New administration to reduce corporate tax rates — Orbitax Tax News & Alerts
It has been reported that the new administration and transition team plan to introduce a number of tax cuts, as follows:
| - | reducing the corporate tax rate by 5% over 5 years. The corporate tax rate for taxable income exceeding KRW 100 million will be reduced from 25% to 20%, i.e. an annual reduction 1% over 5 years. Taxable income of not more than KRW 100 million is to be subject to a corporate tax rate of 12% in 2009, 11% in 2010 and 10% in 2011; | |
| - | the tax base for small and medium-size enterprises is to be increased from KRW 100 million to KRW 200 million; and | |
| - | the research and development tax credit is to be increased. |
The above plan is subject to approval in the National Assembly.