tax code

tax code

Korean gov't outlines proposal to revise country's tax code

3w ago



세수 3천200억원 늘어난다…고소득•대기업 부담↑ The Korean government has rolled out a proposal to revise the country's tax code -- adding to its efforts to support the economy. That's on top of a budget supplement plan its submitted to the National Assembly earlier this week. Kim Min-ji has the story. Propping up the economy and providing more stability for the public: these are the main pillars of the government's tax code revision proposal. "Korea faces uncertainties at home and abroad -- from slowing exports to a contraction in investment to concerns about Brexit. To strengthen the economy and boost job creation, we feel it's time for the active implementation of fiscal measures." To do so,... the government first plans to foster future growth engines,... by offering up to 30 percent in tax credits for companies involved in research and development in 11 new growth industries such as bio-health, robotics, and future cars. To encourage employment,... the government looks to offer tax benefits for hiring and investment in all service sectors,... including sports services providers and cafes. The revised tax code also proposes tax benefits for troubled companies that voluntarily undergo corporate restructuring. As part of its efforts to give Korean households a boost, the revision seeks an extension of tax deductions for credit card spending until 2019,... with the amount deducted, changing depending on people's income levels. Tax support is also offered for families that have babies,... as the country faces a chronically low birth rate. On top of that,... the revision aims to improve fair taxation in the system and transparency,... by increasing capital gains taxes and offering benefits for firms that boost wages and investment. Through these changes,...which would take effect next year if approved, the government is expecting to raise the tax revenue by roughly 280 million U.S. dollars annually. "In the past few years, Korea has seen a slump in corporate investment, consumption, and exports, and the revision doesn't really include groundbreaking changes that would improve these conditions." The government's proposal comes about a month after it announced a stimulus package to speed up growth. But experts say the impact will be miniscule unless these efforts are coupled with measures to bolster the corporate competitiveness and investment. Another concern is a separate bill looking to raise corporate taxes,... as opponents say a heavier tax burden on companies could cancel out the expected benefits of the proposed tax revision. Kim Min-ji, Arirang News. Visit ‘Arirang News’ Official Pages Facebook(NEWS): Homepage: Facebook: Twitter: Instagram: