ANNOUNCEMENT 07 Sep 2011In September 2011, the government of Republic of Korea announced a change in import duties.
NUMBER OF INTERVENTIONS
Korea. Ministry of Strategy and Finance. "TAX REVISION 2011 UNVEILED" Available at http://english.mosf.go.kr/
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 necessitiesand oligopolyitems will beappliedreducedtariffrates 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 won-denominated bonds" (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.