Korea

    Corporate taxation

    Corporate tax rates are progressive over three tax brackets and a local surtax of 10% of corporate income tax due is also imposed. Rates are as follows: 10% on first KRW 200 million of taxable income (11% inclusive of the local surtax), 20% on income above KRW 200 million up to KRW 20 billion (22% inclusive of the local surtax) and 22% of income above KRW 20 billion (24.2% inclusive of the local surtax).

      Transfer pricing

      The Korean transfer pricing regulations are based on the arm’s-length standard and are generally consistent with the Organisation for Economic Co-operation and Development (OECD) Guidelines. The Korean transfer pricing regulations are contained in the Law for the Coordination of International Tax Affairs (LCITA), which was enacted on 1 January 1996. The LCITA stipulates that transfer prices should be consistent with the arm’s-length standard.

      Transfer Pricing Case Law

      Case Name Description Date Court Keywords