Closing a branch — branch closure in Korea triggers a sequence of tax, payroll, and liquidation filings that must be completed in the correct order and within strict deadlines. A missed filing or an unsettled obligation can delay the closure and expose the head office to penalties long after operations have stopped.
ARA TAX has extensive experience guiding foreign-invested companies through branch closure in Korea. We manage the full process and coordinate each filing with the tax office on your behalf, so your team can wind down operations cleanly while every requirement is handled in English by a licensed Korean tax accountant.
We prepare and e-file the final VAT return at Hometax, provide the payslip, and respond to any inquiries the tax office raises during the closure.
For resigning employees, we handle the interim wage and salary settlement, file the severance income tax return, terminate and settle the four social insurances, reconcile payroll records against the withholding data reported to Hometax, and submit the wage and salary payment statements.
We perform the taxable income adjustment under Korean tax law, file the final business-year corporate tax return, and file the liquidation income tax return. Local tax filings are included.
We prepare the required documentation and liaise with the Korean bank to transfer the remaining KRW balance to your head office.
ARA TAX specializes in English-language service for foreign-invested companies and internationally mobile individuals. Branch closures are handled directly by a licensed Korean Certified Tax Accountant who deals with the tax office on your behalf, so nothing is lost in translation and every deadline is met. We understand the reporting and coordination the head office needs throughout a closure.
