(1) Where a person obliged to submit a payment statement referred to in Article 120, 120-2 of this Act and Article 164, 164-2 of the Income Tax Act (hereafter in this Article referred to as "payment statement"), or a simple payment statement (hereafter in this Article referred to as "simple payment statement") referred to in Article 164-3 of the same Act falls under any of the following cases, it shall pay a penalty tax equivalent to any of the following amounts, in addition to corporate tax: <Amended on Dec. 22, 2020; Mar. 16, 2021; Dec. 31, 2022>
1. Where it fails to submit a payment statement or simple payment statement (hereafter in this Article referred to as "payment statement, etc.") by deadline: An amount according to the following classification:(a) In cases of payment statements: 1/100 of the payment for which the statement has not been submitted (or 5/1,000 of the payment, where the statement is submitted within three month after the deadline); provided, in cases of a payment statement on wage and salary income of a daily employed worker referred to in the proviso, with the exception of the subparagraphs, of Article 164 (1) of the Income Tax Act (hereafter in this Article referred to as "daily wage or salary income"), 25/10,000 of the payment for which the statement has not been submitted (or 125/100,000 of the payment, where the statement is submitted within one month after the deadline);(b) In cases of simple payment statements: 25/10,000 of the payment for which the statement has not been submitted (125/100,000 of the payment where the statement is submitted within one month after the deadline);
2. Where the payment statement, etc. submitted is found unclear with regard to the descriptions prescribed by Presidential Decree or where the amount stated on the payment statement, etc. submitted is untrue: An amount according to the following classification:(a) In cases of payment statements: 1/100 of the payment stated on the unclear or untrue statement; provided, in cases of a payment statement on daily wage or salary income, it shall be 25/10,000 of the payment stated on the unclear or false statement;(b) In cases of simple payment statements: 25/10,000 of the payment stated on the unclear or false statement.
(2) Notwithstanding paragraph (1) 1, where a withholding agent who pays withholding taxes semiannually pursuant to Article 128 (2) of the Income Tax Act falls under any of the following as the agent pays daily wage or salary income or income referred to in Article 164-3 (1) 2 of the same Act between July 1, 2021 and June 30, 2022, a penalty tax prescribed in paragraph (1) 1 shall not be imposed: <Added on Mar. 16, 2021>
1. Where the withholding agent submits a payment statement on daily wage or salary income by the end of the month following the last month of the quarter in which the payment date (in cases of income governed by Article 135 of the Income Tax Act, referring to the end of the taxable period for the relevant income) falls (when a business is suspended, closed, or dissolved, referring to the end of the month following the last month of the quarter in which the date of the suspension, closure or dissolution of the business falls);
2. Where the withholding agent submits a simple payment statement on income referred to in Article 164-3 (1) 2 of the Income Tax Act by the end of the month following the last month of the half year in which the payment date of such income (in cases of income governed by Article 144-5 of the Income Tax Act, referring to the end of the taxable period for the relevant income) falls (when a business is suspended, closed, or dissolved, referring to the end of the month following the last month of the quarter in which the date of the suspension, closure or dissolution of the business falls).
(3) Notwithstanding paragraph (1) 1 (b), a penalty tax prescribed in paragraph (1) 1 (b) shall not be imposed in any of the following cases: <Added on Dec. 31, 2022; Dec. 31, 2023>
1. In cases of a withholding agent who pays income referred to in Article 164-3 (1) 1 of the Income Tax Act between January 1, 2026 and December 31, 2026 (it shall be by December 31 2027 in cases of a withholding agent who pays withholding taxes semi-annually pursuant to Article 128 (2) of the Income Tax Act), where the agent submits a simple payment statement on such income by the end of the month following the last month of the half year in which the payment date of such income (in cases of income governed by Article 135 of the Income Tax Act, referring to the end of the taxable period for the relevant income) falls (when a business is suspended, closed, or dissolved, referring to the end of the month following the last month of the half year in which the date of the suspension, closure or dissolution of the business falls);
2. In cases of a withholding agent who pays income referred to in Article 164-3 (1) 3 of the Income Tax Act between January 1, 2024 and December 31, 2024, where the withholding agent submits a payment statement on such income by the end of February of the year following the tax year in which the payment date of such income falls (when a business is suspended, closed, or dissolved, referring to the end of the month that is two months after the month in which the date of the suspension, closure or dissolution of the business falls).
(4) Notwithstanding paragraph (1) 2, where a payment statement, etc. submitted for daily wage or salary income or income prescribed in any subparagraph of Article 164-3 (1) of the Income Tax Act falls under the part other than the items of paragraph (1) 2, if the ratio of the payment amount under the part other than the items of paragraph (1) 2 to the respective total amount of payment stated in the payment statement, etc. does not exceed the ratio prescribed by Presidential Decree, the penalty tax prescribed in paragraph (1) 2 shall not be imposed. <Added on Mar. 16, 2021; Dec. 31, 2022>
(5) For the purpose of paragraph (1), with respect to a person obligated to submit a payment statement, etc. for income prescribed in Article 164-3 (1) 2 of the Income Tax Act (excluding business income prescribed by Presidential Decree pursuant to Article 73 (1) 4 of the same Act) or income prescribed in subparagraph 3 of the same paragraph, the penalty tax prescribed in paragraph (1) 1 (b) shall not be imposed on the amount subject to the penalty tax under item (a) of the same subparagraph; the penalty tax prescribed in paragraph (1) 2 (b) shall not be imposed on the amount subject to the penalty tax under item (a) of the same subparagraph. <Added on Dec. 31, 2022>
(6) The penalty tax prescribed in paragraph (1) shall be collected even when the calculated amount of tax is nil. <Amended on Mar. 16, 2021; Dec. 31, 2022>
(7) In applying paragraph (1), where a corporation is merged, divided, or dissolved, matters necessary for the amount of payment shall be prescribed by Presidential decree. <Amended on Mar. 16, 2021; Dec. 31, 2022>[This Article Added on Dec. 24, 2018][Title Amended on Mar. 16, 2021][Enforcement Date: Jan. 1, 2025][Enforcement Date: Jan. 1, 2025]