Korea

Details

  • Service: Tax
  • Type: KPMG information, Publication series
  • Date: 7/30/2010

Tax Brief 2010 December 

Tax News and Trends of the NTS and tax authorities

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Ⅰ.Tax News
(1) The Ministry of Strategy and Finance’s plan to replace the ‘simplified’ tax system
(2) Greater focus on gift and inheritance tax avoidance
(3) NTS to focus their attention on high net worth individuals
(4) Severe penalties for tax professionals aiding clients evade taxes

II. Recent rulings and court cases
(1) Input-value added taxes exempt on purchasing and remodeling of buildings for certain organizations (Buga-1187, 2010.09.09)
(2) Free exports due to change of exporting goods (Buga-1186,2010.09.09)
(3) Sales in the open market due to conversion request of trust property (Buga-1177,2010.09.08)
(4) Valuation of transaction losses related to financial derivatives (Jaesan-638,2010.08.25)
(5) Income tax exemption for Special Purpose Corporations(Jaebupin-856, 2010.10.07)
(6) Value added tax application on guest houses operated by private universities (Buga-1268,2010.09.28.)


III. Tax Topic
1. Major issues arising due to the adoption of International Financial Reporting Standards
(1) Differences between IFRS and the CITL regarding inventory
(2) Major tax issue
1) Borrowing costs
2) Allocation of fixed production overheads
3) Measurement of cost
4) Standard cost method
5) Purchase and sale of primary commodities

Ⅳ. Tax Calender