The Temporary Investment Tax Credit has expired and other tax liberalization plans have been scrapped because of a reduction in tax receipts by the government and political issues that have arisen because of the the upcoming elections in Korea. Please see the list of article below.
We suspect, if the conservative Saenari Party controls the National Assembly and the Presidency, after the upcoming elections, the previously promised tax reduction measures will be re-passed by the Korean National Assembly within the next couple of years.
Korea has decided to main the Tax Credit for Investment in Facilities and Industrial Equipment. The credit equals between 3% to 4% of the amount of the investment in industrial equipment and facilities. An additional 2% to 3% credit is available based on the number of new jobs created by the investment.
Additionally, Korea expanded the industries available for investment in free trade zones (only available for foreign capital-investment companies) and the scope of activities available for research and development credits.
Recent posts on Korean Tax Law:
- Korea Tax Tribunal on the Adjustment of Value of Imported Goods and Transfer Pricing
- Tax Qualified Mergers in Korea
- Korean Individual Income Tax Rates: Incomes Taxes Rates on the Rise in Korea
- Korean Corporate Tax Rates: Corporate Taxes to Rise in Korea
- Korea Islamic Bond Tax Bill is Doomed because of Fundamentalist Christians
- Tax Exempt Foreign-Denominated Bonds in Korea Coming to an End for Holders with Offices in Korea
IPG will be updating the readers of The Korean Law Blog, The Asian Law Blog and The China Law & Business Blog on updates to China, Bangladesh, Cambodia, Korea the Philippines, Vietnam tax law over the next couple of weeks on IPG’s blogs.
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- Amendment to the Korean Foreign Investment Promotion Act 2019 – Investment Incentives in Korea
- Korean Tax Incentives for 2020: Korean Tax Law Updates
- Korean Tax Law Amendment Press Release by Korean Government
- Korea prepares itself for Big Data-driven 4th Industrial Revolution: Korean Data Protection Laws Revised
- Special 20% Consumption Tax for Designer Bags Bought in Korea Suspended until 2014
- Credit Rating Agencies in Korea: Due Diligence of Your Supplier, Franchisee, Joint Venture Partner & Distributors
- Korean Waste Control Act Amendments of 2019
- The Korean Tax Law Reform Proposal of 2022
- Tax Incentives May Decrease for Foreign Companies doing Business in Korea: Tax Law Updates