~Tax Servicewww.hometax.go.kr

Construction of the Tax Integrated System(TIS)

The National Tax Service (NTS) laid a foundation for digitization of tax administration thro u g h

the introduction of the TIS in 1997.

The TIS consists of six operations of tax administration : taxpayer re g i s t r y, tax-return filing,

investigation, data, tax collection, and civil service. It inter-connects 110 nationwide tax off i c e s

on-line and handles over 80 percent of tax administration.

M o re o v e r, intranet, e-authorization, and Web-site systems were developed in 2000. Since 2001,

with the launch of the Tax-Consulting Call Center, taxpayers can benefit from more specialized

tax-consulting services.

The NTS, based on the success of the TIS, seeks to build the Home Tax Service (HTS)

which enables taxpayers to receive all sorts of tax-administration services (e.g. tax-re t u r n ,

tax notification, payment, civil service, and consultation) over the Internet.

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Tax-return data submitted todistrict tax offices were collected byregional tax offices and then relayedto the National Tax Service.

Data submitted to and keyed in at district taxoffices are sent on-line to the TIS through error-checking processes.

Investigation staff manuallyhandled the whole processesranging from selection of returns tobe investigated to processing ofinvestigation results.

Data relating to selection of returns to beinvestigated, investigation periods, staffmembers in charge, and results of investigationsare accumulated and managed in databases.

Data were classified into andmanaged by separate tax items andused only for purposes of viewing.

Integrated databases classified into function andindividual are built up and being managed.

A taxpayer could receive tax-relatedcertificates only from a specificdistrict tax office with which she/hehad previously filed tax returns.

A taxpayer can receive tax-related certificates atany district tax office nationwide.

The Home Tax Service (HTS), comprehensive tax service, allows taxpayers to

file tax returns or pay taxes at home or at work over the Internet. Taxpayers can

also apply for and receive tax-related certificates, and get tax consultation

through the HTS.

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T h rough e-Filing service, a taxpayer or tax agent can file various tax returns over the Internet

without having to visit district tax offices.

The self-employed can complete filing of tax returns simply by answering questions

p resented on computer scre e n s .

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Notification of errors

Preparation, conversion, and sending of tax returns

Repreparation & sending

Sending of tax return files to TIS

Acceptance of tax returnsChecking errors & Checkingdouble tax returns

T h rough e-Notification service, a taxpayer, after having received an e-mail from the HTS, can

log on to the HTS Web site and find out more details of tax notification.

Taxpayers can pay taxes via e-Payment service straight from the same e-Notification We b p a g e

w h e re she/he have checked the tax notification.

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Viewing e-Notification

list of taxpayers for

e-notification Service

Results of viewing of e-Notification

Sending e-Notification e-mail

e-Notification information

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T h rough e-Payment service, a taxpayer can pay taxes from the HTS’s e-Payment We b p a g e

without having to visit banks or district tax off i c e s .

P a y m e n t - related information of taxpayers, who have previously used e-Notification or

e-Filing service, is automatically presented on e-Payment screens so that taxpayers can pay

taxes by simply keying in name of banks, account numbers, and password s .

Keying in account information

Viewing tax payment information

Transfer request

Results of transfer

Tax payment information

Requesting e-Payment

Results of transfer

Tax payment results

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If an applicant informs certificate-requesting institutions of issue numbers of certificates, the institutions canlog on to the HTS Web site and view the contents of the certificates.An applicant can print his(her) certificates via internet at first hand, submit it to institution requesting thec e r t i f i c a t e

T h rough e-Civil Service, taxpayers can receive tax-related certificates or submit applications

over the Internet.

Applicants can, over the Internet, electronically receive certificates she/he applied for fro m

the HTS Web-page in two diff e rent ways.

Results of application for certificates

Application for civilcertificates

Notification of issuenumbers of certificates

Viewing of issued certificates

Issuing of certificates

Application for certificates

Print certificates,submit

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T h rough Tax Guide Service, taxpayers can receive useful tax information or pro m o t i o n

materials via e-mail or SMS (short message service).

Viewing of tax guide e-mail

Sharing of list of taxpayers for Tax Guide Service

e-mail delivering tax guides

Tax guide information (including tax office information)

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Basic information needed for policy-making processes can be acquired speedily.

Inefficiency and high costs arising from overlapped data-generation and distribution of non-digital

materials can be resolved

Costs and labor forces can be slashed through efficient document management and reduction in

amounts of certificates issued

Taxpayers can pay taxes and apply for and receive tax certificates via

the Internet without having to visit tax offices wherever they are and

whenever they want to

Taxpayers can promptly get tax knowledge and tax information via the

I n t e r n e t

Reduction in civil service costs (taxpayers): transportation costs,

salaries etc. – 380 billion won per annum

Reduction in administrative expenses: printing costs, postal expenses,

salaries etc. – 120 billion won per annum

Small, efficient e-government can be established

Policy-making processes can be greatly facilitated thanks to accurate and various statistics

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By integrating tax consulting operations, NTS has beenable to gather public opinion such as taxpayers taxproblems and resolved those taxpayer problems withprompt countermeasures.

By retaining tax consulting specialists, quality of taxconsulting service has been improved and consistency inservice has been maintained.

From the viewpoint of tax administration as a whole,manpower has been more efficiently utilized andfunctional specialists have been cultivated.

Taxpayers may call 1588-0060 (local code is not needed) and, following recorded instructions, choosecategories they want to consult on. Then, taxpayers are immediately put through to Call Centerc o n s u l t a n t s .Tax consulting databases have been completed in order for Call Center consultants to easily retrieverequired consulting references.

If a taxpayer posts any question regarding national taxes via the Internet, answers will be sent to thetaxpayer by e-mail within 48 hours. During filing periods of important tax items, filing guide system is being operated so that taxpayers canfill out tax-return forms by themselves.FAQ section runs basic and rudimentary tips regarding national taxes classified by each tax item.

National Tax Service, Republic of Korea

Cheonggindong-gil 44, Jongro-gu, Seoul, 110-705, Korea

Tel : 82-2-2630-8442

Fax : 82-2-2634-0742

E-mail : etax1001@nts.go.kr

www.nts.go.kr

www.hometax.go.kr