Gyeonggi Province, Anyang City, and Uiwang City Reach Agreement on Local Tax Imposition and Collection Authority Delegation - Nation's First
수원일보Published 2019.11.20 06:56
Tax Filing Address for 1,774 Units of 'Poil Central Prugio Apartments' on Anyang-Uiwang Border Unified to Uiwang City
[Suwon Ilbo=Reporter Park No-hoon] Gyeonggi Province, Anyang City, and Uiwang City have reached an agreement on the delegation of local tax imposition and collection authority for an apartment spanning two cities - a nation's first.
As a result, the tax filing address for 1,774 units of the 'Poil Central Prugio' apartment, expected to be completed by the end of this month in the border area between Anyang City and Uiwang City, has been unified to Uiwang City, resolving the anticipated tax payment inconvenience that would have required taxpayers to pay local taxes to two local governments separately.
The three local governments of Gyeonggi Province, Anyang City, and Uiwang City jointly signed the 'Agreement on Delegation of Local Tax Imposition and Collection Authority' at an 'Agreement Ceremony for Resolving Tax Payment Inconvenience for 1,774 Uiwang City Residents' held at Uiwang City Hall on the 19th.
The Poil Central Prugio apartment, located in the border area between Pyeongchon-dong in Anyang City and Poil-dong in Uiwang City, has its building site divided administratively as 96.8% in Uiwang City and 3.2% in Anyang City.
Under the current Local Tax Basic Law, each basic local government holds tax authority over its respective administrative district, meaning the 1,774 unit residents would have had to pay acquisition taxes, property taxes, and other local taxes separately according to the proportions held by Uiwang City and Anyang City, creating anticipated confusion.
To resolve this tax payment inconvenience for residents, Gyeonggi Province, Anyang City, and Uiwang City conducted continuous consultations starting in July, but faced difficulties due to inadequate related systems.
In particular, the 'Adjustment Grant System,' which allocates 47% of provincial tax collected to cities and counties with populations exceeding 500,000 and 27% to general cities and counties to address fiscal disparities between cities and counties, served as a major obstacle to tax authority adjustment.
However, through continuous consultations including three rounds of legal consultation and four rounds of working-level meetings, Gyeonggi Province successfully reached an agreement on tax authority adjustment for the nation's first time.
Uiwang City receives delegation of local tax imposition and collection authority from Anyang City, collectively imposes local taxes on the apartment in the area, and transfers the relevant portion to Anyang City in exchange for receiving 3% of property taxes from Anyang City as collection fees.
As a result, residents in the area, who would have faced the inconvenience of paying local taxes to both Uiwang City and Anyang City separately, now only need to pay local taxes to Uiwang City.
Kim Ki-se, Director of the Autonomous Administration Bureau of Gyeonggi Province, said, "This tax authority delegation agreement is a nation's first case and will serve as a model precedent for similar cases in the future," and added, "We will continue to pursue policies that can provide tax payment convenience to provincial residents."
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