Gwangjang Law Firm's tax group announced on September 1 that it successfully concluded the '2026 Gwangjang Tax Forum,' which addressed corporate strategies for responding to tax audits, including the announcement of the tax reform plan by the head of the Tax Policy Division of the Ministry of Finance and Economy.
The forum, held on August 28 at the Ferum Hall in the Ferum Tower in Jung-gu, Seoul, was organized to analyze the contents of the 2026 tax reform plan announced on August 3 and to present corporate response strategies.
Registration for the event closed early, with over 200 corporate representatives filling the seats at Ferum Hall. The forum provided detailed explanations on key issues of the reform plan, including the restructuring of the taxation system for treasury stock, the evaluation methods for listed stocks in response to so-called 'stock price suppression,' the tax deferral system for qualified divisions of overseas subsidiaries, and the redesign of the tax system for business succession.
Before the main sessions, Choi Jin-kyu, head of the Tax Policy Division at the Ministry of Finance and Economy, presented on the topic 'Key Points and Policy Implications of the August 2026 Tax Reform Plan.' Choi, who has held various positions including head of the Tax Analysis Division and the Value-Added Tax Division, is currently overseeing the overall work related to the tax reform plan.
In the first session, attorney Lim Han-sol discussed 'Capital Transactions, Stock Valuation, and Domestic Production Tax Credits.' Lim stated, 'This reform represents a fundamental change in regulating treasury stock transactions as capital transactions, regardless of acquisition purpose,' and emphasized the need for careful tax treatment as two different taxation systems will coexist around the implementation date of January 1, 2027.
Regarding the newly established evaluation method for listed stocks in response to stock price suppression, he advised, 'It is essential to track and manage the PBR position within the industry on a semi-annual basis and to accumulate management judgment materials to demonstrate that there was no tax avoidance intent.' He also noted that companies should compare the new domestic production tax credit, which has a similar purpose and structure to the U.S. IRA's advanced manufacturing production tax credit, with the integrated investment tax credit once the item-specific standard deduction amounts are confirmed early next year.
Next, attorney Kim Min-gu presented on 'Key Amendments in International Taxation and Business Succession.' He explained that the system is being revised to allow tax deferral or non-inclusion of income when overseas subsidiaries undergo qualified restructuring, advising companies considering restructuring to plan their schedules in light of the implementation timing of the revised system.
On business succession, he highlighted, 'The newly introduced tax benefits for third-party business succession provide tax advantages for both the major shareholder transferring the business and the third party acquiring it,' stressing that even companies that have not been directly related to the business succession system should pay attention from an acquisition strategy perspective.
The final session featured tax accountant Kim Tae-woo, who previously served as the head of the Investigation Division 1 at the Seoul Regional Tax Office, discussing '2026 Tax Audit Trends and Risk Management.' Kim explained the key verification items for large corporate tax audits and changes in audit administration, and proposed ways to utilize attorney-client privilege (ACP) confirmed by recent Supreme Court rulings and revised attorney laws during tax audits.
Kim Sang-hoon, co-leader of the Gwangjang tax group, who moderated the entire event, stated, 'This reform plan is not just a simple amendment of provisions but contains significant institutional changes, making it essential to conduct proactive reviews even before the provisions are finalized.' He added, 'The Gwangjang tax group will continue to hold various briefings to help companies effectively respond to changes in the tax environment based on our accumulated experience and expertise.'
The Gwangjang tax group consists of over 90 professionals, including attorneys, certified public accountants, and tax accountants, providing integrated services across all areas of tax advisory, tax disputes, tax audit responses, and international taxation.
* This article has been translated by AI.
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