|
| Home : Foreign Companies in Korea Have New Requirements to Claim Tax Treaty Benefits: Nair & Co. |
|
Jul 21
2012 |
Foreign Companies in Korea Have New Requirements to Claim Tax Treaty Benefits: Nair & Co. |
|
Foreign companies that are beneficial owners of Korean-sourced income must now submit an application to their withholding agents before they receive any income, in order to claim any tax treaty benefits. |
|
The new application requirements, prescribed under the revised Corporate Income Tax Law (CITL), are applicable with regard to tax withheld on or after July 1, 2012.
Korea - Claiming Tax Treaty Benefits - Key Highlights:
* The beneficial owners of Korean-source income and those who want to claim a reduced tax treaty rate are now required to submit an application form (to be defined in the presidential decree of the CITL) to the withholding agent prior to the income is paid.
* In cases where the beneficial owners receive income (Korean-Source income) via an offshore investment vehicle, the offshore entity must obtain the application form from beneficial owners.
* The offshore investment vehicle must also submit a report on the offshore investment vehicle with a comprehensive schedule of beneficial owners.
* In situations where the withholding agent does not receive an application form or the complete report from the offshore investment vehicle, or is unable to verify the beneficial owner based on the information provided, it applies the Korean domestic withholding tax rate.
* If the beneficial owner does not claim a reduced tax treaty rate at the time of withholding, it has three years from the end of the month in which the tax was deducted, to claim a refund.
For more information on this topic email media@nair-co.com
About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com |
| Source:http://www.1888pressrelease.com/foreign-companies-in-korea-have-new-requirements-to-claim-ta-pr-411336.html |
| |
|
Related News
|
» A Search Engine Optimization Consultant Reaches the Top Spot of 8000 Hours of Providing Excellent #SEO Consultancy and Services
» PitNews Celebrates 5 Years of Publication and 35,000 Subscribers
|
|
|
