We summarized below some of the major tax law changes additionally proposed by the government that are expected to be announced before the end of June 2013 to keep you updated.
1. Increase of immediate depreciation limit of the cost of a work of art(Article 19 of the Presidential Decree of the Corporate Tax Law)
In case where a company purchases a work of art for display in public places such as an office and a lobby of the company to decorate or beautify the environment, the limit of the cost of a work of art for immediate depreciation will be increased from KRW 3 million to KRW 5 million.
The proposed revision above will be applied to purchases to be made on or after the enforcement date of the above proposed tax law change.
2. Foreign invested company will be exempted from deemed gift taxation on sales transaction between specially related parties(Article 45-3 of the Presidential Decree of the Inheritance and Gift Tax Law)
The proposed revision above will be applied for the gift tax filing to be made on or after the enforcement date of the above proposed tax law change.