Generic Withholding Tax Reporting 

Use

In South Korea, you use the Generic Withholding Tax Reporting program to:

·        Prepare electronic income tax returns (form 21)

·        Print withholding tax certificates for vendors (forms 23 (2) and (4))

It supports tax returns and tax certificates for business income and for other income.

Features

Selection

To prepare an income tax return and tax certificates for business income, execute the program using process type STD and output group KR1. For other income, use process type STD and output group KR2.

After you have entered the rest of the selection criteria, choose . In the dialog box that appears, enter the following data:

·        Report Date

The system prints the date that you enter here on the printout or includes it in the electronic file.

·        Section Code

Enter the section code that represents the appropriate combination of district tax office and local tax office that the tax return is for.

·        Clearing Date

Since you only have to report tax on invoices that you have paid, the clearing data allows you to specify which invoices you have paid. For example, if you prepare a tax return for October, enter the clearing date as 1–31 October. The system only selects the withholding tax items for invoices that were paid in this period.

Output

The tax certificates for natural persons (see Maintaining Control Data) are different from those for companies. In the “other income” certificate, for example, tax for natural persons is shown in the Income Tax column. For companies, the tax is displayed in the Corporation Tax column.