Korean Tax Brief 2019년 10월호

Korean TAX Brief 2019년 10월호

2019년 10월 한국의 조세동향 및 세무분야의 최신 이슈 업데이트


1. Tax News

(1) Update on the OECD’s work on addressing the tax challenges of the digital economy

(2) NTS is considering an introduction of mandatory disclosure rules on potential aggressive tax avoidance transaction

(3) The number of tax audits targeting corporations with annual sales of over KRW 100 billion increases

(4) Tax revenue for the first eight months of the year is KRW 3.7 trillion less compared to last year

(5) Tax collection from those committing offshore tax evasion was over KRW 1,300 billion last year


2. Recent rulings

(1) VAT shall be exempted for a facility donated to the local government in return for obtaining business related approval from the local government (Sajeon-2019-Interpretation of Value Added Tax Law-0362, 2019.08.28)

(2) If a company purchased land with known restriction for business use, capital gain from sale of the land is subject to additional CIT (Tax Tribunal 2019Seo0391, 2019.07.30)

(3) Even when the timing of service fee settlement is uncertain, the time of supply of service for VAT purpose is still when the provision of the service is completed (Supreme Court 2017du47564, 2019.09.09)

(4) Calculation method of the limit on Tax Reduction for Foreign Investment for merged foreign-invested companies (Written-2019-Interpretation of Adjustment of International Taxes Act-0887, 2019.08.16)

(5) When the supply value of the car rental fee includes insurance premium, the entire rental fee is still subject to VAT (Ministry of Economy and Finance, Division of VAT-493, 2019.08.13)

(6) Responses from NTS’s Internet consultation service can’t be considered as formal opinion from the tax authorities (Tax Tribunal 2019Seo1991, 2019.07.29)


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