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Corporate income tax returns
(1) Final corporate income tax return;
The Company is obligated to file its corporate income tax return within three months after each fiscal year end under the Korean Corporate Income Tax Law (i.e., by March 31 if fiscal year-end is December 31).
The financial statements such as the balance sheets, income statements, statement of retained earnings (or accumulated deficit), statement of cash flows and other supplementary financial schedules, in Korean language, shall be submitted to the Korean tax authorities with the yearly corporate income tax return.
(2) Corporate local income tax return
The Company is obligated to file its corporate local income tax return within four(4) months after each fiscal year end under the Korean Local Corporate Income Tax Law (i.e., by April 30 if fiscal year-end is December 31).
(3) Transfer pricing reports for the international transactions
All corporations including domestic and foreign corporations which have transaction with foreign related parties* should submit a ⌈Specification of International Transactions⌋ (Form 8, Enforcement Regulations of the Adjustment of International Taxes Act).
* Foreign related parties: a foreign party who owns 50% or more of a domestic corporation or who has actual decision-making power on the business plan.
If the amount of goods and services traded with foreign related parties is more than the specific amount*, corporations should submit a ⌈Statement of Arm's length Price Computation Method⌋ and a ⌈Summary of Income Statement of Foreign Related Parties⌋.
* The total trade amount of the year with foreign related parties: goods more than KRW 5 billion or services more than KRW 500 million (If the trade amount with each party is KRW 1 billion or less for goods or KRW 200 million or less for services, then the corporation is exempted from submitting the fore-mentioned documents related with the party.)
For the transfer pricing purpose, the NTS asks corporations to submit related documents. If a corporation fails to submit them, a penalty of KRW 30 million or less can be charged. (The article 12 of the Adjustment of International Taxes Act)
(4) Interim corporate income tax return;
In addition, the Company is required to prepare and file its interim corporate income tax return with the tax office no later than two months following the first six (6) month period under the Korean Corporate Income Tax Law (i.e., by August 31 if fiscal year-end is December 31).

The following are two alternatives in preparation of the interim corporate income tax return:
 Payment of half (50%) of prior year income tax amount:
A business entity who paid income taxes in the previous fiscal year may pay half (50%) of the prior year's income tax amount as the current interim income taxes. The merits of this alternative are simplicity of calculations and preparation of the interim corporate income tax return.
  Interim book closing:
A business entity who did not pay income taxes in the previous fiscal year because of tax losses or a business entity who expects smaller or no income tax payment for the first six month period compared to half of the prior year income tax payment may close its books of account for the first six month period and prepare financial statements such as the balance sheets, income statements, etc. as well as an interim corporate income tax return in a manner similar to the filing of a final corporate income tax return. The advantage of this alternative is the savings opportunity from underpayment/no payment of interim income taxes for the interim period. The disadvantage of this alternative is that it requires time and effort for an interim book closing and preparation of interim financial statements and an interim corporate income tax return.