National Tax Service Publishes Corporate Tax Law Thematic Guide on 'Merger and Division Taxation'

On the 27th, the National Tax Service (NTS) announced that it has published "Corporate Tax Law Thematic Guide II," focusing on the 'Merger and Division Tax System,' which businesspeople perceive as the most difficult regulation under the Corporate Tax Act.

The NTS has been publishing thematic guidebooks on the Corporate Tax Act to explain tax law provisions in an easy-to-understand manner, aiming to resolve difficulties faced by companies due to complex tax laws and to enhance predictability in tax law application. Last year, it published "Corporate Tax Law Thematic Guide I," which explained the 'Disallowance of Unfair Transaction Calculations' system in an easy-to-understand way.

The Merger and Division Tax System guidebook is organized by separating mergers and divisions, covering general principles, requirements for qualified mergers and divisions, taxation systems by subject, and post-management in sequence. In particular, it clearly explains the grounds and logic for judgment in 103 cases, including major rulings on mergers and divisions, based on actual cases.

The NTS produced the Merger and Division Tax System guidebook as an e-book to make it easily accessible to everyone and posted it on the NTS website. Additionally, it plans to distribute it to companies through the Korea Chamber of Commerce and Industry, the Korea Federation of Small and Medium Business, and the Structural Innovation Support Center.

An NTS official stated, "Going forward, the NTS plans to continuously publish and provide thematic guidebooks on the Corporate Tax Act so that companies leading Korea's economy do not face difficulties in tax processing due to a lack of understanding of tax laws."