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Local Compliance InformationCorporate Tax | The Additional Tax for the inadequate invoice by tax law |
| I. Overview |
| In case the business operator("company or individual business") are paid the considerations for supplying the goods and services from the business entity which are related with their own business activity and the amount of supply per transaction is in excess of 30 thousands, the business operator have to receive and keep the legal adequate invoice. If failed, the additional tax will be levied by 2 % of the trade amount(excl. VAT Amount). However in this case, it's possible to deduct the relevant expenses in the Corporate Income Tax and Personal Income Tax. |
| II. The details of Terms & conditions from the local Tax Code |
| (1) Trade must be done with the business operator. |
| =>The expenses which are paid to the employees(salary, Welfare, Subsidy for Self-driver), no businss operators, are excluded. |
| => It's not required to register the Company Registration if operated the business just like a canteen of construction site (Without CR), it's subject to the additional tax. |
| (2) Trade must be the amount of supply for the goods and services |
| => The kind of damages, indemnity, delay penalties, any kind of fees or contributions for associations are not liable for the additional tax because it's not relevant to the supply of the service. |
| (3) The trade amount must be in excess of KRW 30 thousand |
| (4) The legal adequate evidence means the tax invoice, invoice, credit card slip and cash receipts. |
| (5) The followings are not applied the additional tax as an exception |
| => Broadcasting service, Tele-communication service, overseas trade(overseas travel, etc), Taxi service, Airticket service, etc |
| => The following trade is excluded the additional tax if the business operator is submitted " the Remittance Statement of the expenses and etc". |
| - The real estate rental service paid to The Simplified Taxpayer |
| - Transportation Service paid to the transportation business operator as a simplified taxpayer |
| - Toll Processing service ( Excl. the corporate business) |
| Prev | The legal documented evidence for company expenses | ||||
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| Next | Sales Incentives | ||||
