The most comprehensive interpretation! How to achieve tax compliance when going abroad to Korea?

Common tax issues in South Korea for gold mining

1. Import tariffs

For Chinese sellers who export to South Korea, they usually purchase goods  from China and export them to South Korea. If the seller's goods arrive in  South Korea, customs clearance using their own South Korean company will result  in tariffs and import value-added tax.

Import tariff: Depending on the product code and tax rate, the import tariff  paid is equivalent to the cost of the imported goods that cannot be used for  later sales deduction. Tariffs and value-added tax are different.

Import value-added tax: The unified value-added tax rate in South Korea is  10%, and the value-added tax rate for imports is also 10%. As value-added tax  itself is a turnover tax, the value-added tax paid in the import process can  be used for deduction in the subsequent sales process;

tips： Imported goods in South Korea generally do not go through inclusive  tax because during customs clearance, your Korean company name will not be  used, and the value-added tax paid cannot be deducted in the later sales process.  In addition, South Korea has strict tax regulations, so the cost of payment  and import customs clearance must be consistent!

2. Sales value-added tax

After completing the customs clearance procedures, the goods can be sold successively  in Coupang's rocket warehouse or some overseas warehouses! When selling on  the platform, the general selling price includes a 10% value-added tax, which  is not withheld or paid by the platform. When selling goods, sales value-added  tax is collected, and the seller needs to declare and pay the value-added tax  themselves. Value added tax needs to be declared quarterly, while small and  micro enterprises can declare on a quarterly basis.

3. Corporate tax (corporate income tax)

After a natural year of operation, the company needs to calculate corporate  income tax on its profits for that year. The operating profit is calculated  by subtracting some product costs and logistics costs from the revenue, and  then subtracting platform, advertising expenses, address and other miscellaneous  expenses. If the company is profitable, it needs to pay corresponding income  tax, and the tax rate of income tax varies according to the different tax rates  of profits, as follows:

Profit less than 200 million Korean won (1.1 million RMB) includes 9% national  tax and 0.9% local tax;

The profit portion of KRW 200 million to KRW 200 billion (RMB 110 million)  includes 19% national tax and 1.9% local tax;

The portion of 20 billion Korean won to 300 billion Korean won is 21%;

The profit portion exceeding 300 billion Korean won is 24%.

Corporate tax is declared once a year, according to the calendar year. If  you don't understand, just stamp it. Let me teach you how to register a Korean  company from 0 to 1! Just prepare all the necessary documents and hand them  over to Xiaomao before applying! In order to ensure long-term and stable operation  of tax compliance, it is particularly crucial for companies going to South  Korea, including those providing services, selling goods, and importing products  from overseas, to do accounting and tax reporting! Xiaomao reminds all sellers  to plan tax payments in advance and declare on time, manage value-added tax  costs reasonably, and avoid facing high fines for non-compliance!

Small Trade Overseas Korean Company Registration Service: Korean company registration+one-year  address+account opening+Hague+mobile card activation+Coupang store proxy opening+network  communication sales certificate

Korean company bookkeeping and tax reporting services: value-added tax declaration+corporate  tax declaration

In summary, it is crucial to not only register a company but also understand  tax policies when starting a business in South Korea.