In Korea, there are many of local tax code for the corporate and individual activities in relation with the financial transactions however Valued-Added Tax (hereinafter “VAT”) is the most important for corporate tax areas during the whole of year. Because VAT is engaged and ruled all of the business transaction, therfore I'd like to present the major issues from this article to onward.

1. Due Date for filing and payment of VAT in Korea

  General Taxpayer

  - Self-assessment by preliminary declaration of First Half: From 1st April to 25th

      April each year (Preliminary Notice for individual business entity)

  - Self-assessment by final tax return of First Half: From 1st July to 25th July

     each year  

  - Self-assessment by preliminary declaration of Second Half: From 1st October

       to 25th October each year( Preliminary Notice for individual business entity)

  - Self-assessment by final tax return of Second Half: From 1st Jan to 25th Jan.

     each following year.

  Simplified tax payer and Taxpayer subject to special treatment in taxation

  -  Self-assessment by final tax return of First Half: From 1st July to 25th July

     each year

  -  Self-assessment by final tax return of Second Half: From 1st Jan to 25th Jan.

     each succeeding year.

2. The filing Documents

1) VAT Fling Report (Preliminary or Final)

2) Sum Table of Tax Invoice on place of sales

3) Sum Table of Tax Invoice on place of purchase

4) The attached documents for Zero-rates tax invoice

5) The filing report for bad debts tax credits

6) The filing report for the deemed input tax credits

7) The details record of business facility investment

8) The details of VAT Tax Base by each business entity and Tax amount due (Tax

   refund amount)

9) The input tax credits for the recycled waste resources and second-hand goods