The first tax reform proposal of the Lee Jae-myung government includes content extending the tax benefits for segregated accounts of collective investment vehicles (public infrastructure funds) by three years. Samsung Securities forecasted on the 4th that this will positively impact the public infrastructure funds, Macquarie Korea Infrastructure and KB Infrastructure.
The public infrastructure fund's low-rate segregated tax exemption means that if an investor puts money into a public infrastructure fund through a dedicated account for more than one year, dividends will be taxed separately at a rate of 15.4% from total income.
This exemption was introduced in 2020 and was originally set to expire at the end of 2022, but it has been extended for another three years and was approaching expiration at the end of this year. Under the current tax reform proposal, investors in public infrastructure funds such as Macquarie Korea Infrastructure or KB Infrastructure are expected to continue receiving segregated tax benefits until the end of 2028.
Lee Kyung-ja, a researcher at Samsung Securities, noted that while no new incentives were granted, the clarity brought about by this situation is positively evaluated. The tax benefits of public infrastructure funds under private investment law, first implemented from 2006 to 2012, led to an increase in the individual shareholder ratio of Macquarie Korea Infrastructure from 3% to 22% during that period.
The researcher stated, "The expiration of the public infrastructure fund's low-rate segregated tax exemption would likely result in a high possibility of individual investors withdrawing, meaning that this tax reform proposal is positive for infrastructure funds."
He added, "I expect that with the reopening of dedicated accounts for collective investment vehicles by securities firms that had been suspended since the end of 2024, uncertainties will be eliminated."