National Tax Revenue Reaches 289.6 Trillion Won from January to September... Corporate and Income Taxes Drive 34.3 Trillion Won Increase

Impact of Higher Corporate and Income Tax Continues
Value-Added Tax Down Slightly by 400 Billion Won
Transportation, Energy, and Environment Tax Up by 1.5 Trillion Won

From January to September, national tax revenue reached 289.6 trillion won, an increase of 34.3 trillion won compared to the same period last year, driven by higher corporate tax and income tax collections. The execution rate compared to the second supplementary budget stood at 77.8%, which is in line with the average level for this time of year.

According to the "National Tax Revenue Status as of September 2025" released by the Ministry of Economy and Finance on October 31, national tax revenue for the January-September period totaled 289.6 trillion won, up by 34.3 trillion won (13.4%) year-on-year. The execution rate compared to the second supplementary budget (372.1 trillion won) was 77.8%, slightly above the recent five-year average (77.7%) and last year's rate (75.9%). A ministry official commented, "This is essentially at the average level, with only a 0.1 percentage point difference from the recent five-year average."

Corporate tax (76 trillion won) and income tax (95.2 trillion won) led the increase, rising by 21.4 trillion won (39.3%) and 10.2 trillion won (12.0%), respectively. The surge in corporate tax was particularly notable due to improved corporate performance in both the previous and current first halves of the year. The increase in income tax was largely attributable to higher wage and capital gains tax collections. In contrast, value-added tax fell by 400 billion won (0.6%) to 60.2 trillion won.

Securities transaction tax dropped by 1.5 trillion won (37.9%) to 2.4 trillion won, as a sluggish KOSDAQ market led to a decrease in transaction amounts. The transportation, energy, and environment tax rose by 1.5 trillion won (17.6%) to 9.8 trillion won, due to measures such as the partial restoration of the flexible fuel tax rate.

In September alone, national tax revenue was 28.8 trillion won, up by 5.7 trillion won (24.7%) from a year earlier. Corporate tax (12.6 trillion won) surged by 3.6 trillion won (40.6%) thanks to improved corporate performance in the first half and the mandatory interim settlement. Income tax (8.5 trillion won) also increased by 500 billion won (6.8%). Value-added tax (2.4 trillion won) posted a notable increase of 900 billion won (57.9%).

A Ministry of Economy and Finance official explained, "For value-added tax, the National Tax Service extended the payment deadline for the second term final return in July by two months to the 25th of the previous month as part of tax support for small business owners and SMEs. As the extended payments were made last month, domestic collections increased by about 500 billion won."

Meanwhile, the Ministry of Economy and Finance will recalculate next year's tax revenue estimate and submit it to the National Assembly next month. Related research institutes, including the Korea Development Institute (KDI), will update macroeconomic indicators, and the National Assembly's Strategy and Finance Committee's Tax Subcommittee will reflect changes in the tax law amendment. The ministry plans to submit the revised tax revenue estimate during the National Assembly's budget review process so that it can be reflected in related discussions.

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