South Korea implements tax reforms including deferring UTPR to 2025 

February 05, 2024

South Korea has implemented various tax changes as part of the 2024 tax reform measures passed by the parliament in late 2023. The main tax measures are: The global minimum tax (GloBE) rules have been amended, with the undertaxed payment/profit

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South Korea introduces pillar 2 GMT measures and international tax response team

January 05, 2024

On 4 January 2024, South Korea’s National Tax Service released the new Pillar 2 global minimum tax (GMT) requirements. The announcement affirms the government’s intention to enforce the global minimum tax requirements from 1 January 2024. It

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South Korea approves 2024 tax reform bill and postpones undertaxed profits rule

January 02, 2024

On December 31, 2023, South Korea implemented the 2024 Tax Reform Bill (the 2024 Tax Reform) after approval from Korea's National Assembly on 21 December 2023. The 2024 Tax Reform will take effect for fiscal years starting on or after 1 January 1,

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South Korea updates pillar 2 GMT laws to incorporate OECD guidance

January 01, 2024

On 31 December 2023, South Korea issued Law No. 19928 (Partial Amendment to the International Tax Adjustment Act). The amendments pertain to the Pillar 2 global minimum tax rules South Korea introduced as part of tax reforms for 2023. The amendments

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South Korea: MOEF announce tax reform proposal for 2023

August 16, 2023

On 27 July 2023, South Korea’s Ministry of Economy and Finance (MOEF) announced the tax reform proposal for 2023. The tax reform proposal includes changes in the Korean Pillar two global minimum tax rules and transfer pricing compliance

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South Korea approves budget for 2023

January 19, 2023

On 23 December 2022, South Korea’s National Assembly approved the budget for 2023 including the tax reform proposal for 2023. Accordingly, South Korea changes the existing tax-related measures including transfer pricing measures. The key tax

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South Korea exempts taxes on government bonds for non-residents

October 24, 2022

On 17 October 2022, South Korea’s Ministry of Economy and Finance (MOEF) announced an exemption from tax on interest income derived from government bonds and monetary stabilization bonds. This exemption is temporary and will be applicable from 17

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South Korea: MOEF announce tax reform plan for 2022

July 26, 2022

On 21 July 2022, South Korea’s Ministry of Economy and Finance (MOEF) announced the tax reform plans for 2022. The aim of this plan is to enhance corporate competitiveness, reinforcement of tax support for jobs and investment, support smooth

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South Korea: NTS updates MAP guidance

July 08, 2022

On 30 June 2022, South Korea’s National Tax Service (NTS) has issued updated Mutual Agreement Procedure (MAP) guidance on the official website. The guidance prescribes the following key areas: Overview of MAP; Application of MAP;

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South Korea: Government proposes to lower CIT rate to 22%

June 19, 2022

On 16 June 2022, South Korea's Government proposed to lower the corporate income tax (CIT) rate from 25% to 22% to stimulate corporate investment through the new economic policy direction.  The carry forward loss system is also revised. In order to

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South Korea enacts tax revision bill for 2022

January 18, 2022

In December 2021, South Korea has enacted a tax revision bill for 2022 which was passed by Korea’s National Assembly on 2 December 2021. The tax revision bill is generally effective from fiscal years beginning on or after 1 January 2022. The

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Korea: MOEF proposes Tax Revision Bill 2021

August 09, 2021

On 26 July 2021, South Korea’s Ministry of Economy and Finance (MOEF) has issued an overview of the proposed Tax Revision Bill 2021 to support new industries and employment, as well as inclusive growth. The Tax Revision Bill 2021 includes the

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South Korea enacts tax revision bill for 2021

January 25, 2021

At the end of December 2020, South Korea has enacted a tax revision bill for 2021, which was passed by Korea’s National Assembly on 2 December 2020. The tax revision bill generally effective from fiscal years beginning on or after 1 January 2021.

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South Korea postpones the enforcement of a lower threshold for capital gains tax

November 10, 2020

On 3 November 2020, South Korea has decided to postpone the enforcement to lower the standard for large shareholders subject to stock capital gains tax to KRW 300 million. At present, a shareholder who owns more than KRW 1 billion is considered

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South Korea: NTS releases updated MAP guidance

October 28, 2020

On 20 October 2020, South Korea's National Tax Service (NTS) has released updated Mutual Agreement Procedure (MAP) guidance on the official website. The guidance prescribes the following key areas: Overview of a Mutual Agreement Procedure

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South Korea: BEPS multilateral instrument (MLI) enters into force

September 10, 2020

On 1 September 2020, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) entered into force for South Korea. South Korea deposited its ratification instrument on 13 May

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South Korea: National Tax Service investigates MNEs tax evasion

September 03, 2020

On 27 August 2020, the South Korean National Tax Service has announced that it has initiated a tax audit on 21 multinational enterprises (MNEs) suspected of cross-border and committing tax evasion and 22 offshore tax evasion suspects, including

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Korea: MOEF proposes Tax Revision Bill 2020 amid COVID-19

July 28, 2020

On 22 July 2020, South Korea’s Ministry of Economy and Finance (MOEF) has issued an overview of the proposed Tax Revision Bill 2020 to overcome the economic crisis and enhancing economic vitality due to COVID-19 pandemic. The three main focuses

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