Taxation
Corporate Income Tax
The corporate income tax of Korea adopts a progressive tax rating ranging from 10% to 25%, and it's calculated by multiplying the tax base by the tax rate:
Due Date for Filing
All companies must prepare a corporate tax return files and pay corporate tax to the competent tax office within three months from the last day of each business year belongs and pay tax accordingly. For example, if the business year runs from January 1 to December 31st, corporate tax on income must file and pay by March 31st of the following year.
Value Added Tax (VAT)
VAT is paid for added value acquired in the process of providing goods and services.
VAT is calculated :
Output VAT (total sales x 10%) - Input VAT (total purchase x 10%)
The two taxable periods of VAT are from Jan 1 to Jun 30 and from Jul 1 to Dec 31.
However, due to the preliminary reporting period, there is a duty to report quarterly.
Tax Invoice Issuance
When a business supplies goods or services, an invoice (tax invoice) should be issued for the person who receives the goods or service. Businesses are obliged to issue electronic tax invoices, which can be issued through the website of the National Tax Service(NTS).
A tax invoice should be issued at the time of supplying goods or services. It is highly recommanded for the issuer to adhere to the time of issuance as prescribed by Value Added Tax Act or be subject to a penalty.
