What is a Tax Invoice?
Tax invoice plays a crucial part of accounting and income tax reporting in Korea. Tax invoice has a specific format required by tax law, whereas an invoice has relevantly free style. There are two kinds of tax invoices, one is a paper tax invoice and the other is an E-tax invoice (or electronic tax invoice). […]
Updates on Health Care System in Korea
Starting 1 September 2022 the National Health Insurance(NHI) will change its calculation method for self-employed insured from a point system to a premium rate system. This posting is relevant to those who are thinking of doing freelancing work in Korea. The social insurance rate changes every year, and its impact is getting bigger than ever. […]
Can my car be a business expense? — Tax saving tips for small business owners in S. Korea
Can I take advantage of my car by reporting it as a business vehicle? Yes, you can. You can report a business vehicle expense up to KRW 15,000,000 a year. According to Korean income tax law, you can deduct your vehicle expense which is only related to ‘business usage’. The business usage amount is computed […]
Liaison Office VAT refund in Korea
Liaison Office VAT refund in Korea A liaison office has no VAT filing liability in Korea, but it can still claim for VAT refund on certain expenses such as office rental fees, office supplies, and advertising services. Foreign corporation tax filing guide by NTS Three points to note about liaison office VAT refund: June 30 […]
Korea VAT Filing: Case Review for VAT Refund Rejected
July is the month for the first round of Value Added Tax (VAT) reporting in 2024. If you’re one of the 6.71 million people who need to file, mark your calendar for Thursday, July 25th. That’s your deadline to report and pay your VAT in Korea. We’ve got about 260,000 more people filing this time […]
Is my Upwork income taxable in Korea?
Q. I am expecting income from Upwork or Fiverr and my clients are not in Korea. Do I still need to report this income for tax in Korea? A. If you are working as a freelancer in Korea and make income from overseas via global platform, then chances are high that you have to report […]
How to get a tax credit from monthly house rent as a foreign resident? — Updates with 2023 Tax Reform
Foreigners with salary income earned in Korea can now seek a further income tax reduction by applying house rental payment tax credit or 월세세액공제. To read my previous article on House Rent Payment Tax Credit, click here By 2023 tax reform, the percentage of tax credit increased from 12% to 17% of rental payments for […]
How to get a tax credit for monthly house rent as a foreign resident?
How to get a tax credit for monthly house rent as a foreign resident? Starting 2021, a foreigner with salary income less than KRW 70mil a year can apply for a tax credit of 10% to 12% of the total rental payment for his housing in Korea. Who can apply for the tax credit on […]
Hiring interns in Korea?
Starting with a passionate team on your side would be wonderful, but in reality many founders struggle with building up a dream team. Finding the right person is a big challenge, and you still have to make cost effective decisions with a given budget amount. The minimum cost to hire one full-time employee in Korea […]
Foreign Financial Account Reporting due by June 30, 2021
If you have financial accounts outside of Korea, and the total sum of every accounts exceeds KRW 500mil on any month-end, you may wish to check whether you are responsible for FFAR (Foreign Financial Account Reporting) in Korea. The financial accounts include not only personal bank’s savings account but also Depository Receipts of foreign market […]