You've Got Your Business Registration in Korea — Now What?

Getting your business registration certificate (사업자등록증) feels like the finish line. It's actually the starting line. From this point on, the Korean tax office expects a steady rhythm of filings. some monthly, some quarterly, some once a year.

Here's the full picture, broken down by what you actually need to do and when.

 

1. Bookkeeping -> The process of making company's financial statement (BS P&L)

Bookkeeping  isn't a once-a-year task. It's the ongoing record of every sale, every expense, every invoice. and it's what makes all the other filings below possible.

By bookkeeping company records sales and expenses and make compnay's financial statement like balance sheet and profit and loss statement. And based on this financial statement company can prepare tax returns.

In Korea tax system, almost all receipts are collected electronically, but the invocies you sent or got from abroad, and the transtion in abroad are not colletecred, so you should organize these and sent us for accurate bookkeeping.

 

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2. VAT Filing -> Report company's sales and expense to tax office every Quarterly

If you're registered as a corporation, you are required to file VAT returns quarterly, four times a year. The filing deadline is the 25th day of the month following the end of each quarter

As the process involves reporting the company's sales and expenses, the company should prepare and provide copies of all invoices it has issued and received.

 

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3. Payroll Withholding Tax -> Once You Hire Staff, you should report to tax office

This is where many first-time employers get confused, so let’s be precise. If you hire an employee, please follow the process below in order:

1. Make an employment contract with the employee.
2. Provide the signed employment contract to your tax accountant.
3. The tax accountant will complete all the necessary procedures and provide the employee’s salary payslip and tax payment slips.
4. The company pays the employee’s net salary to the employee and pays the applicable taxes to the tax office. (Social insurance are paid automatically from the company’s bank account)

There are several procedures to complete after making an employment contract (including registering the employee with each social insurance organization, calculating taxes and social insurance contributions, preparing the payslip, reporting to the tax office and district office, and submitting the required payment statements to the tax office on time) These procedures will be handled by the tax accountant. What you need to do is simply make the employment contract with the employee and pay the employee’s salary and applicable taxes on time.

 

*Social insurnace rateㄴ for your information ↓

 

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4.Annual Tax Return - Calculation of taxes based on income company made last year.

Once a year, everything gets settled. If you're a corporation: you file corporate tax within 3 months of your fiscal year-end. For a standard calendar-year company, that means by March 31 of the following year. (for your 2026 income -> 31st Mar 2027)

*Corporate income rates for your information ↓

If you're an individual business owner you file comprehensive income tax (종합소득세) by the end of May. Rates are progressive, ranging up to 45% depending on income level, plus a 10% local surtax. (6~45%)

Corporations also make a mid-year prepayment toward this annual tax filing (Aug for corporate business, November for individual business)

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5.Monthly report - Closing monthly basis for company's financial purpose

Making financial statements is not legally required in Korea. However, they may be required internally, especially for foreign-invested companies whose headquarters are located overseas or company that wants to check revenue and expense on a monthly basis. We can provide a monthly report based on the company’s monthly sales and expenses. If needed, we can also prepare the report using a template provided by the company.

 

 

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G-tax(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 Kroea

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