Your 2026 February Tax schedule

 

If your company has a liaison office in Korea, you should definitely review this. 

Until last year, the “Report on the Present Status of Place of Business” was only a compliance obligation with no penalties. However, starting in 2026, the law has been revised and penalty taxes now apply for non-compliance.

 

The main purpose of this report is for the tax office to verify whether the liaison office is actually operating as a liaison office, or whether it is effectively functioning as a branch of a foreign company despite being registered as a liaison office.

Accordingly, the report requires you to provide various details, such as the number of employees at the liaison office, the types of activities and transactions conducted, the number of invoices received, as well as information about the headquarters, including its name and capital amount.

 

 

 

 

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 2,000,000 KRW, you must deduct 100,000 KRW for taxes, and pay your employee 1,900,000 KRW. The 100,000 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 Dec, you must file the withholding tax return by January 10th. (it's usually 10th of following month of the month you paid, but because of the long holiday in this month, it's extended to 15th)

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.

 

The payment statement is a necessary document that outlines information about the individuals or entities who have received payments from you or your company. 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.

-Business income/Temporaty worker income/other income -> Monthly submission

-Salary income -> Semiannaully sbmission (July, Jan)

For this month, companies that have paid interest, dividends, or other income are required to submit the payment statements for each type of income (Paid in 2025) to the tax office by the end of February. 

 

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G-tax(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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