TAXATION
J&J Korea performs a variety of tax cases, allowing us to provide fully integrated and multidisciplinary tax services. This enables us to simultaneously address multiple client issues from small businesses to large enterprises.
Through J&J Korea Business Transition Services, we help minimize the tax burden.
Taxable Income by Corporation Type
Domestic Corporation is liable for corporate tax on all income generated domestically and abroad,
while Foreign Corporation (headquartered in a foreign country) is liable for corporate tax only for domestic-source income.
O : taxable | X : non-taxable in Korea
We assist
Preparation of financial statements, tax returns
Discharge
monthly government reporting
Plan for legal tax exemption
Use double taxation treaties to minimize withholding tax
Frequently Asked Questions
What types of taxation services does J&J Korea offer businesses?
J&J Korea provides comprehensive taxation services designed to help businesses navigate South Korea's complex tax landscape. Our services include guidance on corporate tax calculation and filing, Value-Added Tax (VAT) compliance, and understanding deductible and non-deductible expenses. We also offer expert advice on specific tax considerations for independent contractors and employees, ensuring all your tax obligations are met accurately and efficiently.
Can J&J Korea help my business prepare for a tax audit?
Yes, J&J Korea can help your business prepare for and navigate tax audits. We provide insights into why audits occur, distinguishing between regular and irregular types.
Are taxes deducted from employee bonuses in South Korea?
Yes, taxes are deducted from bonuses in South Korea. Bonuses are classified as earned income, just like regular wages, and are therefore subject to income tax. Whether it's a performance or holiday bonus, it's treated as part of your taxable salary, which is why the net amount received can often seem smaller than the gross bonus.
Are holiday gifts taxable in South Korea?
Yes, holiday gifts are generally taxable in South Korea. Under tax laws, both gift sets (taxed at their market value) and gift certificates are treated as earned income. This means they are subject to taxes just like cash bonuses, even though they are non-cash rewards.
What is the corporate tax filing schedule in South Korea?
Corporate tax returns in South Korea must be filed annually within three months from the last day of the month your company's fiscal year ends. For example, if your fiscal year ends on December 31, the deadline is March 31 of the following year. Other common deadlines include June 30 for March settlements, September 30 for June settlements, and December 31 for September settlements.
What documents are required when filing corporate tax in South Korea?
When filing corporate tax in South Korea, you must submit the corporate tax base and tax amount report along with several supporting documents. These include financial statements, a statement of comprehensive income, a statement of tax adjustment, and a statement of retained earnings. Other required documents may include a statement of assets or liabilities transferred through merger/division. It is mandatory to submit all required documents.
Is there an online option for filing corporate tax returns in South Korea?
Yes, the National Tax Service (NTS) provides an online platform called Hometax for convenient electronic filing. You can log in to the Hometax website, navigate to the "Report/Payment" section, and select "Corporate tax." For companies with no business activity during the fiscal year, a "Simple corporate tax report" option is available.
How J&J can help with taxation in South Korea?
While understanding the corporate tax calculation and filing procedures is crucial, navigating the complexities and optimizing tax liability can be challenging. Consulting a qualified tax expert like J&J is highly recommended to ensure accurate filing and to explore all potential tax-saving opportunities. We provide tailored advice based on your company's specific circumstances, helping you manage taxes efficiently and avoid penalties.