Tax attorney, I have questions about direct and indirect taxes.

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I'm currently manufacturing products domestically and preparing to export to overseas buyers. The buyer is requesting a certificate of origin to apply FTA tax rates, but I'm not sure exactly what origin certification means. Also, I heard there's not just one type of origin certificate but several. In my case, I'm confused about which origin certification to prepare. I'd like to know the exact procedure for obtaining it.

tax attorney

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Hello. I am a tax attorney at Daeryun Law Firm (LLC).

Taxes can be largely divided into two categories depending on who pays the tax and who actually bears it.

A direct tax refers to the case where the person paying the tax and the person bearing the tax are the same.

For example, income tax paid by an individual who has earned employment income, corporate tax paid by a corporation on its earnings, and inheritance/gift taxes paid by a person who has inherited or received property as a gift fall into this category.

On the other hand, an indirect tax refers to the case where the person paying the tax and the person actually bearing the tax are different.

Representative examples include value-added tax and special excise tax.

The structure is that the company selling the product reports and pays the tax, but the actual burden falls on the consumer who purchased the product.

This difference also affects individuals' perception of taxes.

Direct taxes give a strong feeling of ‘money going out directly’, so resistance to taxes can be relatively large.

On the other hand, indirect taxes are included in the price of products, so awareness of ‘paying taxes’ is less and resistance is relatively low.

For details, please consult a tax attorney to confirm specifically.

Please feel free to inquire with a tax attorney at any time.