More guided information on some tax issues

Seoul--(뉴스와이어)--The alleged media reports that the Korean National Tax Service (NTS) has launched tax audits into foreign companies operating in Korea are groundless and hapless.

NTS's activities and measures, collectively put as "tax audit" in the reports, are just conventional and normal operational activities of the NTS as tax authorities of any country would undertake as part of their business as usual. The main misleading points are the following.

Keeping taxpayers' information up-to-date

In case where a duly registered company has suspended or discontinued its business operation, and/or in case where there has been any change in investor(s) details such as shareholder structure and nationality of the investor(s) concerned from the time of the submission of application for investment in Korea, such changes need to be duly maintained with NTS.

It facilitates the NTS to keep up with the latest basic information on the company concerned as well as to provide it with tailored services.

The same procedure applies indiscriminately to all registered businesses in Korea regardless of the nationality of the investors concerned.

Conducting fact-finding on liaison offices of foreign companies

Although liaison offices of foreign companies are not subject to corporation tax in Korea, they are required to withhold taxes from compensations paid to their employees. Therefore, NTS conducts simple fact-finding on such liaison offices with a view to confirming whether or not they are in full compliance with such withholding obligation.

Verifying information on commercial performances by foreign entertainers in Korea

With regards to the captioned performances, NTS verifies whether or not the taxes have been withheld appropriately, with reference to the information submitted under the Taxation-Related Information Submission and Control Act

The above explanations will serve as the sufficient source of clarification of the misleading reports on taxpayers' information, fact-finding, and information verification.



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