I. Second Protocol to the Korea/China Treaty Becomes Effective in July 2006
Under the second protocol to the 1994 tax treaty between Korea and China that became effective on July 4, 2006, deemed foreign tax credit given under the treaty is extended by 10 years until the end of 2014.
Ⅱ. Retirement Income Tax Withholding under the Retirement Pension System
The Ministry of Finance & Economy has released a guide for taxation of retirement income under the new retirement pension system that was introduced for the first time in Korea in December 2005.
Ⅲ. Support for Small and Midsize Companies to Promote Job Creation
In an effort to support the government’s plan to promote job creation, the National Tax Service plans to waive tax audits over the next two years (in general) for small and midsize companies having a 10% increase in an annual average number of full-time employees.
Ⅳ. Tax Appeal Procedures to Be Amended as part of Proposed Measures to Facilitate Foreign Investment
The Korean government plans to amend the existing tax appeal procedures to enable foreign investors to raise an objection and file a request for examination when their requests for tax exemption or reduction for investment in pre-designated high technology industry are rejected.
Ⅴ. Rulings
Requirements for NOL utilization in a merger between a parent company and a wholly-owed subsidiary
Determination of the date when income tax requirements are met
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