Korean insights & regulatory updates - Issue 1: January 2021

A few highlights for this publication:

[Tax] On December 2, 2020, the amended tax laws have been approved, impact mainly 2021. This includes the extension of tax credit carried forward to 10 years, the extension of tax losses to 15 years and the alleviated obligation for submission of international transaction related data for tax purposes. We are also including changes approved in previous years and applicable for the year 2020 corporate income tax return filing.
[Accounting] The obligation for preparing consolidated financial statements under Korean GAAP in case of small-size subsidiaries has been postponed to 2022.
[Audit] As a reminder, audit contracts for the year 2021 must be signed by February 15, 2021 (by April 30, 2021 for first-time audits) and submitted within 14 days after the signing of the contract.
[Payroll] Social insurances rates have been updated, with an increase in health insurance contribution.
[Labor] The Labor Union and Labor Relations Adjustment Act has been amended to expand union membership and labor union activities. It will be effective in July 2021.
[Labor] A new flexible work system with a period of 6 months (vs. 3 months before) can be introduced from April 2021.
[Labor] A new law has been passed on punishment for serious industrial accidents, with a Presidential Decree expected to be issued later in 2021.

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