We have a mixed team of company formation specialists and accountants in 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.
| Quick Facts | |
|---|---|
| Types of accounting services available in Korea |
– bookkeeping, – financial statement drafting and filing, – tax consultancy, – tax optimization, etc. |
|
Support in tax registration (YES/NO) |
Yes, we offer assistance for tax registration in Korea. |
|
Payroll & HR services (YES/NO) |
Yes, our accountants can handle HR and payroll in a company. |
| Audit services availability (YES/NO) | Our auditors can provide various types of audit services in South Korea. |
| VAT-related services available |
VAT registration and reporting solutions are available with us. |
| Availability to work with accredited accountants in South Korea (YES/NO) |
Yes, our accountants are members of the Association of Certified Public Tax Accountants. |
| Industry-related accounting services available for companies (YES/NO) |
Yes |
| Investment advice |
Our accountants can also offer investment advice in South Korea. |
| Tax compliance for expats |
Yes, we are at the service of foreign people. |
| Accounting and reporting standards employed in Korea | International Financial Reporting Standards (IFRS) and Korean IFRS |
| Personal income tax rate |
The personal income tax rate is applied at progressive rates ranging from 6% to 45%. |
| Corporate tax rate |
10% to 25% |
| VAT rates |
– 10% the standard rate, – 0% on exports, transport of exported goods, finance and insurance services among others |
| Other applicable taxes |
Local income tax for companies ranging from 0.9% to 2.4% |
| Other services (if available) |
– fiscal representation with the tax authorities, – financial planning, – special services for small companies |
Below, our chartered accountant in South Korea offers an insight into the country’s taxation system and the services we offer in this sense.
Table of Contents
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 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 businesses 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 to our accountants in South Korea.
Depending on your reasons for immigration to South Korea, you need to apply for a specific type of residence permit. There are numerous types of permits that are available. Among them, you can choose one for a self-employed individual, a student, a work permit, and family reunification, for example. Call us for information on each of them.
Case-to-case accounting services in South Korea
Business registration in Korea, no matter if it involves the launch of a new company or the expansion of another, requires careful planning from an accounting point of view. Our accountants in Korea know how to help you based on the following criteria:
- you are an entrepreneur just entering the Korean market;
- you have a company and want to establish a local presence in Korea;
- you are a sole trader who wants to relocate to Korea and move your business here.
As a foreign investor who wants to open a company in Korea, we can help you select the appropriate business form and register for taxation after incorporation. We can also advise on the best ways through which you can save money with your company.
For foreign companies, our Korean accountants offer more extensive services, covering a wider range of issues. The solutions we can provide for international businesses depend on whether they choose to operate through branches or representative offices in Korea. An important aspect we can handle from an accounting point of view is ensuring that financial statements are consolidated for easy filing both in Korea and in its home country.
We also have an infographic detailing our services:
As a sole trader, you can do business if you immigrate and obtain a residence permit for South Korea. For this purpose, you can rely on our lawyers, and following your establishment you can count on our accountants in Korea for tax registration and compliance.
Our accounting services in South Korea are tailored, so that you benefit from all the support you deserve.
Bookkeeping services provided by our Korean accountants
The Korean tax registration requires all local businesses to record their accounting using the double-entry method.
In order to ease the burden on your staff, you can rely on the bookkeeping services provided by our Korean accountants who respect the tax legislation. From this point of view, we can:
- enter all financial transactions;
- maintain accurate and updated accounting records;
- preparing and submitting quarterly VAT returns;
- preparing financial statements at the end of each fiscal year;
- or preparing periodic financial reports to the international head office on a monthly, quarterly, or annual basis.
For VAT purposes for non-resident companies, we are also at your disposal with financial representation services in South Korea.
Payroll services in Korea
Starting a business in Korea often requires hiring employees. No matter if you decide to rely on the local workforce or relocate personnel from other countries, a component of our accounting services is payroll. From this point of view, our team of Korean accountants can handle the following:
- drafting the monthly payroll sheet and payment of payroll income taxes;
- making monthly salary payments to all employees;
- issuing and distributing individual monthly pay slips;
- preparing and filing monthly withholding income tax to the tax office;
- maintaining the payroll income tax withholding register for each employee;
- making severance payments and income for termination of employment purposes.
You can also select the accounting services you need with our Korean specialists.
Audit solutions in South Korea
Korean companies may require audit services for various reasons. However, the law imposed certain businesses to have their accounts audited. Our Korean specialists can offer several types of audits in accordance with the most recent professional standards.
Among our auditing services are:
- financial audits, as required by law;
- financial audits conducted voluntarily;
- internal controls audits.
Do not hesitate to reach out to our English-speaking accountants in Korea for extensive information on all our services.
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.
Here is also a video on our services:
There are many ways in which you can secure residency in South Korea among them, starting a business. You can either start the business registration procedure before coming to the country, or you can apply for an entry visa and stay in the country for the duration of the procedure. No matter your options, please contact us.
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 need advice on how to get a Korean residence permit, you can rely on our local consultants. One of the ways to achieve that is through employment. Your qualifications and experience will determine the kind of work permit and job visa you receive in South Korea. You have several choices for a long-term employment visa which our lawyers can advise.
If you are interested in accounting services in South Korea, contact us. Our accountants in South Korea are at your disposal.