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Korea: Update on tax developments, court cases

Korea: Update on tax developments, court cases

A report from the KPMG member firm in South Korea includes brief descriptions of the following tax developments or court decisions:


Related content

  • The tax tribunal announced measures to strengthen the effectiveness of protecting taxpayer rights.
  • The government finalized a plan to promote financial decentralization.
  • Temporary measures decrease the fuel tariff on gasoline, diesel, LPG by 15% until 6 May 2019.
  • A requirement for value added tax (VAT) payment by proxy.
  • Conditional payments in connection with a share transfer are deemed to be capital gains from the transfer of shares and not taxable in Korea.
  • A controlling shareholder has an obligation to pay deemed acquisition taxes even if the controlling shareholder does not have substantial control due to certain exceptional circumstances related to the transaction.
  • Corporate tax assessment may be made by treating a company as the beneficial owner of the royalty income (instead of the nominal income recipient).
  • The 15% reduced withholding tax rate for dividends under the Korea-Sweden income tax treaty applies when considering a Swedish company as the beneficial owner of the dividends.


Read a November 2018 report [PDF 836 KB] prepared by the KPMG member firm in Korea

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