Taxes and insurance matters

Corporate income tax

Corporation tax is a type of tax that is equivalent to income tax for natural persons and is charged to legal entities. The basis for calculating this tax is the profit made by a company during a financial year.

Filing of corporate income tax: Companies are required to file their corporate income tax returns within 3 months of the end of the previous financial year. An advance payment of tax based on 50% of the previous year's tax liability or the current actual economic performance must be paid for the first half of the year within 2 months of the end of the first half of the year.

Value added tax

Sales tax is levied on a company's entire value added, which is created through production, delivery and distribution processes for goods or services.

In Korea, sales tax rates range between the standard rate of 10% and the zero rate (0%). While the standard VAT rate is generally applicable to all goods and services, the zero rate or VAT exemption only applies in some exceptional cases. For example, social benefits and goods and services in the cultural sector are exempt from VAT, while zero-rating applies to goods and services intended for export. Input tax refunds must be submitted on a quarterly basis.

 Mandatory Insurance