Korea: Implications of new Tax Revision Bill
Description
On 7 September 2011 the Korean Ministry of Strategy and Finance summarised the latest Tax Revision Bill. The following matters are of particular interest to foreign commercial interests:
1. "Imports of basic necessities and oligopoly items will be applied reduced tariff rates of 4 percentage" (text taken from source below).
2. The income tax deduction for credit cards is to be increased to take account of spending in "traditional markets" (a term which is undefined and may include only certain domestic transactions).
3. "Yields from domestically issued foreign currency-denominated bonds will be taxed just as those from" (text taken from source below)
4. "A 100 percent tariff deduction of indirect foreign taxes will be given regardless of tax treaties, rather than the current 50 percent without tax treaties."
Some of these proposed changes may harm foreign commercial interests, some may benefit them. Overall, an amber assessment is given in such cases.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Don't know |
| Is there any evidence that alternatives to the proposed measure were considered? | Don't Know |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | Don't Know |
| Was such evidence identified? | Don't Know |
| Is such evidence publicly available? | Don't Know |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | Don't Know |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | Don't Know |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | Don't Know |
| Did the government state its intention to review the measure within one year of implementation? | Don't Know |
Date Discovered: 23/10/2011
Implemented: No
Date of inception:
GTA Evaluation: Amber
Source:
Korea. Ministry of Strategy and Finance. "TAX REVISION 2011 UNVEILED" Available at http://english.mosf.go.kr/
Government Response:
- 125 reads
