Korean insights & regulatory updates - issue 11: April 2024

Introducing our new insights & regulatory updates for April 2024!

This publication mainly highlights important changes for your business, including annual subsequent amendments to tax laws, new administrative interpretation on 52-hour workweek policy, and amendments to K-IFRS and K-GAAP.

Check out our Issue 11 for updates on the following key areas:

Tax updates:

Specification of regulations related to transaction details of employee stock-based compensation and similar instruments.
Expansion of the scope of deductible personnel expenses for expatriate employee to overseas subsidiaries.
Addition of requirement to attach a dedicated license plate for deducting business use cars
New regulation for the mandatory registration of a business place by the tax authority, exercising its authority for foreign suppliers eligible for simplified VAT registration.
Expansion of the VAT exemption scope for personal services.
Broadening the exclusion criteria for special provisions concerning foreign engineers, foreign workers, and exceptional domestic personnel.
Application of the special tax regime’s single tax rate for foreign workers: Tax exemption for the benefit of provided housing.
Rationalization of the scope of labor costs eligible for R&D tax credits.

HR & Payroll updates:

Changes in administrative interpretation of 52-hour workweek policy.
Monthly income tax calculation method update
Increase the non-taxable ceiling amount for childcare allowance and overseas labor income.
Shorten the submission cycle of payment statement for other type income related to personal services.
Amendment of employment and industrial accident insurance premium collection act.