In Korea, withholding tax return is normally required to be filed every 10th of the following month. Also, a yearly report on the payments’ report which were subject to the withholding taxes are required to be filed once a year.
Failure to file and report the withholding taxes will result in following penalties.
| Item | Calculation | Note |
| 원천징수불이행가산세 (납부불성실가산세)
Penalty for failure to timely file withholding tax return |
Max [(A+B), 10% of withholding tax payables]
A. 3% of withholding tax payables B. 0.03% of interest penalties per day |
|
| 지급조서미제출가산세
Penalty for non-submission of yearly payment report |
Non-reported gross payment amount x 1%
|
|
written by USCPA in Seoul Song I Yoon (siyoon@theclacc.com)
