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: Sea[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.
- Special 20% Consumption Tax for Designer Bags Bought in Korea Suspended until 2014
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- 10 Top Cities in Asia for FDI in 2012- One Korean City on the List
- How post-FTA Wholesale and Retail Markets Work in Korea
- 17 Percent Flat Tax for Foreign Nationals Residing in Korea: Korean Tax Amendments for 2013
- Korean Lawyers Support Class Action Lawsuits and Punitive Damage
- Hyundai Motors on the Fast Track to a 45,000 Employee Strike
- Foreign Tax Incentives to be Cut: 17% Flat Tax Law Revised
- South Korea moves to Remove Statute of Limitation on Murder
- Korean Product Liability Act Amended to Include Punitive Damages & a Relaxed Burden of Proof