Korean Corporate Tax Rate

The Korean Corporate Income Tax law was amended to lower Korean corporate income taxes for 2023. The amendment is applicable for the year 2023 or until amended. For an article on the reduction in Korean Stock Transaction Taxes please see: Korean Stock Transaction Taxes.  Tax Basis 2022 (Local Income Tax) 2023 (Local Income Tax) Less than KRW 200 million 10% (11%) 9% (9.9%) KRW 200 million to KRW 20 billion 20% (22%) 19% (20.9%) KRW 20 to KRW 300 billion

Continue reading

Korean Securities Transaction Taxes

Article 5 of the Presidential Decree of the Securities Transaction Tax Law of Korea was amended to lower taxes on stock transactions. The amendment came into effect on January 1, 2023. KOSPI2022: 0.23%2023/2024: 0.2% 2025: 0.15%* agriculture and fishery tax of 0.15% KOSDAQ2022: 0.23%2023/2024: 0.20% 2025: 0.15% KONEX/OTC 2022: 0.43%2023: 0.35% For a consultation with an attorney or our in-house CPA, schedule a call with IPG Legal. Please note, that we have an affiliated tax accountant and CPA that files taxes

Continue reading

Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?

If Korea deems a foreign-incorporated company a Domestic Corporation, the company shall be taxed on its worldwide income. The relevant law, this determination is made under, is the Corporate Tax Act of Korea (“CTA”). In the typical case, the National Tax Service of Korea designates the foreign-incorporated company as a Domestic Corporation and requests details on overseas earnings in order to impose taxes on overseas earnings. Of course this leads, invariable, to your Korean tax lawyer challenging the determination to

Continue reading

Amendment to the Korean Foreign Investment Promotion Act 2019 – Investment Incentives in Korea

The Korean Foreign Investment Promotion Act (hereinafter as “FIPA”) is intended to support foreign investment in Korea by providing investment incentives to investors in the Korea market. The Korean National Assembly amended the FIPA this year. Key-facts about the Korean FIPA The Korean FIPA shall “…promote foreign investment in Korea by providing necessary support and benefit and to contribute to the sound development of the nation’s economy.” (FIPA Art. 1). FIPA may benefit foreign investors, including, individual investors, companies established

Continue reading

Korean Tax Law Amendment Press Release by Korean Government

The following is a Press Release by the Korean Government on recent Korean Tax Law enforcement decrees.  We shall update the reader when more is known.  The following press release was not proofread or translated by this firm.  The Press Release was published by the Ministry of Strategy & Finance in the English language and copied, in its entirety, below. Decree Focuses on Boosting Investment and Broadening Tax Base The government announced a revision to a total of 17 tax

Continue reading

Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics

Foreign corporations, doing business in Korea, may be deemed local corporations subject to taxation on worldwide income if the foreign-incorporated company is deemed a Korean “domestic corporation” for Korean tax purposes.  This liaison-office Korean Tax Risk can, thus, lead to taxes on worldwide income, a tax audit and even criminal sanctions against those operating in Korea.  We have dealt with matters were employees, even, received exit bans. Thus, in most cases the establishment of a local Korean corporation is essential

Continue reading