Korean Tax Blog

October VAT Deadline: What Foreign Business Owners in Korea Should Know “I run a business in Korea. Do I need to file VAT this October?” If you are a foreign business owner in Korea, October is an important month to check your Value Added Tax (VAT) obligations. However, not every business has the same filing requirement. Whether you need to file a VAT return or simply pay a preliminary tax notice depends on your business structure and VAT status. What Is the October VAT Deadl

Do Foreign Business Owners Need to Withhold Tax When Paying Employees or Freelancers in Korea? “I run a business in Korea and pay employees or freelancers. Do I need to deduct tax before paying them?” In many cases, yes. If you operate a business in Korea and make payments that are subject to Korean withholding tax, you may be responsible for deducting the appropriate tax from the payment and reporting it to the Korean tax authorities. Being a foreign business owner does not

Starting a Restaurant or Beauty Business in Korea Just Got Easier “Are you a foreigner planning to open a restaurant or beauty salon in Korea?” Starting a business in Korea involves several administrative procedures. However, recent changes have made business registration more convenient for certain entrepreneurs. Since August 31, 2026, Korea has introduced a one-stop application service that allows eligible business owners to apply for both business operation notification an

What Business Expenses Can Foreigners Deduct in Korea? “I run a business in Korea. Which expenses can I deduct from my business income?” For foreign business owners, understanding deductible business expenses can be an important part of managing Korean taxes. In general, expenses that are directly related to earning business income may be recognized as necessary business expenses when calculating taxable income. What Are Deductible Business Expenses? For an individual busines