Application Form for Prior Checking of Tax Reduction

According to the Tax Exemptions and Exceptions Act, corporate and income tax on business income, dividends income, technology introduction considerations, earned income etc. have been reduced. Acquisition tax, registration tax, and property tax have been reduced for properties that have been acquired or held.

Reduction in corporate tax for foreign-invested companies applies to income from businesses qualifying for reductions under the Tax Exemptions and Exceptions Act. However, in the case that a Korean citizen (corporation) directly or indirectly holds 10% or more of the voting shares of a foreign corporation or foreign business that has invested in a business subject to tax reduction, the portion of the investment proportionate to the ratio of the said held shares will not be subject to tax reduction. That is to say, the tax reduction shall not apply to domestic round trips of domestic companies that have advanced overseas.

The intial day of reckoning tax reductions will be, whichever is sooner between, the tax year in which the first income was created, or the tax year in which the 5th year anniversary of the date of business commencement falls.

Application Form for Prior Checking of Tax Reduction.xls