Notable Proposed Tax Law Amendments Korea
The Ministry of Economy and Finance released its proposed tax amendments for 2019 (the “Proposed Amendments”), which if finalized and enacted by the National Assembly, would be effective from 2020. With focus on achieving tax equity and tax rationalization and increasing tax revenue, the Proposed Amendments appears to have taken into consideration provision of economic incentives for businesses to develop innovative businesses and efforts to stimulate the Korean economy.
The Proposed Amendments are expected to be reviewed by the relevant authorities and submitted to the National Assembly on September 3 of this year. It is subject to changes during the review process. Once finalized and passed by the legislature (this usually takes place in December), the amended law would be effective from January 1, 2020.
We have outlined some of the amendments that may be relevant for companies or individuals, including foreign invested companies, Korean companies, or individuals involved in cross-border transactions, and foreign companies or individuals that frequently do business with a Korean company or individual, as attached.
We hope the attached newsletter gives you a general understanding of what types of tax amendments to expect for the upcoming year. The information was kindly provided by Kim & Chang.