Category Archives: Tax

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 […]

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 […]

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

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 […]

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 […]

Amended Korean Tax Law for Foreign Tax Residents in Korea – Requirement for Submission of Foreign Investment or Real Estate

Under the Income Tax Act Article 165-2 (Duty to Submit Documents about Overseas Investment or Real Estate), a Korean tax resident is required to report and submit certain documents to the Korean tax authority on a yearly basis – by end of May every year. Types of documents to submit to the Korean tax authority […]