Guides
Korean rules on tax, staff, visas and company paperwork, explained for foreigners by PAPATONY.
39 guides
If a supplier won't issue a tax invoice, the buyer can issue it
Buyers in Korea left without a tax invoice can apply on Form No. 14-2 within a year of the tax period's end, for deals of ₩50,000 or more including VAT.
Tax & accounting6 min read
Mid-year hires and leavers: year-end tax settlement runs twice
Employers in Korea settle leavers in their final pay and issue a receipt, and new hires, foreign staff included, bring the old employer's receipt before February pay.
Tax & accounting6 min read
After withholding tax, pay 10% local income tax on Wetax by the 10th
Every company in Korea that withholds tax also collects 10% of the withheld amount as local income tax, filed on Wetax by the 10th of the next month.
Tax & accounting6 min read
Simplified payment statements for wages are due monthly from January 2027
From January 2027 pay, simplified payment statements for wages in Korea are due monthly. The first deadline is March 2, 2027.
Tax & accounting5 min read
Companies with zero revenue must still file a corporate tax return
Korean companies with no sales or a loss must still file a corporate tax return, and it counts only with financial statements and a tax adjustment statement.
Tax & accounting6 min read
A VAT preliminary notice can sometimes be replaced by a preliminary return
Companies billed 50% of last period's VAT by preliminary notice get no notice under ₩500,000, and some can file a preliminary return instead.
Tax & accounting5 min read
Tax losses carry forward 15 years; SMEs may deduct up to 100% of income
Under Korean corporate tax, a company's loss offsets later income for 15 years only if it was in a filed tax base. The yearly cap is 80%, or 100% for SMEs.
Tax & accounting5 min read
Semiannual withholding tax payment: apply only in June or December
Withholding tax can be paid twice a year instead of monthly by employers in Korea with 20 or fewer regular employees, but they must apply in December or June.
Tax & accounting5 min read
Non-deductible input VAT: the Article 39 list and the 20-day rescue
Input VAT on a Korean VAT return is denied only on VAT Act Article 39(1) grounds, and pre-registration purchases count if the company registers within 20 days.
Tax & accounting5 min read
Without a depreciation report, equipment defaults to declining balance
New companies in Korea must report a depreciation method and useful life by the first corporate tax return deadline, or legal defaults apply in later years too.
Tax & accounting5 min read
Without a car logbook, deductible company car costs stop at ₩15,000,000
Without a logbook, business car costs over ₩15,000,000 are cut for companies in Korea, and without business-only insurance nothing is deductible.
Tax & accounting5 min read
Business entertainment expense limit: SMEs start from ₩36 million
In Korea, the deductible cap on business entertainment expenses is a basic limit plus a revenue-based limit. SMEs get a ₩36 million basic limit for a full year.
Tax & accounting5 min read
Company housing can be excluded from holding tax if filed by September 30
Staff housing and dormitories that companies own in Korea can be excluded from holding tax by filing Forms No. 4 and 5 between September 16 and 30.
Tax & accounting7 min read
Corporate tax return due March 31: start preparing in November
Korean companies with a December year-end file corporate tax by March 31 and local income tax by end of April. Start in November, while accounts can be fixed.
Tax & accounting7 min read