Taesung
Your Trusted Partner
Accounting Corporation
Foreign Company Establishment
TAESUNG
Accounting Outsourcing
Assurance
Taxation
Our Four Primary Services Foreign Company Establishment
Accounting Outsourcing
Whether it be a branch office, a wholly-owned subsidiary, or a liaison office, as a one-stop service provider, we assist foreign companies to set up their Korean business within 10 days without requiring a visit to Korea.
We take care of your accounting needs in Korea so that you can focus on business.
Book-keeping Payroll (social insurance filing) Cash management (payment) Monthly financial document review
Branch
Wholly-owned subsidiary
Branch
Preparation of statutory financial statements in Korean for the National Tax Agency and IFRS/US GAAP reports VAT returns and corporate income tax returns
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Taesung Accounting Corporation
Creating Value for a Better Future About Us Taesung Accounting Corporation is a medium-size accounting firm based in Seoul, Korea, made up of professionals with experience in Korea’s major accounting firms. Our experience assisting multinational and foreign-invested companies is vast, with specialization in accounting, tax returns, and payroll outsourcing. Over 70 devoted professionals are always ready to provide innovative solutions which enable our clients to gain a competitive advantage in periods of volatility.
Assurance Services
Taxation Services
Taesung provides assurance on the financial performance and operations of your business. We can also help your business improve its external financial reporting and adapt to Korea’s regulatory requirements. The assurance services we provide are as follows:
Our clients to date have benefited from our broad range of fully integrated tax services. The approach we take at Taesung combines insight and innovation from multiple disciplines with business and industry insight to help your company excel globally. Tax due diligence review
Statutory Audit
Voluntary Audit
Consultation on M&A, business transfer, etc. Tax appeal filing and audit assistance
Internal Audit
Internal Control System Design
Tax planning on corporate income tax International taxation consultation
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Innovation Leader Business Activities of Foreign Companies in Korea Foreign companies in Korea are classified into three categories: local corporations, branches, and liaison offices. Only corporations are recognized as foreign direct investment (FDI). Thus, the most suitable investment type in consideration of the purpose of business, expense required for the establishment of a local corporation, annual tax, remittance of funds, among other factors should be chosen.
Local Corporation
Branch Office
Applicable Law
Foreign Investment Promotion Act
Foreign Exchange Transactions Act
Type of Corporation
Local corporation
Foreign corporation
Range of Business Activities
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Profit-making activities within the approved scope
Minimum Required Capital
Not less than US$100,000 (equivalent of KRW100 million)
No minimum required capital
Annual Taxes
Corporate tax: 10~22% of taxable income
Corporate tax: 10~22% of taxable income
Residence tax: 10% of corporate tax
Residence tax: 10% of corporate tax
VAT: Sales tax amount - deductable purchase tax amount
VAT: Sales tax amount - deductable purchase tax amount
Tax redemption/ exemption
High-tech businesses are eligible for tax reduction or exemption under the Foreign Investment Promotion Act.
Not applicable
External Audit
A business whose total assets for the previous year total less than US$10 million (KRW10 billion) is required by law to have an external auditor.
No external audit required
Loans in Korea
Credit-based approval
Difficult to obtain
Recognized as FDI
Recognized
Not recognized
Liaison Office
Non-profit only
No corporate tax, residence tax or VAT imposed
Not recognized
Foreign Direct Investment Process 1
Foreign Investment Notification
2
Investment Capital Remittance
3
Incorporation Registration
4
Incorporation Notification & Business Registration
5 6
1 _ Immediately
Invest KOREA - KOTRA, Foreign exchange bank 2 _ 2-3 days
Foreign exchange bank, carried through customs 3 _ 2-3 days
Court registry office 4 _ 5 days
Municipal tax office
Paid-In Capital Transfer to Corporate Account Foreign exchange bank
FDI Company Registration
5 _ Immediately
6 _ Immediately
First notified organization
Branch Establishment Process 1
Branch Notification
2
Incorporation Registration
3
Incorporation Notification & Business Registration
4
Capital Transfer for Local Operations to Corporate Account
1 _ Immediately
Foreign exchange bank 2 _ 2-3 days
Court registry office 3 _ 5 days
Municipal tax office 4 _ Immediately
Foreign exchange bank
Taesung Accounting Corporation
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Primary Tax Categories Corporate Income Tax STANDARD OF ASSESSMENT
TAX RATE
10%
Less than US$200,000 US$200,000-20,000,000 US$20,000,000 +
US$20,000 + Amount above US$200,000 X 20% US$3,980,000 + Amount above US$20,000,000 X 22%
Individual Income Tax STANDARD OF ASSESSMENT
Less than US$12,000 US$12,000-46,000 US$46,000-88,000
※(1US$ = KRW 1,000)
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TAX RATE
6% US$720 + Amount above US$12,000 X 15% US$5,820 + Amount above US$46,000 X 24%
US$88,000-150,000
US$15,900 + Amount above US$88,000 X 35%
US$150,000 +
US$37,600 + Amount above US$150,000 X 38%
Contributing to Your Business Success Taesung Accounting Corporation
Value Added Tax STANDARD OF ASSESSMENT
Domestic Sales
Export
10%
0%
TAX RATE
Social Security Insurance Premium
National Pension 4.50%
Health Insurance 3.06%
Industrial Disaster Insurance 0.7%~34%
Employment Insurance 0.65%
Rate To Be Borne By The Employer
Ceiling of Entertainment Expenses STANDARD OF ASSESSMENT
Less than US$10,000,000 US$10,000,000-50,000,000 US$50,000,000 +
US$ 12,000(US$ 24,000 for small and medium enterprises)+revenue amount x rate
TAX RATE
Amount X 0.002 US$20,000 + Amount above US$10,000,000 X 0.001 US$60,000 + Amount above US$50,000,000 X 0.0003
Taesung Accounting Corporation
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Taesung Accounting Corporation K-CUBE TOWER 3F
Taesung Accounting Corporation Minjung “Carly” Kim, Director 3F, K-cube Bldg. 726-2 Yeoksam-dong Gangnam-gu, Seoul Tel 82-2-561-6513 Fax 82-70-8795-3192 E-mail mjkim@tsacc.co.kr