Korea, Republic of
Korea is bordered by China to the northwest and Russia to the northeast, separated from Japan to the east by the Korea Strait and the East Sea (Sea of Japan), and separated from Taiwan to the south by the East China Sea.
An independent Korean state or collection of states has existed almost continuously for several millennia. Between its initial unification in the seventh century (from three predecessor Korean states) until the 20th century, Korea existed as a single independent country. In 1905, following the Russo-Japanese War, Korea became a protectorate of imperial Japan, and, in 1910, it was annexed as a colony. Korea regained its independence following Japan's surrender to the United States in 1945. After World War II, a Republic of Korea (ROK) was set up in the southern half of the Korean Peninsula. The Republic of Korea (South Korea or Korea) is divided into nine provinces, with Seoul as the capital. The official language of South Korea is Korean, and the currency is the won (KRW).
Located between China and Japan, Korea is the centre of aviation and maritime logistics connecting the Asia-Pacific region, as well as Eurasia and the Americas.
Since the 1960s, South Korea has achieved an incredible record of growth and global integration to become a high-tech industrialised economy. In 2004, South Korea joined the trillion-dollar club of world economies. Korea has the tenth largest economy in the world. Korea’s economic fundamentals are solid, with its trade volume ranked ninth in the world as of 2020. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. Korea adopted numerous economic reforms following the global crisis, including greater openness to foreign investment and imports.
More recently, the Korean government’s policy has focused on expanding investment and strengthening digital infrastructure in the country through its Digital New Deal policy. According to the World Economic Forum (WEF), the dissemination of information and communication technologies (ICT) in Korea has ranked first in the world. Korea succeeded in commercialising the world’s first 5G network (April 2019), proving that the country is a global leader in the ICT field. Growth for 2019 was recorded at 2.2%. During 2020, it recorded a negative growth rate of -0.9% due to the economic crisis caused by the COVID-19 pandemic. For 2021, the Korea economy has bounced back at the growth rate of 4.00%. South Korea’s per capita income was 27 times the level of North Korea in 2020.
Samil PwC has over 3,000 devoted professionals, with approximately 650 dedicated tax professionals and the largest tax practice in Korea. Our multidisciplinary team of tax professionals includes experts with tax, accounting, law, economics, and finance backgrounds. Many of our professionals have previously worked for various governmental bodies in the areas of national tax, customs, and local tax administration. Our senior professionals also regularly assist the Ministry of Economy and Finance and the National Tax Service in establishing tax policies and implementing the relevant regulations.
Samil PwC has dedicated teams of professionals specialised in transfer pricing, global tax structuring, customs and international trade consulting, tax controversy and dispute resolution, private equity tax, and tax managed services, as well as people and organisation services. Industry-focused and product-specialised teams with deep expert knowledge, experience, and know-how are the true hallmarks of Samil PwC's Tax Practice.
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Interim tax return: within two months from the end of the interim six-month period;
Annual tax return: within three months from the end of the fiscal year.
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Along with the filing of the returns (payment in instalments is allowed in certain cases).
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|Personal income tax (PIT) due dates|
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|Withholding tax (WHT) rates|
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Resident corporation (individual): 0 (14% for individual, 14% for distribution of profit from securities investment trusts to corporation) / 14 (14% for individual, 25% for interest from a non-commercial loan) / 0 (20% for individual);
Non-resident: 20 / 20 (14% for interest derived from bonds issued by domestic corp.'s, etc.) / 20
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Capital gains are subject to the normal CIT rate.
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