
- E-Payment was first applied to the predetermined advance payment of value-added
tax in April 2002, and it was applied to all the tax items starting from June 2002.

axpayers who e-file their tax returns or receive an e-notice can immediately check and
● T
pay their tax amount due. Those who file paper tax returns can pay their taxes by
personally entering the required payment information such as the tax item involved.
- Users can also pay taxes in place of other taxpayers and pay their composite income
tax and the local income tax imposed in connection with it at the same time.

Available · Available tax items : All the tax items

tax items

Connect to Login
Hometax (via user certificate)

Internet Giro System

(Korea Financial Telecommunications
Select type and Clearings Institute)
of e-payment
(e-filing, e-notice, paper filing)

Enter bank name,

account number

Check tax
amount due
Bank transfer

Confirm tax
clearance

[ Flow Chart of e-Payment ]

National Tax Service 19

Main Services

E
 -Filing of Taxation Data
 he Taxation Data e-Filing Service allows taxpayers to e-file on Hometax their taxation
● T
data such as various payment statements, tax invoices, and other bills.

 he E-Filing Service gradually expanded its application, starting from data for
● T
conditional exemption of automobile special consumption tax in November 2001 to
payment statements in January 2003, to public agency taxation data in accordance with
the Taxation Data Submission Act in March 2003, and then to records of liquor sales in
2005.
- From 2006 to 2011, improvements were made to allow taxpayers to submit 11 types of
payment statements at any time of the year.

E
 -Tax Certificate
 he E-Tax Certificate Service allows taxpayers to apply for and have issued various tax
● T
certificates related to national taxes on Hometax anytime, anywhere.
- Starting with the e-tax certificate checking service for business registration and tax
clearance certificate in April 2002, as more and more taxpayers used the service, the
number of types of tax certificates available has increased to 52.
- Taxpayers can check the progress and result of their application for certification on
Hometax and issue the certificate by printing it out.

 ince Hometax employs document forgery and falsification prevention technology,

● S
taxpayers are safe to use the issued certificate as an original copy.
- The institutions that require tax certificates, such as public agencies, can check if they
are original copies by entering their issuance number on Hometax or by scanning the
copy protection mark on them.

 fter the launch of Next-Generation Hometax in July 2015, taxpayers were able to have
● A
tax certificates issued online even on Saturdays and holidays, and the number of types
of tax certificates issuable expanded from 29 to 52.

Classification Service Hours

Certificates of business
registration and fact of business 24/7 all year round
suspension/closure

Other certificates 09:00 -22:00 all year round

Application for the issuance

09:00-24:00 all year round
of a certificate of fact

[ Hometax Certification Service Hours ]

20 World-Class Electronic Tax Administration Service

 Main Services

Description of Description of Description of

No. No. No.
Certification Certification Certification
Certificate of the Loss During Application for Approval of the
1 Business Registration 19 Transport of Individual 37 Purchase of Tax–Exempt Liquors
Certificate Consumption Tax-Unpaid for Export
(or –Exempt) Goods
Application for Approval
of Individual Consumption
2 Certificate of Fact 20 Tax-Unpaid (Conditional) 38 Application for Container
of Business Suspension Exemption for Exclusive Place Certification
of Business for Foreigners)
Transportation
Application for Tax exemption
Certificate of Fact Application for (Certificate of) on nonresidents' Korean source
3 of Business Closure 21 Fact of Imposition (Payment) 39 income provided under the Korea
of Individual Consumption Tax tax treaty(Interest, Dividend,
Royalties, Other)
Application for Approval of Application for Extension of
4 Tax Clearance Certificate Individual Consumption Tax– 40 Deadline for Submission of Data
22 Exempt Transportation for Export on Transfer Price
or Military Supply
Application for Approval of Application for (Approval of)
5 Certificate of Fact 23 Individual Consumption Tax– 41 Prepayment for a Mark of Cash-
of Tax Clearance Exempt Transportation for Paid Stamp Duty
Diplomat (Unconditional)
Application for (Approval of)
6 Certificate 24 Certificate of Residence 42 Subsequent Payment
of Income Amount for a Mark of Cash-Paid
Stamp Duty
Application for Approval of
7 Certificate of VAT Tax Base Destruction of Transportation, 43
25 Energy, Request for Provision
and Environmental Tax– of Lease Information
Exempt Goods

Certificate of Income Report of Warehousing of

8 of a VAT-Exempt 26 Transportation, Energy, and 44 Application for Certification
Business Entity Environmental Tax-Unpaid of the Loss of Liquors
(or –Exempt) Goods
Report of Warehousing of
9 Certificate Statements
of Standards Financial 27 Transportation, Energy, and
Environmental Tax-Unpaid 45 Application for Certification
as Liquor End User
(or –Exempt) Goods

Certificate of Secondary Application for Approval of

the Loss During Transport of Report of (Certification of)
10 Establishment Where Taxation by
Principal Place of Business Has 28 Transportation, Energy, and 46 Warehousing of Tax-Unpaid
Been Applied Environmental Tax-Unpaid Liquors
(or –Exempt) Goods

Certificate of the Loss During

Confirmation of Tax Credit Transport of Transportation, Application for Approval
11 and Tax Deduction Such as 29 Energy, and Environmental 47 of Transportation of
Pension Premium Tax-Unpaid Tax-Unpaid Liquors
(or –Exempt) Goods
Application for Approval of
Certificate of Exemplary Transportation, Energy, and Application for Approval
12 Taxpayer 30 Environmental Tax-Unpaid 48 of the Loss During Transport
(or conditionally exempt) of Tax-Unpaid Liquors
Transportation

Income Certificate Certificate of Fact of Imposition Report of (Application for

13 (for Creating Individual 31 (Payment) of Transportation, 49 Approval of) Purchase of Ethanol
Savings Account for Energy, and Environmental Tax or Alcohol as Raw Material
Low-Income Earner)

Application for Approval of Report of

Transportation, Energy, and (Application for Approval of)
14 Certificate of Fact 32 Environmental Tax–Exempt 50 Delivery of Ethanol or
Transportation for Export Alcohol as Raw Material
(Military Supply)

National Tax Service 21

Main Services

Description of Description of Description of

No. No. No.
Certification Certification Certification
Application for Destruction or Application for Tax exemption
on nonresidents' Korean source 51
15 Approval of Individual Consumption 33 income Certification as Ethanol
Tax- Exempt Goods provided under the Korea End User
tax treaty(Incorporate Income Tax)
Application for Certification of Application for Approval
16 Goods for Individual Consumption 34 Application for Approval of the Loss 52
of Tax-Exempt Liquors of Liquor Tax–Exempt Delivery
Tax Exemption of Ethanol for Special Use
Report of Warehousing of Individual Certificate for Non-resident's Tax
17 Consumption Tax-Unpaid(or 35 Payment(Incorporate Income Tax)
-Exempt) Goods
Application for Approval of Loss Application for Approval
18 During Transport of Individual 36 of Tax Exemption
Consumption Tax-Unpaid for the Export of Liquors
(or –Exempt) Goods

[ Tax Certificates Issuable on Hometax ]

Cash Receipt Service

 he Cash Receipt Service enables the NTS to collect cash receipt details from cash-
● T
receipt business operators and allows consumers and business owners to benefit from
a tax credit or deduction based on the details of their cash receipt transactions.
- If consumers present their debit card, cellphone number, or resident registration
number upon a cash transaction, the Cash-Receipt System member business (seller)
issues a cash receipt. Then the cash-receipt business operator automatically reports
the collected cash receipt details to the NTS. The system was established in 2005 for
the first time in the world.
- The objective of the Cash Receipt System was to complement the tax invoice and
credit card systems with the purpose of legalizing the tax bases of self-employed
taxpayers.

o make the cash receipt system take root, the relevant law imposed a legal obligation
● T
on high-income self-employed taxpayers to issue cash receipts, while the NTS actively
engaged in promoting the system and offered various incentives.
-
The actions taken to help the system take root for the first six years of the
implementation of the system include the following: the lottery system; tax deduction
benefits for the year-end tax settlement; a reward program for citizens who report
business owners refusing to issue a cash receipt; and an additional tax of 5% on the
amount of the transaction for businesses refusing to issue a cash receipt.

 he Cash Receipt System, which had been operated independently from Hometax, was
● T
integrated into Next-Generation Hometax in July 2015, the cash receipt service has
been available to mobile users as well since 2011.
- As of 2015, 97% of business owners are affiliate members of the system, and cash receipts
are annually issued for 5 billion transactions worth KRW 96 trillion (USD 85 billion),
contributing significantly to preventing tax evasion attempts involving cash transactions.

22 World-Class Electronic Tax Administration Service

 Main Services

① Cash Transaction & Card or Cellphone Number

Consumer ④ Cash Receipt

Affiliate Member

③ Approval
② Transaction Details
⑥ Spending Details (Real Time)
(for Year-End Tax Settlement)

Cash Receipt Business

NTS Hometax ⑤ Transaction Details (One Time per Day)
Operator

Structure of the Cash Receipt System

E
 -Tax Invoice Service
axpayers can electronically write and issue a tax invoice (e-tax invoice), instead of
● T
paper tax invoices, and submit the details to NTS. Then, NTS provides an e-tax invoice
service for taxpayers to check and use their history of tax invoices in various tax filings.
- The NTS introduced the E-Tax Invoice Service in 2009 to ensure fiscal integrity by
preventing transactions involving false tax invoices and to reduce tax compliance
costs incurred in taxpayers’ preparing and keeping tax invoices.
- After test-operating the service in 2010, those subject to the legal obligation to issue
e-tax invoices expanded to all the corporations in 2011, to any self-employed business
owners whose previous year’s value of supply of goods and services was over KRW 1
billion (USD 850 thousand) in 2012, and to any self-employed business owners whose
previous year’s value of supply of goods and services was over KRW 300 million (USD
250 thousand) in 2014. In addition, tax-exempt businesses required to issue invoices
became obligated to issue e-invoices in 2015.

o have an e-tax invoice issued on Hometax, taxpayers should first either be issued with
● T
a user certificate for e-tax invoice from the user certificate authority or a security card
at a tax office. Taxpayers without Internet access can use the automatic response
service (ARS) or visit a tax office to be issued with an e-tax invoice.

o ensure the system takes root, additional taxes ranging from 0.1 to 2% are imposed
● T
depending on the degree to which business owners violate their obligation to issue
e-tax invoices. On the other hand, businesses that faithfully fulfill their obligation are
provided with a VAT deduction for the VAT they pay up to KRW 200 (USD 0.17) per
transaction and up to KRW 1 million (USD 850) per year.
- In addition, taxpayers issued with e-tax invoices are exempt from keeping all their tax
invoices and also from submitting a sum table of tax invoices, a required attachment
when filing their VAT.

National Tax Service 23

Main Services

 he E-Tax Invoice System, which had been operated independently from Hometax, was
● T
integrated into Next-Generation Hometax in 2015, and the E-Tax Invoice Service has
been available to mobile users as well since 2013.
- As of 2015, e-tax invoices account for 96% (500 million) of the total number of tax
invoices issued, contribute significantly to preventing false tax invoices and reducing
tax compliance costs.

Y
 ear-end Tax Settlement Service
 he Year-End Tax Settlement service is an online service where the NTS collects and
● T
provides various tax deduction data (13 types), such as medical expense details, credit
card usage details, and educational expense details, which are required for wage
earners’ year-end tax settlement.
- The Republic of Korea is operating the Year-End Tax Settlement for Earned Income
System, whereby business owners pay income taxes deducted at source on their
employees’ monthly wages, and at the beginning of the year, workers calculate their
tax deductions from their income earned over the past year, after which they receive a
tax refund or pay additional tax depending on whether the amount of taxes previously
deducted at source is in excess or short of the amount to be duly deducted. The NTS’s
Simplified Year-End Tax Settlement service is to support this system.

Employees Deduction근로자
at Source Obligor
Proof Report of
of Deductions Deductions

Payment
Statements

Proof of
Deductions KEIS

Provincial, Metropolitan
Education Offices
NTS

NHIS
Bank

Insurance Company KLIA KNIA

Colleges/Universities
Card Company

Savings Bank CREFIA KFB

Clinics/Hospitals
Insurance Company Agencies Where Data Converge

Structure of Simplified Year-End Tax Settlement System

24 World-Class Electronic Tax Administration Service

 Main Services

 ith the Simplified Year-End Tax Settlement service in place, workers can save time
● W
and cost required to collect receipts for tax deductions, and certificate agencies can
save time and cost required to issue and mail receipts. The NTS can prevent any
excessive tax deductions by electronically maintaining receipts for tax deductions.

No. Description of Data No. Description of Data

1 Insurance Premium 8 Housing Savings
2 Medical Expenses 9 Tax-Deductible Long-Term Fund
Tax-Deductible Fund
3 Credit Card 10
for Small Businesses
4 Educational Expenses 11 Contributions
5 Debit Card 12 Health Insurance
6 Cash Receipt 13 National Pension
Personal Annuity Savings/
7 Housing Fund 14
Pension Account

[ Data for Tax Deductions Provided by the Simplified Year-End Tax Settlement Service ]

- The Simplified Year-End Tax Settlement service was launched independently from
Hometax in December 2006 and integrated into Hometax in 2015. As of 2015, 1.7
billion pieces of data are collected annually, and the service is used by 12 million
users, greatly contributing to saving their tax compliance costs.

 eanwhile, the existing Simplified Year-end Tax Settlement Service was upgraded to
● M
the Convenient Year-End Tax Settlement Service in January 2016, which is a one-stop
service that notifies workers in advance of the amount they should pay additionally or
can get refunded regarding the year-end tax settlement results, automatically fills out
required forms, and allows users to file required returns along with evidential
documents with one click.
- As of the end of July 2016, the number of service users amounts to 3.59 million, which
is expected to contribute to further reducing tax compliance costs, such as the time
required to prepare a return.

M
 y-NTS Service (one account per taxpayer)
 y-NTS Service allows taxpayers to check their tax information (65 types) such as tax
● M
filing details, tax clearance details, tax notice, and taxation data in one place at one time
- Since taxpayers can check their tax information through MY-NTS service, they can
save their tax compliance costs such as the need to call or visit a tax office and to keep
and manage taxation data.
- With the launch of Next-Generation Hometax in July 2015, more various types of tax
information became available to taxpayers, such as checking and printing out mail,
and checking the progress of the submitted explanatory documents, thereby
enhancing the utility of My-NTS service.

National Tax Service 25

Main Services

No. Description of Information No. Description of Information

1 Cash Receipt Card Management 16 Department User ID Management

2 Check Cash Receipt Transaction Amount 17 To-Do List

3 Details of Submitted Payment Statements, etc. 18 E-Notice

Details of Tax Deductions for

4 19 Tax Points
Year-End Tax Settlement

Check Details of Income-Contingent

5 20 Memo
Loan Repayment

Application for & Determination of Earned

6 21 Details of Tax Filing
Income Tax Credit & Child Tax Credit

Business Registration Details Details of Tax Clearance, Refund,

7 22
and Person in Charge Notice, and Delinquency

8 Details of Submitted Taxation Data 23 Exemplary Taxpayer

Details of Submitted Tax Invoices

9 24 Tax Audit History
by Taxation Periods

Quarterly Summary of Cash Receipt

10 25 My Menu Registration
and Credit Card Transactions

Check Details of Income-Contingent

11 26 Status of My Civil Petition
Loan Repayment

12 Tax Agent Information 27 My Counseling Details (Phone/Internet)

13 Tax Filing Guidance 28 Mail & Request for Explanation

14 E-(Tax) Invoice Management 29 Modify Member Info/Withdraw

15 Cash Receipt Card Management

[ Main Types of Tax Information Provided by My-NTS Service ]

N
 ational Tax Law Information Service
 he National Tax Law Information Service provides both NTS officials and taxpayers
● T
with information on national tax-related legislations, notifications, guidelines, and
interpretations of the tax law
- The internal version of the service was launched in November 2006, and the public
service in July 2007.
⇒ After continuous upgrades, the services were integrated into Next-Generation
Hometax in July 2015.
- As of 2015, 9 million taxpayers are using the service annually, and it contributes to
resolving the problem of information asymmetry between taxpayers and the tax
authorities, thereby preventing faulty taxation and realizing transparent tax
administration.

26 World-Class Electronic Tax Administration Service

 Main Services

S
 imulated Tax Calculation Service
 he Simulated Tax Calculation Service allows taxpayers to calculate in advance the
● T
amount of taxes they should pay or tax refunds they can receive, enabling them to
establish a tax reduction plan.
- Taxpayers can calculate in advance the amount of various types of taxes they should
pay or tax refunds they can receive through functions such as Automatic Calculation
of Capital Gains Tax, a type of real estate-related daily life tax that taxpayers are highly
interested in; Automatic Calculation of Gift Tax; Automatic Calculation of Year-End Tax
Settlement; Calculation of Earned Income Tax Credit & Child Tax Credit; and
Calculation of the Amount of Individual Consumption Tax on Automobiles Owned by
the Disabled.
- Regarding capital gains tax, in particular, taxpayers can check if they are eligible for
the tax-free capital gains for one house per household system by entering information
such as the location of their house, reason for acquisition, etc.

O
 ther Services
 ublic-Service Corporation Disclosure Service: this system requires public-service
● P
corporations to register their statement of accounts, proof of performance showing
how they utilized contributions from the legal or designated charitable organizations,
etc., and make public the collected data, thereby contributing to ensuring transparency
of the public-service organizations.

 pplication Service for Earned Income Tax Credit & Child Tax Credit: This service allows
● A
families of low-income earners and self-employed business owners to apply for earned
income tax credits and child tax credits that encourage labor and support their real
income.

 xclusive Service for Tax Agents: this service provides tax agents with the delegated
● E
taxpayer’s various taxation data such the details of taxes to be filed and paid to support
their role as an agent.

 ind My National Tax Refunds: this service allows taxpayers to check any tax refunds to
● F
receive from the NTS.

 -Request for Appeal: this service allows taxpayers to e-submit a request for appeal
● E
(objection) along with evidential documents, check the progress of appeal, and view in
advance the documents to be examined by the court

 ther Services: online counseling, tax evasion reporting, borrowed-name bank account
● O
reporting, submission of suggestions for amendments to tax laws, etc.

National Tax Service 27

 Main Services

<Appendix 2> Mobile Service

• The Mobile Service was launched in June 2003, allowing Hometax members to
get various types of national tax-related information on a smartphone
supporting wireless Internet.
- The types of information provided include the status of a business owner (if
the business is in operation), guide to refunds, viewing e-filing details, guide
to a tax notice, application for the issuance of tax certificates, etc.

• In December 2004, the NTS made various efforts to improve the service, such
as allowing users to access the service on their cellphone by simply typing in
numbers instead of typing in more complicated English domains. However,
such improvements were not effective as expected because smartphones
were not widely used back then.

• Starting from 2009, the number of smartphone users increased significantly,

which led to creating seven individual mobile applications including Cash
Receipt System in 2011 and E-Tax Invoice in 2013, allowing users to conveniently
take care of their tax affairs on a smartphone just like on a computer.

• With the launch of Next-Generation Hometax in July 2015, a convenient mobile

portal (mobile Hometax) was established by integrating the seven mobile
applications1) and six websites2), enabling the system to provide various
mobile services such as convenient filing of composite income tax and VAT,
issuance of tax certificates, viewing the status of tax payment and notice, etc.
1) Tax Evasion Reporting, Cash Receipt Card for Consumers and Business
Owners, E-Library, Year-End Tax Settlement, Finding Tax Offices, and Re-
porting
2) N
 TS Website, Hometax, Cash Receipt, E-Tax Invoice, Earned Income Tax
Credit & Child Tax Credit System, National Tax Law Information System

Accomplishments S
 ince its launch, Hometax has been continuously upgraded to become a widely-
used and indispensable system for a large number of taxpayers in taking care of
their tax affairs, attaining most of the initial goals of establishing Hometax.
≫Hometax has significantly enhanced taxpayers’ convenience, which has greatly reduced
the number of visits to a tax office and tax compliance costs.
≫The increased accuracy and efficiency of national tax administration contributes to not
only ensuring transparency in the national economy but voluntary, faithful tax filing.

28 World-Class Electronic Tax Administration Service

 Accomplishments

Contributing to the Reduction of Tax Compliance Costs

 ith the wide use of Hometax services such as E-Filing and Payment and E-Tax
▶ W
Certificate, the tax compliance costs such as the need to visit a tax office and prepare
various documents have greatly reduced.

● Increased Number of Hometax Users

- After its launch in July 2000, Hometax has seen an increasing number of users,
thanks to a lot of efforts to promote Hometax to the public and offering incentives.
⇒ As of the end of 2015, the accumulated number of visitors amounts to 2.3 billion.
Since the launch of Next-Generation Hometax, in particular, which integrates eight
individual online systems, the number of visitors has exceeded 1 billion annually.
(Unit : Thousand)
Classification 2002 2003 2005 2014 2015
No. of Visitors 1,143 10,866 29,427 162,545 1,352,807

Cumulative Sum 1,143 12,009 41,436 948,998 2,301,805

※ The number of visitors increased significantly as Next-Generation Hometax was established
in 2015 by integrating eight independent online systems.
[ The Accumulated Number of Hometax Visitors from 2002 to 2015 ]

- As of July 2016, a total of 11.79 million people, including 5.75 million businesses and
6.04 million non-businesses, joined the website. The number of Hometax members
continuously increased to a total of 12 million consisting of 5.75 million business
owners and 6.04 million non-business owners as of September 2016.
(Unit : Thousand)
Members
Total Rate of Business
Business Business Owners Non- Owners Who are
Year Owners Total Business Members
(①) ②=③+④ Subtotal Self- Owners ③/①
Corporation
③ Employed ④
Sept.
7,362 12,469 6,403 5,538 865 6,066 87.0
2016

[ Current Status of Hometax Members ]

ax E-Filing and Issuance of E-Tax Certificates

● T

- With an increasing number of tax items becoming available for e-filing and the
E-Filing service becoming more convenient thanks to the Pre-Filled and Full-Filled
services, the service has attracted more and more users.
- E-Filing for VAT, which accounted for only 30% in 2003, when e-filing was first put into
service, increased to 90%, and as for withholding tax and corporate income tax,
almost all taxpayers filed their tax returns electronically.

National Tax Service 29

Accomplishments

* Source : Statistics Yearbook of National Tax (2004-2015)

(Unit: %) 98.9 92.7

92.5 98.0
87.2

60.8
43.5
33.8

2003 2014 2003 2014 2003 2014 2003 2014

Withholding tax VAT Composite Income Tax Corporate income tax

[ Rates of E-Filing for Major Tax Items in 2003 and 2014 ]

- The e-issued tax certificates accounted for only 9.6% in the beginning of the service,
but as it quickly became widely used starting from 2004, more taxpayers chose the
electronic issuance service over visiting a tax office to get issued with a tax certificate.
Currently, about 70% of all the tax certificates are issued online.

(Unit : Thousand,%)

Classification 2012 2013 2014 2015

Total(②) 20,136 23,827 20,624 22,366

Hometax(①) 12,921 14,491 13,959 15,601

Rate of Hometax (①/②) 64.1 60.8 67.7 69.7

[ Rates of Main Tax Certificates Issued on Hometax ]

Ensuring Economic Transparency

 ith the introduction of the Cash Receipt System, it became possible to electronically
● W
manage the details of B2C transactions, contributing to preventing tax evasion involving
cash transactions between businesses and consumers.

(Unit : Trillion won, Billion, Thousand)

Amount Issued Number of Issuances Number of Affiliate Members
Year
(Unit: Trillion Won) (Unit: Billion) (Unit: Thousand)
2015 95.8 5.04 3,294

2014 91.5 5.19 2,821

2013 85.6 5.30 2,700

2012 82.4 5.18 2,462

[ Current Status of the Issuance of Cash Receipts ]

● In addition, with e-tax invoices in service, it has become possible to electronically collect
and analyze the details of B2B transactions involving sales and purchases between
businesses, increasing transparency in inter-company transactions.

30 World-Class Electronic Tax Administration Service

 Accomplishments

(Unit : Trillion won, Billion, %)

E-Issuance Participation Rate Amount and Rate of E-Issuance

Compulsory Companies Amount Issued Amount Issued

Classification Participant That Actually Rate in Paper + Rate
Companies Participated Electronically Electronically

Total 902,459 892,818 98.9 2,703 2,699 99.8

Corporation 540,874 537,779 99.4 2,459 2,457 99.9

Self-Employed 361,585 355,039 98.2 244 242 99.2

[ Rates of E-Issued Tax Invoices in 2015 ]

 urthermore, Hometax has made it possible to efficiently collect a huge amount of

● F
taxation data and then electronically quickly analyze and utilize them, contributing to
effectively preventing tax evasion and ensuring timeliness of tax administration.

Contributing to Voluntary Tax Filing

 nce taxpayers become a member and log into Hometax, they can handle most of their
● O
tax affairs in one place at one time and can enjoy the highest level of convenience in tax
payment through the Pre-Filled and Full-Filled services that automatically fill out their
tax returns when e-filing them.
- In addition, My-MTS Service provides various types of customized tax information for
each taxpayer to help their faithful tax payment, which are also provided for tax agents
to the best extent possible so that they can responsibly perform their role in assisting
in faithful tax filing.
- The enhanced level of tax payment convenience is acclaimed to be greatly contributing
to encouraging taxpayers to make voluntary, faithful tax payments.

Direction for E
 xpanding Interactions with National Institutions
Future  he NTS will continue to improve the Hometax system to provide greater tax payment
● T
Development convenience and increase work efficiency, for example, by expanding interactions
between the system with other national agencies.
- The NTS will expand the amount of data that it directly collects from other national
agencies and provide more taxation data needed for taxpayers to e-file their taxes.
- At the same time, when directly collecting taxation data, it will prevent in advance any
errors in the data, contributing to increasing tax agents’ work efficiency and minimizing
social costs arising from faulty taxation.

National Tax Service 31

Direction for Future
Development

External Organizations

Data on Tax Payment History Alteration

Ministry of the Data on Assets in Possession
Supreme Court Provide Taxation
Interior
Information
Data on Registered Real Estate

Bank Ministry of Strategy Nonpayment Data

of Korea and Finance
Payment Data
External National Tax
Organizations Service
Financial Credit-Linked Note Data
KFTC
Institution
Data on Financial Assets

Korea Federation National Health Income Data Collect

of Banks Insurance Service Taxation Data
Credit Data

Providing Better Mobile Services

● In line with the rapidly changing smart digital era, the NTS will continue to expand
mobile electronic tax administration services.
- Considering the trend of ever-increasing demand for mobile services replacing PC
services, the NTS will continue to work to develop suitable tax administration services
to meet the needs of the time.

32 World-Class Electronic Tax Administration Service

 Direction for Future
Development
Using the Latest ICT Including Big Data
 he NTS will make constant efforts to enhance tax payment convenience and reduce tax
● T
compliance costs by actively utilizing big data to provide more strengthened customized
services for each taxpayer operating different types of businesses in different sizes.

Developing into a More User-friendly System

 y learning from and modeling after the best international practices of informatization
● B
and resolving taxpayers’ inconvenience based on their feedback, the NTS will continue
to make improvements on Hometax, to make sure that even taxpayers who are using
the system for the first time or who are not familiar with handling tax affairs can easily
use the services.

[Implementation
Implementation of
of the
the Best User-FriendlySystem
Best User-Friendly System]

Modeling after Periodic collection

Proactive adoption
the best international of feedback from
of the latest ICT
practices of taxpayers
technologies
informatization and tax officials Implement
a user-friendly
system

National Tax Service 33

National Tax Service
International Cooperation Division for Good Governance
Sejong Government Complex Ⅱ, 8-14, Guksecheong-ro,
Sejong Special Self-Governing City 30128, Republic of Korea

Website : www.hometax.go.kr, www.nts.go.kr

Contact : +82-44-204-2416 / [email protected]
Publication Date : Dec. 2016
Planned & Sponsored by Ministry of the Interior

Cover design “Korean Public Service! Fly High with the World!”
Gold symbolizes wealth, wishing for global sustainable development and prosperity
Diagonal motif Korean public service flying high with the world through international cooperation