개성공업지구 세금제도 개선방안 연구 - 재가동을 대비하여 -

Abstract

The Kaesong Industrial Region (“KIR”) has served as a touchstone to test the possibility of forming an economic community between South and North Korea, as well as a means of assessing whether the South Korean taxation system could be applied to the North Korean region as well. This article: analyzes some of the problems in the tax system during the period of operation of the KIR; proposes possible solutions to such problems; and also explains the tax problems that were not resolved even though the operation of the KIR was stopped. First, one of the North Korean tax regulations, namely the "Detailed Enforcement Rules for Tax Regulations in the KIR", which has been erratically revised and is excessively favorable to North Korea, and can be interpreted arbitrarily by the North Korean side, must be amended in a reasonable fashion so as to ensure the rights of taxpayers. To this end, a solution must be devised through mutual consultation between South Korean and North Korean tax experts. Second, even if the KIR is reopened, it may be suspended again, so in order to prepare for this risk, it is necessary to establish a new provision that can be applied to the provision of tax reduction benefits even during a period of suspension. Third, the transfer prices applied to transactions between South Korea and North Korea should be revised so as to be consistent with prevailing international standards, to improve the predictability of the tax burden on taxpayers. Fourth, in order to guarantee effective remedies for the enforcement of taxpayer rights, subsequent remedial measures as well as the preliminary relief system should be reorganized. Finally, it is necessary to strengthen the authority of the KIR Management Committee, so that it has the right to ensure companies in the KIR prepare and implement measures to comply with tax obligations and accounting regulations in North Korea. Furthermore, this Management Committee should be granted the right to remove companies and businessmen from the KIR if they fail to comply with those measures.