DL E&C (KRX:375500) received a notice from the Saudi Arabian tax authority seeking corporate levy of 853.3 billion won, according to a Tuesday filing with the Korean Exchange.
The tax notice is related to the company's engineering and procurement services performed in Korea for Saudi clients between 2006 and 2019.
"Despite the fact that the design and procurement services were performed in Korea, the Saudi tax authority unilaterally deemed that the services were performed through a permanent establishment formed locally in Saudi Arabia," DL E&C said.
The South Korean construction firm said it will consider legal means to challenge the tax imposition.