Print Page   |   Report Abuse
News & Press: International News

South Korea Launches Services-Boosting Tax Measures

08 July 2013   (0 Comments)
Posted by: Author: Mary Swire
Share |

Author: Mary Swire

Discussions on how the South Korean services industry could be helped to provide more jobs and economic growth, by providing additional tax incentives among other things, took center stage at the latest Ministerial Meeting on the Economy.

The service sectors is an important part of the economy, accounting for 70 percent of South Korea's total employment and 60 percent of its total industrial output. However, while it has been a key driver of job creation since the 1990s, the sector's productivity is said to be low and its competitiveness is weak, compared to the domestic manufacturing industry and to services in other OECD countries.

Since the early 2000s, the Government has implemented a wide range of policies to develop the services industry. As a result, there have been good results in certain areas, such as tourism, healthcare and education, but there are also areas leaving room for improvement.

As a result of the discussions, which were chaired by Deputy Prime Minister Hyun Oh-Seok, it was confirmed that the Government will seek to stimulate service sector investment by improving its taxation, finance and regulatory systems. In particular, to level the playing field between the services and other industries and end discrimination against the services sector in the South Korean tax system, the special tax deduction for small and medium-sized enterprises (SME) and the tax credit for job-creating investment will be expanded for services.

In addition, within the 2013 tax reforms to be presented later this year, research and development (R&D) in the services sector providing high value-added will receive increased support through the tax system, such as increased tax benefits and a special tax exemption for income arising out of technology transfers by SMEs.



WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal