Trading of securities shall be subject to Security Transaction Tax

The National Taxation Bureau of the Northern Area, Ministry of Finance (NTBNA) indicated that people call to ask how to pay Security Transaction Tax (hereinafter called the “transaction tax”) when trading securities. The Bureau indicated that, according to the Security Transaction Tax Act, trading of securities, with the exception of government-issued bonds, shall be subject to the transaction tax. Further, the transaction tax shall be collected by the collecting agent (i.e., the buyer) on the date of transaction and paid to the national treasury on the following day along with a completed payment slip.   The Bureau reminds taxpayers that, if overdue declaration of a case is brought about by neither an informant nor a case under investigation by an investigator appointed by the tax collection authorities of the Ministry of Finance, the taxpayer may be remitted from any or all of the punishments according to whether he/she/it voluntarily files a supplementary tax declaration with the tax collection authorities and makes supplementary payment covering the tax amount which he/she/it failed to declare in accordance with Article 48-1 of the Tax Collection Act. If a collecting agent fails to fulfill the obligation to collect the transaction tax or under-collects the tax, the collecting agent should pay back taxes and have a fine imposed equal to from 1 to 10 times the amount of uncollected tax. ​​​​