개성공업지구 이전가격 세제 연구

Abstract

Most transactions in the Gaesong Industrial District are toll processing between the parent company of South Korea and the subsidiary of the Gaesong Industrial District, which receive a processing fee. If one considers this from a transfer pricing tax perspective, this transaction is a related party transaction, so the tax authorities can adjust the processing fee (including wages) in accordance with arm’s length principle. However, there is no detailed and specific regulation in this regard in the current tax regulations applicable for Gaeseong Industrial District, which may result in unnecessary conflict and tax friction. To prevent this, the authors propose an amendment to the tax regulations related to North Korea as follows. First, it is necessary to establish concrete regulations by applying the comparable uncontrolled price method, resale price method, cost plus method, transactional profit split method, etc. commonly used in the international tax field. Second, it is necessary to make detailed regulations on precedures for the mutual agreement so that the mutual agreement clause can be operated under the tax treaty. In addition, there is a need to prevent economic double taxation by setting up corresponding adjustment regulations. Third, it is necessary to introduce advanced pricing agreement to determine the arm’s length price between the taxpayer and the taxing authority based on consensus and to report the tax accordingly. This is because taxing authorities can avoid unnecessary tax investigations and taxpayers can increase the predictability of tax burdens.