The '2025 tax reform proposal', which includes major tax revisions such as corporate tax, income tax, and comprehensive real estate tax, passed the Cabinet meeting on the 26th. The plan to strengthen the capital gains tax threshold for major shareholders to 1 billion won was excluded from this Cabinet meeting as it will be included in the enforcement decree.
The Ministry of Economy and Finance noted that it approved 13 tax reform bills during the Cabinet meeting held on the morning of the 26th, chaired by Prime Minister Kim Min-seok at the Government Seoul Building. The government will finalize the 2025 tax reform proposal and submit it to the National Assembly by the 3rd of next month.
The topics that passed the Cabinet meeting that day included 13 laws, such as the Basic National Tax Act, National Tax Collection Act, Tax Benefits Limitation Act, International Tax Adjustment Act, Income Tax Act, Corporate Tax Act, Inheritance and Gift Tax Act, Comprehensive Real Estate Tax Act, Value-Added Tax Act, Special Consumption Tax Act, Education Tax Act, Tariff Act, and laws concerning liquor licenses. This amendment will be finalized after review by the National Assembly.
The current tax reform proposal includes raising the corporate tax rate across all brackets by 1 percentage point and reinforcing the standard for imposing the capital gains tax on major shareholders from 5 billion won to 1 billion won. However, this is included in the enforcement decree and is not subject to legislative notice.
Meanwhile, the four proposed amendments to the Basic National Tax Act, National Tax Collection Act, Tax Benefits Limitation Act, and Corporate Tax Act were modified during the legislative notice and Ministry of Government Legislation review process. The National Tax Collection Act established a basis for imposing fines for the external use of delinquent taxpayer information by survey agents to strengthen the protection of delinquent taxpayer information.