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Corporate Tax

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Subject
Enforcement type review for the joint business with landowner
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Date
2018-04-05
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Enforcement type review for the jointbusiness with landowner


 


 


                                                                               30th Dec 2017

                                                                                                                                                 Written by Ju Sik,Kim

                                                                                                                                                   Translated by Eun Kyung,Park.


 


. Outline


 


1.Significance


Businessassociation with landowner and construction company means building house orshopping complex and parcel out.


Theprofit will be shared by contributiveness to the construction company andlandowner.


 


. Classification by enforcement body


1.Construction company enforcement type (transfering actuallly)


nominal transfer for the land is transfered from thelandowner to the construction company and joint business is proceeded withconstruction company as enforcement company.


Business and completing new building is conducted by the nameof construction company.


Businessprofit will be shared by the investment ratio.


Ifthere is loss bearing with same ratio is logical but normally constructioncompany bear it.


Landowner can take business profit occurred business enforcement byinvestment ratio depart from price for selling land.


Tax for landowner is land transfering income tax withselling land price and additional received profit.


 


2.Landowner enforcement type


Landowner is enforcement body supplied constructionengineering service by construction company and having joint business withconstruction company.


The business is enforced in the name of landowner andcompleting new building is enforced also in the name of landowner.


Ifthere is loss both party will bear with same ratio unless there are specialcontract


Profit and loss will be bear investment ratio.


The profit given to landowner is regarded as businessincome.


Thelandowner should pay corporate tax and income tax for it.


But if selling amount of land is confirmed, land transferingregistration is completed at the enforcement business investment time andbusiness revenue is distributed later separately, transfering land amount isregarded as transfering income for taxation, and business revenue is regardedas business income for the taxation.


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