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FDI InformationTransfer Price Taxation issue with transfering,receiving for the particular stock
10th April 2018
Written byJu Sik, Kim
Translatedby Eun Kyung, Park
1. Outline
Shareholder of corporation AA try totransfer stocks of AA Co., as of Nov 2017.
Let me find out the issue for it.
2. AA corporation's Status(as of Oct 2017)
(1)Assets in the statement of financial position.
|
Asset |
Debt and capital | ||
|
1. liquid asset |
1. liquid debt | ||
|
(1) quick asset 500,000,000 |
(1) advances received |
510,000,000 | |
|
(2) short term debt |
845,243,198 | ||
|
Total debt |
1,355,243,198 | ||
|
capital | |||
|
(2) inventory |
900,000,000 |
1. capital |
50,000,000 |
|
2. deficiencies |
5,243,198 | ||
|
Total capital |
44,756,802 | ||
|
Total asset |
1400,000,000 |
Total debt and capital |
1,400,000,000 |
(2) Stock status
1)Issued stock number: 10,000
2)Amount per one stock: 5000 KRW
3)Shareholder status : one shareholder retain 100%
(3) Estimated amount per one stock
-30/Sept/2017: 4,400 KRW
(4) Amount to sell
-uncertain
3. Case review
(1)Particular stock
① Real estate amount ratio
Real estate, building, landfrom total asset is 50/100 corporation
② Stock's possessionratio
One shareholder and affiliateparty from corporation total stock is 50/100
③ Transfering ofstocks' ratio
One shareholderor other shareholder who has above two conditions has to transfer 50/100 overform total.
(2) Transfering tax rate rate for theparticular stock
Progressive tax rate is applied
(3) Whether construction land is belong to thenon business land.
①“farm”
Farm in the cityarea is classified as non business land in the metropolitan city, megaopolis,etc.
② Forests andfileds
Forests andfield in the outside of forests protection are classified as non business land.
③ Specialoccasion
(4) Conclusion
AA corporation: progressive tax rate isapplied.
If the land is not under construction it isregarded as non business land and 10% tax will be applied additionally.
If it is under construction it is regardedas business purpose land for the period from acquisition date to 2 years.
Retain period of possession of businesspurpose land from the total retain should be considered.
4. Related law
(1)Income tax law94
(2) Income taxlaw 104
(3) Corporationtax law 55-2 etc
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