CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Korea Legislates For BEPS 5 Minimum Standard

Korea Legislates For BEPS 5 Minimum Standard

by Mary Swire, Tax-News.com, Hong Kong

17 January 2018


Among amendments announced recently to the country's tax reform plans, South Korea has legislated to exchange information received from taxpayers as part of applications for advance pricing agreements.

The Korean Ministry of Strategy and Finance said the move is intended to improve how Korea cooperates with other countries' tax agencies on the collection of tax from multinationals.

The changes are being introduced as part of Korea's commitment to incorporate into its tax law regime the recommendations of the OECD in its base erosion and profit shifting Action Plan. The changes relate to BEPS Action 5, which specifically called on countries to implement measures to counter harmful tax practices more effectively and provided that, as a minimum standard to be adopted by countries on a mandatory basis, countries should spontaneously exchange information on rulings that could give rise to BEPS concerns in other countries in the absence of such exchange.

Advance pricing agreements are typically concluded by companies with their home state authority (a unilateral APA), or with the company's home state authority and an overseas authority (a bilateral APA). These are intended to support multinational companies to secure tax certainty with regards to their future tax arrangements, and in particular to receive assurance from their home state authority or two authorities about the transfer prices for a series of transactions between two commonly controlled entities.

TAGS: Finance | tax | law | tax authority | agreements | multinationals | transfer pricing | Korea, South | tax reform | Tax | BEPS

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »