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Guide to Semi-Annual Withholding Tax Filing in Korea: Eligibility and Benefits


In South Korea, withholding tax filings are typically required on a monthly basis. However, under certain conditions, eligible businesses can opt to file withholding taxes semi-annually (twice a year). Here's a detailed explanation:

1. Standard Withholding Tax Filing Schedule

  • Monthly Filing: Most businesses are required to report and pay withholding taxes every month.

  • Semi-Annually Filing: Small-scale taxpayers(less than 20 employees) can qualify for semi-annually filings if they meet specific criteria.

2. Conditions for Semi-Annual Filing

Semi-annual withholding tax filing is allowed under the following conditions:

  1. Eligible Taxpayers:

    • Small businesses or individual business owners (sole proprietors) whose annual tax withholding amounts are below a certain threshold set by the Korean National Tax Service (NTS).

    • Certain types of public organizations or non-profits(especially church, temple etc.) may also qualify.

  2. Compliance History:

    • Businesses must have a clean tax compliance record without significant delays or penalties in previous filings.

3. Filing Periods for Semi-Annual Reporting

  • First Half: January 1 to June 30 (filing due by July 10).

  • Second Half: July 1 to December 31 (filing due by January 10 of the following year).

4. Application Process

  • To transition to semi-annual filing, businesses must apply and receive approval from the National Tax Service (NTS) in July and December.

  • Approval is typically granted at the beginning of the fiscal year.

5. Advantages of Semi-Annual Filing

  • Administrative Efficiency: Reduces the frequency of tax filings.

  • Cash Flow Management: Provides more flexibility for small businesses with limited resources.

6. Important Considerations

  • Businesses must maintain accurate records of withholdings throughout the year, even with reduced reporting frequency.

  • Failure to meet the eligibility criteria after approval can result in reverting to monthly or quarterly filings.


This system is designed to ease the administrative burden on small-scale taxpayers while ensuring compliance with withholding tax obligations. If you’d like further clarification or specific details about eligibility thresholds, feel free to ask!












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