|
Seoul wants to change double taxation treaties with other countries so it can tax overseas investment funds that operate here, under plans that also target Korean and foreign investors who avoid taxation by setting up paper companies in tax havens.
It wants to tax the capital gains of foreign funds that own more than a 25 percent equity in local firms including financial firms, which under current double taxation treaties are exempt. It is also targeting overseas-based funds that invest in Korean companies with more than 50 percent holdings in real estate and sell their stake in equities.
The Ministry of Finance and Economy said Sunday it will supplement local laws and seek changes to double taxation treaties to stop tax-haven based investors from avoiding duties in Korea.
But the proposed changes will have no influence on ongoing tax probes of overseas funds like Lone Star, Newbridge and the Carlyle Group since they would only apply to future investments.
The ministry also decided to enshrine in law the practice of tracking down and taxing Koreans and foreigners that operate and invest in Korea by way of tax-haven paper companies.
(Park Jong-se jspark＠chosun.com)
|
