SELIM

Corporate Tax

Local Compliance InformationCorporate Tax

Subject

The legal documented evidence for company expenses

Writer

Manager

Date

2014-09-25

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1,412

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The legal documented evidence for company expenses under the Korean Tax Code
( By Transaction Type and amount )
Transaction type	The required Evidence	Remarks
1. Over 30 K per transaction for the general taxable goods or services trade	Tax Invoice, Credit Card slip, Cash receipt slip, etc	Less than 30K is possibe to get the general receipt and cash receipts
2. Over 30 K per transaction for the VAT exempted goods or services trade	Invoice, Credit Card slip, Cash receipt slip, etc	Less than 30K is possibe to get the general receipt and cash receipts
3. Over 10 K for the entertainment expenses ( allowed upto 200 k for the family & client event )	Tax Invoice, Credit Card slip, Cash receipt slip, etc	Accepted the corporate credit card only
4. Less than 10 K for the entertainment expenses	Receipts, Credit Card Slip	Accepted both the Personal & Corporate Credit card
5. Transaction for the external withholding requirement (Personal service, income from contribution of an article, giveaway, etc	Certificate of Withholding Tax, payment report.	Treated as a business income, other income and etc
6. In case of purchasing of building ( Incl. annexed land)	Tax Invoice, the submission of copy of contract	VAT exempted for land portion.
7. In case of the donation or gift	Donation receipt or receipts	Certificate of donation, the statement of donation
8. The purchase from the simplified taxpayer (not the memder store of credit card )located on town or county	Receipts, Credit Card Slip (if store is member of credit card)	Do not require to get the tax invoice
9. Membership fees, other utility bill, labor union fees	Receipts, Company internal regulation	No applicable for the supply of goods and services
10. Purchase from non-business entity	Contract, specifications of transaction, etc and other documented evidence, payment record	If company trade with individual, no need to get the legal documents.
11. If the company purchase the service and goods from the farmer or fisher directly	Receipts	Agricultural products, livestock products, compound agriculture, forestry, fishery
12. Transfer of business, Broadcasting Service, Electronic & Communication service, Public Auction, Auction, detention by legal force, Taxi Service, Airplane Transportation service, Financial Insurance Service, etc	Receipts	No legal requirement of evidence
13. Purchase of Land and House, Housing rental service	The copy of contract, receipts and etc	No need to give and take the invoice when trade the land only
14. Monthly accumulated meal is over 30 k and then paid it.	Tax Invoice, Credit Card slip, Cash receipt slip, etc	If less than 30 K, it's acceptable to get the receipts.
15. Payment of Sales Incentives	Payment Statement of Sales Incentive	It's not the supply of the goods and services
16. Payment of the penalty for the breach of contract and etc	Receipts	It's not the supply of the goods and services
17. In case of management operation system for Electronically ticket issuance is working, the enterance ticket, board pass, etc	Receipts	The business owner of Theater, Performance Arena, Tour & gym facilities, Highway Bus, passenger Boat
18. The delay charge of supply	Receipts	Excluded the VAT Tax base
19. The Simplified taxpayer's real estate rental service Toll processing service from individual The Simplified taxpayer's Transportion Service ( Excluded the Goods transportation Agency Service) The delivery service of commercial documents by Aviation Act	Payment record from financial institute.	To attach the report of Corporate Income Tax Base
20. Purchase of Gift Voucher	No need to prove the legal evidence( If the gift voucher purchase for the entertainment expenses, company have to get the credit card slip for the allowable expenses )	It's not the supply of the goods and services. ( when it uses, need to issue the Tax invoice, Invoice and Credit Card Slips )
21. Tollgate Fees for highway	Receipts & etc	No need to get the legal evidence

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