Are duct/ventilation cleaning costs or waste oil disposal costs deductible?
Yes. Regular duct/ventilation cleaning needed to keep the business running, and waste disposal fees for grease and oil residue, are both business-related expenses that are fully deductible at the time they're incurred. Grilling equipment like ventilation fans, duct systems, and roaster/grill tables is classified as a depreciable asset once a single transaction exceeds 1 million KRW and must be expensed over its useful life, while wages for dine-in servers and kitchen assistants are subject to withholding tax filing and payment statement submission.
The Most Confusing Part — Meat Cost Ratios and Ventilation Management
With such a high purchase-to-sales ratio, documentation management translates directly into profitability
With such a high meat purchase ratio, documentation is essential
BBQ restaurants have a very high meat cost ratio relative to sales. Be sure to collect a bill or card receipt with every purchase from a livestock wholesaler, so you don't miss either the deductible expense or the deemed input tax credit.
Livestock products qualify for the deemed input tax credit too
If you purchase tax-exempt livestock products like beef and pork to cook and sell, you can claim the deemed input tax credit. Individual restaurant operators get a preferential 9/109 credit rate for the portion of their taxable base up to 200 million KRW.
Income Structure of BBQ & Grill Restaurants
Key Expense Items
Must-Read for BBQ & Grill Restaurant Owners
Split Your Grilling Equipment & Meat Purchases by Type to Save on Taxes
From ventilation equipment to meat purchase documentation, categorizing each item correctly cuts unnecessary tax
Long-Term Fixed Assets — Depreciable Equipment
Ventilation equipment: kitchen/dining room fans, duct systems
Grilling equipment: roaster/grill tables, exhaust hoods
Storage equipment: dedicated refrigerated meat storage
If a single transaction exceeds 1 million KRW, it's classified as a depreciable asset and must be expensed over its useful life.
Meat & Supplies — the Heart of the Deemed Input Tax Credit
Meat purchase costs (beef, pork, etc.), charcoal, gas, grill plates, and tongs are fully expensed at the time of purchase, and tax-exempt livestock products also qualify for the deemed input tax credit as long as you have documentation.
Personnel Service Costs — Dining Room & Kitchen Wages
Dine-in servers and kitchen assistants require withholding tax filing (by the 10th of the following month) and a payment statement submission, regardless of hours worked.
Waste & Facility Management Costs
Waste disposal fees for grease and oil residue, and regular duct cleaning costs, are business-related expenses that are fully deductible at the time they're incurred.
| Category | Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Ventilation/ducts, roaster table, refrigerated meat storage | Depreciate if over 1 million KRW |
| Meat & supplies | Meat purchase costs, charcoal, gas, grill plates | Fully deductible at purchase, deemed input tax credit |
| Personnel services | Dine-in servers, kitchen assistants | Withholding tax filing, payment statement submission |
| Waste & facility management | Grease/oil disposal, duct cleaning | Immediately deductible |