Korea

Details

  • Service: Tax
  • Type: KPMG information, Press release
  • Date: 5/22/2012

Tax Brief 2012 January 

 
Download Now
PDF files require Adobe Reader to view

I. Tax Trend
Taxation on the “Kimchi bond”, 14% of tax to be assessed on the interest income from next year

The National Assembly debating the proposed tax policy intended to prevent passing on business to affiliates for tax evasion purposes

National Tax Services assess additional tax of KRW 120.6b from businesses committing tax avoidance

 

II. Recent Rulings
(1) R&D tax credit related to expenses incurred by outsourcing development activities to a foreign company
(JaeJoTeuk-986, 2011.10.28)

(2) Tax treatment on pension contribution of
executives (BeopIn-809, 2011.10.26)

(3)Treatment of telephones and personal computers (BeopIn-714, 2011.09.28)

 

III. Tax Topics
Major tax issues from the adoption of IFRS

Deductibility of ‘future claim survey fee’ reserves (Article 57 of the Presidential Decree of Corporate Income Tax Act)

Recognition of the realized gain or loss on the foreign currency translation on the foreign currency risk insurance (Article 73 of the
Presidential Decree of Corporate Income Tax Act)