Stay on Top of Your Tax Obligations: Important Deadlines to Meet in April!

 

 

1.Withholding tax filing(4/10)

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 Mar, you must file the withholding tax return by April 10th.

 

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.

 

2.VAT payment for individual business owners (~4/25)

If you own a small business as individual, you will receive a VAT payment bill from the tax authority. Even if you don't file VAT returns, you are required to pay half of the VAT amounts you paid during your last VAT filing. This is an advance tax payment that will be deducted from your next VAT filing (7/25)

 

3.VAT filing for corporations (~4/25)

Corporations must file their VAT returns every quarter. This is important because it shows the company's sales and VAT-related costs. Corporations should also submit a breakdown of tax invoices.
S,o Ensure that all invoices have been issued or received before VAT filing.

 

4.Corporate income local tax filing (~4/30)

Corporations are required to pay 10% of their income as local taxes. This means that they must file their local tax returns by the end of April, which is one month after filing their corporate income tax retur

 

5.Submission of payment statement.(~4/30) 

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, payment statements for salary income and retirement income must be submitted to the tax office by April10th.

 

 

 

 

 

 

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