SEOUL: South Korea’s Ministry of Strategy and Finance has said it will aim to increase tax revenues by 10.9 percent during the 2018 Budget period.
The Ministry said this would be on top of the increased revenues brought about by the 2017 tax reform bill, which was enacted on December 20, 2016, but it did not disclose details of potential tax changes.
The earlier 2017 tax reform bill included:
Tax-free treatment of domestic corporate mergers between sibling companies owned by a common shareholder;
An extension of the limitation on the utilization of net operating losses to domestic branches of foreign companies;
The introduction of country-by-country reporting filing requirements for multinational companies; and
Various changes to the calculation of corporate accumulated earnings tax.
The 2018 budget proposal and the 2017-2021 fiscal management plan is scheduled to be submitted to the National Assembly on September 1, 2017.
