April 27, 2024
Economy
Korea to hike income, corporate tax
[THE INVESTOR] Korea will raise tax rates for the superrich and large corporates, the Finance Ministry said on Aug. 2.
Under its biannual tax revision plan, which requires approval from the National Assembly, the ministry said it will increase the income tax rate from the current 40 percent to 42 percent on people whose taxable income exceeds 500 million won (US$445,700) per annum.
It will also create a new income bracket for those making 300-500 million won with tax rates set at 40 percent.
At the same time, the government will newly set the highest corporate tax bracket for businesses with taxable income of 200 billion won or more and impose 25 percent rate. Companies with income in the 20-200 billion won range will be subject to the current rate of 22 percent.
The ministry said the hike in income and corporate taxes is aimed at expanding the fiscal role of solving pressing social issues such as deepening income polarization and low growth.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Under its biannual tax revision plan, which requires approval from the National Assembly, the ministry said it will increase the income tax rate from the current 40 percent to 42 percent on people whose taxable income exceeds 500 million won (US$445,700) per annum.
It will also create a new income bracket for those making 300-500 million won with tax rates set at 40 percent.
At the same time, the government will newly set the highest corporate tax bracket for businesses with taxable income of 200 billion won or more and impose 25 percent rate. Companies with income in the 20-200 billion won range will be subject to the current rate of 22 percent.
The ministry said the hike in income and corporate taxes is aimed at expanding the fiscal role of solving pressing social issues such as deepening income polarization and low growth.
By Alex Lee and newswires (alexlee@heraldcorp.com)
