[Yoon Administration Tax Law] FKI: "Helps Boost Economic Vitality... Expecting National Assembly Approval"

[Asia Economy Reporter Park Sun-mi] On the 21st, the government announced a tax reform plan aimed at reducing the tax burden on companies to support investment activation and job creation, which has been welcomed by the business community.

The Federation of Korean Industries, in a statement signed by Economic Director Choo Kwang-ho, said, "The government's tax reform plan is expected to be a cornerstone in strengthening the fundamentals of our economy by reducing the tax burden on the private sector and enhancing the economic vitality of companies and households."

It added, "The comprehensive reform of corporate tax, including the reduction of the corporate tax rate, the abolition of investment and win-win cooperation promotion tax incentives, and the increase of the carryforward loss deduction limit, will contribute to improving the business environment and enhancing competitiveness. The expansion of tax support for national strategic technologies such as semiconductors and for returning companies is also evaluated to help our companies increase investment and create quality jobs."

However, it pointed out, "Although the easing of requirements and expansion of application targets for the inheritance tax deduction for family businesses are expected to reduce the inheritance tax burden on companies, it is regrettable that the adjustment of tax rates and tax brackets, which have not been revised for 22 years since 1999, was not included this time either."

It added, "We hope that sufficient supplementation will be made during the future legislative discussions, and we hope that the government’s proposal will pass the National Assembly soon to help our companies overcome the current economic crisis."

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