South Korea plans to cut the threshold for stock capital gains tax to individuals holding publicly traded shares worth 10 billion won or more from the current 1 billion won, South Korea’s finance ministry says in statement on new government’s economic policy direction. The statement didn’t say when the change will be implemented.
Currently, capital gains tax is levied on individuals holding equities worth 1 billion won or more, and holders of more than 1% stake in Kospi members or 2% stake in Kosdaq firms.
Separately, South Korea also plans to cut transaction tax on stock trading to 0.2% in 2023 from 0.23%, and to delay planned financial investment income taxation for two years to 2025. South Korea had planned to levy 20-25% tax if annual capital gains from stock investment exceeds 50 million won from 2023.
Similar to the financial investment income taxation, the virtual asset tax, which was scheduled to be implemented from 2023, will be deferred for two years. Taxes on bonds and funds will remain as they are for the next two years.