How to switch tax accountants in Korea: steps and what to prepare when moving your bookkeeping

For foreign nationals: some of these rules apply differently depending on whether you are a resident or a non-resident for Korean tax purposes. Check your residency status before relying on this article.

You can change your tax accountant (bookkeeping agent) at any time. The tax office does not view a change unfavorably. There are 3 steps: sign with the new firm, approve the new agent in Hometax (홈택스), then collect the prior books and filings. The best time to switch is right after you finish a filing.

Why people switch tax accountants

They are hard to reach, or answer questions slowly
They ask for all your documents at once right before a filing, and do not tell you the expected tax in advance
The staff member in charge changes often, so you explain everything from scratch each time
Your business has grown and now needs something the current firm cannot handle, such as incorporation, employee payroll or overseas transactions

If these problems keep happening, switching is the better choice. The business owner chooses the tax agent, so you do not need the previous firm’s consent.

The 3 steps to switch tax accountants

Step	What to do	Who
1. Contract	Tell the new firm your business type, revenue, number of employees and the services you need, then agree on the scope of work and the fee and sign	Business owner and new firm
2. Approval	The new firm registers as your agent in Hometax, then you approve it	New firm registers, business owner approves
3. Records transfer	Collect the books and filing records from the previous firm	Often requested by the new firm

Tell the previous firm that you are switching and which filing period is the last one they will handle. First check your contract for a termination notice period or a remaining commitment term.

Records to collect from the previous tax accountant

The new firm needs past records to continue your books.

Past returns: value-added tax (VAT), comprehensive income tax or corporate tax, and withholding tax
Books such as financial statements and account ledgers
Fixed asset and depreciation schedule
Details of net operating loss carryforwards
Payroll register and four major social insurance records (if you have employees)

With these records, balances such as bank accounts, receivables and loans match the previous books, and loss deductions and depreciation continue without a gap.

Best timing: right after you finish a filing

Business type	Best time to switch	Why
Individual general taxpayer	Right after the VAT final return in January or July, or right after the comprehensive income tax filing in May	The previous firm has finished filings for that period, so the new firm continues from the next period
Corporation (December year-end)	Right after the corporate tax filing in March	Closing the books and tax adjustment are done, so there is nothing to split

If you switch just before a filing deadline, the deadline gets tight while the records are being handed over. If a deadline is already close, first agree with both firms on who will handle that filing.

What to check before switching

Scope of work: Whether VAT, withholding tax, four major social insurance and year-end tax settlement are included in the bookkeeping fee, and whether the year-end closing and filing fee (adjustment fee, 조정료) is charged separately
Fee: The monthly bookkeeping fee and the total for one year (monthly bookkeeping fee × 12 + adjustment fee)
How to contact them: Who you contact, through which channel, and how quickly they reply

When you can do it yourself · When to hand it over

You can handle it yourself if

Your transactions are simple, you plan to keep the books yourself, and you only need to keep your prior returns

Better to hand it over if

You can hardly reach your current accountant, or they ask for your documents only right before a filing
A filing deadline is close and you need the prior records quickly
You suspect deductions or expenses were missed in past filings

Barun Tax & Accounting handles bookkeeping takeovers for foreign residents and foreign-owned companies, including collecting books and filings from the previous accountant. We reply to emails within one business day. contact@barun-tax.com · KakaoTalk · +82-10-2701-6199

Frequently asked questions

Is there a penalty for changing tax accountants midway?

No. The business owner chooses the tax agent, so you can change at any time, and the tax office does not view a change unfavorably. The only thing to check is whether your contract with the previous firm has a remaining term or a termination notice period.

When is the best time to switch tax accountants?

Right after you finish a VAT, comprehensive income tax or corporate tax filing. The previous firm has completed filings through that period, so the new firm can simply continue the books from the next period. If you switch just before a filing deadline, handing over the records takes time and the deadline gets tight.

What should I get from the previous tax accountant?

Past returns (VAT, comprehensive income tax or corporate tax, and withholding tax), books such as financial statements and account ledgers, a fixed asset and depreciation schedule, and details of net operating loss carryforwards. The new firm needs these to continue your books so that the balances match.

Is there anything I need to do in Hometax?

When the new firm registers as your agent in Hometax (홈택스), you must approve it before the firm can look up your filing data. The new firm will explain how to approve.

This article is general guidance based on Korean tax law as of the date written. It is not tax advice for your specific situation. Please consult us before acting on it.

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