Korea decides against lowering ownership threshold for withholding of capital gains tax for foreign investors. Under the rule, if a foreign investor together with its related parties owns less than 25% stake in a locally listed company, capital gains derived from share sales by the foreign investor are exempt from Korean tax.
The Korean Ministry of Strategy and Finance (“MOSF”) issued an official announcement for the amendment of the Presidential Decree of Korean tax laws in January 2018. According to that the reduction of exemption threshold to 5% was proposed to be effective from July 1, 2018.
