[Yoon Administration Tax Law] Business Community "Welcome Corporate Tax Cut... Expect Economic Vitality Boost" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] The business community has welcomed the government's tax law revision plan announced on the 21st. It is expected to help activate investment and create jobs by reducing the tax burden on companies.

The Korea Employers Federation (KEF) said in a statement on the same day, "We actively welcome the tax reform plan as it contains progressive measures that can contribute to improving the quality of life for the people through stabilizing livelihoods and improving business conditions."

It added, "In particular, the reduction of the highest corporate tax rate and the strengthening of tax support for advanced industries are expected to enhance tax competitiveness in line with global standards, thereby helping to improve the domestic investment environment and increase future growth potential. The adjustment of income tax brackets is also expected to reasonably improve the system according to changes in the economic situation and contribute to alleviating the tax burden on the public."

KEF emphasized, "We hope the National Assembly will actively cooperate in the legislative process to ensure that this revision plan is reflected in the tax law and implemented. We also expect bold follow-up measures to be actively supplemented to reduce the burden on citizens and companies facing difficult economic conditions and to revitalize the private economy."

The Federation of Korean Industries (FKI) also stressed, "The government's tax reform plan is expected to serve as a cornerstone for strengthening the fundamentals of our economy by reducing the tax burden on the private sector and enhancing the economic vitality of companies and households."

FKI explained, "The comprehensive reform of corporate tax, including the reduction of corporate tax rates, abolition of investment and win-win cooperation promotion tax incentives, and raising the limit on the deduction of carried-forward losses, will contribute to improving the business environment and 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, "While the easing of requirements and expansion of the application scope for the family business inheritance tax deduction is expected to reduce the inheritance tax burden on companies, it is regrettable that the adjustment of tax rates and brackets, which have not been revised for 22 years since 1999, was not included this time either."

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

The Korea Chamber of Commerce and Industry (KCCI) also expressed its welcome. KCCI said, "The business community welcomes the ‘2022 Tax Reform Plan’ announced by the government, focusing on revitalizing the private sector amid concerns about domestic and international economic downturns. We highly appreciate the rational improvement of corporate tax, inheritance tax, and tax incentives in line with global standards and trends."

It added, "This reform plan is expected to alleviate the high-cost burden on companies and support the competitiveness of our companies in the fierce technological competition in strategic industries." It also stated, "We hope the ‘2022 Tax Reform Plan’ will be smoothly legislated in the National Assembly in the future. The public and private sectors and the government must join forces to restore the growth potential of our economy and build future response capabilities."

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