Ask an Expert : Accountant

- Ep. Tax Tips for Entrepreneurs -

What kind of tax do I have to pay for running a business in Korea?

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A corporation (legal entity) is subject to corporation tax and value-added tax(VAT),

whereas a sole proprietorship is subject to income tax and value-added tax(VAT).

When acquiring real estate, local taxes should be considered.

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What should I do if I am notified by the tax office to pay additional taxes

even though I had paid taxes on the income?

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The amount withheld is not a final tax amount to be paid. You must file an income tax return after checking

whether there is any additional tax that must be paid by May in the year following the relevant income year.

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Tip & Advice 1

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We recommend you decide whether you want to establish a sole proprietorship or a corporation

after you obtain information through the expert consultation in advance. The business type can vary

based on your visa, capital, and business plans.

Tip & Advice 2

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Some people forget to deposit capital into their corporate accounts after incorporation.

In terms of tax, there is a possibility to encounter the disadvantages in the future,

the capital used to establish a corporate must be deposited into a corporate account,

not into an individual account.