Merry Christmas & a Happy New Year from THECL

  It’s the most wonderful time of the year! It is in the spirit of Christmas that we say thank you and best wishes for the holidays. Wishing you joy at Christmas and prosperity in the coming year!!   Our working hours during the holiday season: Christmas (December 25th): Closed New Year’s Day (January 1st): […]

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 […]

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 […]

English-speaking Bookkeeping in Korea

Korea can a challenge if you’re an English speaker looking for a good bookkeeper, but Korean Tax Experts 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 a proactive […]

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 […]

2018 세법개정안

매년 7-8월에는 기획재정부에서 세법개정안을 발표하고, 그 내용이 연말 국회를 통과할 시에 적용되고 있습니다. 기획재정부에서는 올해 8월 2일 2018년도 세법개정안을 발표하였습니다. 아래 링크를 통해 세법개정안 보도자료를 참고하시기 바랍니다. 2018 Tax Reform Proposals

Changes in the external audit requirements

Under the current Act and its Enforcement Decree, the mandatory (external) audit requirements apply to the below companies in Korea: Listed in Korea; or Total asset exceeds KRW 12 billion; or Total asset and liability exceed KRW 7 billion; or The number of employees is over 300 and total asset exceeds KRW 7 billion It’s […]

Value-Added Tax in Korea

VAT is levied at a rate of 10% on the supply of goods and services, except zero-rated VAT on certain supply of goods and services (i.e.  services rendered to non-residents earning foreign currency, etc.) and exemption on certain goods and services (e.g. basic life necessities and services, such as unprocessed foodstuffs and agricultural products; medical and health services; finance and […]

Basic Reporting Requirements in Korea

Under the Korean Commercial Law and related tax laws, a company is required to keep its accounting records using “double-entry” bookkeeping system, and prepare financial statements and maintain them for at least five (5) years. Also, once you start a business in Korea, you would be required for following reporting requirements : Value Added Tax […]

Increase in dispatched workers’ withholding tax rate and expansion of scope of withholding agents

Article 156-7 (1) of the Income Tax Act, Article 207-10 (1) of the Enforcement Decree of the Act □In order to tighten control on the tax source from foreign dispatched workers, the following revisions will be made: ○Expansion of scope of withholding agents: -Current: A domestic company whose total payment in return for labor provided […]