Tax

Tax

Tax

Is your business truly tax efficient?

Every day – somewhere in the world – tax regulations, rules, and treaties change. Strategies that reduced taxes yesterday may not work today. New opportunities to save money could be missed – especially as you enter new markets. The talented tax staff in your organization might not have time to keep up with each nuance. Your current tax advisor may think your company is too small for personal attention – or your advisor may be too small to serve you.

Successful companies consider tax implications before they make business decisions, so they do not pay more than their legal obligation. This makes international tax compliance, consulting, and structuring a crucial element in your global strategy.

As an excellent tax advisory firm in Korea, our tax professionals who have in-depth knowledge of tax, accounting, commercial law and related regulations are providing quality tax services.  Especially, we specialize in assistance in tax audit, tax appeal, M&A tax consulting, international tax advice on cross border transactions, and transfer pricing for multi-national companies.  In addition, on the basis of our experiences on the various tax projects, we maintain close collaboration with governmental bodies in Korea (e.g., the National Tax Service, the Ministry of Strategy and Finance, the Tax Tribunal, etc.).  

As the importance of tax is increasing more and more, we are listening to our clients’ needs and actively pursuing the solution for the clients.  Our client-focused service will enhance the value of your business. 

Domestic Tax

We assist multinational companies as well as domestic companies in the domestic tax area for not only tax compliance but also tax consultation, including:

        - Preparation and filing of corporate tax returns and other tax returns

        - Tax consultation on corporate tax, Value Added Tax (VAT), etc.

        - Assistance in tax audit

        - Assistance in tax appeal and tax ruling requests

        - Tax diagnosis for minimizing potential tax risks 

        - Tax planning on corporate tax, inheritance and gift tax

        - Tax consultation on M&A, business transfer, share transfer, etc.

        - Tax structuring and tax due diligence

        - Share valuation under the Inheritance & Gift Tax Law 

International Tax

As more companies are doing business globally, it is very important to understand the international tax implications of international business transactions.

 

We provide global clients with international tax services for both inbound and outbound business including:

 

        - Tax consultation on cross border transactions including Permanent Establishment (PE),

          withholding tax, tax treaty benefits, etc.

        - Tax consultation on inbound investment including tax incentives for foreign

          investment in Korea

        - Tax consultation on outbound investment including foreign tax credit

        - Tax consultation on M&A, business transfer and share transfer

        - Tax structuring and tax due diligence

        - Filing of tax refund for foreign companies (VAT, corporate tax, etc.) 

        - Tax consultation on financial planning including thin cap rule

        - Tax consultation on stock option plan

        - International assignee solution services

        - Due diligence, planning and consultation related to customs duties

Transfer Pricing (TP) and BEPS

As the cross-border transactions are increasing recently due to the globalization, the Korean tax authorities are shifting to more systematic and aggressive audit on transfer pricing issues. 

The TP specialist team at Hanul consists of the Korean and U.S. CPAs and tax specialists who are well experienced in TP related issues. The TP specialist team will assist your company not only in identifying the TP risks, but also in proactively finding solutions to reduce the TP tax risks. 

Our TP/BEPS services include: 

        - Preparation of TP documents upon request of the Korean tax authorities 
        - Preparation of TP report 
        - TP planning study 
        - TP related consultation 
        - TP risks analysis 
        - Search for comparable companies 
        - Assistance in Advance Pricing Agreement (APA) 
        - Assistance in TP audit and appeal procedure 
        - Service on domestic intercompany transactions 
        - Service on customs valuation issues 
        - Service on loan and royalty transactions 
        - Service on intra-group service fees 
        - Global TP service for small and medium sized Korean multinational companies
        - BEPS(Local and Master Files, Country by Country Reporting) related compliance and advisory

Business Process Outsourcing (BPO)
BUSINESS PROCESS OUTSOURCING: CORPORATE COMPLIANCE AND ADMINISTRATION SERVICES | Hanul LLC

Our CORPORATE COMPLIANCE AND ADMINISTRATION SERVICES offer professional business support solutions that can be more efficient and cost effective than deploying resources and tools in-house. We provide professional business support solutions quickly and competently, especially for those specialist tasks that require an in-depth knowledge of rules and regulations in the region. Outsourcing to Hanul LLC business support functions will add tangible values to your business.

We provide answers to issues such as finding staff on the ground with regional skills and expertise, obtaining uniform quality of administration throughout your operations and getting experienced support for routine functions while meeting all compliance and governance requirements in the region. We enable you to open offices and start new operations quickly, allowing you to concentrate on your core business.

Our comprehensive range of CORPORATE COMPLIANCE AND ADMINISTRATION SERVICES includes the following:

• Business Establishment & Registration

• Corporate Secretarial Services & Corporate Governance

• Liquidation, Dissolution & Cessation of Business

• Accounting & Financial Reporting

• Human Resources Payroll Administration

• Cash Management, Fund & Payment Administration

• Tax Compliance and Other Corporate Services

 

To find out more, please follow the links to the services listed above or alternatively contact G S Sim, Head of BUSINESS PROCESS  OUTSOURCING.  

In addition, to learn more about our tax compliance services, please follow the link to TAX SERVICES.

These finance, accounting and compliance services can be provided in isolation or as part of an integrated suite of finance functions, being custom designed to fit your needs.

 

Business Establishment & Registration  

Foreign investment in Korea takes place in various forms. A foreign investor may establish a subsidiary company, a branch office, a representative/liaison office, or a joint venture together with a domestic company. In addition, the foreign investor may acquire shares in an existing domestic company as a whole, or invest in a listed company in South Korea through the stock market.

To help foreign investors to start off business in Korea smoothly, Hanul provides comprehensive professional services at their initial setup including various reporting, registration and advisory services. Such highly specialized services of Hanul are made possible through coordination with our associated law firm.

   

Our specialized services include:

• Report and registration with government authorities on establishment of foreign invested company, branch or representative/liaison office of foreign companies

• Consultation on capital increase and services relating to obtaining government approval

• Consultation and report to government authorities relating to acquisition and transfer of shares of foreign investors

• Report on foreign currency loans of foreign invested companies

• Consultation on purchase or lease of offices or housing for employees

• Registration of licenses and permits with various government departments

• Visa and work permit application of foreigner (non-Korean) expatriates being assigned to Korea

• Consultation on various company policies in accordance with the Korean tax laws and the Labor Standard Act

 

Corporate Secretarial Services, Ongoing Maintenance, Administration & Corporate Governance

We assist you with annual statutory and regulatory compliance in Korea. Our experts advise on and assist with all aspects of company administration. We offer services in a wide range of areas, including but not limited to the following:

• Advice on best practice and corporate governance

• Convening, facilitating and attending as proxies directors' and shareholders' meetings and preparing meeting minutes for notarization in Korea, where necessary

• Corporate restructuring related advisory services

• Company secretarial services for any registration changes in Korea on an ad-hoc basis, such as amending Articles of Incorporation, changes in directors or auditors, changes of corporate name or address, etc.

• Advisory services for transfers of shares, new issues of shares, rights and bonus issues, repurchase of shares, administration of share option schemes, etc. in conjunction with the Tax Services division of Hanul

• Provision of registered office/correspondence address, resident secretary, services of process agents, etc.

• Maintenance and advice on proper maintenance of statutory registers and records

• Payment of dividend

  

Liquidation, Dissolution & Cessation of Business

We offer expertise in dissolution and wind-down of companies in Korea. These services include the withdrawal of registration, arranging dormancy of legal entities and the cessation of business. Examples are as follows: 

• Handling of deregistration of companies and withdrawal of business licenses

• Advising on closing down of subsidiary companies, branches or representative/liaison offices in Korea including termination of employees and repatriation of residual cash to overseas shareholders or the head offices.

 

Accounting & Financial Reporting Services  

Quite often, the services a company requires are diverse. Outsourcing can be an easier way when related tasks can be delegated to one trusted service partner for accounting, financial reporting and consolidation.  When needed, we can take total control of the company’s financial affairs. You receive quality supervision and governance through our internal monitoring process and the quality and risk management system.

Hanul LLC won the Best Practice Award for Quality & Risk Management system from the governmental body of Korea (Financial Supervisory Service) in 2012, Before merged into Hanul LLC.

We can provide tailored solutions to make sure your financial operations in Korea are managed efficiently and your financial reporting is transparent, up-to-date and accurate.

We provide a complete range of financial, accounting and reporting services including international management reporting in any major standards and tax reporting.

As an independent third party, we can manage your accounting processes and your internal and external reporting.  This includes providing you with the timely and accurate information that is critical to strategic decision making.

Our services include local statutory bookkeeping, international management reporting whether in IFRS/IAS, US, or any other major GAAP, and full consolidated account preparation and reporting.

 

• Statutory bookkeeping

We can maintain your books and records in accordance with local rules and directives and prepare and file all required reports and specifications to local authorities.

 

• International management reporting

We can tailor our services to each client’s individual requirements, reporting in dual currency format and meeting the relevant accounting standards, such as IFRS, US GAAP or any other international accounting standards.

 

• Consolidated reporting

We can provide monthly and quarterly assistance in preparing consolidated financial reports, including the reconciliation between statutory and company or group management reports.

 

• Specific project

We can help with reorganizing accounting systems, assisting with the implementation of accounting software packages and establishing accounting control procedures.

• Budget preparation and comparisons and analyses of key components of financial performance

• Business advisory services such as accounting reports and preparation of business plans

• Temporary staff secondments of our accounting professionals to assist over a busy period or for a specific project

• Financial audit and internal control

 

Human Resources & Payroll Administration

Our innovative HR solutions can further your global expansion plans by helping your business to manage its most important asset: your staff.

We have a long history of providing a wide range of flexible and scalable human resource and payroll solutions, and cover virtually all aspects of employee-related administrative affairs. These can help your business to attract the right people, develop their skills and reward them accordingly while effectively managing the associated costs.


We provide a single point of contact to coordinate communication and management of your HR operations across multiple jurisdictions to maximize efficiency and minimize risk.

 

• Human resources

We can implement your international HR policies across all the territories in which you operate and ensure these meet all local legislative requirements. Our specialists can act as your local HR office, preparing contracts and employment guidelines, providing employee training assistance and securely maintaining personal confidential information.

 

• Payroll

We can manage all aspects of the payroll process to ensure continuity and mitigate compliance risks. Our staff can calculate payroll and related tax payments in accordance with local rules and complete the payments process on your behalf. We can also take care of global statutory reporting including payroll tax filings and payments.

- Outsourcing services for specific functions or the entire human resources operation, such as payroll payments, severance payments and retirement pension funds management, tax reporting of remuneration and taxable benefits, payroll history and cash management

- Compliance services relating to all reporting requirements of the National Tax Service (NTS) and the provincial tax authorities in Korea in accordance with the relevant tax law

- Compliance services relating to all reporting requirements of the Ministry of Employment and Labor (MOEL) and its affiliated organizations in accordance with the relevant labor laws of Korea

- Compliance services relating to all reporting requirements of statutory social security insurances (including national health insurance, national pension, employment/unemployment insurance, and industrial accident compensation insurance) in accordance with the relevant laws of Korea

 

• Reporting and data exchange solutions

Cross border processing often demands regular exchange of numerous data files. Through our electronic data exchange solution we can securely manage data and payments processes for your international accounting requirements. This can significantly reduce errors and the time spent on data entry.

 

Cash Management, Fund & Payment Administration Services

Managing companies. Managing bank accounts. These two activities are usually linked. And both require close attention to the client’s instructions. What are the benefits of optimized treasury management? A better chance of creating a 'cash-rich' treasury position, in which short to medium-term investments can be considered.

We support a diverse portfolio of clients ranging from small and medium-sized enterprises to multinational corporations with cash, fund and payment administration services. For smaller businesses where segregation of duties is an issue, our services function as additional internal control of company funds. We offer the following services:

• Administration of cash funds deposited in the client’s own bank accounts

• Cash forecasting and processing of accounts receivables

• Account signatory services to arrange settlement of company obligations to suppliers, payroll, employee expense reimbursements and other fund transfers

• Fulfilling compliance requirements

• Handling transfers and Forex transactions.

All these functions will be handled by our service team with strict segregation of duties in accordance with our company policies and internal control measures.

 

Tax Compliance and Other Corporate Services (including various Tax compliance services)

Because of its complexity, many companies turn to a specialized party to address their governance and tax compliance issues.

We can support you with preparation of your corporate income tax and compliance obligations. Our professionals with expertise and relevant local knowledge will guide you through the necessary forms and templates and support you with the required checks so that you may focus on running your business.

Other corporate services we provide include the following: 

• Filing of Corporate Income Tax, Value-Added Tax (VAT), Securities Transaction Tax (STT), Education Tax, Local Income Tax, Withholding Income Tax, Global Income Tax Returns in accordance with the relevant tax laws of Korea and International tax treaties

• Business Centre Services including maintaining telephone and fax lines for clients

• Executive search and selection

• Finding a good residence for relocation and protecting the financial value with mortgage