SOUTH KOREA Trends and Developments Contributed by: Dong Shin Lee, Wankyu Jeon, Irene Y. Kim and Young Woong Park, Yoon & Yang LLC
rability with the tested party. In practice, Korean transfer pricing often reviews comparable com - panies using commercial database sources (such as ValueSearch) if the Korean domestic company is selected as a tested party, or TP Catalyst/Orbis if the foreign affiliate is selected as a tested party. The Tax Tribunal determined that the Orbis data - base, utilised by the tax authorities to search comparable companies for the intercompany transaction under review, contains sufficient company information to analyse the compara - bility assessment factors as stipulated in Article 14, Section 2 of the Enforcement Decree of the AITA; accordingly, the transfer pricing analysis conducted through such database was consid - ered valid.
In summary, the decision is significant in that the Orbis database is recognised as a reliable and valid tool when the foreign affiliate is selected as a tested party for conducting transfer pricing analysis in Korea.
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