Gyeonggi Province Targets 23 Billion Won in Unpaid Taxes from Foreigners in Tax Blind Spots

[Suwon Ilbo=Reporter Park Nohoon] Gyeonggi Province has decided to make an all-out effort to collect 23 billion won in unpaid taxes from foreigners, a tax blind spot due to language barriers and other issues, by December through investigations into delinquents' actual conditions.

According to Gyeonggi Province on the 25th, as of the end of June this year, the number of foreign local tax and non-tax revenue delinquents across 31 cities and counties in the province totals 135,342 (106,835 for local taxes, 28,507 for non-tax revenue), with their unpaid amounts reaching 23 billion won (11.8 billion won in local taxes, 11.2 billion won in non-tax revenue).

Previously, tracking down foreign delinquents has been difficult due to undelivered notices resulting from unknown addresses, lack of information due to language barriers, and absence of seizable assets.

Accordingly, Gyeonggi Province plans to pursue four measures to realize fair taxation without discrimination between domestic and foreign residents.

First, the province will conduct investigations into delinquents' actual conditions through the Foreign Investor Information Network (FINE) and debt management units in 31 cities and counties to identify the residences of foreigners and deliver payment guidance documents translated into foreign languages.

Particularly in Ansan, Siheung, and Osan cities, where industrial complexes are concentrated, the province hired for the first time in Korea one North Korean defector and one marriage immigrant, each fluent in Korean and Chinese, as debt management unit members to encourage tax payment from Chinese foreigners who are major delinquents.

Additionally, the province conducted the first comprehensive survey among provincial governments from May to July on whether foreign workers holding employment visas (E-9, H-2) among foreign delinquents had purchased dedicated insurance (repatriation insurance, departure maturity insurance).

Through this, the province identified that 12,405 foreign delinquents had purchased dedicated insurance worth 1 billion won and plans to induce voluntary payment through garnishment notices.

Particularly for foreigners with high automobile tax delinquencies, their vehicles are often aged with little used-car value, making garnishment ineffective as a tax collection measure. However, the garnishment of dedicated insurance now enables the province to secure tax claims, according to the province's explanation.

Additionally, the province plans to strengthen the "foreign visa extension local tax delinquency verification system," under which visa extension applications from foreign residents with unpaid local taxes will be coordinated with immigration offices to limit extension periods to six months or less.

Meanwhile, the province plans to produce and distribute tax guidance brochures translated into English, Chinese, and other foreign languages to 78 foreign rest centers across the province to encourage tax payment.

Kim Min-kyung, director of the Tax Justice Division of Gyeonggi Province, said, "There should be no discrimination between domestic and foreign residents in tax payment, and we will make every effort to realize fair values through improved tax awareness among foreigners and various collection measures."

Meanwhile, the main tax categories for foreign delinquency are residents' tax and automobile tax, accounting for 93% (98,787 people) of all local tax delinquents, and fines including parking violations, accounting for 99% (28,271 people) of all non-tax revenue delinquents.