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Let's finish it all in one volume: A practical guide to accounting and taxation for self-employed business owners.
Let's finish it all in one volume: A practical guide to accounting and taxation for self-employed business owners.
Description
Book Introduction
Living as a CEO is so busy with sales, there's so much to worry about. Wow! I didn't know this was expensed. Hey! Business isn't going well, so why are the taxes so high? I wouldn't even notice if I handled this secretly! CEOs who console themselves by doing this only to get hit hard by a tax audit and regret it later. The basics of legally handling expenses without problems even during a tax audit. Every day is a constant battle.
If you do it well, you'll get your money's worth, but if you don't, you'll just get criticized. Why does that damn law change every day? If you know it, it changes.
Relearning over and over again, but there's no one to teach me. I've tried paying my own money to go to an academy, but I still don't know the same things.
Is there anyone who can help me solve my problem?
When dealing with taxes, the two biggest questions people have are: "Is this expense recognized? Is it not?" and "Can I deduct the purchase tax?"
However, when it comes to actually handling expenses, there are no clear standards provided.
The boss above throws out receipts randomly.
If you say, “This isn’t recognized as an expense,” the boss will immediately respond with, “Everyone else handled it so well,” and lava will boil inside you.


So, in this book, we have organized it to enable more accurate work processing by distinguishing between cases where expenses are recognized and cases where they are not.
I don't want to explain something simple that is not easily applied in practice.
Knowing the difficulties faced by practitioners, I created this with the intention of explaining difficult but easily understandable cases that inevitably arise while working.
Most people meticulously review tax information and work hard to remember and avoid missing anything, but there are many who take the easy way out, saying they would rather evade taxes quickly.
However, the number of cases of tax evasion being caught continues to increase due to the development of the National Tax Service computer network and the reporting of tax evasion.
All of the following are considered tax evasion: reporting false sales, claiming double deductions when deducting income tax, issuing false tax invoices, processing expenses that do not meet requirements, and claiming tax reductions and tax credits.
I hope that you will avoid the temptation of tax evasion and instead become a tax-saving restaurant and build a healthy and sound business.

index
Chapter 1: Tax-Saving Techniques from Starting a Business to Closing a Business

■ Inconveniences faced by corporate business owners compared to individuals
1.
You shouldn't take company money without permission.
2.
You should not use your corporate card indiscriminately.
■ Tax-saving strategies for company establishment preparation costs
1.
Requirements for expense recognition of company establishment preparation costs
[Case] ​​Can I not receive a tax invoice after the company is established for expenses incurred before the company is established?
2.
Expense processing of royalties
3.
Expense processing of interior design costs
4.
When purchasing a commercial vehicle, it is advantageous to purchase it yourself.
5.
Consider filing a simple estimate for your comprehensive income tax return.
6.
Income tax reduction for startup small and medium-sized enterprises
■ Tax law business classification and types of business registration certificates
■ Hometax Business Registration Application Procedure
1.
Things to decide before applying for business registration
┗ Sole proprietor? Corporation?
[Example] Eligibility for Credit Card Issuance Tax Deduction
┗ Is it a licensed business or not?
┗ Are you a taxable business or a tax-exempt business?
┗ Should I apply as a general taxpayer or a simplified taxpayer?
2.
Register your business conveniently on Hometax
[Example] Time required to issue a business registration certificate when applying for Hometax
[Case] ​​The Importance of Industry Codes for Self-Employed Businesses
[Case] ​​Tax disadvantages due to non-registration of business
[Example] When a tax invoice is issued with a business registration number that has been cancelled
■ Registering a business without an office for a one-person business
■ Change of business registration name for individual business owners
1.
In case of concluding a comprehensive transfer contract
2.
After the partnership agreement, joint ownership and joint business are terminated and corrections are filed.
■ Three tax systems that individual business owners must prepare for after registering their business
1.
Use of business account
[Case] ​​Why You Should Use a Business Account
2.
Registering a business credit card
[Example] Tax reporting when the statement I have is different from the Hometax statement
3.
Issuance of electronic tax invoices
[Example] Subject to mandatory issuance of electronic tax invoices
■ Taxes to pay when doing business in Korea
■ 12 Essential Tax Knowledge for Smart Expense Management for the Self-Employed
1.
Expenses not related to business are not expensed.
2.
Know the documentation requirements for each expenditure size.
[Example] How to Change a Cash Receipt for Income Deduction to Proof of Expense
3.
Not all documents are required when filing taxes.
4.
Online deposits and withdrawals through financial transactions
5.
Check the business registration status of the business partner
6.
Never skimp on the 10% VAT
7.
Tax deduction for purchase of business-use passenger vehicles and preparation of driving records
8.
Apply for a tax invoice for utility bills
9.
Prohibition on transactions with false or consignment business operators (in data)
10.
Compliance with statutory reporting deadlines
11.
Labor costs must be paid directly to the account.
12.
Taxes can be paid in installments.
■ 5 Essential Tax-Saving Rules for Self-Employed Individuals
1.
Take advantage of tax savings through the Yellow Umbrella Deduction
2.
If you don't have a captain, use a simple ledger.
3.
Receipts are inversely proportional to taxes, so careful management is essential.
4.
Processing essential expenses to reduce income tax
5.
Pension account tax deduction
■ Let's use the early refund system for facility investment costs.
1.
Early refund for business facilities
2.
Early refund filing and filing period
■ Tax management for self-employed individuals
■ Things to keep in mind for family businesses
1.
Family company family tax processing
2.
Proof of family salary
■ Even if you evade taxes, you won't get caught easily.
■ How the National Tax Service and tax officials detect tax evasion
■ If you know the tax calculation flow, you can see tax savings.
1.
How is value added tax calculated?
2.
How is comprehensive income tax calculated?
■ Deadlines for reporting and paying major taxes
■ The information provided by the National Tax Service is for reference only.
■ I'm worried that I'm being overcharged
■ Documents to prepare when entrusting a captain
1.
Documents required when using tax accounting agency service
2.
Consent to accept the National Tax Service Hometax
3.
Submission of value-added tax return materials
4.
Submission of comprehensive income tax return documents
5.
Submission of comprehensive income tax return documents
┗ Additional documents required if you have real estate rental income
┗ Additional documents required for honest reporting businesses
■ Things to consider when closing a sole proprietorship
1.
Report business registration closure to the National Tax Service
2.
Confirmation of closure of business and payment of value-added tax
3.
Withholding tax report and payment statement submission
4.
Notify the National Pension Service and the National Health Insurance Service of the closure.
5.
Comprehensive income tax return
6.
Duty-free business establishment status report

Chapter 2 Value-Added Tax Saving Techniques

■ You need to know the value-added tax structure to see tax savings.
■ If value added tax is managed, all taxes will be managed.
1.
The more subtractions you have, the less value-added tax you pay.
2.
All documentation follows the transaction.
3.
Tax invoice = credit card sales slip = cash receipt for expenditure verification
4.
Value-added tax saving methods
■ A tax bomb that can't be stopped without a tax invoice
■ Transactions exempt from issuing tax invoices
1.
Cases where tax invoice issuance is exempted
2.
When issuing tax invoices is prohibited
■ How to issue an electronic tax invoice through Hometax
[Example] How to issue an electronic tax invoice by phone, etc.
[Case] ​​Things to keep in mind when receiving a paper tax invoice from the other party
[Case] ​​Surcharges related to electronic tax invoices
■ How to issue a revised electronic tax invoice through Hometax
■ Reasons for modification of electronic tax invoice and surcharge
1.
Issuing a revised electronic tax invoice that was not my fault
2.
Issuing a revised electronic tax invoice due to my mistake
┗ If required information is incorrectly entered
┗ If required information is incorrectly entered for reasons other than error
┗ In case of double issuance of electronic tax invoice by mistake
┗ In case of issuance for transactions not eligible for tax exemption
┗ In case of issuance with incorrect tax rate application
3.
Surcharge on revised electronic tax invoices
4.
VAT filing
┗ If discovered within the reporting period
┗ If discovered after the reporting deadline
■ Items eligible for value-added tax deduction and items not eligible for value-added tax deduction when spending expenses
[Example] Parking fees provided to business partners are not entertainment expenses.
■ Can I unconditionally deduct the amount used on a credit card registered in Hometax?
■ If I only have an expenditure resolution, will the expenses be recognized? Is there any problem?
■ How to save on taxes by deducting vehicle maintenance costs and receiving a purchase tax deduction
1.
It must be an industry eligible for purchase tax deduction.
2.
It must be a vehicle eligible for purchase tax deduction.
3.
It must be used for business purposes.
4.
Just because the purchase tax deduction is not available does not mean that the expense cannot be recognized.
5.
To obtain recognition for expenses, a vehicle operation log must be created.
6.
Using a vehicle for personal use and falsifying the vehicle operation log
7.
Vehicles eligible for purchase tax deduction by vehicle manufacturer
[Case] ​​Easy Tips for Determining Whether Purchase Tax Deductions Are Eligible
■ Things to check when reporting value-added tax on delivery apps
■ My seller has gone bankrupt. Can I deduct it from my VAT return?
1.
Even if you deduct the credit, don't lose money on taxes.
2.
When should I apply for the grandchild tax deduction?
3.
How to apply for a tax deduction on grandchildren
[Case] ​​Self-report on tax deduction for grandchildren as supporting document
4.
How much tax benefit can I get?
[Example] Even if your home is your office, utility bills are deductible.

Chapter 3: Withholding Tax and Labor Cost Processing Techniques

■ Why does the company deduct taxes from my income as it pleases?
1.
Why is withholding tax imposed?
2.
When is withholding tax withheld?
[Example] In practice, in addition to withholding tax, four major insurance premiums are also deducted when paying wages.

3.
If I pay the tax by withholding it, is that all done?
4.
How do I report and pay taxes to the National Tax Service?
5.
Disadvantages of not fulfilling withholding tax obligations
[Example] There are amounts that do not require withholding tax (small-amount withholding tax)
■ Calculation and workflow of payroll tax
■ Withholding tax on salary and processing of expenses
1.
Withholding tax
2.
Withholding tax for daily workers
3.
Salaries of private company presidents and corporate CEOs
4.
Expense processing of various compensations
[Case] ​​Withholding tax on annual leave allowance
■ Management of daily worker wage report data (notice of daily worker exceeding maximum working days)
■ Even for welfare expenses, only those stipulated by tax law are exempt from taxation.
1.
In cases where income tax is not paid even if paid to employees
2.
In cases where income tax is not paid even if paid to employees
3.
Cases where you do not have to pay income tax even if you receive an allowance
4.
Tax Issues to Consider When Paying Bonuses to Employees
5.
Maternity leave pay, childcare leave pay, and reduced working hours pay for childcare
[Cases] Childcare leave benefits, reduced working hours for childcare, prenatal and postnatal leave benefits, and spousal childbirth leave benefits
[Case] ​​Accounting and Tax Treatment of Tomorrow's Filling Deduction
■ Withholding tax and expense processing for retirement pay and retirement pension
1.
Withholding of retirement income tax on employees' retirement pay
[Case] ​​Calculating retirement income tax when additional retirement pay is paid due to a calculation error
2.
Defined Benefit Pension Plan (DB)
3.
Defined Contribution Pension Plan (DC)
┗ If there is no amount paid directly to the worker at the workplace
┗ If there is an amount paid directly to the worker by the workplace
┗ If there is a subscriber contribution
■ Expense treatment of fees for service fees (business income and other income)
1.
Withholding tax on business income
2.
Withholding tax on other income
■ Withholding tax and expense processing of non-business expenses
1.
Withholding tax on non-business interest income
2.
How to report withholding tax
┗ In case of withholding tax on non-business profits from residents
┗ In case of withholding tax on non-business profits from a corporation

Chapter 4: Techniques for Legal Expense Processing

■ The easiest way to avoid the tax bomb: managing your documents
■ My Report Type Checklist
■ You need to know the comprehensive income tax calculation structure to see tax savings.
■ Tax savings when older and younger siblings run a business together
1.
If you are a self-employed person
┗ If registered as a joint business operator
┗ If one person is registered as a CEO and one person is registered as an employee
2.
If you are a corporate business
3.
Things to keep in mind when signing a partnership agreement
4.
Interest on loans to raise partnership funds
┗ Loan interest and expenses for investment
┗ Loan interest and expense processing for operating funds
5.
Registering a business credit card and using a business account
┗ Register a business credit card
┗ Use of business account
6.
Processing termination of partnership agreement
■ I pay less tax than the captain's fee, so should I entrust the captain?
1.
The expense ratio system is only available to self-employed individuals.
2.
It is judged based on when the captain did not do the work.
3.
Classification of reporting methods for individual business owners
4.
Double-entry bookkeeping obligation and simple bookkeeping obligation
5.
Simple expense ratio target and standard expense ratio target (expense ratio system)
┗ Method of calculating income amount based on standard expense ratio
┗ Income calculation method using simple expense ratio
┗ Payment of additional tax for those filing for an estimated tax return
■ The basics of self-employed expense processing
1.
Only work-related expenses are recognized as expenses
2.
You don't have to submit all your receipts when you file your taxes.
3.
Labor costs must be deposited into an account and reported on tax returns.
4.
No matter how much you emphasize the importance of providing proper documentation, it is still important.
5.
You may not know when you receive the value-added tax, but it's a waste when you pay it.
■ Checklist of items recognized as expenses for self-employed individuals
[Case] ​​Cost processing of government subsidies and Ministry of Employment and Labor subsidies
■ Cost processing of material costs
■ Expense processing of family company family salary
1.
Payroll processing
2.
4 major insurance processing
┗ In case of relatives living with the business owner
┗ In case of relatives who do not live with the business owner
[Case] ​​Evidence of Family Employment Relationships in Family Companies
[Case] ​​Case of being caught evading taxes by registering a false employee
■ Work processes that may occur when reporting an underreported salary
1.
Increase in income tax/corporate tax
2.
Tax evasion charges against wage earners
3.
Four major insurance issues
4.
Calculation of various allowances
5.
Severance pay issue
6.
Punishment for tax evasion and aggravated punishment for specific crimes
■ Expense processing of welfare expenses
1.
Scholarship amount
2.
Travel expense subsidy amount
3.
Health checkup fees, physical training fees
■ Expense processing for office, housing, and dormitory rental fees
[Example] Dormitory rental fees provided to freelancers subject to withholding tax on business income
[Case] ​​Differences between housing and dormitories, supporting documentation, and tax accounting
[Example] In-house gym, daycare center, dormitory
■ Expense processing for travel expenses such as business trip expenses
1.
Standards for processing business trip expenses
2.
How to process expenses for self-driving subsidies
3.
Overseas business trip and training expenses processing
[Case] ​​Reasonable Tax Accounting for Travel Expenses
■ Expense processing for academy fees, textbook fees, instructor fees, self-development fees, and training fees
1.
Expenses for training and education expenses such as certification acquisition costs
2.
Requirements for tax exemption of education and training expenses
3.
Proving the job relevance of employee training
[Case] ​​Reasonable Tax Accounting for Education and Training Expenses
[Case] ​​Should I report my instructor fees as miscellaneous income or business income?
■ Utility charges recognized as expenses and fines and penalties recognized as expenses
1.
Utility bills that are recognized as expenses and those that are not recognized as expenses
2.
Fines that are recognized as expenses and fines that are not recognized as expenses
[Example] Cost processing for electricity, telephone, and city gas bills
■ Taxes that are recognized as expenses and taxes that are not recognized as expenses
1.
Taxes that are recognized as expenses and taxes that are not recognized as expenses
2.
Expense recognition for items not eligible for purchase tax deduction
[Case] ​​Expense processing of customs duties and customs refunds
■ Expense processing of vehicle maintenance costs
1.
Standards for expense processing of vehicle maintenance costs
2.
Registering a vehicle as business asset in the name of spouse
3.
Spouse's vehicle maintenance expenses are processed as expenses
4.
Expense processing for vehicle expenses jointly owned by a married couple
5.
Expense processing of vehicle maintenance expenses in the name of an employee
6.
Registering fixed assets of vehicles acquired prior to starting business
[Example] If an accident occurs with a company vehicle, the damages are deducted from the salary.
[Example] When an accident occurs with a company vehicle, the company only pays the value-added tax.
[Example] Fines for parking violations such as stopping or stopping are not recognized as expenses.
■ Processing of business vehicle expenses for self-employed individuals
1.
Scope of business use
2.
Scope of business expenses
3.
Cases where expenses are recognized even if a driving log is not prepared
┗ Vehicles and industries that are unconditionally recognized
┗ Subscribe to employee-only insurance and keep a driving log
4.
What should be recorded in the vehicle logbook
5.
Taxation on disposal of personal business vehicles
┗ Sale of vehicles used by individual business owners for business purposes
┗ Sales of vehicles unrelated to business by individual business owners
■ Processing of insurance premiums for automobile insurance, accident insurance, etc.
■ How to obtain documentation and process expenses when using personal delivery
1.
If the personal delivery is to a general taxpayer
2.
If the personal delivery is for a simplified taxpayer
■ Expense treatment of depreciation expenses
[Case] ​​The Magic of Depreciation (Financial Soundness When Reflecting Expenses as Assets)
[Case] ​​Immediate depreciation issue
■ Expense processing of lease fees
■ Entertainment expenses processing and limit calculation
[Case] ​​Major Cases Corresponding to Entertainment Expenses
1.
Proof of legal expenditure must be provided.
[Example] Credit cards that individual business owners must use when paying entertainment expenses
2.
Expenses are recognized only within the entertainment expense limit.
3.
If it is entertainment expenses but is not considered entertainment expenses
[Case] ​​Precautions and Cases When Processing Entertainment Expenses
■ Expense processing of condolence money, condolence money, etc. from business partners
[Case] ​​Things to keep in mind when paying condolence money to business partners
[Example] What about the 100,000 won spent on an acquaintance’s (friend, senior/junior, relative) opening ceremony and congratulatory gift?
[Case] ​​Efficient Document Management Methods for Spending Condolence Expenses on Business Partners
[Example] Expense processing when sending condolence money and wreaths to a business partner
■ Expense processing for employee wedding congratulatory money, childbirth, birthday, etc.
[Example] What if I spend 300,000 won on a company employee's first birthday party?
[Example] Fee paid by subscribing to a mutual aid product from a mutual aid company for an employee's funeral
[Case] ​​Legal Effects of Employee Condolence Expenses Deducted from Salary and How to Prepare
■ Expense processing for advertising and promotional expenses, donations, and meeting fees
1.
donations
2.
Advertising and promotional expenses
3.
Department-specific dinner expenses
┗ Company dinner expenses paid with employee personal cards
┗ Dinner expenses to watch out for
■ Why it doesn't matter if you secretly include household expenses in company expenses
[Case] ​​The most frequently detected case by the National Tax Service
■ You must keep a separate record of your weekend expenses!
■ Can the boss's meal expenses also be expensed?
[Case] ​​Basic conditions for processing employee expenses as welfare expenses
■ Can communication fees such as mobile phone fee subsidies be recognized as expenses?
[Case] ​​The National Tax Service's Position on Expense Processing for Cell Phone Usage Subsidies
■ Expense processing for hospital expenses incurred due to employee accidents during work
[Case] ​​What is the expense treatment for compensation received from the industrial complex after the fantasy processing?
[Example] Hospital expenses of the CEO unrelated to work (case where the company pays the hospital expenses that the CEO had to pay)
■ Self-employed (individual business owner) Comprehensive income tax expense treatment of the four major insurance premiums
■ Processing of interest on loans for self-employed individuals (Things to watch out for when processing interest on loans for self-employed individuals)
■ Things to keep in mind when processing personal business loan interest expenses
[Case] ​​Interest Expense Treatment When a Self-Employed Business's Liabilities Exceed Assets
■ Things to keep in mind when processing expenses using an employee's personal credit card
■ If I don't request a cash receipt, can I avoid having to issue one?
■ Is it beneficial for employers if employees refuse to sign up for the four major insurance plans?
[Case] ​​Tax-exemption from the four major insurance policies is advantageous for business owners.
■ Is there any way to avoid the health insurance premium bomb?
■ Receive unemployment benefits instead of severance pay.
■ Internal management method to prevent public funds from being stolen
■ Capital deficit occurs

[Table of Contents]

Startup/Business Preparation FAQ


■ Should I run it as a sole proprietor or a corporate business?
■ How to get recognition for expenses incurred during the process of preparing for company establishment
■ Can royalties and interior design costs be recognized as expenses?
■ Why is the credit card issuance tax deduction 0?
■ Is it a taxable business or a tax-exempt business?
■ Simplified taxpayer or general taxpayer, which should I choose?
■ Complete business registration in less than 10 minutes through Hometax.
■ Documents required for business registration
■ Importance of industry code when registering a business
■ Can I register a business at home without a lease agreement?
■ How to register two businesses in one office
■ Can I change the name of a private company president at will?
■ 3 things self-employed people must prepare
■ Why should I use a business account?
■ If the Hometax data and company data are different, which should I report?
■ Does our company use electronic tax invoices or paper tax invoices?
■ Useful taxes to pay while doing business
■ Receipt of legal expenditure certificate according to amount
■ Cash receipts recognized as expenses are used as proof of expenditure.
■ Do I have to submit all the supporting documents received for expense recognition when filing my tax return?
■ When issuing processed data to business partners, only value-added tax should not be collected.

■ How to quickly receive a refund of value-added tax on facility investment costs
■ How to handle salaries paid to family members
■ Why tax evasion is rarely caught
■ How do the National Tax Service and tax officials detect my tax evasion?
■ Tax calculation flow and tax savings
■ When do I have to report and pay taxes?
■ Tax filing when the Hometax data and the data I have are different
■ What is an appropriate monthly accounting fee for an accountant/tax accountant?
■ Documents to be given to the accountant/tax accountant office when entrusting the captain
■ Tax processing details when a self-employed person closes a business

Value Added Tax FAQs

■ Let's learn about the calculation structure of value-added tax.
■ Tax invoice = Credit card sales slip = Cash receipt for expenditure verification
■ Cases where a tax invoice does not need to be issued
■ Issuing electronic tax invoices using Hometax
■ Things to note when receiving a paper tax invoice instead of an electronic tax invoice
■ Surcharge for non-issuance or delayed issuance of electronic tax invoices
■ Issuing revised electronic tax invoices using Hometax
■ Issuance deadline for revised electronic tax invoices
■ Surcharge on revised electronic tax invoices
■ Examples of deductible and non-deductible value-added tax expenses
■ Distinguishing between credit card sales receipts registered in Hometax and purchase tax deduction
■ Is the expenditure resolution also a legally recognized document?
■ How to write a business vehicle driving log
■ Is my car eligible for a purchase tax deduction? Is my car eligible for a purchase tax deduction?
■ Tips for Determining Value Added Tax Purchase Tax Deduction
■ How to report value-added tax for Baedal Minjok, Yogiyo, and Baedal Tong
■ How to receive a tax deduction for bad debts when a business partner goes bankrupt
■ Purchase tax deduction if your home is your office

Withholding Tax FAQs

■ Income subject to withholding tax
■ Why and when is withholding tax withheld?
■ How do I report and pay withholding tax?
■ Income subject to withholding tax and income subject to comprehensive taxation
■ What happens if I don't withhold tax?
■ Income not subject to withholding tax
■ Please tell me what to do about taxes related to my salary for the past year?
■ Is the CEO's salary recognized as an expense?
■ A retired employee reported to the Ministry of Labor and received a settlement amount.
Is the cost recognized?
■ Annual leave allowance was paid to the resigning employee.
Do I have to deduct taxes?
■ Please teach me how to manage daily workers without being subject to a National Tax Service audit.
■ If I process welfare expenses, will they always be tax-exempt?
■ I paid overtime pay to factory production workers. Is it tax-free?
■ What is included in the monthly salary? What is not included?
■ How much of the research allowance paid to researchers is tax-exempt?
■ I made a mistake in calculating my retirement pay.
What should I do?
■ Could you please tell me the tax difference between the DC type (defined contribution type) and the DB type (defined benefit type)?
■ Can I treat the compensation paid to employees as business income tax?
■ How is interest between individuals and between individuals and corporations treated for tax purposes?

Comprehensive Income Tax/Expense Processing FAQ

■ Document management to prevent tax bombs
■ What is my comprehensive income tax return type?
■ If you know the calculation structure, you can see tax savings.

■ Comprehensive income tax reporting and payment by the head of the household
■ Are you required to keep double-entry bookkeeping or are you subject to simple bookkeeping?
■ Are you subject to the standard rate or the simple rate?
■ Comprehensive income tax reporting and payment by non-registered person
■ Should I hire a captain or do my own captain?
■ Scope of security when reporting weapons
■ Failure to prepare ledgers will result in a weapon storage surcharge
■ Key expense items recognized for self-employed individuals
■ Cost processing of national subsidies and Ministry of Employment and Labor support funds, etc.
■ How to prove that a family member is an employee
■ What if I get caught registering my family falsely and then paying them wages?
■ Who benefits from underreporting salaries, the boss or the employee?
■ Tax treatment of tuition support for employees' children
■ Tax treatment when the CEO goes on an overseas business trip with his/her spouse
■ Expense processing for employee gym registration fees borne by the company
■ Differences between housing and dormitories
■ Tax processing when receiving daily allowance and also receiving actual cost settlement for travel and transportation expenses as proof
■ Possibility of tax recognition of designated driving expenses
■ Tax treatment of employee certification acquisition costs or academy fees
■ Employee recruitment expenses and instructor fees payment and withholding tax
■ Can comprehensive income tax be treated as an expense?
■ Is the value-added tax that is not deductible from purchase tax recognized as an expense?
■ Can I get expense recognition for a vehicle registered under my spouse's name after registering it as company asset?
■ Can I get expense recognition for a vehicle purchased before starting a business after registering it as a company asset?
■ Does the company pay value-added tax when processing insurance claims for an accident vehicle?
■ Scope of work for business vehicles
■ Vehicles recognized as expenses even if a driving log is not prepared
■ Tax treatment when selling a vehicle used for business
■ Cost processing for group pure insurance and group refundable insurance
■ How to receive a cash receipt via mobile phone
■ Things to keep in mind when depreciating
■ Can tangible assets worth less than 1 million won be immediately expensed?
■ Can repair costs under 6 million won be immediately expensed?
■ Comparing the pros and cons of owning a car and leasing/renting a car
■ What is the limit for entertainment expenses?
■ Although it is an entertainment expense, there are cases where it is recognized as an advertising and promotional expense.

■ Things to keep in mind when paying condolence money to business partners
■ Tax treatment of childbirth and birthday congratulations
■ Why tax evasion is rarely caught
■ Things to keep in mind when spending money on the weekend
■ Food expenses for corporate representatives and private company presidents
■ Expense processing of personal cell phone subsidy
■ Employee family hospitals handle expenses for support funds
■ Processing of the CEO's 4 major insurance premium expenses
■ Processing of employee personal card usage expenses
■ Year-end settlement of employee personal card usage expenses
■ Voluntary issuance of cash receipts
■ Disadvantages of receiving unemployment benefits fraudulently
■ How to deal with negative capital

Into the book
The principle is that expenses incurred prior to the establishment of a company cannot be recognized as expenses.
However, exceptionally, usage costs within a certain period are recognized.
In order to receive expense recognition for business-related expenses incurred prior to the establishment of a company, the following conditions must be met.

· Receive a tax invoice using the representative's resident registration number, or
· Payment is only accepted if made using a credit card in the representative's name.
· Business registration must be completed within 20 days from the end of the tax period.

To convert the tax invoice issued with the representative resident registration number after registering a business to one issued with the business registration number, follow the steps below.
---From "Preparation Materials Before Establishing a Company"

If your spouse works for a company where a family member is the president and receives a salary, the spouse or family member must withhold taxes from their salary and report and pay taxes in the same manner as regular workers (employees who are not family members).
In addition, the president plays a role in reducing taxes by recognizing family salaries as necessary expenses when reporting and paying comprehensive income tax.
However, one thing to be careful about is that spouses or family members should not be paid differently from other employees in the same position or performing the same job.
In other words, if they are doing the same job, the salary should be the same as that given to a third-party employee, rather than being given more because they are family members.
As a result, it means that even family members should be paid in the same way as they would pay salaries to others.
If family labor costs are included, the family members who are the owners will see their expenses increase, which will reduce their actual taxable income, and since the profits will be distributed to the amount used for those expenses, taxes will be saved.
Many business owners try to reduce their taxes by deducting family payroll expenses, but often give up due to the hassle of paying the four major insurance premiums and maintaining accounting records.
---From "Family Company"

Illegal expense processing is possible in many expense categories, and it is nearly impossible for the National Tax Service to uncover all of them.
Especially for items that can be used by companies, it's woefully inadequate in terms of personnel and budget to investigate each and every expense individually, whether it's for business or domestic use.
Therefore, a significant number of cases rely on tax evasion reports.
The same applies even if you use a corporate card for personal purposes.
It is difficult to detect even if you pay for home appliances such as computers or refrigerators with a corporate card and then process it as a corporate expense.
---From "Even if you evade taxes, you won't get caught"

Bookkeeping refers to recording in a ledger, and it refers to organizing the company's sales/purchase details in the ledger and managing them.
If you hire a tax agent, the agent will handle tasks such as monthly bookkeeping and documentation management, reporting of personnel expenses (withholding tax), issuing various civil affairs documents, final accounting, reporting of the four major insurances, and tax consultation.
At this time, the management cost is called the base fee.
It can be assumed that the base fee usually includes the labor cost report and value-added tax report.
On the other hand, a separate filing fee called an adjustment fee is charged for the annual comprehensive income tax or corporate tax filing.
The base fee may vary slightly depending on the region, industry, import amount, and whether or not labor costs are reported.
The table below is for reference only and is not absolute as it may vary depending on the situation.
For example, franchisees sometimes receive lower fees because they manage many businesses in a single tax office.
For small business owners, the National Tax Service's Hometax is constantly being updated to allow direct filing, so it's a good idea to try it out yourself and decide on a method.
---From "Are you using the bowl of the captain's fee?"

1. Value-added tax must be reported and paid within 25 days from the last day of the month in which the business was closed.
2. For real estate rental businesses, the date of transfer of real estate becomes the date of closure.
3. Since goods such as inventory remaining upon closure of business are considered self-supplied, the market price of the remaining goods must be included in the tax base and value-added tax must be paid upon closure of business (10 years for buildings, 20 taxable period/2 years for other assets, 4 taxable period? Check whether the taxable period has elapsed).
4. There is no obligation to pay value-added tax in the case of closure of a business through a comprehensive business transfer, where only the management entity of the business is changed and the rights and obligations related to the business are comprehensively transferred. The reason for closure is to be stated as “closure by transfer” and the “comprehensive business transfer contract” must be attached when reporting the closure.
---From "Closing Business Procedures"

Meal expenses/company dinner expenses for corporate business owners
Deduction: Purchase tax deduction for employee welfare purposes
Non-deductible: Entertainment expenses for business partners, etc. Nature: Non-deductible for purchase tax. Meal expenses for CEO: In theory, purchase tax deductible (principle)
In practice, there are tax agents who handle it as a non-deduction.
entertainment expenses
Deduction: Purchase tax on advertising and promotional expenses for the general public and employee welfare expenses for employees is deductible.
Non-deduction: Non-deduction of purchase tax on entertainment expenses and similar expenses such as social expenses, confidentiality expenses, and gift money.
Acquisition cost of non-commercial passenger vehicles
Deduction: Light vehicles with an engine displacement of less than 1,000 cc, two-wheeled vehicles with an engine displacement of less than 125 cc, passenger vehicles (with 9 or more passengers), trucks such as Labo and Damas that are passenger vehicles
Non-deduction: Passenger vehicles (8 seats or less) subject to individual consumption tax are not subject to purchase tax deduction.
---From “Deduction and Non-deduction of Value Added Tax in Expenses”

In tax law, a representative example of evidence is a tax invoice.
Separately, invoices and credit card sales slips.
Cash receipts for expenditure verification, giro forms used as tax invoices, and withholding tax receipts for labor costs are recognized as evidence by tax law.
If you are a true beginner who doesn't even know the basics of taxes or accounting, you should develop the habit of collecting receipts before spending money, whether you go somewhere or start a business and have to work right away.
How do I file a complaint without even knowing the accounting title? What documents does the company require for accounting work? Instead of worrying, I need to make sure I have all the supporting documentation.


Looking at the company's business registration certificate, our company
1 First, know where you fall under the Value Added Tax Act.
2. You must understand the types of evidence that can be accepted under tax law.
In particular, management of entertainment expenses is important, so manage them with care.
---From "The Easiest Way to Avoid Tax Bombs: Document Management"

There are two ways to report and pay income tax: withholding tax and comprehensive income tax reporting.
Here, withholding tax refers to a method in which a withholding agent deducts a certain amount of tax from the payment amount in advance when paying the price and then reports and pays the tax on behalf of the withholding agent.
On the other hand, comprehensive income tax is a method of reporting and paying taxes by adding up all income for one year, rather than concluding all tax obligations with withholding tax.
Therefore, even if taxes are paid through withholding tax on income subject to comprehensive income, this is only an advance payment of taxes that should be paid as comprehensive income, and taxes must be settled again later by adding them to the comprehensive income tax.
In this way, paying taxes in advance that must be reported and paid as comprehensive income tax anyway is called prepaid tax, and withholding tax (interim prepayment tax and occasional assessment tax are also considered prepaid tax along with withholding tax) falls under this category.
Comprehensive taxation, as shown in the table above, is calculating comprehensive income by adding up all income, excluding income subject to withholding tax, from interest income, dividend income, business income, earned income, pension income, and other income.
And in relation to comprehensive income tax reporting, there is reporting by bookkeeper, which is reporting based on the books after the books are prepared, and reporting by estimate, which is reporting by estimating the income and expenses of a business owner because the income and expenses cannot be accurately known due to the absence of books.
---From "Comprehensive Income Tax Return"

personnel expenses
Only labor costs for which tax has been reported can be treated as expenses.

And if you pay your salary in cash instead of through a bank account, you must keep a payroll ledger.
Spouse's labor costs
Spouse's wages can be treated as earned income and thus expensed.
However, you must secure evidence of actual work provided (work records and work logs, salary transfers, and the four major insurance and income tax reporting documents, etc.).
In this case, if the spouse also pays the 4 major insurance premiums, it is recognized as an expense.
4 major insurance premiums
Among the four major insurances, the employee portion can be treated as an expense.
However, among the four major personal insurance premiums of the CEO, health insurance premiums can be treated as expenses, but national pension is not treated as expenses but as pension income deduction when filing a comprehensive income tax return after processing withdrawals.
Food expenses
Instead of exempting employees from tax on their 200,000 won meal expenses, providing meals is recognized as an expense.
The cost of the cafeteria is recognized as an expense.
However, the principle is that the president's own meal expenses are not treated as expenses.
However, please note that some tax agents, excluding one-person companies, include the CEO's meal expenses in the employee meal expenses and treat them as expenses.
---From "Personnel Expenses for Individual Business Owners"

Publisher's Review
· Do you feel like you are handling the company's expenses?
· Or do you spend hours searching Naver?
· Is there anything you have not done that should have been handled as security?
· Have you ever processed something that should not have been processed as an expense?
· If you do not pay the expenses that should have been paid, you will end up paying more taxes that you do not need to pay.
· If you process expenses that should not have been processed, you will pay less tax and incur a loss by paying a surcharge.
· Just as there is a measure when cooking food,
· Taxes must be levied exactly to avoid any problems.
· There are many customers at restaurants that don't taste good who just pay and leave without saying a word.
· But that guest will never come again.
· As time goes by and someone tells me that the food is not tasty, I start to think about the taste of the food at my house.
· You will find out why there have been no guests for a while.
By then, it was time to close the restaurant.
· If you handle your taxes incorrectly, you are like a traveler who passes by without any problems today or tomorrow.
· However, the moment a mistake is discovered, the company may be shut down.
· Why! Why didn't you tell me sooner?
· Because you didn't know? Even if I told you, you wouldn't listen because you were concerned about immediate gain. Isn't that what you're saying, boss?
· Incoming guests are welcome, but outgoing taxes are a pain in the ass.
· Shouldn't we save even a little bit of those bloody, tearful taxes?
· Shouldn't we at least save the time we spend searching Naver for hours because we don't know?
· Self-employed family-run business! Don't waste hours searching for something you don't need, when you're short on hands.
· I hope you can make a lot of money by starting a business with basic tax knowledge.
· At least I hope that no one suffers any loss due to ignorance.
president!
GOODS SPECIFICS
- Date of issue: January 22, 2025
- Page count, weight, size: 384 pages | 153*224*30mm
- ISBN13: 9791190819329
- ISBN10: 1190819325

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