Settlement and Declaration of Payroll Withholding Taxes for 2018 (due filing by
March 11, 2019)
The employer as a
tax withholding agent must perform the year-end settlement of exact payroll
withholding taxes for and on behalf of its employees in February of following
year after each year end mandatorily as required by the IITL of Korea.
In this connection,
the employer should reflect the results of year-end settlement in the February
payroll of the following year accordingly. Any overpayment resulting from
year-end settlement is used to offset the payroll taxes due in February of the
following year and onward until fully utilized. For any underpayment resulting
from the year-end settlement, the employer should withhold additionally from
the February payroll and remit it to the tax office as scheduled by March 10 of
the following year (by March 11, 2019 for year 2018).
year-end settlement processing, the employees should gather and submit
supporting documents to claim tax deductions/credits.
year-end settlement and filing, employees having only salary income may fulfill
his/her annual individual income tax reporting obligations in Korea. On the
other hand, employees having other source of income than salary income are
required to file additionally an annual individual income tax return together
with tax payment on or before May 31 of the following year additionally (i.e., by
May 31, 2019 for 2018 income).