After liberation;while North Korea implemented ‘Democratic Reform’ in 1946 and economic planning in 1947;the financial support was necessary. Consequentially;North Korea carried out tax reform and set up new tax revenues suitable for ‘Democratic Reform.’ Income tax;turnover tax;agricultural tax-in-kind;and deduction from profit became the state's significant new revenue. The introduction of Agricultural tax-in-kind reflected that rural area was the primary revenue for economic reconstruction. Income tax;introduced in the Japanese colonial period;was differently utilized for income redistribution and tax equity. North Korea reorganized income tax policy;which reinforced differential tax rates and reflected income character; this could be utilized for classification policy. Turnover tax;deductions from profit and other tax items were also transformed and managed for the necessity of North Korea as a newly formatted independent state while partially maintaining the existing tax systems from the Soviet Union or Japanese Colonial era.