The Korean Ministry of Finance and Economy (MOFE) has finalized the pre-approval procedures for Labuan-based investors to apply for treaty benefits in respect of withholding tax. Given that the MOFE's intent is to prevent sham transactions and combat treaty shopping with the recent amendments to the International Tax Coordination Act, the pre-approval procedures would serve as a guide for investors of other countries in dealing with the Korean National Tax Service (NTS). Application procedures A Labuan-based or a third-country shareholder investor of a Labuan entity would be eligible for the reduced rate of withholding tax as in the Korea (Rep.)-...