What is included:
Cost: on request.
National Currency: South Korean Won (KRW).
A company is a resident of Korea if its head office or operating office is located in Korea.
Residents are taxed on income earned both domestically and throughout the rest of the world. Non-residents pay taxes only on income from Korea. Branches are taxed in the same way as subsidiaries.
Corporate income tax is levied on the taxable income of the company, which represents its net income for the reporting period, taking into account accounting and taxation rules. With some exceptions, ordinary business expenses are deductible for tax purposes.
There is a progressive rate. The first 200 million won is taxed at a rate of 10%. For the taxable income in amount from 200 million won to 20 billion, the rate is 20%.
If the amount that is taxable is between 20 billion and 300 billion won, the rate is 22%. And finally, 25% of taxable income applies for taxable incomes over 300 billion won.
The local income tax rate is also progressive. In similar intervals of taxable income, these rates are 1%, 2%, 2.2% and 2.5%, respectively.
The total profit rates for the company’s profit are 11%, 22%, 24.2% and 27.5%.
In Korea, companies are eligible for Alternative Corporate Tax. This type of tax has its own profit intervals, which are taxed at a progressive rate degrees of 10%, 12% and 17%.
Small and medium-sized enterprises are entitled to an Alternative tax rate of 7%.
VAT is applicable to goods and services. Among the features are non-residents who provide electronic services (for example, games, audio or video files, software, etc., activated via mobile communication devices or computers).
As well as services to residents of Korea using information communication networks. Starting July 1, 2019, the volume of electronic services is expanding and includes cloud computing, advertising services and other “agent services” provided in order to allow a person to use assets located in Korea.
The standard VAT rate is 10%. The zero rate applies to exports, services provided outside of Korea and not only.