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Local Compliance InformationCorporate Tax 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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