[투자SEOUL명서] Today's Invest Guide : Taxation System

Today's Invest Guide : Taxation System

Taxation System

Korea’s tax system consists of national tax and local tax.

It is composed as follows.

 

(Tax, National tax, Local tax, Internal tax, Tafif

Direct tax, Indirect tax, Seoul Special City tax, Autonomous Gu Tax)

Tax and tax rate related to domestic business operators

 

Value added tax(*10%) : Sales of goods or provision of services

Individual consumption tax(*5~20%) : For some high-cost products,

golf courses, and entertainment venues, individual consumption tax may be

imposed in addition to value added tax

Corporate tax(*10%, 22%, 10% of corporate tax amount)

Income tax(*6%~35%, 10% of income tax amount) :

Payment of annual income tax

Deduction of withheld earned income tax : Tax deduction of withheld earned income tax of employees 

Difference between Corporate Businesses and Private Enterprises

(Corporate Businesses)

 

Tax rate : 10~22% (Grade 2)

Tax payment location : Head office, branch office

Accounting obligations : Bookkeeping by double entry

External auditing system : Corporations with total assets over 10,000,000,000 KRW

Report and payment period : By March 31 of the following year

Difference between corporate businesses and private enterprises

(Private Enterprises)

 

Tax rate : 6~35% (Grade 4)

Tax payment location : Address of business operator

Accounting obligations : Simple ledger/bookkeeping by double entry

External auditing system : None

Report and payment period : Between May 1 - 31 of the following year