Category Taxation in South Korea

S.Korea trying to Spur Growth of Fintech

October 26, 2016 Taxation in South Korea

Blockchain legislation on South KoreaSEOUL – New legislation in Korea may help the rise of new technology for use in the finance industry.

On October 24th the Chairman of the Financial Services Commission (FSC) of Korea Yim Jong-yong presided over the opening of a new integrated financial technology portal, and announced that the government would soon take greater efforts to develop the national fintech industry.

A significant part of the developments which will be carried out by the government will revolve around new legislative efforts to define the term “digital currency” and to encourage greater implementation of black-chain technology in the innovative fintech industry.

The government hopes that a proper legal definition of “digital currency” will help alleviate the risks that the technology carries in regards to th...

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Tax Evasion Estimated at KRW 55 Trillion Per Year in South Korea

September 20, 2016 Taxation in South Korea

SEOUL – The size of Korea’s underground economy outweighs that similarly sized countries, leading to significant levels of tax evasion.

The results of new research released on September 19th Professor Kim Jong-hee of Chonbuk National University of Korea has shown that the size of the underground economy in South Korea exceeds that of other OECD countries.

It was estimated that on average between 1995 and 2014 the underground economy in South Korea made up 10.89 percent of the national GDP.

In comparison the average size of the underground economy in the other OECD countries was 8.06 percent, while among G7 countries the level was only 6.65 percent.

The prominent underground economy has also resulted in comparatively high levels of tax evasion, with the ratio of tax evasion-to-GDP in South...

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S.Korea Offers Extensive Tax Exemptions for R&D

July 29, 2016 Taxation in South Korea

SEOUL – Companies involved in robotics, artificial intelligence, 3D printing, and other high-tech areas will be eligible for extra tax breaks in South Korea.

On July 28th the government of Korea announced that it would implement several new tax measures in an aim to create several new “economic growth engines”.

The new tax regulations to be enacted by the government will allow small- and medium-sized businesses to claim up to 30 percent of their research and development expenses for tax purposes, if the expenses fall within the scope of 11 selected development sectors.

The chosen areas are all high-tech and potentially high-growth, such as artificial intelligence, 3D printing, hyper-plastics, robotics, and aerospace.

The 30 percent deductions are not open to large conglomerate organi...

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Gambling Tax Revenues Rise on S.Korea

June 27, 2016 Taxation in South Korea

SEOUL – Taxes on gambling are bringing in more revenues in Korea, though the rise are not expected to last over the rest of the current year.

New information released on June 27th by the National Gambling Control Commission of Korea indicates that the total tax revenues derived from taxation of gambling activities rose by 4 percent in 2015 compared to the level seen in the previous year.

The total of tax revenues collected from gambling activities reached KRW 2.42 trillion in 2015, compared to a total of KRW 2.32 trillion over the course of the previous year.

The rise in tax collections was spurred by a 12.1 percent increase in collection of taxes from casinos, and a 1.6 percent rise in collection of taxes from horse racing, which amounted to KRW 478.8 billion and KRW 1...

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S.Korea Offers Tax Free Plastic Surgery

March 10, 2016 Taxation in South Korea

SEOUL – In an effort to become a global hub for medical tourism, Korea has dropped the taxes on cosmetic surgery for foreigners.

On March 9th the Ministry of Health of South Korea announced that any foreigners receiving cosmetic surgery in the country will be eligible for a refund of the Value Added Taxes paid for the procedure.

The refunds will be paid automatically at any international airport in Korea when an eligible non-resident presents proof of payment for surgery and other medical costs at their departure.

The government hopes that by dropping the 10 percent VAT on cosmetic surgeries more tourists can be enticed to travel to Korea, ultimately boosting tourism spending, while also increasing growth and employment in the medical sector.

Further the government hopes that the increase...

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