Ⅰ Tax in Korea

■ Taxes in Korea are divided into national taxes imposed and collected by the central government and local taxes imposed and collected by local governments. Among these, national taxes are divided into domestic taxes and customs duties.

Among the various types of taxes, the types most commonly encountered by business operators in Korea, including foreigninvested companies, are corporate tax (corporate), income tax (individual), and value-added tax.

This is because business taxpayers must file a quarterly value-added tax (VAT) return and corporate tax or income tax on annual income. These three tax items also constitute the largest tax revenue, accounting for about 80% of all of the central government’s tax revenues.

In this regard, this book focuses on the three taxes that are most commonly encountered by foreign-invested companies in Korea, namely corporate tax, income tax, and value-added tax, as well as the following tax items that are paid when establishing a corporation, transferring stocks, and acquiring and holding business assets (building, land, etc.).

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