South Korea MOF Seeks Comments on Draft Notice to Amend Income Tax Act

The South Korean Ministry of Strategy and Finance July 23 opened a consultation on Draft Notice No. 2020-132, to amend the Income Tax Act. The draft notice includes measures that would: 1) establish a new financial investment income tax (FIIT), effective 2023; 2) outline the procedures involved in the new FIIT; 3) apply a 20 percent FIIT rate on income below 300 million South Korean won (US$249,310) and a 25 percent tax rate on income above 300 million won; 4) expand the scope of income taxes for trust beneficiaries; 5) clarify tax exemptions on fringe benefits; 6) provide new tax ...