Korea: Increases to corporate, individual income taxes - KPMG Global
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Korea: Proposed increases to corporate, individual income taxes

Korea: Increases to corporate, individual income taxes

A committee on tax reform approved the 2017 tax revision bill that includes proposed increases to the rates of income tax imposed on high net worth individuals and rates of corporate income tax.


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A new top corporate income tax bracket could affect approximately 130 large corporations.


Read a 2017 report [PDF 638 KB] prepared by the KPMG member firm in South Korea


Other developments briefly described in this report include discussions of decisions from the Supreme Court, as follows:

  • A foreign fund is not considered to have a permanent establishment in Korea because the subject activities are preliminary, preparatory or auxiliary in nature in light of the main purpose of establishment and the business of the Korean subsidiaries.
  • If the salary paid to a representative director is, in substance, the same as the disposition of the company’s income, it is non-deductible for corporate income tax purposes.
  • An expense incurred from a “collusion” with other companies is non-deductible under provisions of the corporate income tax law.

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