Korea has increased noncompliance penalties on transfer pricing documentation requirement. Taxpayers who fail to file a Combined Report of International Transactions (CRIT) or file false information are subject to penalties of KRW10 million (US$9,000) per documentation.
Pursuant to the 2018 Tax Reform, the penalties have been increased to KRW30 million (US$27,000) per documentation. The amended law is effective for noncompliance of transfer pricing documentation requirement from 13 February 2018.
