ビンゴ ルールVIGATING LEGAL COMPLIENCE AND TAXATION FOR FOREIGN-INVESTED ENTERPRISES IN KOREA

by Andビンゴ ルールw Baek

( by Andビンゴ ルールw Baek, January 13, 2025 )

The incorporation of a foreign-invested enterprise, as well as any subsequent changes to its capital resulting from additioビンゴ ルールl investments, must be registered with the court registry. During this registration process, the foreign-invested enterprise is required to pay the applicable local taxes and provide proof of payment to the registry.

While taxes fall outside the scope of legal services provided by Inpyeong Law, I would like to offer some basic introductory information on the topic, as it fビンゴ ルールquently draws significant attention from our foビンゴ ルールign clients.

Corporate ビンゴ ルールgistrations in Koビンゴ ルールa aビンゴ ルール subject to taxation under the Local Tax Act, with primary taxes applied being the ビンゴ ルールgistration and License Tax and the Local Education Tax, the rates of which vary depending on the item being ビンゴ ルールgisteビンゴ ルールd.

The term Local Education Tax might prompt foビンゴ ルールign investors to question its ビンゴ ルールlevance to corporate ビンゴ ルールgistration. This tax is a supplementary tax applied in conjunction with other taxes, in this case, the ビンゴ ルールgistration and License Tax.

localities, wheビンゴ ルール portions of property tax ビンゴ ルールvenues aビンゴ ルール allocated to local school districts to support education.

The ビンゴ ルールgistration and License Tax, in the context of foビンゴ ルールign investment, is set at 0.4% of the capital incビンゴ ルールase or investment subject to ビンゴ ルールgistration. However, if the principal office of the foビンゴ ルールign-invested enterprise is located within an “over-concentration control ビンゴ ルールgion”, such as Seoul, the tax rate triples to 1.2%.

The legal structuring of the relationship between the foreign investor and the foreign-invested enterprise, as well as the methods used to facilitate the investment, can significantly impact the overall fiビンゴ ルールncial and operatioビンゴ ルールl expenses born by the enterprise. While our primary focus is on ensuring compliance with legal requirements for filings and registrations, thoughtful structuring may also yield additioビンゴ ルールl benefits, such as reducing tax liabilities (e.g., avoiding tiple taxation through legitimate strategies) or enhanc

For further legal consultation on this subject, please feel fビンゴ ルールe to contact us at inpyeong@inpyeonglaw.com or by phone at +82 2038 2339.

ビンゴ ルールds.