South Korea to hike taxes on large companies

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

South Korea to hike taxes on large companies

s-korea.jpg

The South Korean government and ruling Saenuri Party have produced a revised tax Bill targeting large companies, which is expected to raise tax revenue by KRW1.8 trillion ($887 million).

The reform Bill includes changes to the tax cut limits for large companies, an increase of the minimum tax rate for big companies, and higher taxes on capital gains.

The Saenuri Party was elected in April, partly on the back of promises to raise taxes on capital gains and to repeal some tax cuts for large companies.

The increase in the minimum tax rate for big companies is a one percentage point hike – from 14% to 15%.

“Reducing the tax cut limits for large companies will contribute toward increasing tax revenue and promoting fair taxation,” said Na Seong-lin, representative of the Saenuri Party. “Toughened taxation on financial or capital gains also dovetails with the Saenuri Party’s policy direction to expand the source of tax revenue and lower the tax rates.”

more across site & shared bottom lb ros

More from across our site

The deal to acquire ITR's parent company is expected to complete by the end of May 2025
JBS, the biggest meat company in the world, allegedly used Luxembourgian ‘mailbox companies’ to avoid taxes between 2019 and 2022
Despite the conviction of Jessa Dabalos, the Tax Practitioners’ Board’s investigative work continues with five outstanding PwC scandal probes
Heads of tax need to push their teams forward as strategic business advisers to add value across their organisations, says Sandy Markwick
Scott Bessent reportedly felt undermined by Musk naming Gary Shapley as acting IRS commissioner; in other news, Baker Tilly will combine with a top 15 US firm
The promise of nine years’ tax certainty and a ‘rational and pragmatic’ government process makes APAs a no-brainer, Indian tax advisers tell ITR
Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Gift this article