Korean Tax Newsletter 2008

• Samil Commentary 2008.12
  
  - Proposed Underreporting Penalty Relief through Contemporaneous TP Documentation
  - Proposed Changes to Criteria for Small and Medium-Sized Enterprises
  - Korea-Kyrgyzstan Sign an Income Tax Treaty
  - Ruling on Transaction Qualified for Zero Rate VAT
  
  
• Samil Commentary 2008.10
  
  - Latest Changes in Tax Incentive Rules
  - Retained Tax Benefit for Project Financing Vehicle
  - Korea-Australia Social Security Agreement
  - Local Tax Regime Reform Plan
  - NTS Advance Ruling Program
  - Ruling on Time of Supply
  - Ruling on Exemption from Acquisition Tax in Consecutive Spin-offs
  - Ruling on Equity Linked Warrants
  
  
• Samil Commentary 2008.09
  
  Korean Tax Reform Proposals for 2008
  The Korean government has announced a package of proposed changes to tax laws including reductions in corporate and individual income tax rates, withholding tax on interest and dividends paid to nonresidents and foreign corporations, and branch tax on foreign corporations.
  If the proposed changes are approved by the National Assembly in December, most of the proposed changes would become effective starting January 1, 2009 unless otherwise be specified.
  This issue provides a brief summary of significant changes contained in the reform package released by the Ministry of Strategy and Finance.
  
  
• Samil Commentary 2008.07
  
  - Special Withholding Tax Regime for Payment to Non-resident US Entertainment Companies
  - Public Forum on the Proposed Consolidated Tax Return System
  - Latest Guide on NTS Tax Audit Procedures
  - ETIC Payments Due and Requirements for Statement of Payments to Temporary Workers
  - Tax incentives for Foreign Investment in Bio Technology and Materials
  - Sales as a Basis to Calculate Entertainment Expense Deduction Limits
  
  
• Samil Commentary 2008.06
  
  - Proposed Reduction in Corporate Income Tax Rates
  - Korea-Latvia Agreement on Income Tax Treaty
  - Expansion of Ceiling on Joint Cash Management Overseas
  - Liberalization of Investment in Overseas Real Property
  - Treatment of Considerations for the Use of Unregistered Patents
  - Treatment of the Issuance of Exchangeable Bonds
  
  
• Samil Commentary 2008.05.28
  
  - Taxpayer Protection Committee of NTS
  - NTS Plan to Reform Tax Audit Procedures
  - Tax Incentivies for Foreign Investment in FEZ
  - New Programs to Relieve Taxpayers' Burden of Proof in Appeal Proceedings
  - Korea-Kyrgyzstan's Talks about Income Tax Treaty
  - Depreciation Limit for Assets Acquired by a New Company in a Spin Off
  - Post-Merger Tax Reduction Ratio for Eligible FIE
  - Income Recognition of Deemed Dividends
  
  
• Samil Commentary 2008.04.21
  
  - Proposed Changes to Enforcement Rules
  - Resident Surtax Filing and Payment Procedures
  - National Tax and Local Tax Portals
  - Overhaul of Tax Incentives in Korea
  - Treatment of Distributable Retained Earnings under CFC Rules
  - Tax Credit for Research and Manpower Development Expenditure under Risk Sharing Agreement
  - Treatment of Conversion Gain derived by a Foreign Corporation
  
  
• Samil Commentary 2008.03.17
  
  - Extension of Temporary Investment Tax Credit
  - Rules for Land Purchase by Foreign Corporations
  - Latest Notice on Tax Havens
  - Corporate Income Tax Rate Cut Suggested
  - Korea’s single administrative tax court
  - Consolidated tax return to be introduced
  - Advance Ruling Procedures considered
  - Ruling on the Treatment of Signing Bonus
  
  
• Samil Commentary 2008.02.11
  
  Changes to Korean Tax Laws for 2008 (2)
  This is the second series of Korean tax law changes for 2008, following the coverage of significant changes to Korean tax laws which have mostly become effective from January 2008.
  This issue includes proposed amendments to the enforcement decrees of tax laws with a focus on changes to deregulate business management and rules for tax exemption or reduction.
  
  
• Samil Commentary 2008.01.11
  
  Changes to Korean Tax Laws for 2008 (1)
  The National Assembly approved amendments to the Corporate Income Tax Law and other tax laws, most of which have become effective from January 1.2008.
  The amended tax laws offer new tax credits to promote the development of logistics outsourcing and overseas natural resources exploration businesses. They also outline the partnership taxation which is to be enforced beginning in January, 2009.