August Tax schedule you should not miss!

 

 

ln this month as the due dates are on weekend(8/10 - Saturday/ 8/31 - Saturday) the due dates for the each taxes are extended to next Monday(8/10 -> 8/12 , 8/31 -> 9/2)

 

1.Interim Corporate income tax filing  (~9/2)

Corporations must prepare a financial statement for the first half of the year (January 1st to June 30th). Based on this financial statement, corporations should file a corporate income tax return and pay taxes on their first half year's business income.

Corporations have two options for filing interim corporate income tax (CIT):

1.Pay 50% of the previous year's CIT.
2.Prepare a financial statement for the first half of the year and calculate the taxes based on this statement.

*Corporations that are exempt from interim CIT filing:

1)Taxes are less than 500,000 KRW when calculated based on the previous year's CIT.
2)Corporations newly registered this year.
3)Corporations with no revenue for the first half of the year due to closure or other reasons.

 

2.Filing and payment of capital gain taxes and security transaction taxes for the 1st half year's stock transaction(9/2)

When you sell your stocks during the first half of the year (January 1st to June 30th), you must file capital gains tax and securities transaction taxes with the tax office.

The due date for capital gains tax on real estate is two months after the transaction. For stock transactions, the capital gains tax is due two months after the end of the half-year period in which the transaction occurred.

 

3.Withholding tax filing(8/12) 

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 July, you must file the withholding tax return by August 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.

 

4.Tax invoice issuance for June (8/10)

A tax invoice should be issued when a company provides goods or completes services. However, according to Korean tax law, it is allowed to issue the tax invoice by the following month.

For example, if you provided goods or services on July 15th, you can issue the invoice by August 10th without any penalty. If you issue the tax invoice after the 10th of the following month, there might be penalty taxes for delayed issuance.

 

 

5.Submission of payment statement(Business income, temporary worker income(~9/2) 

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.

 

---

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

G-tax Korea

Thank you for read my article! I hope it helps.
If you want to see more information about Korea tax and accounting, please follow us.
And if you need help for your tax filing or accountung or looking for CPA in Korea, don't hesitate to contace us
G-tax / Certified Tax Accountant / Steven Yang
+82 10 9599 7152 / +82 2 467 2025
steven@g-tax.kr