There are some regulations to be complied with, to avoid the additional tax.
1. Withholding tax for somebody's income payment.
When the business entity pays the income to somebody, the business entity should withhold some tax amount and pay it to the tax office on behalf of that somebody, or pay the penalty tax. These incomes are as below.
- Salary (including the payment for the temporary workers)
- Retirement payment
- Business income
- Other temporary income
- Interest & Dividend
2. Car insurance
When the business entity purchase/rent a car, the type of the car insurance should be "the company workers ONLY (임직원전용보험)", for the tax deduction.
And if you want to deduct more than KRW 10million/year for the total expenses related to the car, you need to keep the driving records day by day in detail.
Tel: 02-555-3919 from Korea,+82-2-555-3919 from abroad. Email: energy17jyw@gmail.com
