Korea Shipping Association "Welcomes Extension of Sunset Clause for International Ship Taxation Special Cases Amendment"

[Asia Economy Reporter Dongwoo Lee] The Korea Shipping Association announced on the 2nd that it welcomes the "Partial Amendment to the Local Tax Special Cases Restriction Act," proposed last month by Seo Young-kyo, Chairperson of the National Assembly's Public Administration and Security Committee, which extends the sunset clause for tax special cases on international vessels until 2024.

The amendment aims to prevent shipping companies from relocating their registration to flag-of-convenience countries (such as Panama, Liberia, etc.) for tax reduction purposes, and to strengthen the international competitiveness of the shipping industry by extending the sunset clause on local tax special cases, including acquisition tax and property tax on international vessels.

The Shipping Association emphasized, "Korea's shipping industry has greatly contributed to the national economy by enhancing international competitiveness through the international vessel registration system and the Jeju vessel registration special zone system, which provide local tax reduction special cases," adding, "We have recently completed related research projects to maintain and develop these systems."

Kim Young-moo, Executive Vice President of the Korea Shipping Association, stated, "For the re-advancement of Korea's shipping industry, it is essential to efficiently implement the government's 'Five-Year Shipping Reconstruction Plan' along with the extension of the sunset clause on tax special cases for international vessels," and added, "We welcome the National Assembly's partial amendment to the Local Tax Special Cases Restriction Act."

This content was produced with the assistance of AI translation services.