Tax & Accounting Office Haeon

1. VAT Filing Schedule for Individual Business Owners under General Taxation

Individual business owners under general taxation file VAT returns twice a year and make two interim payments.

① 1st Period Interim Payment: April 1 - April 25 (Pay 50% of the previous year's 2nd period VAT amount as notified by the National Tax Service)

② 1st Period Final Filing: July 1 - July 25 (For the period January 1 - June 30)

③ 2nd Period Interim Payment: October 1 - October 25 (Pay 50% of this year's 1st period VAT amount as notified by the National Tax Service)

④ 2nd Period Final Filing: January 1 - January 25 of the following year (For the period July 1 - December 31)

※1: Even if subject to interim payments, businesses can file a preliminary return in case of business suspension, poor performance, or to receive early refunds. In such cases, the interim payment notice is canceled.

※2: If the amount to be collected for interim payment is less than 500,000 KRW (approximately 380 USD), it is not collected and is instead reported and paid at once during the final filing.

[Value-Added Tax Act Article 48 (Preliminary Return and Payment), Enforcement Decree of the Value-Added Tax Act Article 90 (Preliminary Return and Payment)] of Korea

2. VAT Filing Schedule for Corporate Business Owners

① 1st Period Preliminary Filing: April 1 - April 25 (For the period January 1 - March 31)

② 1st Period Final Filing: July 1 - July 25 (For the period April 1 - June 30)

③ 2nd Period Preliminary Filing: October 1 - October 25 (For the period July 1 - September 30)

④ 2nd Period Final Filing: January 1 - January 25 of the following year (For the period October 1 - December 31)

※1: All corporations follow the same VAT filing schedule as there are no simplified taxpayers among corporations.

※2: Corporate business owners with a total supply value (sales) of less than 150 million KRW (approximately 114,000 USD) in the previous taxable period make interim payments and final filings like individual business owners under general taxation.

[Value-Added Tax Act Article 48 (Preliminary Return and Payment), Enforcement Decree of the Value-Added Tax Act Article 90 (Preliminary Return and Payment)] of Korea

3. VAT Filing Schedule for Individual Business Owners under Simplified Taxation

Unlike general taxpayers, simplified taxpayers file VAT returns only once a year, from January 1 to January 25 of the following year, for the period January 1 - December 31.

※1: Simplified taxpayers with a supply value (sales) of less than 48 million KRW (approximately 36,500 USD) are exempt from VAT payment but must still file a return.

[Value-Added Tax Act Article 67 (Return and Payment by Simplified Taxpayers)] of Korea

4. Business Owners Exempt from VAT Filing

① VAT-exempt business owners

Business owners selling VAT-exempt goods or services do not file VAT returns. Instead, individual business owners exempt from VAT must report their previous year's income and business status to their jurisdictional tax office through a "Business Status Report.(사업장현황신고)"

② VAT-exempt businesses (Subject to Business Status Report)

⒜ Medical professionals such as hospitals, clinics, dental clinics, and oriental medicine clinics

⒝ Educational institutions including arts and physical education academies, college entrance exam academies, and foreign language academies

⒞ Agricultural, livestock, and fishery wholesale and retail businesses, including intermediary wholesalers in legal wholesale markets

⒟ Entertainers such as singers, models, and actors

⒠ Money lenders, housing rental businesses, and businesses selling newly constructed houses (limited to national housing scale)

⒡ All other business owners supplying VAT-exempt goods or services

※1: Business Status Report filing period: Following year January 1 to February 13

※2: As mentioned earlier, simplified taxpayers with a supply value of less than 48 million KRW are exempt from "VAT payment obligation" but still have a "filing obligation." Therefore, they must file a return even if they don't pay VAT.

5. Why Clients Choose Haeon for Korean Corporate Establishment & Management?

① One-Stop Professional Service

Haeon is a Korean legal group with lawyers and accountants working together, providing one-stop services for all aspects of corporate operations, from establishment to subsequent tax filing and accounting. In a rapidly changing business environment, Haeon will work together so that clients can focus solely on their business in Korea.

② Direct Communication with Korean Experts Without International Brokers

In Korea, only licensed attorneys or Beommusa Lawyer can legally represent clients in corporation establishment matters. Similarly, tax representation and accounting audits can only be performed by certified professionals such as certified public accountants(CPA).

Unlicensed brokers for Korean corporation establishment often subcontract the work to Korean professionals after accepting clients. By choosing Tax & Accounting Office Haeon, clients can work directly with Korean experts without paying excessive fees to unlicensed brokers.

③ Easy English Communication

Tax & Accounting Office Haeon has a certified public accountant who served as an English interpreter for the Korean Army, facilitating communication between U.S. and Korean forces. This ensures that even clients who don't speak Korean can receive comprehensive assistance with Korean corporation matters.

For expert consultation on corporate establishment and operation please contact Haeon

• VALUE-ADDED_TAX_ACT.pdf
• ENFORCEMENT_DECREE_OF_THE_VALUE-ADDED_TAX_ACT.pdf