Korea's transfer pricing and customs harmonization procedure comes into effect

Tax Controversy & Dispute Resolution ()

In the fall of 2011, Korea's Ministry of Strategy and Finance ("MOSF") announced various amendments to the transfer pricing regulations and customs law to facilitate the harmonization of transfer pricing and customs compliance. Forming the backbone of these harmonization efforts was the introduction of a mechanism enabling taxpayers to request correlative adjustments on transfer pricing adjustments or the imposition of customs duties. After some fine tuning of the proposed amendments before finalization and a six (6) month delay in implementation, the highly anticipated correlative adjustment procedures are now effective on transfer pricing adjustments and/or customs duties assessments taking place on or after July 1, 2012.