The Office of the Prime Minister’s Korea Institute of Public Finance held an interesting public hearing with the Korean Ministry of Strategy and Finance. The public hearing was held to address, in part, changes to tax incentives for foreign businesses.
The major reforms being considered are the:
- Elimination of tax incentives for foreign companies owned by a foreign-capital invested company with 10% Korean ownership;
- Reduction of a 7-year tax incentive for those investing in a free economic zone to 5-years. (We, strongly, advise filing, quickly, your application for an exemption. Under Article 121-2 of the Special Tax Treatment Control Law, the grant of an incentive is available up until three years from the date of the decision to grant the incentive.)
- Increase of incentives for certain service sector business that have increased employment in Korea.
Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
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. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw.
Sean’s profile may be found at: Sean C. Hayes
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