Temporary Cut in Individual Consumption Tax Rates for 2015

A taxpayer who sells or takes taxable goods including automobiles and home appliances out of the place of manufacture should file Individual Consumption Tax return by the 25th of the following month after each quarter-end together with tax payment.

Recently, the Ministry of Strategy and Finance has announced that Individual Consumption Tax will be cut temporarily on automobiles and home appliances by 30 percent from August 27, 2015 to December 31, 2015.

As a result of this Individual Consumption Tax cut, consumers who plan on newly purchasing automobiles or large home appliances (such as air conditioners, refrigerators, washers, televisions, etc.) are expected to enjoy a lower price being subject to 3.5% of consumption tax, compared to the previous tax rate of 5%