South Korea’s tax office is required to specifically alert companies of auditing and what they are audited for including potential levies before they start corporate audits from next month.
According to the revised national tax enforcement decree, the National Tax Service will be required to provide businesses and individuals with more detailed information on tax investigation such as taxation period subject to examination and duration of the special review prior to launching on-site tax audit from next month.
The grounds for collecting back taxes and penalties also will be made clearer by requiring the tax bureau to specify all relevant tax law clauses for additional collection.
The revised measures are the same as the current practice in large, said a tax bureau official, adding that the change is to provide more specific details behind taxation. The revised rule will also allow the government better clarify the legal basis for taxation, said the official.
Other changes of the revised national tax law include an increase in the ceiling for company’s promotional expenses. Businesses will be allowed to spend up to 30,000 won ($27) per promotional gift without spending proof. The spending previously had been limited to 10,000 won.
Non-operating income such as income from real estate rental will also be excluded in the base for calculating wage-related tax.
By Lee Ji-yong and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]