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.
