For the tax purpose, there are some kinds of documents every business should keep.
These are as below.
1. Purchase documents
Firstly, If you are a incorporated company, you should know that you shouldn't withdraw the money from the corporate bank account at random. If so, you would pay additional tax.
Secondly, when you spend the money for your business, you should get the "proper document" for business purchase or expense to get the tax deduction. Otherwise you can not get the tax deduction or would be imposed additional tax for 2.2% of the purchase amount.
There are 3 kinds of proper document according to South Korean tax law, which are tax invoice, check card or credit card receipt, cash receipt.
1) tax invoice
"Tax invoice" is the best document for the business entity to get the tax deduction. You can ask your supplier to issue it by submitting your copy of business license.
2) check card or credit card receipt
"Check card or credit card receipt" is the one you can get if you pay by the business check card or credit card.
3) cash receipt
"Cash receipt" is the one you can get when you pay cash for you business. You need to ask your supplier to issue by letting him know your business license number.
4) Expense reimbursement
There can be the case where the employee needs to spend his/her own money for the business and claim the reimbursement to the company. In this case as well, if the employee does not get the "proper documents" above, you can not get the tax deduction or would be imposed additional tax for 2.2% of the purchase amount. So, the employee can use this method only in the emergency case.
The reimbursement claim form is as below. The employee will record the detail of the expenditure one by one and attach the receipts behind this form, and then submit it to the company monthly basis.
5) For the overseas expense
You don't have to get the proper documents mentioned above for your overseas expense. You just get any type of receipt and keep it in your receipt book.
2. Sales documents
For the sales document, you need the tax invoice you issued. And you need the contract or shipping document additionally.
3. Making receipt book
With all of the purchase and sales documents mentioned above, every business entity should make receipt books month by month. You can make the receipt book in the way that you attach every receipts on a empty note book in an order of the date.
The entertainment expenses which were spent for the clients should be kept separately for the tax purpose.
You should be able to find a receipt that the third party want to see at any time, and should keep it for 6 years.This is for the tax audit which can exist someday.
You can see the sample of the receipt book as below, which is the most simple case.
Cover. First page - summary.
From the second page - receipt attachment
Tel: 02-555-3919 from Korea,+82-2-555-3919 from abroad. Email: energy17jyw@gmail.com
These are as below.
1. Purchase documents
Firstly, If you are a incorporated company, you should know that you shouldn't withdraw the money from the corporate bank account at random. If so, you would pay additional tax.
Secondly, when you spend the money for your business, you should get the "proper document" for business purchase or expense to get the tax deduction. Otherwise you can not get the tax deduction or would be imposed additional tax for 2.2% of the purchase amount.
There are 3 kinds of proper document according to South Korean tax law, which are tax invoice, check card or credit card receipt, cash receipt.
1) tax invoice
"Tax invoice" is the best document for the business entity to get the tax deduction. You can ask your supplier to issue it by submitting your copy of business license.
"Check card or credit card receipt" is the one you can get if you pay by the business check card or credit card.
3) cash receipt
"Cash receipt" is the one you can get when you pay cash for you business. You need to ask your supplier to issue by letting him know your business license number.
4) Expense reimbursement
There can be the case where the employee needs to spend his/her own money for the business and claim the reimbursement to the company. In this case as well, if the employee does not get the "proper documents" above, you can not get the tax deduction or would be imposed additional tax for 2.2% of the purchase amount. So, the employee can use this method only in the emergency case.
The reimbursement claim form is as below. The employee will record the detail of the expenditure one by one and attach the receipts behind this form, and then submit it to the company monthly basis.
5) For the overseas expense
You don't have to get the proper documents mentioned above for your overseas expense. You just get any type of receipt and keep it in your receipt book.
2. Sales documents
For the sales document, you need the tax invoice you issued. And you need the contract or shipping document additionally.
3. Making receipt book
With all of the purchase and sales documents mentioned above, every business entity should make receipt books month by month. You can make the receipt book in the way that you attach every receipts on a empty note book in an order of the date.
The entertainment expenses which were spent for the clients should be kept separately for the tax purpose.
You should be able to find a receipt that the third party want to see at any time, and should keep it for 6 years.This is for the tax audit which can exist someday.
You can see the sample of the receipt book as below, which is the most simple case.
Cover. First page - summary.
Tel: 02-555-3919 from Korea,+82-2-555-3919 from abroad. Email: energy17jyw@gmail.com
