Essential Tax Deadlines for Businesses in Korea for 2026

J&J Korea
2 days ago
3 min read

Starting a new year means preparing for important tax obligations that keep your company compliant and running smoothly. For businesses operating in Korea, understanding the 2026 tax schedule is crucial to avoid penalties and manage cash flow effectively. This guide highlights the key tax deadlines every business should mark on their calendar to stay ahead.

Corporate Income Tax Deadlines

Corporate income tax is a major responsibility for companies in Korea. The main deadline for filing and payment is March 31, 2026. This date applies to the previous fiscal year's income, so companies should prepare their financial statements well in advance.

Additionally, businesses must make an interim corporate tax payment by August 31, 2026. This payment covers the first half of the fiscal year and helps spread the tax burden throughout the year.

Missing these deadlines can result in fines and interest charges, so companies should plan their accounting and tax preparation accordingly.

Corporate Local Income Tax

Alongside corporate income tax, companies must also file and pay corporate local income tax by April 30, 2026. This tax is calculated based on the corporate income tax amount and is payable to local governments.

Timely payment ensures your business avoids additional penalties and maintains good standing with local tax authorities.

Value Added Tax (VAT) Schedule

VAT is a recurring tax that affects many businesses in Korea. The 2026 VAT deadlines are spaced throughout the year:

January 25: Filing and payment for the second half of 2026 VAT
April 25: First quarter VAT filing and payment
July 25: First half VAT filing and payment
October 25: Third quarter VAT filing and payment

VAT returns require accurate sales and purchase records. Companies should maintain detailed bookkeeping to meet these deadlines without stress.

Year-End Tax Settlement for Employees

Employers in Korea must complete the year-end tax settlement for employees’ wage income before the February wage payment date. This process reconciles the tax withheld from employees with their actual tax liability.

Proper handling of this settlement avoids discrepancies and ensures employees receive correct tax refunds or payments.

Tax Invoice Issuance and Withholding Tax

Businesses must issue tax invoices by the 10th of the following month after a transaction. This rule helps maintain transparency and supports VAT reporting.

Similarly, withholding tax on employee wage income must be filed and paid by the 10th of the following month. Timely withholding tax payments prevent penalties and keep your company compliant with Korean tax laws.

Tips for Managing Your Tax Calendar in Korea

Set reminders early: Use digital calendars or accounting software to alert you well before each deadline.
Prepare documents in advance: Collect financial statements, invoices, and payroll records early to avoid last-minute rushes.
Consult tax professionals: If your company has complex transactions or foreign business operations, seek expert advice to navigate Korean tax regulations.
Understand holiday extensions: If a deadline falls on a weekend or public holiday, the due date moves to the next business day. Plan accordingly.

Supporting Foreign Businesses in Korea

Foreign companies operating in Korea face unique challenges with tax compliance. Our Easy Guide for Foreign Businesses in Korea offers practical advice on navigating local tax laws, filing requirements, and common pitfalls. This resource can help international businesses establish strong tax practices from the start.

Final Thoughts

Staying on top of tax deadlines in Korea is essential for every business. The 2026 schedule provides clear dates for corporate income tax, local taxes, VAT, and employee-related filings. Early preparation and consistent record-keeping reduce risks and improve financial management.

If you need tailored support or have questions about your company’s tax obligations, reach out to a trusted tax advisor. Starting the year with a clear tax plan helps your business focus on growth and success throughout 2026.