July 21, 2022, 7:00 AM
Yoon Suk Yeol government seeks to reduce top corporate tax rate to 22% from 25%, according to a finance ministry statement.
- Comprehensive real estate taxes to be largely restored to levels before 2018; tax waiver for a household owning only one home will be raised to 1.2b won from 1.1b won
- Introduction of financial investment income tax to be suspended until 2025; taxation on virtual assets to be suspended for two years as well
- Duty-free tax waiver to be raised from $600 to $800 per person
- Tax revenues estimated to fall by 13t won following tax law revisions
- Proposal to …
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TL;DR
The South Korean government plans to reduce the top corporate tax rate and restore real estate taxes to pre-2018 levels to boost the economy. Various tax waivers and suspensions are also proposed to alleviate financial burdens on households and investors.
- The top corporate tax rate will be lowered from 25% to 22%.
- The tax waiver for single-home households will increase from 1.1 billion won to 1.2 billion won.
- Tax revenues are expected to decrease by 13 trillion won due to these changes.