Interim Prepayment of Income Tax for the 1st half of 2023FY: Sole-Proprietors in Korea
The National Tax Service Korea announced that it had sent interim prepayment notices for comprehensive income tax to 1.52 million individual business owners on November 6.
Taxpayers who received the notice must pay by November 30. If the interim prepayment amount is less than 500,000 KRW or if they are exempt from interim prepayment (e.g., insurance agents, delivery riders), they will not receive a notice.
From 2023, taxpayers can log into the Hometax website to view detailed information like the amount of tax due and possible installment amounts, and also make on-line payments.
Payments can be made by transferring to the national tax account or virtual account listed on the payment notice, through electronic payment via Hometax or Sontax, or by visiting a financial institution with the payment bill.
If the estimated interim prepayment amount, calculated based on the first half of the year's business performance, is less than 30% of the comprehensive income tax amount due for 2022, a revised estimate can be reported by November 30 to avoid any penalty.
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