[Korean Foreign-Invested Company] Key Tax Schedule

[Korean Foreign-Invested Company] Key Tax Schedule

Korean taxation is the system by which the central government or local governments impose taxes on people who bear tax obligations without providing an offsetting benefit in order to raise revenues. There are national taxes and local taxes in Korea.

National taxes are collected by the National Tax Service (tax office) and the Korea Customs Service (customs office) to finance the central government. National tax is largely divided into internal taxes and customs duty. There are direct taxes and indirect taxes, depending on how the tax is paid. A direct tax refers to tax collected directly from the taxpayer, while an indirect tax refers to tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. Direct taxes include income tax, corporate tax, inheritance tax, and gift tax. Indirect taxes include value added tax, special excise tax, liquor tax, and securities transaction tax.

Local tax is collected primarily to finance the expenses required to provide administrative service to local residents, but also has the functions of distribution of income, development of the local industry and economy, and contribution to balanced national development. Local tax can be categorized into taxation of property, taxation of income and taxation of consumption. Property taxation includes property tax, aggregate land tax, automobile tax, acquisition tax, and registration and license tax. Income taxation includes local income tax, and consumption taxation includes registration and license tax, leisure tax, tobacco consumption tax, regional resource facilities tax, local consumption tax and local education tax.

By When	How	For What
Monthly 10th of the next month	File and Pay withholding tax	1 prior month
Quarterly the end of the next month	File the statement of daily worker’s incomes (By Feb. 28th of the next year for 4th quarter)	3 prior months
Quarterly 25th of the next month	File and Pay Value Added Tax(VAT)	3 prior months
August 31th of the current year	File and Pay interim corporation income tax return (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year
February 28th of the next year	File the statement of payment (except withholding tax receipt, wage/business/retirement income)	Jan.~Dec. of the prior year
March 10th of the next year	File the statement of payment for wag/business/retirement income (withholding tax receipt)	Jan.~Dec. of the prior year
March 10th of the next year	File employees’ year-end income tax settlement	Jan.~Dec. of the prior year
March 31th of the next year	File and Pay annual corporation income tax return + international transaction schedule (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year
March 31th of the next year	File the statement of foreign company outside Korea (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year
March 31th of the next year	File the statement of foreign real estate purchase and investment operation(lease) (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year
April 30th of the next year	File and Pay annual corporation Local income tax return + international transaction schedule (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year
May 31th of the next year	File and Pay global individual income tax return	Jan.~Dec. of the prior year
May 31th of the next year	File the statement of foreign company outside Korea (Individual)	Jan.~Dec. of the prior year
May 31th of the next year	File the statement of foreign real estate purchase and investment operation(lease) (individual)	Jan.~Dec. of the prior year
June 30th of the next year	File and Pay compliant global individual income tax return	Jan.~Dec. of the prior year
June 30th of the next year	File the report of foreign financial accounts	Jan.~Dec. of the prior year
June 30th of the next year	File related-documents of report by countries (corporation for fiscal year Jan.~Dec. if applicable)	Jan.~Dec. of the prior year
December 31th of the next year	File the report of comprehensive international transaction information (corporation for fiscal year Jan.~Dec.)	Jan.~Dec. of the prior year

* The above tax information is translated from Korean for foreign-invested companies, and is not legally binding.

* Source: Korean National Tax Service, Invest Korea