The main, facial, purpose of the amendment was to harmonize this punitive consumption tax with the punitive consumption taxes imposed on other “luxury” goods such as designer watches, furs, and jewelry.
Hopefully, the committee will consider amending the tax law to scrap all punitive taxes. These taxes are simply leading more to choose foreign destinations for their luxury good purchases.
We are hopeful that the Park Administration will strive to decrease taxes and regulations that are assisting in forcing more Korean and international companies and consumers to consider other more tax-friendly destinations for investment and discretionary spending.
Article amended to include the suspension of special tax until 2014.
Sean Hayes may be contacted at: [email protected]
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the only non-Korean to have worked as an attorney for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- 17 Percent Flat Tax for Foreign Nationals Residing in Korea: Korean Tax Amendments for 2013
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion
- Foreign Tax Incentives to be Cut: 17% Flat Tax Law Revised
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
- Korea May Not Eat Apple’s Double Irish with a Dutch Sandwich Tax Strategy
- Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics
- Korean Real Estate Acquisition Taxes for Purchase of Real Estate in Korea
- Foreign Account Tax Compliance Act (FACTA) in Korea
- Accounting & Tax Consulting Services in Korea: JZ Associates