According to a recent post from the National Tax Service of South Korea, corporations ending their business years in December 2024, around 1.15 million entities, are required to report and pay their corporate tax between March 1 and March 31, 2025. This necessary tax compliance is key for an efficient tax operation, and the compliance of the corporations is vital.

Major Points Regarding Tax Reporting and Payment

Applicable Corporations: The tax reporting and payment deadline applies to about 1.15 million corporations. These include profit corporations, non-profit corporations running profitable businesses, and foreign corporations with domestic source income in South Korea.

Filing Deadline: The tax reporting and payment for these corporations are due between March 1 and March 31, 2025.

Method of Declaration: The National Tax Service recommends filing via Hometax electronic reporting. Last year, approximately 99.7% of corporations settled their taxes via convenient electronic reporting.

By filing electronically, corporations can also avail of a deduction of 20,000 KRW from the taxable amount of tax payable.

Corporate Tax Installment Payment and Eligibility

The payable tax must be submitted by March 31. In cases where the payable tax exceeds 10 million KRW, it’s possible for corporations to pay in installments.

For small and medium enterprises (SMEs), the payment can be made within two months after the payment due date, i.e., by June 2, 2025. For other corporations, payment can be made within one month after the due date, i.e., by April 30, 2025.

Special Considerations

For Corporate Auditor Applicable Entities: If the auditors have not completed their audit process, and the settlement has not been confirmed, the extinction of the reporting period can be requested within three days before the reporting deadline, which can be extended up to one month.

For Eligible Corporations for the Compliance Verification System and Consolidated Taxation System: Such corporations can report and pay taxes by April 30, 2025. They must submit a confirmation written and checked by a tax representative.

Non-compliance may result in a surcharge of 5% of the calulated tax and 0.02% of the income amount.

Additionally, corporations applying special tax treatments for partnership enterprises must submit the income calculation and distribution details by March 17, 2025.

Guidance for Corporations with No Transactions

For corporations with no sales and no tax adjustment items, they need to input and submit the corporation’s basic information, standard financial statements, profit and loss statement, a statement on the treatment of retained earnings/loss calculations, and a tax adjustment statement.

For non-profit corporations with only interest income, they should input and submit corporation’s basic information, corporation tax taxable standard and tax payment declaration, withholding tax payment, preparation of unique purpose business fund adjustment statement, and a surtax calculation statement.

The National Tax Service will also provide guidance on extensions for tax payment due dates and deferral of collection, tax support measures, and immediate tax return systems.

Corporations should make sure to receive all tax benefits by pre-preparing necessary documents and items for deductions and exemptions.

The National Tax Service extends its thanks to taxpayers who conscientiously fulfill their tax obligations.

Disclaimer : This content is a translation of material originally published in Korean by the National Tax Service of the Republic of Korea. While efforts have been made to ensure accuracy, this translation is provided for informational purposes only and does not carry legal weight. In the event of any discrepancy, the original Korean version shall prevail. Users should consult the official Korean documents for precise interpretation. This translation does not constitute legal advice. The translators and publishers shall not be held liable for any loss arising from reliance on this translation.