April 25, 2024

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[THE INVESTOR] The following are the key features of the tax code revisions unveiled on July 30, which include measures on boosting taxation fairness, facilitating innovative growth with tax incentives and helping low-income households get more tax benefits.

▲Improving income redistribution and taxation fairness
-- Expand the number of beneficiaries of the earned income tax credit (EITC) scheme, which refunds taxes to low-income families, and the amount financial support it provides
-- Adjust the so-called comprehensive property tax scheme and taxation on income earned from housing rent
-- Require strict reporting of offshore property investment to the relevant authorities

▲Extend tax rewards on employment and tax incentives for innovative growth
-- Extend employment-encouraging tax benefits to companies in regions and cities hit by corporate restructuring
-- Redesign the tax scheme in a way that boosts employment
-- Expand tax benefits to companies that hire young people
-- Extend tax benefits to facilitate R&D for new technologies

▲Adjust tax schemes
-- Raise the tax burden on coal used for power generation and reduce the overall tax burden on LNG
-- Improve duty-free operation-related tax incentives
-- Scrap a corporate income tax reduction for foreign investment
-- Cut the penalty on delayed tax payments

By Song Seung-hyun and newswires (ssh@heraldcorp.com)