Thanks to the 'First Increase' in Income Tax... National Tax Revenue Rises for 2 Consecutive Months

In October, for the first time this year, national tax revenue turned to an increase compared to the same month last year, and the same trend continued in November. The significant factor was the income tax increasing for the first time this year compared to the previous year.

The Ministry of Economy and Finance announced on the 29th that the national tax revenue for November was 19 trillion won, an increase of 1 trillion won compared to the same month last year.

[Image source=Yonhap News]

For two consecutive months, monthly national tax revenue increased compared to the previous year. Although national tax revenue had been on a declining trend compared to last year since the beginning of this year, it increased by 1 trillion won in October and again by 1 trillion won in November, continuing the upward trend for two months in a row.

The increase in national tax revenue also expanded by 500 billion won compared to October.

The income tax revenue increased by 900 billion won due to interim payments of comprehensive income tax and an increase in earned income tax, which had a significant impact. A Ministry of Economy and Finance official stated, "This is the first time this year that income tax has increased."

Corporate tax also increased by 300 billion won due to an increase in withholding tax caused by rising interest rates. Withholding tax refers to the withholding on corporate deposit interest. As corporate interest income increased due to the interest rate hike, related tax revenue also increased.

Regarding concerns that the increase in income tax and the rise in corporate tax withholding due to interest rate hikes might be temporary effects, a Ministry of Economy and Finance official explained, "We see it not as temporary but as a trend," adding, "The situation is continuously improving in a trend."

Value-added tax decreased by 300 billion won due to a decline in import volume, and comprehensive real estate tax also decreased by 200 billion won. Customs duties (200 billion won) and inheritance and gift taxes (100 billion won) saw slight increases.

Meanwhile, the cumulative national tax revenue up to November was 324.2 trillion won, a decrease of 49.4 trillion won compared to the same period last year. Income tax decreased by 13.7 trillion won due to a contraction in real estate transactions, and corporate tax also decreased by 23.4 trillion won due to sluggish corporate operating profits. Customs duties and value-added tax decreased by 2.8 trillion won and 5.7 trillion won respectively due to reduced import volume.

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