National Tasks of the New Government regarding Taxation
On May 3, 2022, the 20th Presidential Transition Committee announced the ‘110 National Tasks’ to set the vision and goal of the new president Yoon Suk-Yeol and his administration.
The followings are the major items related to the Korean taxation.
l Reform of the real estate taxation for housing stabilization
Reform of the ‘Comprehensive Real Estate Holding Tax’
∙ Adjustment of ‘Publicly Noticed Price’ and ‘Fair Market Value Ratio’ to ease the burden of the comprehensive real estate holding tax
∙ Introduction of deferred tax payment for senior citizen who owns a house for one’s own living
∙ Preparation of fundamental direction for reform of the ‘Comprehensive Real Estate Holding Tax’ such as the tax rate, etc.
∙ Review of the integration of the property tax and the comprehensive real estate holding tax in the mid-to-long-term
Revision of the Capital Gain Tax for multiple house owners
∙ Temporary suspension of the application of heavy capital gain tax on owners of multiple houses
∙ Review of heavy capital gain taxation policy for owners of multiple houses in the process of comprehensive real estate tax reform
Revision of the Acquisition Tax
∙ Expansion of acquisition tax reduction and exemption on houses acquired for the first time in life
∙ Alleviation of heavy acquisition tax for owners of multiple houses
l Strengthening of financial and taxation support for dynamic innovation growth
Invigoration of Investment, Employment, and Reshoring
∙ Strengthening of taxation support such as R&D tax credit for the transition to Digital and Low-Carbon Economy
∙ Strengthening of taxation support for stock options to support the inflow of talented people to venture companies
∙ Strengthening of taxation support for reshoring to Korea
Facilitation of the intergenerational transfer of technology and capital
∙ Revision of requirements for the gift tax deduction on family owned corporation/business succession
l Vitalization of venture capital through innovation of capital market and enhancement of investor’s confidence
Revision of the taxation system for stocks and financial instruments
∙ Abolition of capital gains tax for individual investors (excluding shareholder who holds a super-large amount of stocks (defined)) on stocks listed in the Korean stock market
∙ Implementation of income taxation on investing in virtual assets after the relevant investor protection act is legislated