AMCHAM, NTS discuss tax reforms to improve Korea's investment edge

By Jo He-rim, The Korea Herald - The American Chamber of Commerce in Korea held a roundtable on Friday to discuss tax reforms to bolster Korea's appeal to global investors, inviting National Tax Service Commissioner Lim Kwang-hyun to share the government's tax policy priorities.

During the roundtable in Seoul, AMCHAM Chairman and CEO James Kim pointed to the uncertainties foreign companies face in areas such as audit procedures, tax interpretation and filing requirements.

"Foreign companies also hope to be treated under the same clear guidelines and principles applied to local companies when it comes to potential audits and tax interpretations," Kim said.

"The steps discussed today, including deferring routine audits, improving filing processes, and easing double-taxation risks, can significantly reduce uncertainty and strengthen Korea’s standing relative to regional hubs like Singapore and Hong Kong."

Noting how the NTS plans to expand engagement with multinational companies, Lim presented new support measures for foreign-invested companies, including a two-year deferral of routine tax audits for firms increasing domestic investment, enhanced support for corporate and individual tax filings, and tighter safeguards to prevent double taxation, particularly for multinational firms.

Lim also highlighted how seven major global companies have pledged to invest roughly 13 trillion won ($9 billion) in Korea during the Asia-Pacific Economic Cooperation summit last month.

"NTS intends to ensure an environment where foreign companies can focus on their business and expand investment with confidence," Lim said. "I hope today’s measures will help Korea emerge not only as Asia’s top investment destination, but ultimately as the No. 1 investment destination worldwide."

According to AMCHAM, its representatives welcomed NTS' new measures, noting that such practical steps, including expanded use of Advance Pricing Arrangements, will meaningfully improve the operating environment for foreign businesses and support Korea’s efforts to attract high-quality investment.

Source: https://www.koreaherald.com/article/10626089?ref=naver