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Necessary (Allowable) Expenses for Entertainment Expenses
If taxpayer's entertainment expenses exceed the aggregate sum of the following amounts,
the amount in excess thereof is not to be counted as a necessary expenses.
(Note: Entertainment expenses are allowed only when supported by recognizable regular invoices such as credit card invoices if the one-time expenditure is over 10,000 won.
* Maximum amount of necessary expense treatment of entertainment expenses = 1) + 2)
1) KRW 12 million (18 million for SMEs ) +(number of months in the current year / 12 )
2) (General Revenue X applied Rate) + (Related Party revenue X Applied rate X 10%)
* Applied Rate
Revenue |
Applied Rate |
10 Billion won or Less |
0.2 % |
Over 10 Billion won and 50 Billion or less |
20 Million + Amount in excess of 10 Billion X 0.1 % |
Over 50 Billion won |
60 Million + Amount in excess of 50 Billion X 0.03 % |
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