Korea

Details

  • Service: Tax
  • Type: Publication series, Regulatory update
  • Date: 1/31/2016

Tax Brief 2016 January 

English version of tax update for foreign companies.
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Subsequent Amendments  to Enforcement Decree following 2016 TaxAmendments

 

1. Restriction of deductible expenses for work­ related car (Article 50-2 and 106 of Enforcement Decree of Corporate Income Tax Act ("CITA"), Article 78-3 of Enforcement Decree of Income Tax Act ("ITA"))

 

2. Support for corporations establishing a holding company (Article 35-3 of Enforcement Decree of Restriction of Special Taxation Act)

 

3. Support for domestic corporations' restructuring (Article 84 of Enforcement Decree of CITA)

 

4. Expansion of scope of majority stockholders subject to capital gains tax (Article 157(4) of Enforcement Decree of ITA)

 

5. Establishment of conditions for deemed donation of profit of shareholders of a benefit receiving corporation generated from business opportunities provided by a related party (Article 34-3 of Enforcement Decree of Inheritance and Gift Tax Law)

 

Recent Tax Rulings and Court Cases


1. If donation of shares is made to a corporation not in a loss position, gift tax will not be imposed to a shareholder of a corporation receiving the shares


2. If foreign private equity fund is considered a foreign investment scheme, a tax treaty is applicable to investors of the fund