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Republic of Korea now one of the world’s top ten business environments
Kiwon Suh, partner in Russell Bedford member firm Cheon Ji Accounting Corporation, comments on World Bank Paying Taxes survey
The annual World Bank Doing Business report assesses regulations affecting domestic firms in 183 economies, ranking each on the basis of various criteria including ease of starting a business, insolvency resolution, cross-border trade and the ease (or otherwise) of paying taxes. Russell Bedford member firms have contributed to the report’s Paying Taxes survey since 2009, with 51 member and correspondent firms contributing data for the 2012 report on tax regulation, compliance and the real tax burden on businesses and entrepreneurs.
This year’s report, Doing Business 2012: Doing Business in a More Transparent World, ranks the Republic of Korea in eighth place in terms of overall ease of doing business – up seven places from its previous ranking at 15.
The report commends the country, in particular, for initiatives to reduce the compliance burden on businesses – reducing the time spent on tax submissions from 250 to 225 hours per year. The number of tax payments businesses are required to make is also decreased, from 14 to 12 . The report also cites recent initiatives to reduce the number of tax bases on which payments are applied. “Businesses in the Republic of Korea no longer need to calculate numerous taxes on the same base. Starting with the 2010 tax year, property taxes and city planning taxes are being merged with other taxes. And thanks to an effort aimed at unifying social security laws and administration, businesses can now file and pay 4 labor taxes and contributions jointly. This freed them from the requirement to file additional returns and bear additional tax compliance costs.”
Kiwon Suh, partner in Russell Bedford member firm Cheon Ji Accounting Corporation, commented: “Korea’s reputation as a business destination is well known, and it is satisfying to see this confirmed by the World Bank. The recent merging of several labour taxes, in particular, is a real boost for business ; we will continue to support any initiatives to ease the compliance burden, particularly on new and developing companies.”
For further information, contact Kiwon Suh on +82 2 3700 2260 or Kempton Bedell-Harper on +44 20 7410 0339. Alternatively, visit the websites at www.cjac.kr and www.russellbedford.com .
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Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants.
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