Liaison Office VS PE
The conditions for a liaison office to be regarded as a permanent establishment of Korea

In case when a liaison office of a foreign company meets the following conditions, it is regarded as a Permanent Establishment of Korea. In this case, the liaison office should register as a business, file a tax return and pay the related taxes

[Conditions for being treated as a Permanent Establishment]

A. Existence of a place of business


B. Fixed place of business


C. Performing business activities


Existence of a place of business

A business place generally means a building, facilities, plants, etc. However, if a foreign corporation simply has a certain amount of space as its disposal, then it is deemed to be a place of business.
* Examples: A booth in the market, bonded warehouse, sited owned by the other corporation, hotel rooms etc.


Fixed place of business

Fixed means the length of period in terms of continuity. Therefore, this condition of “fixed” is met even when a liaison office performs the business activities by moving around different places within Korea (e.g., river surveying) as long as the business activities are continued for a certain period.


Performing business activities

The main business activities of the corporation should be performed through the fixed place of business, It is not required that the business activities be performed by a personnel, thus the business activities may include the services provided by a machine (e.g., vending machine)

  • Compandben SA
  • High Street Partners
  • Time of submission
  • Seoul Global Center
  • Knowing about Korea
  • National Tax Service
  • Minstry of Labor
  • National health Insurance
  • National Pension Service
  • Compensation & Welfare Service