We summarize below the major amendments to Korean tax laws contained in the proposed draft announced by the Ministry of Strategy and Finance of Korea on August 6, 2015, which are relevant to international taxation.
- Bigger percentage given to employment in calculating the ceiling on tax exemption or reduction for foreign-invested companies
- Change in the criteria for determination of shares of a domestic corporation with excessive real estate held by a non-resident or foreign corporation
- Insertion of the obligation to submit an integrated international transaction report for multinational companies
- Withholding obligation newly imposed on domestic corporations to which high-income employees are seconded by foreign corporations