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02 - 2012 06 26 Tax
02 - 2012 06 26 Tax
Contents
1. 2. 3. 4. 4
Forms of business entity and setting up a company in Korea Value Added Tax Income Taxes (Corporation, Sole-Proprietor ship and employee) Q&A
Bullets go in here
Contents
1. 2. 3. 4. 4 5.
How to establish a business entity in Korea Value Added Tax Income Taxes Other Tax Obligation Q&A
3. Income Tax
<Corporation income tax rate for year 2012>
Tax Base KRW 200 M or less KRW 200 M ~ 20 B or less Over KRW 20 B Tax rates (Progressive Tax Rate) 10% 20% of the amount over KRW 200 M 22% of the amount over KRW 20 B
3. Income Tax
<Corporation income tax rate for year 2012> Tax Base KRW 200 M or less KRW 200 M ~ 20 B or less Over KRW 20 B Tax rates (Progressive Tax Rate) 10% 20% of the amount over KRW 200 M 22% of the amount over KRW 20 B
(Example) When the tax base is KRW 70,000,000 payable tax is KRW 7,000,000 70,000,000 * 10% SUM (Total Payable Tax) y (Example) When the tax base is KRW 300,000,000 p y , , payable tax is KRW 40,000,000 , , 200,000,000 * 10% (300,000,000-200,000,000) * 20% SUM (Total Payable Tax) =20,000,000 =20,000,000 =40,000,000 =7,000,000 =7,000,000 , ,
3. Income Tax
<Individual income tax rate for year 2012 > Tax Base KRW 12 M or less KRW 12 M ~ 46 M or less KRW 46 M~ 88 M or less KRW 88 M ~ 300 M or less Over KRW 300 M Tax rates (Progressive Tax Rate) 6% 15% of the amount over KRW 12 M 24% of the amount over KRW 46 M 35% of the amount over KRW 88 M 38% of the amount over KRW 300 M
(Example) When the tax base is KRW 70,000,000 payable tax is KRW 11,580,000 12,000,000 * 6% (46,000,000-12,000,000) * 15% (70,000,000-46,000,000) (70 000 000 46 000 000) * 24% SUM (Total Payable Tax) =720,000 =5,100,000 =5,760,000 5 760 000 =11,580,000
3. Income Tax
2012 Simplified salary income tax table (http://www.nts.go.kr/cal/cal_06.asp)
Monthly salary (excluding non taxable income) 1,000,000 2,000,000 2 000 000 3,000,000 4,000,000 5,000,000 Monthly salary income tax (When there is no dependent) 2,410 22,540 22 540 107,450 235,650 374,400
If your salary is KRW 1,000,000 per month, Monthly salary income tax is KRW 2,410 and residence tax is KRW 240
3. Income Tax
* Special tax incentives for foreign workers on their wages and salaries receivable by December 31 2012 31,2012 Separate taxation on total income from employment by multiplying such income by a 15% flat rate
Tips
Check card credit card card, Korean Tax Invoice Tax card obtained from the tax office
Q&A
Thank you !