제목 없음May 6, 2006
More guided information
on some tax issues
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.
1. 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.
2. 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 and information verification.
For any further queries and clarifications, please contact Mr. Jae Ryong
Seo, International Tax Source Management Division (+ 822 397 1436).
