South 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
See MoreKorea: Recent developments on corporate taxation
With the aim of encouraging the development of new growth-engine industries, reinforcing employment-friendly tax schemes, and facilitating corporate restructuring, a few amendments that affect foreign investment or foreign invested companies have
See MoreKorea: Country-by-Country reporting requirements and transfer pricing rules updated
The Tax Authority of Korea introduced new forms for country-by-country (CbC) reporting and for the advance notification for recognizing the company of a multinational group as the “reporting entity.” A Master file as well as a Local file will
See MoreDTA between Kenya and Korea (Rep.) enters into force
The Double Taxation Agreement (DTA) between Kenya and Korea (Rep.) was entered into force for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income on 3 April 2017. This treaty will apply from 1
See MoreKorea (Rep.), Singapore Competent authority agreement on automatic exchange of information enters into force
The Competent Authority Agreement on Automatic Exchange of Information (2016) between Korea (Rep.) and Singapore entered into force on 27 February 2017. The agreement is expected to make sure Korea (Rep.) and Singapore will be able to begin from
See More