Korea’s 4 Social Insurance Rates for 2020

Each year, the Korean Social Insurance Companies announce their insurance rates for the upcoming year. It’s been announced that Korea’s social insurance rates for 2020 will be as below. At this moment only the Workers’ Compensation Insurance rate for 2020 has not been confirmed by the government. Item 2019 2020 Note Employee Employer TOTAL RATE […]

A Guide to South Korea’s 4 Social Insurance Programs

A Guide to South Korea’s 4 Social Insurance Programs South Korea’s Social Welfare Policy & the “Safety Net” Every developed country has systems set up to make sure that people are taken care of in the event of certain challenges and time periods. European countries are famous for their strong social safety net, but Korea […]

Determination of Tax Residency in Korea: Korean Tax Law Basics

_MINF6920080211223621_7020121217170651_Certificate of Residence   If you’re a tax resident in Korea, it may effect on your home country’s tax return. Thus, determination of your tax residency status is critical for your tax filings in Korea. General rules for tax residency test for INDIVIDUALS Resident : taxed on world-wide income In principle, a resident refers to […]

A Guide to The Korean National Payroll Management System

What does the Korean national payroll system include?  When an employee is hired by a company, he/she will get salary payment each month and there will be deductions from their earnings. Employees need to pay income/resident taxes for their salary and the mandatory social insurance programs that employees need to be enrolled immediately upon being […]

Full-Service Outsourcing of Korean VAT Invoices, Payment, etc.

Outsource to an Accounting Firm Instead of Hiring a Bookkeeper In-house bookkeeping is great for large companies. They need expert staff on full time constantly handling payment requests, payment processing, tax filings, payroll calculation, etc. There are a million things for them to do.    However, if you’re a smaller operation monthly sales of between […]

How to Find English-speaking Bookkeeping in Seoul, Korea

Seoul can a challenge when you’re an English speaker looking for a good bookkeeper. As the Korean Tax Experts, we handle all kinds of accounting issues. Here is a summary of the bookkeeping services any reliable accountant will provide for you. Get in touch with us if you’d like to have these services delivered by […]

Penalties on withholding taxes

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 […]

Hiring people in Korea

If you had thoughts of hiring people in Korea, consider below two major contract types : Employment contract vs. Independent service contract Employment contract (고용관계) Company needs to enroll for the social securities for each employee Employer portion of social taxes: approx. 8.75% Employee portion of social taxes: approx.. 8.5% Company needs to provide paid […]