Hong Nam-ki, Deputy Prime Minister, "This Year, Securities Transaction Tax and Capital Gains Tax on Stocks Will Be Revised"

"Comprehensive Financial Tax Reform Plan Including Adjustments to Capital Gains Tax on Stocks and Securities Transaction Tax"

Remarks at Tax Office Chiefs Meeting... Taxation Plan for Virtual Currency Exchange Income Also Prepared

Commissioner Kim Hyun-joon: "We Will Track and Tax Unearned Income from Real Estate to the End"

[Asia Economy Reporter Kwangho Lee] The government is expected to expand the taxation of capital gains on stock transfers while further reducing securities transaction tax this year. Tax authorities emphasized their commitment to thoroughly track and tax unearned income from real estate this year. They also plan to crack down strongly on the illicit succession of management rights by large conglomerate owners, preferential treatment of former officials, and high-income professionals and expensive private education. At the same time, they showed a willingness to reduce the total number of investigations to revive the livelihood economy.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 29th, "To advance the capital market, we will prepare a comprehensive reform plan for financial taxation, including adjusting capital gains tax on stocks and securities transaction tax, and establish taxation measures on income from individual virtual currency transactions." Hong made these remarks while attending the 'National Tax Office Chiefs Meeting' held at the National Tax Service on the same day, stating, "We will modernize the taxation system by reflecting overseas advanced cases and international discussions and take the lead in protecting taxpayers' rights."

Last year, the government amended the Enforcement Decree of the Securities Transaction Tax Act to reduce the securities transaction tax from 0.30% to 0.25%, but did not touch the capital gains tax.

On this day, the National Tax Service finalized and announced the 'National Tax Administration Operation Plan' for the first half of the year. Commissioner Kim Hyun-joon presided over the meeting and emphasized, "We will strictly respond to intelligent tax evasion and delinquency that go against the realization of a fair society, such as tracking and taxing unearned income from real estate to the end," adding, "In particular, we will strictly respond to illicit gifts related to high-priced housing acquisition, tax evasion by multi-homeowners and landlords."

The National Tax Service will first conduct a full analysis of the sources of funds for acquiring high-priced homes using financing plans and other documents and thoroughly investigate suspected tax evasion such as disguised gifts. They will especially manage the entire debt repayment process after acquiring high-priced homes and focus on analyzing the sources of funds for large deposit tenants. They also plan to investigate allegations of tax evasion by multi-homeowners using nominee accounts to omit rental income reporting and real estate companies established to avoid combined taxation.

Additionally, the government plans to strictly punish irregular tax evasion such as the operation of nominee stocks by large conglomerates and their owners, unfair support among affiliates, unfair mergers, and management succession through roundabout capital transactions. They will conduct a full inspection of false reporting allegations related to preferential work allocation and monopolization to eradicate private profit-seeking acts that hinder fair competition. Furthermore, they will expand regular verification of property changes and actively use mortgage lien data to closely examine the inheritance of wealth among high-net-worth individuals and young people.

Moreover, they will strengthen tax audits in professional fields such as former officials who abuse superior status and privileges to earn huge income without sincere reporting, as well as in medical clinics and hospitals. They will actively respond to tax evasion that harms the livelihood of ordinary people by profiteering in areas closely related to everyday life, such as expensive private education, entrance exam consulting, and illegal lending businesses.

In addition, the government will reduce the total number of investigations and expand simplified audits, excluding small corporations that have faithfully fulfilled their tax cooperation obligations from irregular investigations in principle. They will also thoroughly implement tax burden reduction and tax support measures for self-employed and small business owners extended until the end of this year to support economic revitalization.

Furthermore, they will support voluntary and sincere reporting through big data analysis and full expansion of mobile Hometax services, and operate exclusive airport business centers and prior consultation systems for exemplary taxpayers. They will also promote the discovery and support of small businesses through the newly established 'Tax Support Promotion Team' in tax offices and regional tax offices.

Commissioner Kim said, "We will actively implement tax support for self-employed and small business owners so that it can be felt on the ground," adding, "Through the spread of proactive administration, a new public service paradigm, and enhancement of the integrity of national tax officials, we will realize national tax administration that the public sympathizes with and trusts."

This content was produced with the assistance of AI translation services.