We have a mixed team of Korean company formation and accountants in South Korea who can support you in various matters. Living and/or having a company in Korea implies paying taxes here. For this purpose, there are various accounting requirements to comply with. If for Korean citizens things are much simpler, foreigners need to understand the taxation system here. For this purpose, they can use our accounting services in South Korea.
Below, our chartered accountant in South Korea offers an insight into the country’s taxation system and the services we offer in this sense.
Accounting services provided by our CPA in South Korea
When it comes to accounting in South Korea, there are various laws and regulations to consider which is why it is best to rely on specialists. CPA stands for Certified Public Accountant, and it is one of the most important licenses such a professional can obtain in his or her career.
Our South Korean chartered accountant and our team of accountants in South Korea offer the following services:
- tax advice and planning which is the key to success for many businesses;
- tax registration when opening a company in Korea;
- VAT/GST registration for companies;
- bookkeeping and accounting services;
- audit services are also available for companies;
- payroll and HR support for business in need of keeping track of employee records;
- financial statements preparation and filing in accordance with the latest accounting standards.
Foreign citizens and investors can also benefit from the support of our chartered accountant in South Korea.
Feel free to address our accountants in South Korea if you want to open a company in Korea.
Accounting in South Korea – requirements for domestic businesses
If you decide to start a business in Korea, you need to consider the following accounting requirements:
- the financial year in South Korea is made of a 12-months period, while the accounting period starts in accordance with the Articles of Association of the company;
- companies must file financial statements and a business report for each financial year;
- public companies listed on the Stock Exchange must also comply with disclosure requirements;
- companies must also be under audits performed by an external auditor. Our accountants in South Korea can offer more details.
It is useful to note that such services can be provided by 2 types of specialists: CTA (Certified Tax Accountant) and CPA in South Korea.
With respect to the financial statements that need to be filed with the Trade Register, these must contain the following:
- the income statement;
- the balance sheet;
- the cash flow statement;
- a statement on changes in equity;
- a statement on the appropriation of retained income.
When dealing with the accounting of a company, it is recommended to ask for the support of our chartered accountant in South Korea.
The professional accounting bodies in South Korea are the Institute of Certified Accountants and the Association of Certified Public Tax Accountants.
We are also at your disposal with company formation services in Korea. Our accountants in South Korea are ready to offer their services after you open your company.
The main taxes that need to be considered by Korean companies
There are several taxes that need to be considered by Korean companies. Among these, the corporate tax applies at various rates depending on the annual profit of a company and our accountants in South Korea can offer more details. Our South Korean chartered accountant can provide more information on how this levy is calculated.
Here are the main tax highlights related to accounting in South Korea:
- the corporate tax rate starts at 10%, while the highest rate is 25%;
- there is also an alternative minimum tax that starts at 7% with the highest rate of 17%;
- the value added tax, which is the most important indirect levy has a standard rate of 10%.
If you are interested in accounting services in South Korea, contact us. Our accountants in South Korea are at your disposal.