Malaysia Hotline: +603- 2141 8908
1. South
Korea taxes on corporate income are 10% on the first 200 million won of income,
20% for income between US$180,000 and US$20m, and 22% for income in excess of
that.
2. VAT
in South Korea amounts to 10% on sales and transfers of goods and services.
Electronic VAT invoicing is compulsory, and failure to report electronically
may result in penalties.
3. South
Korea non-resident companies without permanent establishments (PEs) in South
Korea are subject to a withholding tax on each income item.
4.
Resident foreigners are taxed on their worldwide income if they have stayed in
South Korea for more than 5 years out of a 10-year period. Those who have
stayed for a shorter period are only taxed on their locally sourced income and
foreign-sourced income.
5. There
is a special concession for foreigners working in South Korea, where foreign
expatriates and employees can apply for a flat tax rate of 16.5% on their
income employment.
6.
Quarterly VAT filing is compulsory even though the company is dormant.
7.
Annual tax returns must be filed to the National Tax Service of South Korea
after setting up a business in South Korea.
8. There
are no export duties in South Korea.
9.
Following South Korean company formation, annual external audits must be conducted
if a company has more than US$1 million total assets.
10. All
goods being imported to Korea from foreign countries must have their customs
duties prepaid. The tax amount is dependent on the type of imported goods and
quantity.
11.
Non-resident individuals are only liable to personal income tax on income
derived in South Korea.
12. To
attract foreign direct investment (FDI), the Korean government provides tax
incentives for small and medium-sized enterprises (SME) such as i) a SME
investing in industrial equipment or advanced office equipment may enjoy a 5%
tax credit of the invested amount ii) the tax credit for developing technology
and manpower increased from 10% to 15%.
13.
South Korea boasts 54 double taxation treaties, materially reduce local
withholding tax on payments to non-residents.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my