Ⅰ. Commercial Code will be Amended to Introduce New Types of Business Organization such as LP and LLC
The Ministry of Legislature has announced a draft bill to amend the Commercial Code. The Ministry’s draft bill includes reforms to corporate governance and new types of business organization such as limited partnership (LP) and limited liability company (LLC).
Ⅱ. Foreign Corporations to Be Allowed to Appeal for Certain Korean Withholding Tax Assessment
The Ministry of Finance and Economy (MOFE) has proposed a series of measures to improve regulatory environment to support businesses at the end of September 2006. The proposed measures call for allowing nonresidents and foreign corporations to request the examination of Korean withholding tax assessed on certain income.
Ⅲ. NTS Notice on Interest Rate for Transfer Pricing Adjusted Income
According to the latest NTS notice, the interest rate applicable to transfer pricing adjusted income to be returned by an overseas related party to a domestic company shall be a 12-month LIBOR (London Inter-bank Offered Rate) of the respective currency.
Ⅳ. Rulings
Treatment of Capital Expenditure on Idle Land Leased from a Related Party
Treatment of Irrevocable Debt Relief
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