Skip to content
Kor Eng
We welcome your investments in Korea.
We will provide you with the best service.


home FDI InformationOthers
Taxation Process of foreign Corporations in Korea


 Taxation Process of foreign Corporationsin Korea.



Process 1


Where income of a foreign corporate occurs it should be decided whether the income is taxable under the Korean tax law. If it is international tax treaties also should be considered as the next step. However the income is not the subject to income tax if it is not taxable under the Koran tax law nor international tax treaties.


Decide whether  the income is taxable

Process 2


In case of taxable income the source of income should be considered. Where the income was generated from domestic place of business the income is the subject to composite income tax. Provided that the income did not come from domestic place of business the income is the subject to withholding tax under separate taxation. However, capital gains are not the case for this.



Decide how to levy taxes



Process 3


Where domestic tax rates are lower than those of international tax treaties tax should be levied based on domestic tax rates. In the case of the opposite, tax rates of international tax treaty should be applied.


Prev Tax rates on tax treaty
Next Royalty Income and Personal Service Income
Incorporation Service Bookkeeping Service Corporate Tax Standard Fees