South Korea to cut taxes for companies, workers and retail investors
SEOUL: South Korea on Thursday (Jul 21) proposed a series of tax cuts for companies, workers and retail investors in stocks to support private-sector led economic growth as President Yoon Suk-yeol had pledged in the election campaign.
In his first annual tax code revision, the Yoon administration proposed cutting the maximum corporate tax rate to 22 per cent from the current 25 per cent and lowering the threshold for income taxes to put more salaried workers in the lower income tax basket of 15 per cent.
To revitalize the stock market that has slumped nearly 20 per cent so far this year, the government proposed to exempt capital gains taxes on retail investments, except for holdings worth more than 10 billion won (US$7.63 million) in any one stock.
“Our goal is to revise tax codes to fit into the global standards, and to revitalize the market, businesses as well as markets,” the finance ministry said in a statement.