South Korea to hike taxes on large companies
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.”