Korean Tax Tribunal on the Adjustment of Value of Imported Goods and Transfer Pricing

Late last year the Korean Tax Tribunal ruled that the “Customs Value” shall not be effected by a “Transfer Price Adjustment.” The holding will make it more difficult for those importing products into Korea where the product may be paid for by the importer only after the sale of the item. The case involved the import of motorcycles and auto parts by a foreign parent of a local company. The

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Korean Corporate Tax Changes Affecting Businesses in Korea

I hate taxes, as I assume you also do, but my M & A and other corporate clients in Korea may be hating Korean taxes just a little bit less after the recent changes in Korean Corporate Tax Law. First, the Enforcement Decree of the Corporation Tax Act of Korea was amended this year to allow expanded preferential tax treatment in an acquisition of a Korean company. Before the present

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Promoting Economic Freedom

Korea Times October 23, 2009 by Sean C. Hayes (Host of this blog) Two roads diverged in Korean yellow woods. Will Korea remain on the road less traveled and maintain its cumbersome regulatory framework governed by an inefficient, illogically burdensome and self-interested bureaucracy or will Korea free itself from its autocratic regulatory regime and bureaucracy and choose the other road? In a country with a notorious Sybil-type personality, only the

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Transfer Pricing Reform In Korea

A U.S. NASDAQ listed company requested information concerning a specific transfer price scheme, amongst other issues, in Korea. The company has recently decided to enter the Korean market after having successfully entered the Japanese and other Asian markets. For obvious reasons, I can’t answer the question here, but a brief description of recent amendments to the law may be of interest to those that have considered global transfer price issues.

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Exemption From National Health Insurance Plan

Exemption From National Health Insurance Plan Appeared in the Korea Times on January 10, 2007 Dear Professor Hayes: I am an American working for a company in Korea. My company and I pay for a private insurance policy, but I also pay for the Korean National Insurance Plan. I found that last month premiums drastically increased and I think it is unfair for me to have to pay for two

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Restrictions on Foreigners Purchasing Property in Korea

Foreigner Purchasing Property in Korea is not longer restricted for most acquisitions.  An article on Korean Real Estate can be found at: Korean Real Estate Acquisition Taxes. Dear Sean Hayes: I was informed that there are limitations on foreigners purchasing property in Korea. I would like to purchase an apartment and was wondering what restrictions are on foreigners in purchasing property in Korea. What does a foreigner need to do

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76 Percent of Apartment Owners to Pay More Tax

Chosun Ilbo A Lesson in Survival From the Finance Minister The real estate tax burden this year will rise for 7.38 million households or 76 percent of the 9.7 million apartments, condominiums and villa complexes across the country. The 9.7 million will pay W85,000 (US$1=W945) in combined property tax per household on average this year, up about 12 percent (W9,000) from last year, the Ministry of Government Administration and Home

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Rules to Change for Entertainment Spending

Chosun Ilbo Feb. 21, 2007The existing government regulation that requires a receipt for corporate entertainment spending exceeding 50,000 won will be tightened. Entertainment spending which will require a receipt will be lowered to 30,000 won in 2008 and 10,000 won in 2009. In response, businesses are expressing their anger against the government’s measure, saying it will increase the tax burden and add more work for them. They also argued that

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