• Service: Tax
  • Type: KPMG information, Press release
  • Date: 8/29/2012

Tax Brief 2012 August 

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I. Tax Trend

The National Tax Service (“NTS”) to focus resource capacity on investigation of cross-border tax evasion

Revised Korea-Switzerland Tax Treaty Effected on July 25, 2012


II. Recent court cases and tax rulings
(1) After debt-equity swap, whether tax deduction related to bad debt is claimable by tax reassessment (Beopgyubuga 2012-253, 2012.06.28)
(2) Classification of income paid by LLC in the US invested by a taxpayer (Kookjesewon -325, 07/06/2012)
(3) NTS imposed penalty (20%) in respect to unfilled inheritance tax for the property donated in advance (Choshim 2012 Seo
1142, 07/20/2012)


III. Tax Topic
SMEs (small and medium-sized enterprises)
(1) Tax credit for investments by SMEs (TILL Article 5)
(2) Tax reduction for start-up SMEs (TILL Article 6)
(3) Special tax reduction for SMEs (TILL Article 7)

Application of grace period due to policy revision or company size expansion