Your January Tax Calendar : Must-Know Deadlines

1.Withholding tax filing(1/10)

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 Dec, you must file the withholding tax return by Jun10th.

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 filing & payment  (~1/25)

January's the most important tax obligation would be VAT filing.

Unlike October's VAT filing, which only corporation file their 3Q VAT and individual business don't,

In January, every business entity regardless of business type(corporation / individual business).

But for corporation, which already filied their 3Q(Jul~Sep) VAT, only have to file for 4Q(Oct~Dec).

*but the point is, if you miss some tax invoices which should be included in 3Q VAT filing, you can put that in this month's VAT filing.

For individual business owner, which hadn't  filie for 3Q VAT,  they have to file VAT from July to December.

*if you paid Some VAT amounts as prepaid tax in Oct, you can dedcut the amount as prepaid VAT from calculated VAT payable amounts. and when the prepaid VAT amount is bigger thatn VAT payable amounts, you can get VAT refund.

*Below is a posting in 'G-tax.kr' you can check FYI

[VAT] VAT filing period is coming!

 

5.Submission of payment statement.(~1/31) 

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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