Hometax

2026 VAT Filing in Korea: Schedule, Procedures, and Key Checks

작성자:
2026 Korea VAT filing schedule and procedure guide

If you are a business owner, you must file a value-added tax report even if you have no sales or purchases.It is easy to get confused as the number and timing of reporting varies depending on the type of business.

We have compiled the entire schedule and procedures for 2026, as well as the reporting deadline that you need to check right now (July).⏰ The most important schedule right now: 2026 1st term value-added tax **Final return deadline is Monday, July 27**.If you are reading this in July, check first whether you are eligible below.

What is value-added tax?

Value-added tax (VAT) is a tax levied on the added value generated during the production and distribution of goods or services.This is a structure in which the business collects the tax, which is already included when the consumer pays for the product, and reports and pays it to the government at regular intervals.

The reported tax amount is calculated by subtracting the input tax amount from the output tax amount.

Number of reports by business type

Corporate business: 4 times a year (2 scheduled returns + 2 final returns)General individual tax payer: Final return twice a year + payment of scheduled notice in the interim (no reporting obligation, only payment of the notified amount)Simplified taxpayer: Once a year (reported in January of the following year).However, if you have a history of issuing tax invoices in the first half of the year, you must report and pay in July.

View the entire reporting schedule for 2026 at a glance

corporate businessdivisiontarget periodReport/payment deadline1st scheduled reportJanuary to MarchApril 25th1st term final reportFor April-JuneJuly 25th (subject to adjustments due to public holidays, etc.)2nd scheduled reportFor July~SeptemberOctober 25th2nd term final reportFor October-DecemberJanuary 25th of the following yearIndividual general taxpayerdivisiontarget periodReport/payment deadlinePayment of scheduled noticeJanuary to MarchAround April (payment by invoice, no separate report)1st term final reportJanuary to JuneAround July 25thPayment of scheduled noticeFor July~SeptemberAround October (payment by invoice)2nd term final reportFor July-DecemberAround January 25th of the following yearSimplified taxpayerIn principle, the previous year’s performance is reported once a year, in January of the following year.However, if a tax invoice was issued in the first half of the year, reporting is required in July as well.

If the reporting deadline overlaps with a Saturday, Sunday, or public holiday, it is automatically extended to the next business day.In fact, the deadline for the first period of 2026 to file a final return was originally July 25th, but due to the day of the week, it was extended to Monday, July 27th.

How to report

Access Hometax (hometax.go.kr) → [Report/Payment] → Go to [Value-Added Tax] menuIf you are using an electronic tax invoice, sales and purchase data are often automatically linked, so you only need to check them.If you use the ‘Tax Secretary’ service provided by the National Tax Service, the report is automatically completed by answering yes/no questions, making it relatively easy even for novice business owners.

During the report preparation process, be sure to check the total tax invoices by vendor and purchaser against the actual number and amount of issued items.If it is difficult to report online, you can also report it in person at your local tax office.

Documents to prepare before reporting

Sales data: Electronic tax invoice issuance history, card terminal sales history, cash receipt issuance detailsPurchase data: tax invoice, card purchase details, cash receiptsOther proof: revised tax invoice issuance/receipt details, etc.

Do I have to report it even if I have no sales?

yes.Even if you are a ‘non-performance business’ with no sales or purchase performance during the period, you must file a non-performance report within the reporting period.

If you do not report at all, you may be subject to additional tax even if you have no performance.

What happens if I miss the deadline?

If you miss the reporting deadline, you may also be subject to the following additional taxes:Penalty tax for non-reporting: In case of failure to reportPenalty tax for late payment: If the tax amount is not paid by the deadlinePenalty tax related to electronic tax invoices: Failure to comply with the obligation to issue and transmit tax invoicesEven if you file a report after the deadline, additional taxes will apply, so it is most advantageous to figure out the schedule in advance and file it within the deadline.

Finishing Tips

If you first check your business type (corporation/general taxpayer/simplified taxpayer) on Hometax at the beginning of each year and mark your reporting schedule in advance on the calendar, you will reduce the risk of missing it.If you consistently issue electronic tax invoices, the data will be automatically linked when reporting, making it much easier.

If payment is not received due to delayed settlement or bankruptcy of the customer, you can receive a refund of part of the value-added tax already paid through bad debt tax deduction if certain requirements are met. We recommend that you check if there is a related reason.This article has been written for general information purposes.

The exact reporting deadline and procedure may vary depending on the type of business and individual circumstances, so please be sure to check with the National Tax Service (hometax.go.kr) or your local tax office before reporting.

2026 Earned Income and Child Tax Credits: Eligibility and Applications

작성자:
2026 earned income and child tax credit application guide

Representative cash support systems for households that work but do not have sufficient income, such as work incentives and child incentives. The two systems can be applied for together and receive multiple benefits, so it is a benefit that low-income households would not want to miss. We have organized everything from income and property criteria to payment amounts and application times.

💡 As of the time of this writing (July 2026), the 2026 regular application period (May 1 – June 1) has already passed. but Apply after the deadlineThis is available until December 1st, so if you have not yet applied, we recommend that you apply as soon as possible by referring to the information below.

What is an employment incentive?

The Earned Income Tax Credit (EITC) is a system in which the National Tax Service provides cash payments to households that work hard but have difficulty making ends meet due to low income to preserve their real income. Households with earned income, business income, or religious income are eligible.

Work incentive eligibility requirements

According to household composition Income Requirementsclass property requirementsmust all be met.

Income requirements (gross household income as of 2025)

furniture typeIncome criteria
single-family householdLess than 22 million won
Single piece furnitureLess than 32 million won
Two-income householdLess than 44 million won

Property requirements (common, as of June 1, 2025)

  • Total assets of all household members Less than 240 million won
  • If the assets are between 170 million won and 240 million won, the calculated amount is 50% reductionpayment is made
  • If you join the same generation as your parents Parents’ assets are also added togetherSo you need to be careful. .

Work incentive payment amount

Maximum payments vary depending on the type of household.

  • Single-family household: Up to approximately 1.65 million won
  • Single-income household: Up to approximately 2.85 million won
  • Dual-income household: Up to approximately 3.3 million won

Since the actual payment amount uses a different calculation formula for each income bracket, it is best to check the exact expected amount using the National Tax Service’s Hometax mock calculation service.

Child incentive eligibility requirements

The child subsidy is separate from the work subsidy and is a system to ease the burden of raising dependent children in households.

  • Income Requirements: Couple’s combined total income as of 2025 Less than 70 million won
  • property requirements: Same as work incentives, total household assets are less than 240 million won
  • Dependent Child Requirements: For children under the age of 18 whose income is less than KRW 1 million (if there is only earned income from part-time jobs, if the total salary before tax is less than KRW 3.33 million per year, it is often recognized as less than KRW 1 million after deduction of earned income)

Child incentive payment amount

  • dependent child Up to 1 million won per person
  • If there are multiple children, the payment is added up according to the number of children.

Is it possible to receive both work incentives and child incentives?

Yes, if you meet all requirements, you can apply for both systems together and receive them at the same time. If you combine the work incentive (up to 3.3 million won) and the child incentive (proportional to the number of children), low-income households can receive several million won at once. Even if you are receiving other welfare benefits, such as basic livelihood security recipients, if you meet the earned and business income requirements, the incentive will be paid in full separately.

When and how to apply

  • Regular application: May 1 ~ May 31 every year (if the last day falls on a weekend, it is extended to the next weekday)
  • Apply after the deadline: If you missed the regular application, you can apply from June 1st to December 1st, but in this case, the payment amount is 10% reductionIt will be done
  • semi-annual application: Only wage and salary earners can apply separately (apply around September for the first half of the year, and around March of the following year for the second half of the year). If you apply semi-annually, you are automatically excluded from regular applications in May. However, since the child subsidy only applies to regular applications, you must consider regular applications to receive the child subsidy.
  • How to apply: Hometax (hometax.go.kr) or Sontax app, if you receive a notice, apply by ARS phone number using your individual authentication number

payment date

  • Regular application: Usually deposited into account between the end of August and the end of September
  • Half-year application: Payment is made around the end of June for the first half of the year and around the end of December for the second half of the year.

Payment timing may vary depending on the screening situation, so it is recommended that you check payment status and account information at Hometax after applying.

Can foreigners also apply?

In principle, Korean nationals are eligible, but it is often possible to apply if your spouse is of Korean nationality or you have dependent children of Korean nationality. Permanent residents (F-5) also require individual confirmation as availability varies depending on spouse and child requirements, and pure foreigners such as international students or working holidaymakers are generally excluded.

finishing tips

  • If you were eliminated due to property criteria, it is also a good idea to re-examine whether you are separated from your parents.
  • You can save time by calculating in advance using Hometax’s ‘Check my expected payment amount’ function before applying.
  • If your child has income from part-time work, check the amount of income in advance as it may affect whether or not you are recognized as a dependent child.
  • It is recommended that you prepare application documents (lease agreement, salary account transaction details, withholding tax receipts, etc.) in advance in case you need to prove your income or assets.

This article has been written for general information purposes. The exact eligibility requirements and payment amount may vary depending on the household situation, so please be sure to check with the National Tax Service’s Hometax (hometax.go.kr) or the National Tax Service Customer Center (126) before applying.

2026 Comprehensive Income Tax: Filing Period and Step-by-Step Guide

작성자:
2026 Korea comprehensive income tax filing guide

If you are a freelancer, sole proprietor, or jobber, you must file a comprehensive income tax return every May.Everything from reporting period to method and refund has been organized in one place.💡 As of the time of writing this article (July 2026), the regular reporting period for comprehensive income tax for 2025 has already passed.

If you missed reporting, please refer to the ‘Report after the deadline’ section below, and if you want to prepare for the next report in advance, you can use the entire flow as reference material.

What is comprehensive income tax?

Comprehensive income tax is a tax that is reported and paid by adding up all the income (business, labor, interest, dividends, pension, and other income) generated by an individual during the year.For office workers, the company settles taxes on their behalf through year-end tax settlement, but business owners, freelancers, and people with additional income other than salary must organize and report one year’s worth of income on their own.

Who to report – Am I covered?If any of the following applies, you must report comprehensive income tax yourself.

Sole proprietor/freelancer with business incomeIf you have additional income, such as side jobs or platform work, in addition to earned incomeIf there is rental income, interest/dividend income (exceeding a certain standard), etc.Conversely, if any of the following applies, separate reporting is not required.

If you only have earned income and the company has completed year-end tax settlementIf you only have retirement income and business income subject to year-end tax settlementCases where there is only non-taxable or separate taxable income (lottery winnings, capital gains on some calligraphy, paintings, antiques, etc.)If you only receive public pensions such as the national pension and the tax calculation has already been completed by the Pension Service

2026 reporting period

Regular reporting period: May 1 – June 1, 2026 (the original deadline, May 31, was Sunday, so it was extended until the next weekday, June 1)Target income: Income generated from January 1 to December 31, 2025Those subject to sincere reporting confirmation (businesses exceeding industry-specific sales standards): Reportable until June 30, 2026The reporting period runs similarly every year from May 1 to May 31, and if the last day falls on a weekend, it is often automatically extended to the next weekday.It is safe to check the exact schedule every year with the National Tax Service notice.

4 ways to reportHometax (hometax.go.kr) e-filing: The most widely used method.After logging in, go to the ‘Comprehensive Income Tax Report’ menu and follow the instructions.

Sontax (mobile app): The same procedure as Hometax can be performed on mobile.Visit the tax office or submit by mail: Prepare and submit documents in personDelegation to a tax agent (tax accountant): If your income structure is complex, you may want to entrust your report to a tax accountant.

It is easier to use the ‘Fill All’ service provided by the National Tax Service.Since the National Tax Service pre-calculates and fills in income, expenses, deduction amount, and tax amount due based on data held by the National Tax Service, if you receive a notice, you often just check the contents and click the ‘Report’ button.

Although withholding tax details and card usage details are automatically checked in Hometax, you must prepare the rental agreement and certain deduction documents yourself.In particular, monthly rent or some medical expense items may not be reflected automatically, so check in advance.

What if I missed reporting?— Report after deadline

If you do not report by the deadline, you will be subject to a non-reporting penalty of up to 20% of the tax amount paid.However, even after the deadline has passed, you can receive some reduction in additional tax by filing **’report after deadline’**.

If you voluntarily report within one month after the deadline, the additional tax is reduced by 50%, and the faster you report, the higher the reduction rate.Even if you cannot afford to pay taxes right away, it is important not to delay because you can reduce the additional tax burden by filing first.

When will I receive my refund?

In principle, payment is made within 30 days after the reporting/payment deadline (usually May 31 or June 1), and in reality, it is often deposited into the account entered when reporting, usually between late June and early July.You can check the processing status in the ‘Refund Inquiry’ menu of Hometax.

Finishing Tips

If you are a freelancer or jobber, there is a high possibility of receiving a refund after reporting, so it is advantageous not to skip reporting even if your income is low.If there are any deductions you missed after reporting, you can receive an additional refund through a correction claim within 5 years.

Local income tax can be reported after the comprehensive income tax return, and can also be paid through Witax, Internet Giro, etc.This article has been written for general information purposes.

The exact reporting eligibility, deadline, and procedures may vary depending on the National Tax Service notice every year, so please be sure to check with the National Tax Service’s Hometax (hometax.go.kr) or your local tax office before reporting.