corporate income tax corporate income tax corporate income tax corporate income tax corporate income tax corporate income tax
Corporate income taxes are assessed based on the status of the corporation. A corporation having its head, principal office, or a place of effective management in Korea is a domestic corporation and is defined as a resident corporation. A non-resident corporation may be deemed to have a tax presence (i.e., a permanent establishment) in Korea if it (1) has any fixed place of business in Korea where the business of the entity is wholly or partly carried on or (2) is represented by a dependent agent in Korea.
A resident corporation and a non-resident corporation which has a permanent establishment in Korea are required to pay interim and annual corporate income taxes together with the filing of the corporate income tax returns.
In addition to the annual corporate income taxes, a company is required to file and pay local income taxes within 4 months from the fiscal year-end.
Non-resident foreign corporations without domestic places of business in Korea are generally taxed through withholding at flat rates on the gross amount of Korean source income.
Reporting and Payment Due
(1) Interim corporate tax return
: within 2 months after the first 6 months of each fiscal year
(2) Final annual corporate tax return
: within 3 months from the fiscal year-end
(Note 1) Filing of interim corporate tax return is waived in the initial fiscal year.
(Note 2) Financial statements and other supplementary schedules must be attached.
Taxable Income (KRW)
Up to 200 million
Over 200 million and up to 20 billion
Over 20 billion
In addition to the corporate tax rate, there is a local income tax of 10% on the corporate income tax liability.