ANNOUNCEMENT 24 Aug 2010

The Ministry of Strategy and Finance announced its reforms to the tax code on 24 August 2010. These measures will come into effect from 1 January 2011.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Ministry of Strategy and Finance announcement.
See also Ernst and Young "Proposed Revisions to Korean Tax Laws for 2011," at http://www.ey.com/KR/en/Services/Tax/Korean-Tax-Bulletin---2010-3Q


Inception date: 01 Jan 2011 | Removal date: open ended

FDI: Financial incentive

As part of the Tax Incentives Limitation Law, whose stated goal is to improve the fiscal position of the Korean government, the corporate income tax exemptions for small, medium, and large foreign-invested vehicles are to be reduced.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 01 Jan 2011 | Removal date: open ended

FDI: Financial incentive

In addition, a tax incentive has been introduced for foreign firms that create jobs in Korea. Foreign firms will be able to claim an incentive equivalent to 10 million KW per job created, up to a maximum of 20 percent of the total investment associated with the job creation in Korea.
 
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