Tax attorney, I am curious about direct taxes and indirect taxes.

Hello. This is a tax attorney at Daeryun Law LLC.

Taxes can be broadly divided into two types, depending on who pays the tax and who actually bears the burden.

A direct tax refers to a case in which the person who pays the tax and the person who bears the tax are the same.

For example, the income tax paid by an individual who earns employment income, the corporate tax paid on income earned by a company, and the inheritance and gift tax paid by a person who inherits or is given property fall into this category.

On the other hand, an indirect tax refers to a case in which the person who pays the tax and the person who actually bears the tax are different.

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

It is a structure in which the company that sells the goods reports and pays the tax, but the actual burden is borne by the consumer who purchases the goods.

This difference also affects an individual's perception of taxes.

Because a direct tax gives a strong feeling that ‘my own money is going out directly,’ resistance to the tax can be relatively strong.

On the other hand, because an indirect tax is included in the price of goods, there is less awareness that ‘one is paying a tax,’ so resistance is relatively low.

For further details, we recommend that you check specifically through a consultation with a tax attorney.

Please feel free to contact a tax attorney at any time.