Korea Looks At Rich Tax
November 9, 2011 Taxation in South Korea
SEOUL – Korea’s wealthiest taxpayers and largest businesses could soon be facing increased tax rates, as the leading party announces its intention to instate new tax legislation.
On November 6th Korea’s ruling Grand National Party (GNP) released a statement saying that it is currently conducting research into the feasibility of raising tax obligations for the country’s highest earners.The GNP has not yet revealed what specific taxes it considers to be the most likely, but it was indicated that an increased top marginal rate or an additional high earnings tax were the most realistic options. According to the statement, the GNP is also looking for means to increase taxation on earnings gathered from interest incomes and stocks.
Consideration is being given to raising taxes on enterprises, although the move would likely be restricted to very large family conglomerates.
On the same day the government announced that it is currently investigating potential means of drastically increasing spending on child care and welfare programs for the elderly. In addition the ruling party is weighing up potential tax changes which could serve to stem the country’s growing inflation rate. Local political analysts have said that the new announcement comes as an early launch to the GNP’s re-election campaign for the general election and the presidential elections to be held in 2012. The currently proposed policies are aimed at enticing younger voters, who have largely turned to independent parties over the course of 2011.