Management
tax risk
Tax penalty for representatives
If property flows out of a company and it is not known where the property belongs, for tax purposes, the property is considered to belong to the representative of the corporation.
Nevertheless, the representative's income tax paid by the company on behalf of the representative is not considered to have been borrowed by the representative from the company.
Stock transactions between the company's representative and the company's shareholders
Stock transactions between the company's representative and the company's shareholders are considered transactions between related parties under Korean tax law.
Therefore, if this transaction is not traded at market price under tax law, the difference is taxed. If the stock is not listed, the stock must be valued using the tax valuation method.
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.