□ To ensure fairness in taxation between non-listed companies and listed companies,
the scope of persons eligible
for non-taxation of benefit from housing provided by
an employer is widened.
○ Formerly, non-taxation of benefit from housing provided by an employer applied to
employees, an executive
who is not a shareholder of his/her company, and an
executive of a listed company who is a minority
shareholder of the company.
- However, starting from this year, an executive of an unlisted company who is a
minority shareholder of the
company is also eligible for non-taxation.
* Applicable to income generated on or after Feb. 3, 2017.
* Minority shareholder (Article 38 (3) of the Enforcement Decree of the Income Tax Act):
A shareholder who owns
lesser of the amount equivalent to: the value of shares at
least 1 percent of the total amount of stocks issued, etc.
of the relevant company, or
KRW 300 million
※ Legislative interpretation (Apr. 20, 2017)
- Imposition of penalty tax where a tax invoice is issued in advance before the time of supply of
○ A business owner issued a tax invoice before the time of supply of goods for which a
portion of the payment
due was not received, and did not issue a tax invoice in the
following taxable period in which the time of
supply of the goods falls. In this case,
penalty tax for non-issuance of tax invoice is imposed for the taxable
period in which the
invoice was not issued. However, penalty tax for false preparation of list of total tax
invoice by customer is not imposed for the taxable period in which the tax invoice was
issued in advance and
value added tax was filed and paid.
Related laws: Article 34 (Time of Issuance of Tax Invoices) and Article 60 (Penalty
Taxes) of the Value Added