South Korea Assembly Considers Bill to Partially Amend Special Tax Measures Act

The South Korean National Assembly Jan. 13 accepted for consideration Bill No. 2216005, to partially amend the Special Tax Measures Act. The bill includes measures to: 1) provide a 1 billion South Korean won (US$680,563) gift tax deduction and reduced gift tax rates of 5 percent, and 10 percent for amounts over 20 billion won (US$13.6 million), on the shares of small and medium-sized enterprises (SMEs) on succession support, received by their resident business successors; 2) impose gift tax on the value of the shares if the SME’s registration for succession support is cancelled; 3) allow resident successors to apply ...