The Venture Business Association held a 'Venture Business Multiple Voting Rights Practical Briefing Session' with the Ministry of SMEs and Startups at 3:00 PM on the 13th at Maru 180 in Gangnam-gu. This briefing session explained the requirements, procedures, and related restrictions for multiple voting rights stocks under the Venture Business Act, and provided specific guidance on the introduction of special tax deferral provisions for capital gains tax when making a contribution in kind of common stock.
Last year, the revision of the Special Tax Exceptions and Restrictions Act created a new special provision that defers capital gains tax after the 'conversion of multiple voting shares to common stock' when a venture business founder makes a capital contribution in kind in order to acquire multiple voting shares. This system will be applied to capital contributions made in kind after January 1, 2025. This measure was created to promote the use of the multiple voting share system, and it is expected that the burden of capital gains tax will be reduced, thereby increasing the effectiveness of the system.
About 80 venture business executives attended the briefing session and discussed the requirements and taxation system of the multiple voting rights stock system and explored practical application methods. Attorney Kang Song-wook of DLG Law Firm explained the main contents and legal basis of the multiple voting rights stock system and gave a lecture analyzing practical application cases. Then, CPA Kim Seong-hoon of Ollbit Accounting Firm explained the capital gains tax issue that arises when making a contribution in kind of common stock and the requirements and system for applying the tax deferral special provision.
An official from a venture company said, “Through this briefing session, I was able to understand in detail the multiple voting stock system and the special exemption from tax deferral for capital gains tax,” and “The burden on founders has been reduced as they can pay capital gains tax after the economic fluctuation point, and it is expected to help them maintain management rights and attract investment.”
- See more related articles
You must be logged in to post a comment.