Korean Party: "Cut Corporate Tax by up to 5%p and Reduce Burden of Comprehensive Real Estate Tax"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] The Liberty Korea Party unveiled a series of policies aimed at reducing tax burdens, including lowering the corporate tax rate by up to 5 percentage points and raising the threshold for high-priced housing.

The Liberty Korea Party's 2020 Hope Pledge Development Team announced on the 12th the "National Burden Reduction and Economic Revitalization Pledge," centered on these measures.

First, they plan to lower the corporate tax rate by up to 5 percentage points and simplify the tax bracket structure from four brackets to two. Additionally, they will expand tax support for corporate investments such as productivity improvement facilities, safety facilities, and research and development (R&D) to promote corporate investment activation.

Furthermore, they will revolutionize corporate regulations to meet global standard levels and abolish quasi-taxes, while significantly reducing excessive tax burdens that hinder corporate succession, such as inheritance and gift taxes. Through regulatory innovation in the service industry, they aim to create high value-added jobs desired by young people.

They will also reduce the burden of comprehensive real estate holding tax (종부세). The threshold for high-priced housing will be raised from 900 million KRW to 1.2 billion KRW, and the deduction amount for 종부세 will be increased from 600 million KRW to 900 million KRW. For single-home households, the threshold will be raised from 900 million KRW to 1.2 billion KRW. The 종부세 burden cap for owners of two or more homes in regulated areas will be lowered from 300% to 150%, and the heavy taxation on capital gains for multi-homeowners in regulated areas will be abolished. They plan to legally specify the fair market value ratio to fundamentally block the government’s covert increases in holding taxes and will comprehensively review loan regulations.

In addition, they will double the child tax credit within the basic deduction (from 150,000 KRW per child to 300,000 KRW), increase the senior citizen deduction (from 1 million KRW per year to 1.5 million KRW), and expand the scope and amount of deductions for women (for comprehensive income up to 30 million KRW to 50 million KRW, and from 500,000 KRW to 1 million KRW annually).

They will introduce new tax credits for marriage, funeral, and moving expenses (up to 1 million KRW) and expand tax benefits for donors (from 30% to 40% for amounts exceeding 10 million KRW). Tax special cases for agricultural and fishery equipment will be extended, tax benefits for savings for farmers and fishermen will be expanded, and the non-taxable deposit limit for interest income at agricultural, fisheries, credit unions, and Saemaeul Geumgo will be raised from 30 million KRW to 50 million KRW.

The Liberty Korea Party stated, "Due to the Moon administration’s anti-market and anti-business policies, including income-led growth, our economy has lost vitality and people’s livelihoods have been pushed to the brink," and added, "we will restore the lost vitality of the Korean economy and revive the livelihood economy by shifting from the Moon administration’s government-led, regulatory economy to a market-centered autonomous economy."

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