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 |
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| 지급조서미제출가산세 Penalty for non-submission of yearly payment report | Non-reported gross payment amount x 1%
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written by USCPA in Seoul Song I Yoon (siyoon@theclacc.com)
