Korea: Tax relief for certain corporate restructurings | KPMG | GLOBAL

Korea: Tax relief for certain corporate restructurings

Korea: Tax relief for certain corporate restructurings

New measures in Korea aim to simplify certain restructuring procedures for companies in certain industrial sectors deemed to be burdened with “overcapacity.” Specific tax support measures are provided for those eligible companies involved in a voluntary restructuring. The measures are expected to be effective 1 August 2016.


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For instance, there is an extension of time for the payment of capital gains on certain stock transfers and an extension of the securities transaction tax. In addition, on the disposal of duplicate assets resulting from the merger, any gain on the asset transfer can be taxed over a three-year period.


Read a 2016 report [PDF 653 KB] prepared by the KPMG member firm in Korea: Korean Tax Brief


Other topics discussed in this KPMG report concerning:

  • Lower acquisition tax rate applicable to the transfer of “trust real estate”
  • Corporate-owned car insurance available as a deduction of expenses related to corporate-owned vehicles
  • Tax treatment of jointly built systems, concerning the percentage of sales to management of the head office for subsidiaries 

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