Changes to tax laws for 2008.

The article presents information on changes in the Corporate Income Tax Law (CITL) for 2008 in South Korea. The National Assembly has approved amendments to the Corporate CITL and other tax laws effective January 1, 2008. The amended Special Tax Treatment Control Law (STTCL) offers a new tax credit for manufacturing companies that externally outsource logistics. Corporations reporting research and development (R&D) expenditures that equal or exceed the prior year will have the option of applying a new method to compute R&D tax credit. The amended CITL prescribes the filing and payment of corporate income tax when a foreign corporation transfers shares of a domestic corporation.