(1) If a credit card member store under Article 162-2 (2) refuses a transaction by credit card or issues a false credit card sales slip and receives a notification thereof from the head of the tax office having jurisdiction over the place for tax payment in accordance with the latter part of paragraph (4) of the same Article, it shall pay 5/100 (or 5,000 won if the amount calculated for each case is less than 5,000 won) of the amount of the refusal or the amount of the false issuance of the credit card sales slip for each case so notified (referring to the difference between the amount of the false issuance for each case) as a penalty tax, in addition to the final tax amount on global income for the relevant taxable period.
(2) If a business entity 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 the entity fails to register as a cash receipt merchant?in violation of Article 162-3 (1) or registers after the registration deadline: An amount calculated according to the following formula:Penalty tax = A × B/C × 1/100A: Amount of income?for the relevant taxable period (solely pertaining to the income derived from industries eligible for registration as cash receipt merchants, and excluding income amounts prescribed by Presidential Decree, such as those recorded in invoices as defined in Article 163 and tax invoices issued under Article 32 of the Value-Added Tax Act;B: Non-registering period (which means the number of days from the day after the registration deadline to the day before the registration date, and if the non-registering period spans multiple taxable periods, it applies to each taxable period);C: 365 (366 in a leap year)2. If the entity refuses to issue a cash receipt or issues a false cash receipt in violation of Article 162-3 (3) and receives a notification of the amount to be declared from the head of the tax office having jurisdiction over the place for tax payment in accordance with the latter part of paragraph (6) of the same Article (only applicable if the amount to be issued is at least 5,000 won per case, except for cases falling under subparagraph 3): 5/100 (or 5,000 won if the amount calculated for each case is less than 5,000 won) of the amount of the refusal for each case or the amount of the false issuance for each case so notified (referring to the difference between the amount of the false issuance for each case);
3. If the entity fails to issue a cash receipt in violation of Article 162-3 (4) (except for cases prescribed by Presidential Decree, such as insurance benefits under the National Health Insurance Act): 20/100 of the amount of non-issuance (or 10/100 if the error or omission is voluntarily reported to the competent tax office or a cash receipt is voluntarily issued within ten days of receiving the transaction price).
(3) The penalty tax mentioned in paragraphs (1) and (2) shall be applied even when there is no calculated tax on global income.[This Article Newly Inserted on Dec. 31, 2019]