https://barun-tax.com/en/tags/korea-entertainment-expense-limit/Recent content in Korea Entertainment Expense Limit on Barun Tax & AccountingHugoen-USSun, 25 Oct 2026 00:00:00 +0000https://barun-tax.com/en/blog/2026-10-25-corporate-year-end-closing/Sun, 25 Oct 2026 00:00:00 +0000https://barun-tax.com/en/blog/2026-10-25-corporate-year-end-closing/<p>Corporate tax is calculated from your books after the fiscal year ends, but whether an expense counts as deductible is largely decided <strong>before December 31</strong>. Once the year changes, there is less you can do about suspense payments (가지급금) to the CEO, the basis for executive bonuses and severance pay, retirement pension contributions, and the entertainment expense (기업업무추진비, formerly 접대비) limit. In particular, for fiscal years starting on or after January 1, 2026, the corporate tax rate rose by <strong>1%p in every bracket</strong>. A company with a December year-end applies the higher rate to this year&rsquo;s income, which is filed in March 2027.</p>