South Korea MOF Announces Implementation of Pillar 2 Global Minimum Tax Reform, Domestic Investment Incentives

The South Korean Ministry of Economy and Finance Jan. 5 issued a press release on the implementation of the Pillar Two global minimum tax reform plan and domestic investment incentives. Topics covered include: 1) the 15 percent global minimum tax rate for multinational enterprise (MNE) groups, with provisions for countries operating a qualified parallel minimum tax system; 2) the recognition of the domestic minimum top-up tax (QDMTT) and preferential tax credits for real investments, including R&D and advanced manufacturing; 3) simplified calculation methods for the effective tax rate and extended transitional safe harbor periods until 2027; 4) requirements for the ...