If you started a business in Korea you are supposed to pay the taxes, as well as if you work in Korea, there are income taxes you have to pay, and if you live in this country, you should pay the resident tax, car tax and so on.
A lot of foreigners have questions about how to pay all of those, we have made an article regarding the tax payment before, but this one is more in-depth on how to use the Home Tax application and website and other types that you can pay using it.
*Information taken from the official website and pdf; you can download it below.
The E-Tax Filing Service allows taxpayers to prepare and file their tax returns and any attached documents along with them on Hometax.
E-Tax filing methods include
①Return preparation and transmission method whereby taxpayers prepare and transmit tax returns themselves on Hometax; and
② Return file conversion and transmission method whereby taxpayers themselves or have a tax agent prepare a tax return file using popular tax accounting software and then convert the file using National Tax Service’s conversion program to transmit the return to Hometax.
The service is available from 6:00 to 24:00 during the tax filing period and after this period is over, after-due-date filing and amended filing services are available.
On Hometax, taxpayers can e-file all the tax items except for inheritance tax. For some main tax items, including income tax and corporate income tax, services for after-due date filing, amended filing, and requests for correction are available as well.
In addition, taxpayers can e-file in PDF format any documents to be attached to their tax returns without the need to visit a tax office.
Corporate taxpayers are liable for the minimum tax, which is defined as the greater of 10% (if the tax base is KRW 10 billion or less, 12% on the tax base exceeding KRW 10 billion but not more than KRW 100 billion, 17% on the tax base exceeding KRW 100 billion) of the taxable income before certain tax deductions and credits pursuant to the STTCL or the actual CIT liability after various deductions and credits.
For SMEs, the minimum tax is greater than 7% of taxable income before certain tax deductions and credits or actual CIT liability after the deductions and credits. For middle-market companies that exceed the size of SMEs (so-called ‘medium-scale companies’), an 8% minimum tax rate is applicable for the first three years, starting from the year when the size exceeds an SME for the first time, and a 9% rate is applicable for the next two years.
Moreover, the e-filing page has been made to look similar to the legally required paper tax return form for taxpayers’ convenience and better understanding.
The Pre-Filled service is provided to automatically fill out part of a tax return based on the taxation data retained by NTS, while for taxpayers who are subject to simple expense rates (for composite income tax, etc.), the Full-Filled service is provided so all they need to do is simply transmit their tax returns.
If a taxpayer filed both an electronic return and a paper return at the same time or filed by mistake a tax that was not subject to filing, he or she can request Hometax to delete it within two days after the legal filing period.
On Hometax, the E-Payment Service allows taxpayers to conveniently pay national taxes by bank transfer or credit card.
Taxpayers can use the service all year round (07:00-23:30).
After payment, they can immediately confirm their tax clearance details and have a tax clearance certificate issued or check any taxes in arrears.
E-Payment was first applied to the predetermined advance payment of value-added tax in April 2002, and it was applied to all the tax items starting from June 2002.
Taxpayers who e-file their tax returns or receive an e-notice can immediately check and pay their tax amount due. Those who file paper tax returns can pay their taxes by personally entering the required payment information such as the tax item involved.
Users can also pay taxes in place of other taxpayers and pay their composite income tax and the local income tax imposed in connection with it at the same time
The Cash Receipt Service enables the NTS to collect cash receipt details from cash receipt business operators and allows consumers and business owners to benefit from a tax credit or deduction based on the details of their cash receipt transactions.
If consumers present their debit card, cellphone number, or resident registration number upon a cash transaction, the Cash-Receipt System member business (seller) issues a cash receipt. Then the cash-receipt business operator automatically reports the collected cash receipt details to the NTS. The system was established in 2005 for the first time in the world.
The objective of the Cash Receipt System was to complement the tax invoice and credit card systems with the purpose of legalizing the tax bases of self-employed taxpayers.
On the website, you can find more about the dates and places you can go in person to fill in the taxes and returns.
For more taxation and other services check the pdf below.
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