Category Archives: Tax

Not VAT Deductible Purchases for Businesses in Korea

The Korean VAT Laws specify certain purchases are not deducible (10% VAT not refundable) for the companies. For example, VAT payments on following purchases are not refundable: Books, medical expenses, fuels, parking, car maintenance fees, leisure expense such as golf, etc., luxury item purchases, public transportation expenses, tickets (i.e., movies), beauty shops, etc.   References: […]

Global Mobility Services (GMS)

We see many companies face employment issues especially in relation to international assignment programs. With many years of experience in GMS field, we proudly offer tax strategies and advisory services that can help international assignment program in a cost efficient manner. How we can assist you I. Foreign employees assigned to Korea by foreign companies […]

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 […]