The latest tax reform proposals announced by the Korean government include several changes of specific interest to foreign investors in the following areas:
ㆍImprovement of Foreign Expatriate Income Tax Scheme
ㆍExtension of Income Tax Incentive for Foreign Engineers
ㆍExpansion of Eligible Scope for Foreign investment Incentives and Reduction of the Incentive Period
ㆍChange to Improve Education Environment for Children of Expatriate Executives
ㆍExtension of VAT Return Due Date for Foreign Corporations
The proposals also include changes to accelerate facility investment and assist small and midsize companies (SMC) as follows:
ㆍIncrease in Temporary Investment Credit Rate
ㆍChange to Useful Life Option of Capital Assets
ㆍReduction of Minimum Tax Liability for SMC
ㆍExtension of Tax Incentive for R&D Expenditure
ㆍEasing of Share Ownership Requirements in a Subsidiary Eligible for Indirect Foreign Tax Credit
ㆍReduction of Penalty Tax Rate under VAT Act
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