Aug 2025 Tax schedule in Korea
1.Interim Corporate income tax filing (8/31)
The corporate income tax filing period is every March. Corporations calculate their taxes based on their taxable year’s balance sheet and profit and loss statement (typically from January 1 to December 31).However, before the final filing in March, corporations follow a similar process in August, which is called interim corporate income tax filing.
As this must be done in August, corporations calculate the interim corporate income tax based on their balance sheet and profit and loss statement for the period January 1 to June 30, and pay the corresponding taxes.Corporations are required to prepare the balance sheet, profit and loss statement, and interim corporate income tax return, and file them with the tax office.
*This applies to corporations whose business year ends on December 31. More than 95% of corporations in Korea have a business year that ends on December 31, meaning their taxable year runs from January 1 to December 31.However, some foreign corporations may have a different fiscal year-end, such as March 31 or other dates. In such cases, the interim corporate income tax filing period is different — it falls eight months after the end of the business year.
The taxes that a corporation pays in August are prepaid taxes for the upcoming corporate income tax return due in March. Simply put, the corporation can deduct the interim tax paid in August from the final tax amount calculated in March.
For example,
- Interim tax paid in August: $4,000
- Final tax calculated in March: $6,000
→ Tax payable in March: $2,000 ($6,000 – $4,000)
Since the income tax filing periods differ for corporations and individual businesses, the interim income tax payment periods are also different.
For individual businesses, the interim income tax payment period is in November. Unlike corporations, individual businesses are not required to file an interim income tax return, they simply pay the interim income tax amount billed by the tax office (which is typically half of the previous year’s income tax).
*However, if a business’s sales have significantly decreased or there is another valid reason, an individual business owner may file an interim income tax return and pay taxes based on that return instead.
Not all corporations are required to file interim corporate income tax returns. The following corporations are exempt from this obligation:
- Corporations whose business year has not exceeded six months yet
- Corporations that are in the process of liquidation
- Corporations with no revenue or no business transactions
- Corporations whose calculated interim income tax amount is less than KRW 300,000
2.Withholding tax filing(8/10)
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 Aug10th.
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.
3.Submission of payment statement (Business income, temporary worker income,other inocme) (~8/31)
The payment statement is a necessary document that outlines information about the individuals or entities who have received payments from you or your company. 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.
-Business income/Temporaty worker income/other income -> Monthly submission
-Salary income -> Semiannaully sbmission (July, Jan)
Companies must prepare and submit these statements to the tax office by the end of July.
If a company fails to submit the statements within the due dates, penalty taxes will be incurred.
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
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