One change that is having an impact on Entertainment Companies is the reduction in exemptions for companies selling movies and games overseas. Additional information on this topic can be found at: The Korean Entertainment Law Blog.
Before the amendment to this Tax Law, The Korean National Tax Service allowed Korean companies that sold movies or games overseas – tax exemptions on the taxes they paid to government overseas.
However, the Korean government no longer grants such benefits; they only allow tax exemptions of 20% – 30% of the taxes that paid overseas.
Korea exported entertainment contents worth over 5 trillion won last year. The Korean Entertainment Industry is crying foul and we, likely, we see more aggressive lobbying by the industry this year. The Industry is, rightfully, concerned that this situation is decreasing the competitive advantage of the Korean Entertainment Industry.
Other articles on Korean Tax Law that may be of interest:
- Foreign Tax Incentives to be Cut: 17% Flat Tax Revised
- Special 20% Consumption Tax for Designer Bags Bought in Korea Suspended until 2014
- Amendments to Corporate Tax Rates in Korea for 2012: Korea Corporate Tax Rates in Korea
- Tax Qualified Mergers in Korea: Amended 80% Rule for Triangle Mergers
Sean Hayes may be contacted at: [email protected]
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the first non-Korean attorney to have worked 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. He is ranked, for Korea, as one of only two non-Korean attorneys as a Top Attorney by AsiaLaw.
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
- Korean Tax Law Amendment Press Release by Korean Government
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics
- Company Car Expense Deductions in Korea: Korean Tax Law Updates
- Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?
- File Your U.S. Taxes in Korea: Earned Income Tax Exclusion/FBAR
- English-speaking Korean lawyers and International Lawyers at International Law Firm in Korea discussing issues of Korean Law
- Accounting & Tax Consulting Services in Korea: JZ Associates