Pharmaceutical Industry
Capitalization of research and development costs
Technical feasibility, cost measurement reliability, and commercialization are the main consideration factors.
VAT tax rate when clinical trial services are provided by a Korean company
[Interpretation by the Korean tax authorities]
When a Korean company provides clinical trial services to a foreign pharmaceutical company, whether the VAT tax rate is 10% or 0% must be determined differently depending on the nature of the service.
The above interpretation does not provide clear guidelines, but in practice, tax agents review the tax risk in the nature of the contract or actual transaction through contract review.
GTI's support partner in Korea
JUDONG OH
Judong is a partner supporting the Korean section of "Global Tax Inside". He was in charge of tax affairs for foreign corporations as a senior manager at one of the Big 4 accounting firms, and is now working as an international tax partner at Daseung Tax Firm.