March Tax schedule in Korea

 

1.Corporate inocme tax filing (31st Mar)

If you run a corporate business in Korea, corporate income tax filing is one of the most important tax filings of the year. You need to pay taxes on your company’s profits by submitting a corporate income tax return to the tax office and making the payment by the end of March.

The deadline for filing is three months after the end of the fiscal year, which is typically December 31st. This is why the due date for most companies is March 31st. However, some companies choose a different fiscal year ending in March, in which case their tax filing deadline is June 30th.

When completing the tax return, you must include financial statements such as a balance sheet and a profit and loss statement, as corporate income tax is calculated based on net income that's why accurate bookkeeping is essential for a correct tax filing.

Since CIT filing involves a significant amount of paperwork, it’s important to start early and ensure accuracy to avoid any last-minute issues.

2.Withholding tax filing(10th Mar)

When you pay your employees a salary, it is your responsibility to deduct taxes from their salary before paying them.

*For example, if your employee has a contracted salary of 2,500,000 KRW, you must deduct 35,600 KRW for taxes, and pay your employee 2,464,400 KRW. The 35,600 KRW you deducted must be reported on a withhold tax return and paid to the tax office on behalf of your employees.

The deadline for filing the withholding tax return is the 10th day of the following month after the payment was made. So, if you paid salaries to your employees in Oct, you must file the withholding tax return by Nov11th(it's typically 10th but as 10th November is Sunday, it's 11th)

It's important to understand that the requirement to file a withholding tax return is not limited to salary payments. Any payment that requires taxes to be withheld must be reported on the withholding tax return.

*For instance, if you paid a loyalty payment to a foreign entity, you must also withhold taxes and report the payment on the withholding tax return.

*If you want to know about non-taxable items for your salary, Please refer below link.

 

3.Submission of 'yearly' payment statement.(10th Mar) 

The payment statement is a necessary document that outlines information about the individuals or entities who have received payments from you. This includes details about their income and any taxes that have been withheld.

For instance, when you pay your employees, you are required to withhold taxes and pay them to the tax office.

Additionally, you must submit a payment statement to the tax office to report the withheld taxes.

To meet the deadline, 'yearly' payment statements for salary income and business income must be submitted to the tax office by March 10th.

 

4.Submission of 'monthly' payment statement for business incomer and temporay salary income (31th Mar) 

The payment statement is a necessary document that outlines information about the individuals or entities who have received payments from you. This includes details about their income and any taxes that have been withheld.

*For instance, when you pay your employees, you are required to withhold taxes and pay them to the tax office. Additionally, you must submit a payment statement to the tax office to report the withheld taxes.

 

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G-tax(Seoul, Korea) Tax firm specializing in foreign companies

If you are in search of a reliable English-speaking tax accountant, please don't hesitate to contact us! G-Tax Firm specializes in providing tax services exclusively for foreigners and foreign corporations in Korea. With extensive experience working with international companies, you can trust us for accurate and professional assistance

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