In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
From January 1st to December 31st.
- Accounting Standards
Statement of Korea Accounting Standards.
- Accounting Regulation Bodies
- Accounting Reports
Accounting structures includes Balance sheet, income statement, statement of cash flows, explanatory notes.
- Publication Requirements
1) Companies listed at the stock-exchange and KOSDAQ market have to follow the disclosure regulation:
- Periodic disclosure : the business reports after the end of a fiscal year, semi-annual reports, and quarterly reports.
- Timely disclosure : major business details as outlined in the Securities Exchange Act and the Disclosure Regulations of the KRX-Stock Market
- Special disclosure : merger, ·spin-off, reports of business takeover & transfer, reports of acquisition & disposal of treasury stocks, etc.
2) External Auditing companies are required to disclose Audiiting report.
3) Corporations issuing securities are required to disclose public securities registration statements, business prospectuses, records of securities issuances, etc.
More information on Korea exchange website.
- Professional Accountancy Bodies
KICPA (en inglés) , Korean Institute of Certified Accountants
KACPTA , Korean Association of Certified Public Tax Accountants (in Korean)
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Ernst and Young Global, Deloitte Touche Tohmasu, KPMG International, Price Waterhouse Coopers.
- Accounting News
Korea Accounting Institute
- Nature of the Tax
Value Added Tax (VAT)
- Tax Rate
- Reduced Tax Rate
A 0% rate apply for exports.
- Other Consumption Taxes
Special Excise Tax, Liquor, Tobacco Tax, Stamp, Energy, Environment, Transportation, Auto Tax, etc.
Learn more about Service Providers in South Korea on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
11% (up to KRW 200 million)
22% (from KRW 200 million to KRW 20 billion)
24.2% (Over KRW 20 billion)
- Tax Rate For Foreign Companies
Taxation is based on the annual business income. Since most of the foreign investors are corporations and thus liable to pay it, corporate tax makes up the largest portion of the total taxes related to foreign investment. Under the tax agreement, only the income from the permanent establishment of a foreign company is taxable. Permanent establishments here refer to branches, warehouses, stores, or other establishments for installment or construction projects. A company which has a right to sign a contract or which conducts its business and trade through an agent who on behalf of the company buys or sells its stocks is also subject to tax. More information on Invest Korea website.
- Capital Gains Taxation
The capital gains tax applies to the income coming from the transfer of certain assets by an individual in a given year. A corporation is not subject to capital gains tax, and is instead taxed on income generated from this transfer in a form of corporate tax.
- Main Allowable Deductions and Tax Credits
Tax deduction or exemption for farming cooperatives, fisheries cooperatives, forestry development income, small start-up businesses, start-up companies, foreign investment, disaster loss, Investment, R&D, etc.
- Other Corporate Taxes
Urban Planning Tax, Business Place Tax, Community Facility Tax, Local Education Tax, etc.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Up to KRW 12 million
|From KRW 12 to 46 million
|From KRW 46 to 88 million
|From KRW 88 to 150 million
|Over KRW 150 million
- Allowable Deductions and Tax Credits
Deductions for all taxpayers include: Insurance; Medical expenses ; Charitable donations ; Education expenses...
- Special Expatriate Tax Regime
Expatriate have a special tax regime. A flat tax rate applies on individual income for foreigners: the rate is 18.7%.
Learn more about Taxes and Accounting in South Korea on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Blog of Korean Business Culture
Doing Business in Korea
Soft Landing Korea
- Opening Hours and Days
Public office and lots of private offices are closed on Saturday and Sunday.
Banks: from 9.30 to 16.30, Monday to Friday, from 9.30 to 13.30 on Saturdays.
|New Year's Day
|Lunar New Year's Day
|Independance Movement Day
|Chuseok (Korean Thanksgiving Day)
|Nation Foundation Day
Periods When Companies Usually Close
|Lunar New Year's Day Season
||January 1st of Lunar calendar
|Chuseok (Korean Thanksgiving Day)
||August 15 of Lunar calendar
|Summer vacation season
||July or Aug according to companies
|Winter vacation season
||According to companies, between Christmas and New Year's day
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Last Updates: October 2014