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
- Tax Incentives May Decrease for Foreign Companies doing Business in Korea: Tax Law Updates
- Foreign Tax Incentives to be Cut: 17% Flat Tax Law Revised
- Korean Tax Incentives for 2020: Korean Tax Law Updates
- Korean Tax Law Amendment Press Release by Korean Government
- Amendment to the Korean Foreign Investment Promotion Act 2019 – Investment Incentives in Korea
- The Korean Tax Law Reform Proposal of 2022
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- 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
- Content Opportunities for Int’l Entertainment Companies in Korea
You must log in to post a comment.