South Korea: mergers and acquisitions activity and rental market
South Korea’s Deputy Prime Minister and Minister of Strategy and Finance presided over a Ministerial Meeting on the Economy on March 5 that discussed tax measures to stimulate mergers and acquisitions (M&A) in South Korea and to fine-tune
See MorePeru signs DTA with South Korea
Peru completed its domestic ratification procedures on February 27, 2014, in respect of the double taxation agreement (DTA) with South Korea. The treaty was signed on 10 May 2012 and will enter into force when both countries have completed their
See MoreSouth Korea: reducing stock option taxation
South Korea announced measures on 5 February 2014 to ease the tax burden on stock options for the venture capital and start-up sector. Early this year, the Government finalized a range of tax incentives, which were first announced in May 2013, to
See MoreSouth Korea and India will upgrade CEPA and revise DTA
South Korean President and India’s Prime Minister agreed on 16 January 2014 to upgrade their comprehensive economic partnership agreement (CEPA) and make effective a revised double taxation agreement (DTA) between the two countries. It is reported
See MoreTax credits for creating job in South Korea
The government of South Korea is planning to give more tax incentives to corporate and personal financing in culture and leisure activities like libraries, museums, art galleries and performance in theaters. An additional tax credit of 3 % will be
See MoreProperty tax cut of South Korea
The government of South Korea has decided that the tax cut on home purchases will become effective from 28 August 2013. The tax cut was previously scheduled to come into effect from 1 January 2014. The government has proposed to permanently reduce
See MoreKorean Budget Proposal for 2014
The Ministry of Strategy and Finance (MOSF) of Korea (Rep.) released the Budget 2014 proposal on 27 September 2013. The tax measures in the budget proposal include in the local government consumption taxes to 8% in 2014 and 11% from 2015. According
See MoreProtocol and exchange of letters entered into force to treaty between Korea (Rep.) and Luxembourg
The amending protocol and exchange of letters, which was signed on 29 May 2012, the Income and Capital Tax Treaty between Korea (Rep.) and Luxembourg, entered into force on 4 September 2013. The protocol generally applies from 4 September
See MoreKorea (Rep.): Tax Revision Bill 2013 approved
The Ministry of Strategy and Finance of Korea (Rep.) approved the Tax Revision Bill 2013 on 26 September 2013 with various changes. The Tax Revision Bill 2013 will mostly take effect from 1 January 2014. According to the approved bill receipts will
See MoreSouth Korea- Planning of Acquisition Tax Cuts
The South Korean Government announced on 30 August 2013 that the tax rates on home purchases would be decreased in order to encourage a rise in transaction numbers. An exemption from property acquisition tax was granted in April 2013, but the
See MoreKorea: Foreign exchange profit taxable as dividend income
Korea’s high court has issued a judgment in a case where a taxpayer received an amount less than the principal investment on the sale of participations in Japanese funds, which was offset to some extent by foreign exchange gains from the strength
See MoreKorea: Update on rules for application of arm’s length standard to head office–branch transactions
Korea’s Ministry of Strategy and Finance has issued new regulations to clarify the method for calculating domestic-source income from intra-company transactions between a foreign head office and its Korean branch. This follows the passing of the
See MoreKorean government releases revised tax reforms enforcement ordinance
The Ministry of Strategy and Finance (MOSF) on 17 January 2013 announced that the revised tax reforms enforcement decree would be released in mid-February. This decree will provide for the enforcement of amendments made to a number of tax laws,
See MoreSouth Korea Plans to Raise Minimum Corporate Tax Rate
On 2 August 2012 it was reported that, following a policy meeting between the South Korean government and the ruling Saenuri Party, it is planned to increase the minimum corporate tax rate payable by the largest companies. At present, companies in
See MoreExpansion of Preferential Tariffs in South Korea
With effect from January 1, 2012 a further expansion of its tariff exemption programme for products from least-developed countries (LDCs) has been announced by the South Korea’s Ministry of Strategy and Finance. Mostly 250 items of agricultural,
See MoreLower Corporate Taxes Committed by the South Korean Government
The Finance Ministry of South Korea agreed to the government’s long-standing plan to reduce corporate taxes from next year. The government is expected to lower the rate of corporate tax on businesses from the current 22% to 20% for a taxable
See MoreFTA with Peru has been approved by the South Korean Parliament
South Korea’s National Assembly has ratified the bilateral free trade agreement (FTA) between South Korea and Peru after previously being passed by the foreign affairs and trade committee. It was signed on March 21 in Seoul. Except for a few
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