South Korea: MOEF proposes tax revision bill for 2019
On 25 July 2019, South Korea’s Ministry of Economy and Finance (MOEF) has issued an overview of the proposed 2019 Tax Revision Bill to raise tax credit rate for corporate facility investments, R&D. The bill mainly focuses on boosting the
See MoreKorea Rep. enacts tax reform bill for 2019
On 24 December 2018, Korea enacted the 2019 tax reform bill after it was passed by Korea’s National Assembly on 8 December 2018. The 2019 Tax Reform also includes provisions in line with the OECD BEPS Action Plan 7 among others. The 2019 Tax
See MoreKorea: MOEF proposes tax revision bill for 2018
On 30 July 2018, South Korea's Ministry of Economy and Finance (MOEF) has issued an overview of the proposed 2018 Tax Revision Bill for strengthening social welfare and bringing about redistribution of income, promoting job creation and growth
See MoreKorea announces tax law amendments proposal for 2019
On 30 July 2018, the Ministry of Strategy and Finance (MOSF) announced its proposed tax law amendments proposal for 2019. This rule will be effective as from tax years beginning on or after 1 January 2020. The summary of the tax amendments proposal
See MoreSouth Korea: National Tax Service publishes notice on recent changes in transfer pricing rules
On 2 April 2018, the South Korean National Tax Service has published a notice on certain changes including arm's length price determination and APA procedures. In determining the arm's length price, non-price transaction terms are also taken into
See MoreKorea: Imposed limitation on expense deductions relating to hybrid financial instruments
The 2018 Tax Reform introduces a limitation on deductible expenses relating to hybrid mismatch arrangements as a commitment to implement the hybrid mismatch rules recommended by the Organisation for Economic Co-operation and Development’s. The
See MoreKorea: Increased noncompliance penalties on transfer pricing documentation requirement
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
See MoreKorea: Important changes in tax rules
The Korean Ministry of Strategy and Finance released amendments to the tax law on 13 February 2018. Key changes are following: The withholding tax rate will increase from 17% to 19% on the amount of compensation paid to hiring foreign entities.
See MoreOECD: Third round of peer reviews on dispute resolution mechanisms
On 12 March 2018 the OECD released the third round of peer reviews relating to improving tax dispute resolution mechanisms to make them more timely, relevant and effective. Action 14 of the action plan on base erosion and profit shifting (BEPS) was
See MoreKorea: Government Postponed Reduced Exemption Threshold for Withholding of Capital Gains Tax
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
See MoreCzech Republic: DTA signs with Korea (Rep.)
A treaty was signed on January 12, 2018, between Czech Republic and Korea (Rep.) for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion. It will replace the existing double tax agreement after being
See MoreKorea Rep OF: Legislation of Tax Reform Bill 2018
On 19 December 2017, Korea passed the 2018 Tax Reform Act (the 2018 tax reform) after it was passed by the Korean National Assembly on 5 December 2017. The tax reform 2018 contains provisions in line with the BEPS Action 2 and Action 4 of the OECD.
See MoreKorea, Republic Of: Redesigning of graphical warnings on cigarette packs
As stated by the Health Minister of the country, South Korea will bring in changes on graphical warnings on cigarette packs commencing from December, South Korea has already been mentioning about graphical warnings to Tobacco companies since 2016.
See MoreKorea: Free Trade Agreement (FTA) lending a helping hand to strengthen Australian Exports
After the KAFTA (Korean-Australian Free Trade Agreement) coming into action since 12th December, 2014 enabling the Korean FTA chipping in to boost the Australian exports, it has been a sheer class of masterstroke which has immensely uplifted the
See MoreKorea passed the budget for 2018
The Government passed the 2018 budget on 6 December 2017. Under the budget, the threshold of the new highest corporate income tax rate of 25% has been increased from KRW 200 billion to KRW 300 billion. A 10% local income tax surcharge is also
See MoreKorea: National Assembly set to increase e-cigarette taxes
On 20 October 2017, the Assembly Strategy and Finance Subcommittee of Korea passed a revised bill to increase the excise tax levied on a pack of 20 heat-not-burn (HNB) e-cigarettes sticks to 529 won from the current 126 won. The tax increase will
See MoreDTA between Iraq and South Korea signed
On 23 August 2017, the Council of Ministers of Iraq has authorized to sign a revised Double Taxation Agreement (DTA) with South
See MoreKorea: 2017 tax reform proposals announced
The government of South Korea is planning to increase the tax rate for large companies and high-earning individuals with the hope of reducing inequality. With this aim, Korea’s Ministry of Strategy and Finance announced the 2017 tax reform
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