CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South Korea Rejects Calls For Corporate Tax Hike

South Korea Rejects Calls For Corporate Tax Hike

by Mary Swire, Tax-News.com, Hong Kong

06 July 2016


In reply to continuing calls from opposition parties to increase the country's headline 22 percent corporate tax rate, South Korea's Prime Minister Hwang Kyo-ahn re-confirmed that individual and corporate tax rate increases are not part of government policy.

Opposition lawmakers have said that a restoration of the corporate tax rate for larger companies to the pre-2009 level of 25 percent would provide additional revenue for social welfare measures and help reduce the country's fiscal deficit.

However, the Government continues to believe that a corporate tax rate rise would hurt South Korean corporate competitiveness, and therefore also investment and employment in the economy, particularly during a time of global economic uncertainty. It would also be contrary to the global trend for rate reductions, not increases.

During a parliamentary session on July 4, Hwang indicated that the Government will take a different approach to find additional tax revenue. It will, for example, move to increase the effective tax rates paid by larger companies, by closing inefficient tax breaks to which they are currently entitled and by widening the corporate tax base.

TAGS: tax | fiscal policy | corporation tax | tax rates | Korea, South | tax breaks | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »