사업장현황신고 안내; Business Status Report Guide

The "사업장현황신고" (Business Status Report)" from the National Tax Service of Korea provides comprehensive instructions for businesses that are exempt from value-added tax (VAT). Here's a summarized translation;

Understanding Business Status Reporting in Korea: A Guide for Expat Entrepreneurs

What is Business Status Reporting? Business Status Reporting in Korea is a mandatory process for individual business operators exempt from VAT(부가가치세면세사업자). These businesses must report their previous year's total income and business status to their respective tax offices by the 13th of Feb. 2024.

Who Must Report? The report is necessary for various business operators, including medical practitioners (clinics, dental, oriental medicine), educational institutions (arts, preparatory, language academies), agricultural, livestock, and seafood wholesale and retail traders, entertainers (singers, models, actors), loan providers, residential landlords, and other businesses supplying VAT-exempt goods or services.

Exemptions from Reporting Some small-scale business operators, like those joining tax partnerships and reporting income through them, independent insurance agents, and contract delivery salespersons, are exempt from this reporting requirement.

Reporting Deadline For the fiscal year 2023, the reporting deadline is February 13, 2024. Reports can be filed from January 1 to February 13, 2024, at the local tax office. Necessary attachments include Income Review (Sub) Table, Sales/Purchase Invoice Summary Table, and Purchase Tax Invoice Summary Table.

Penalties for Non-Compliance Failure to report or underreporting can lead to penalties. For medical and pharmaceutical businesses, a penalty of 0.5% of the unreported or underreported income is added to the total income tax. For general businesses, failure to submit or incorrect submission of Sales/Purchase Invoice Summary and Purchase Tax Invoice Summary can result in additional penalties of 0.5% of the supply value.

This Report is crucial for expat business owners and entrepreneurs in Korea, especially those in VAT-exempt sectors. Understanding and complying with the Business Status Reporting requirements is essential to avoid penalties and ensure smooth business operations.

As an expat business consultant and accountant, I advise foreign entrepreneurs and investors in Korea to stay vigilant about such regulatory requirements. Navigating the complexities of Korean tax laws can be challenging, but with proper guidance and compliance, your business can thrive in this dynamic market.

For more details, please feel free to reach out at jz@taxjz.com or If you would like a free consultation with an English-speaking Consultant/Accountant in Korea, please schedule a call at: Schedule a Call with Jz