(1) If a business entity (excluding small business entities as prescribed by Presidential Decree) falls under any of the following cases, it shall pay a penalty tax as described in the following classifications, in addition to the final tax amount on global income for the relevant taxable period:
1. If an invoice issued under Article 163 (1) or (2) (including an electronic invoice as defined in the latter part of paragraph (1) of the same Article, hereafter the same shall apply in this Article) does not contain all or part of the information prescribed by Presidential Decree, or contains any incorrect information (except for those subject to subparagraph 2): 1/100 of the supply price;
2. If the submission of an aggregate table of invoices by purchaser and an aggregate table of invoices by seller as defined in Article 163 (5) (hereafter referred to as “aggregate table of invoices” in this subparagraph) pertains to either of the following cases (excluding the sale prices or purchase prices for any portion covered by subparagraph 4): An amount as described in the following classifications:(a) If the entity fails to submit an aggregate table of invoices in accordance with Article 163 (5): 5/1000 of the supply price (or 3/1000 if submitted within one month after the due date);(b) If the aggregate table of invoices does not contain all or part of the information prescribed by Presidential Decree, or contains any incorrect information (excluding the sale prices or purchase prices for any transaction confirmed as prescribed by Presidential Decree, where errors in the aggregate table of invoices resulted from inadvertence): 5/1000 of the supply price;
3. If the submission of a sum table of tax invoices by seller as defined in Article 54 of the Value-Added Tax Act (herineafter referred to as “sum table of tax invoices by seller”) pertains to either of the following cases (excluding the purchase prices for any portion covered by subparagraph 4): An amount as described in the following classifications:(a) If the entity fails to submit a sum table of tax invoices by seller in accordance with Article 163-2 (1): 5/1000 of the supply price (or 3/1000 if submitted within one month after the due date);(b) If the sum table of tax invoices by seller submitted by the entity does not contain all or part of the information required to be stated, or contains any incorrect information (excluding the purchase prices for any transaction confirmed as prescribed by Presidential Decree, where errors in the sum table of tax invoices by seller resulted from inadvertence): 5/1000 of the supply price;
4. If the entity falls under any of the following cases: 2/100 of the supply price (or 1/100 if, for the purpose of applying item (a) above, the entity required to issue an electronic invoice under Article 163 (1) issues an invoice other than an electronic invoice, or if the entity issues an invoice under paragraph (1) or (2) of the same Article after the time for issuing an invoice under paragraph (7) of the same Article has passed and before January 25 of the year following the taxable period to which the supply of the relevant goods or services belongs):(a) It fails to issue an invoice under Article 163 (1) or (2) at the specififed timing in paragraph (7) of the same Article;(b) It issues an invoice under Article 163 (1) or (2), a credit card sales slip under Article 160-2 (2) 3, or a cash receipt under subparagraph 4 of the same paragraph (hereafter referred to as "invoice, etc." in this subparagraph) without supplying goods or services;(c) It receives an invoice, etc. without supplying goods or services;(d) It supplies goods or services and issues an invoice, etc. in the name of a person other than the actual supplier;(e) It receives goods or services with an invoice, etc., issued in the name of a person other than the actual supplier.
5. If the entity transmits a detailed statement of issuance of electronic invoices to the Commissioner of National Tax Service by the 25th day of the month following the end of the taxable period to which the supply of goods or services belongs after the deadline mentioned in Article 163 (8) (except for the portion covered by subparagraph 4): 3/1000 of the supply price (or 1/1000, respectively, for the supply of goods or services by a business entity under Article 163 (1) 1 before December 31, 2016, and for the supply of goods or services by a business entity under subparagraph 2 of the same paragraph before December 31, 2018);
6. If the entity fails to transmit a detailed statement of issuance of electronic invoices to the Commissioner of National Tax Service by the 25th day of the month following the end of the taxable period to which the supply of goods or services belongs after the deadline mentioned in Article 163 (8) (except for the portion covered by subparagraph 4): 5/1000 of the supply price (or 3/1000, respectively, for the supply of goods or services by a business entity under Article 163 (1) 1 before December 31, 2016, and for the supply of goods or services by a business entity under subparagraph 2 of the same paragraph before December 31, 2018).
(2) If a person who is not a business entity issues an invoice without supplying goods or services or receives an invoice without being supplied with goods or services, the person who issues or receives the invoice shall be deemed a busines entity, and the head of the tax office that issued the business license to the person who issues or receives the invoice shall collect a penalty tax amounting to 2/100 of the supply price indicated on the invoice. In this case, the amount of calculated tax on global income under Article 15 for the business income of the person who issues or receives the invoice shall be deemed to be zero.
(3) The penalty tax mentioned in paragraphs (1) and (2) shall be applied even when there is no calculated tax on global income.
(4) The penalty tax mentioned in paragraphs (1) and (2) shall not apply to the portion subject to penalty tax in the following cases:
1. If the penalty tax mentioned in paragraph (1) is not applicable: The portion subject to penalty tax under Article 81-6 of this Act or Article 60 (2), (3), (5), or (6) of the Value-Added Tax Act;
2. If the penalty tax mentioned in paragraph (2) is not applicable: The portion subject to penalty tax under Article 60 (4) of the Value-Added Tax Act.[This Article Newly Inserted on Dec. 31, 2019]