National Tax Revenue Reaches 260.8 Trillion Won from January to August... Up 28.6 Trillion Won, but Progress Rate Down 0.4%p

Corporate Tax Reaches 63.4 Trillion Won, Up 17.8 Trillion Won
Income Tax Rises by 9.6 Trillion Won to 86.7 Trillion Won
Progress Rate at 70.1% Compared to Second Supplementary Budget
"Including Deferred Corporate and Income Tax, Rate Would Be

From January to August of this year, national tax revenue reached 260.8 trillion won, an increase of 28.6 trillion won, driven by higher corporate and income tax collections. The progress rate for this period was 70.1%, surpassing the 70% threshold, but it was 0.4 percentage points lower than the five-year average progress rate.

According to the "August National Tax Revenue Status" released by the Ministry of Economy and Finance on September 30, national tax revenue from January to August this year was 260.8 trillion won, up 28.6 trillion won (12.3%) compared to the same period last year. This was due to a significant increase in corporate tax, as well as a rise in income tax. The cumulative progress rate through August, based on the second supplementary budget, was 70.1%. This is lower than the five-year average progress rate of 70.5% on a settlement basis, but higher than last year's progress rate of 69.0%.

An official from the Ministry of Economy and Finance explained, "Although the progress rate for January to August this year is 0.4 percentage points different from the five-year average, some corporate taxpayers were granted extensions for interim corporate tax payments, and the deadline for value-added tax was also extended as part of tax administration support. As a result, about 1.3 trillion won in additional tax revenue is expected to be collected within the year." The official added, "If this is included, the progress rate would be 70.4%, so the gap with the five-year average is not significant." However, the official also noted, "We have re-estimated this year's revenue based on the provisional figures for August, and we expect a shortfall of about 2.2 trillion won compared to the supplementary budget."

Corporate tax surged to 63.4 trillion won, an increase of 17.8 trillion won (39.1%). This was due to improved corporate performance in the first half of last year and this year, which led to higher corporate interest and dividend income. Income tax rose to 86.7 trillion won, up 9.6 trillion won (12.5%), thanks to increased bonus payments and a rise in the number of employees, which resulted in a 1 trillion won increase in labor income tax (45.1 trillion won). Capital gains tax (14.2 trillion won) also increased by 1 trillion won, driven by strong performance in overseas stocks. Comprehensive income tax grew by 400 billion won, reaching 12.7 trillion won.

Value-added tax (VAT) decreased by 1.2 trillion won (2.1%) to 57.7 trillion won. In July, the National Tax Service extended the VAT payment deadline for small and medium-sized enterprises by two months, resulting in a tax administration support effect of minus 500 billion won. Refunds also increased. A Ministry of Economy and Finance official explained, "VAT is imposed by multiplying the VAT rate by the difference between sales tax and purchase tax from raw materials or facility investments. If purchases exceed sales, a refund is issued." The official added, "This year, increased refunds, such as the rise in semiconductor facility investments at the beginning of the year, have affected VAT revenue."

Securities transaction tax plummeted by 1.3 trillion won (37.9%) to 2.2 trillion won, mainly due to a decline in transaction volume as the KOSDAQ market underperformed. Meanwhile, the transportation, energy, and environment tax increased by 1.3 trillion won (18.1%) to 8.6 trillion won, reflecting the partial reversal of the flexible fuel tax rate.

Looking only at last month's national tax revenue, it amounted to 28.2 trillion won, an increase of 4.8 trillion won (20.5%). Corporate tax (15.9 trillion won) rose by 3.4 trillion won (26.7%), influenced by improved semiconductor performance in the first half and increased interim tax payments due to the mandatory preliminary settlement. Income tax (9.6 trillion won) also increased by 600 billion won (6.9%), as comprehensive income tax rose due to more installment payments for filings and expanded bonus payments in the second half of the year.

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