NORTH KOREA ANNOUNCES PROPERTY TAX REVISIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600330318-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: August 26, 2011
• Sequence Number: 318
• Publication Date: July 28, 1950
• Content Type: REPORT

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CLASSIFICATION CONFIDENTIAL CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Pyongyang
DATE
PUBLISHED 31 Dec 1949
THIS DOCUIINT CONTAIN/ INFORMATION A/MCTIND TNt NATIONAL REFINER
Or THI UNITID ITATII WITHIN THI MIA1I1D Or -OIONADI ACT ID
P. I. C.. TI AND Dl. Al AIINDID. ITS TIAHDIIASION OD THII IITIIATIOU
OI IT, DoNTINTI IN ANY HAHNID TO Al IHAUTNOIIIIO MASON ID MO-
NIDITID DT IAN. RNMODUCTION Or THIS FORM ID FIONIIMD.
SOURCE T'usa Sinmun.
DATE OF
INFORMATION 1949
DATE DIST. Jul 1950
NO. OF PAGES 6
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
NORTH KOREA ANNOUNCES PROPERTY TAX REVISIONS
Tax revisions for various categories of property in the Democratic Peo-,
ple's Republic of Korea have been announced as follows:
A. Real Property Transfer Tax Law
1. Purchasers of land, buildings, and other real property must pay real
property transfer tax.
2. Property in the.following categories shall be exempted from the pres-
ent tax:
200,000 to 1,000,000
a. State-cSYned.
e
b. Homesteads owned by farmers.
c. Houses built by laborers and clerical workers with special gov-
ernment loans.
d. Buildings constructed for temporary use,
e. Real property acquired through inheritance.
3. The real property transfer tax schedules are as follow:
Value of Properties
Transferred (in won) Tax Rates
Up to 50,000 1% of purchase price
50,000 to 200,000 500 won plus 2% of amount
d O 000
i
ng 5 ,
excee
3,500 won plus 3% of amount
exceeding 200,000
CONFIDENTIII
CLASSIFICATION COIWIDML~L
NAVY
STATE
AIR
ARMY FBI
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Value of Properties
Transferred (in won) Tax Rates
1,000,000 to 2,000,000
2,000,000 to 5,000,000
Above 5,000,000
CONFIDENTIAL
27,500 won plus 4% of amount
exceeding 1,000,000
67,500 won plus 5% of amount
exceeding 2,000,000
217,500 won plus 6% of amount
exceeding 5,000,000
4. The real property transfer tax shall be levied on the basis of pur-
chase value or on the amount expended on houses and buildings which are newly
built, expanded, or remodeled.
5. The owners of new property must pay the transfer tax within one month
from the date of acquisition. When a house or building has been newly built,
expanded, or remodeled, the date of completion of work shall be the date of
acquisition.
6. The owners of new property must submit to the local tax authorities
within 10 days after the acquisition of such property all the information rel-
ative to the property, including the location, size, general description, pur-
pose of use, purchasing price, name and address of the previous owner, date
of acquisition, etc.
7. In case the owner fails to submit a report in compliance with para-
graph 6 above, or the purchase price reported was found purposely debased,
the tax shall be levied on the basis of the proper assessment of said proper-
ties by the local tax authorities.
8. Violators of the provisions of Paragraph 6 shall be fined up to
10,000 won.
9. The defaulters of transfer tax or fine shall be penalized at the
daily rate of one percent of the original amount of tax, or where a fine is
imposed, the combined sum thereof, from the date of default.
10. The present law shall go into effect on 1 January 1950, on which
date the Real Property Acquisition Tax Law, promulgated by the North Korean
People's Committee on 27 February 1947, will be rescinded.
B. Property Tax on Houses and Buildings
'i
1. The owners of houses and buildings must pay property tax on houses
and buildings.
2. The following shall be exempted:
a. State-owned buildings.
b. Houses owned by farmers.
c. Structures designated as national treasures, historic spots, or
3. The property tax on houses and buildings shall be payable biannually
in March and September for the first and second halves of the year, respec-
tively. If the total amount of the tax for the latter half of the year is
less than 300 won, the amount may be collected in March. Property tax of less
than 10 won will not be collected.
CONFIDENTIAL
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CONFIDENTIAL
4. Rates of property tax on houses and buildings shall be determined by:
a. Value of the land on which the property is built, as expressed
in size, rent, and Zaind/or] purchase price thereof.
b. Structure of the property, classified as: (1) stone, brick, and
ferroconcrete, (2) wooden, or combination wood and brick, (3) thatched clay.
c. The uses of the property, classified as (a) office, business,
hospital, factory, warehouse, (b) home, (c) others.
5. The present law shall go into effect on 1 January 1950, on which
date the Law for Property Tax on Houses and Buildings, adopted by the Worth
Korean People's Committee on 27 February 1947, will be rescinded.
The following table shows the property tax in won on houses and build-
ings per p'yong Zone p'yong equals 6 square feet]. The designations (1),
(2), and (3), and (a), (b), and (c) in the table correspond to Paragraph 4,
sentences "b" and "c" above.
- 3 - DONFIDEiI1IAI
COWFIDENTIAL
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C. Tax on Leased Land
According to the Presidium of the Democratic People's Republic of Korea:
1. The owners of the leased land, except for the land leased to the
state or farmers, must pay tax on land leased.
2. The amount of tax shall be 20 percent of the rent classified in the
official rent classification schedules shown below.
3. The tax on leased land is payable annually in June. The amount of
tax less than 10 won may be exempted.
4. The present law shall go into effect on 1 January 1950, on which
date the Leased Land Tax Law, issued by the North Korean People's Committee
on 27 February 1947, will be rescinded.
The following table gives the official classification schedules for rent
of leased land and the amount of tax in won per p'yong,
5
CONFIDRNTIAL
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UOUIDE: TJAL
Official Classification Schedules
(A)
(B)
Land registry classification
numbers
Rent
(A)
~B
(A)
(B).
L
~L
1
o4
29
3.50
57
30.00
85
180.00
2
o6
30
4.00
58
33.00
86
190.00
3
.08
31
4.50
59
36.00
87
200.00
4
.12
32
5.00
60
4o.oo
88
220.00
5
.16
33
5.50
61
45.00
89
240.00
6
.20
34
6.00
62
50.00
9o
260.00
7
.24
35
6.50
63
55.00
91
280.,00
8
.28
36
7.00
64
60.00
92
300.00
9
.32
37
7.50
65
65.00
93
330.00
10
36
38
8.00
66
70.00
94
360.00
11
.4o
39
8.50
67
75.00
95
390.00
12
.45
4o
9.00
68
80.00
96
420.00
13
.50
41
9.50
69
8.00
97
450.00
14
.55
42
10.00
70
90:00
98
48o.oo
15
.60
43
11.00
71
95.00
99
510.00
16
.65
44
12.00
72
100.00
100
54o.00
17
.70
45
13.00
73
105.00
101
570.00
18
.80
46
14.oo
74
110.00
102
600.00
19
.90
47
15.00
75
115.00
103
650.00
20
1.00
48
16.00
76
120.00
104
700.00
21
1.20
49
17.00
77
125.00
105
750.00
22
1.4o
50
18.00
78
130.00
106
800.00
23
1.60
51
19.00
79
135.00
107
850.00
24
1.80
52
20.00
80
14o.oo
108
900.00
25
2.00
53
22.00
81
145.00
.109
950.00
26
2.30
54
24.00
82
150.00
'110
1,000.00
27
2.60
55
26.00
83
160.00
28
3.00
56
28.00
84
170.00
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