National tax receipts collected through August this year increased by 28.6 trillion won from a year earlier. Improved results at semiconductor corporations in the first half and expanded performance bonuses in the second half boosted corporate tax and income tax revenue.
According to the National Tax Revenue Status released by the Ministry of Economy and Finance on the 30th, cumulative national tax revenue through 8th totaled 260.8 trillion won. That was up 28.6 trillion won from the same period a year earlier.
Corporate tax rose the most. Corporate tax for January–August increased by 17.8 trillion won from a year earlier. The growth rate reached 39.1%. Improved results at domestic corporations last year and in the first half of this year, as well as increases in corporate interest and dividends income, had an impact.
Income tax also increased by 9.6 trillion won. With performance bonuses paid on the back of improved corporate results and rising employment, revenue from tax on earned income grew, while robust investment in overseas stocks boosted capital gains tax revenue.
By contrast, value-added taxes fell by 1.2 trillion won due to increased refunds and tax administration support effects. The security transaction tax also decreased by 1.3 trillion won as securities transaction value declined. However, the transportation tax increased by 1.3 trillion won due to the partial restoration of the flexible fuel tax rate.
As of August, the national tax revenue progress rate—the ratio of actual revenue to the government's national tax target for this year—was 70.1%. That was 1.1 percentage points higher than last year's 69% and 0.4 percentage points lower than the recent five-year rate of 70.5%.
National tax revenue for the month of July came to 28.2 trillion won, up 4.8 trillion won from a year earlier. Corporate tax led the overall increase, rising by 3.4 trillion won on improved corporate results and higher payments for interim prepayments. Income tax increased by 600 billion won due to expanded performance bonuses in the second half, and value-added taxes rose by 300 billion won due to reduced refunds, among other factors.
The security transaction tax and inheritance and gift tax fell by 100 billion won and 200 billion won, respectively. The security transaction tax declined due to reduced transaction value on KOSDAQ, and the inheritance and gift tax fell due to a base effect from a one-off large payment a year earlier. The Special Tax for Rural Development increased by 300 billion won due to higher transaction value on KOSPI, and the transportation tax rose by 300 billion won due to the partial restoration of the flexible fuel tax rate.