South Korean Parliament To Consider Resumption Of Foreign Capital Holdings Of Korean Debt Withholding Tax

Yonhap News Agency reported Sunday that the ROK parliament will resume its recovery during this regular session. foreign capital Possession of Korean debt Withholding tax And may adopt a more flexible tax rate.

Yonhap quoted an anonymous government official as saying that the government will also discuss the branch of foreign banks from next January. foreign exchange The forward trading limit is adjusted to around 200% of its total capital, which is currently 250%.

The above plan was announced at the summit of the group of 20 (G20) held in Seoul on 11-12 November.

"The tax withholding rate was initially set at 14%." An unnamed government official said.

"But considering the tax convention, some countries are applying to the tax rate of 10-12%, so we are inspecting the technical details. For example, if we abide by the principle of" no taxation without representation ", it is feasible to set up a series of flexible tax rates.

The parliamentary website of the Republic of Korea shows that the regular session of the Congress will be held from September 1st to December 9th.

In May 2009, South Korea suspended capital gains tax on foreign buyers of government bonds and currency stabilization bonds to attract long-term overseas funds.

Emerging market countries, including Brazil and Thailand, are stepping up efforts to counter capital inflows, resulting in the appreciation of their currencies and weakening their competitiveness.

Yonhap also reported that a government group was examining the issue of bank tax.