Monthly financial reports are customized per the request from clients and reported in English or in Korean.
We can provide bookkeeping services and variance tax return services in compliance with K-GAAP and tax laws in Korea.
The statutory account should be reported to the Korean tax authority with the annual corporate income tax return.
Based on relevant supporting documents such as invoices, receipts, and other related documents, the accounting books should be maintained in accordance with the Korean GAAP and tax laws.
Withholding tax return
Monthly withholding tax return
A company should file a monthly withholding tax return on employee payroll with the district tax office by the 10th day of following month and pay the income tax withheld.
A company satisfied the conditions prescribed in the Presidential Decree may withhold and pay the taxes on semi-annual basis. The filing due date is within the 10th day from the end of each half-year.
Social security insurance
There are 4 types of social security insurances in which a company is required to enroll for its employees; (i) National Pension, (ii) National Health Insurance, (iii) Unemployment Insurance, and (iv) Worker’s Accident Insurance.
A company withhold the monthly contribution from the payroll of employee and pay it to the relevant authority together with the contribution which is borne by the company.
Year-End income tax adjustment
The year-end income tax adjustment on the employee payroll should be filed to settle the income taxes withheld during the year.
Other withholding taxes
A company should report withholding taxes on the royalty, dividend, interest, other income and etc. along with the employee payroll.
Local Income Tax Return on withholding tax
A company should report and pay 10% of withholding tax as the local income tax to the district office by the 10th day of following month.
Resident tax (employee portion)
If a monthly average payroll for the last 12 months exceeds KRW 150,000,000, the company should report and pay 0.5% of the employee payroll for the month as the resident tax to the district office.
Value-Added Tax (VAT) return
A company should file VAT return for the taxable transactions on a quarterly basis.
E-VAT invoice issuance
VAT invoice must be issued for taxable transactions electronically.
Corporate Income Tax Return (CTR)
CTR must be prepared and filed for the taxable business transactions. Annual CTR must be filed with the district tax office within 3 months from the end of its fiscal year, and the interim CTR should be filed within 2 months from the end of the entity’s first six months of the fiscal year.
Local Income Tax (LIT) on corporate income tax
LIT must be filed with the district office within 1 month after the filing due date of CTR.
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Gong Jung Global