In this blog post, we will explore the important aspects of bookkeeping and the submission of a statement of payment in relation to income tax in Korea. Keeping of and Entry in Books (Article 160, Income Tax Act) As per the Income Tax Act in Korea, it is mandatory for all business operators to maintain supporting documents to calculate the amount of taxable income. These supporting documents sho..

In this blog post, we will delve into the concept of necessary entertainment expenses for income tax purposes in Korea. Understanding what qualifies as necessary expenses can help businesses optimize their tax deductions while ensuring compliance with the relevant regulations. Necessary Entertainment Expenses According to Article 35 of the Income Tax Act, entertainment expenses related to busine..

For revenue from lease deposits and similar amounts, a portion known as "deemed rent" is included in the gross revenue. However, there are exceptions for housing leases with certain conditions. If a taxpayer owns three or more houses with the sum of their deposits exceeding 300 million won, the deemed rental income is included in the gross revenue. Deemed rental income where income is calculated..

We will delve into the details of income tax in Korea, focusing on the calculation of the tax base (taxable income) and different types of income. Understanding these concepts is crucial for individuals and businesses operating in Korea. So, let's get started! Calculation of Tax Base (Taxable Income) Taxable income, also known as the tax base, is an essential factor in determining the amount of ..

[Income Tax in Korea] Housing rental income we will discuss the key aspects of reporting housing rental income and the associated income tax regulations in Korea. Persons Subject to Reporting Housing Rental Income Individuals who own residential properties meeting any of the following criteria are required to report their housing rental income: Persons owning housing over 900 million won in stan..

Understanding Penalty Taxes in the Tax System penalties are imposed to ensure compliance with tax regulations and discourage tax evasion. Understanding penalty taxes is crucial for individuals and businesses to avoid legal consequences and maintain financial stability. Penalty Tax on Non-filing or Incorrect Filing Taxpayers who fail to submit their tax returns on time or inaccurately report thei..