This year, corporate tax and capital gains tax decreased by approximately 30 trillion won, including 19 trillion won and 11 trillion won, respectively, while earned income tax actually increased.
According to the ‘Tax revenue status by monthly tax item’ data received from the National Tax Service by Rep. Ko Yong-jin of the Democratic Party of Korea, a member of the National Assembly’s Planning and Finance Committee, on the 19th, cumulative national tax revenue from January to July of this year was 217.6 trillion won, up from 261 trillion won in the same period last year. decreased.
The decline in national tax revenue was largely due to the decline in corporate and transfer taxes. Corporate tax returns from January to July amounted to KRW 36.3 trillion, a decrease of KRW 19.1 trillion ( -36.3 %) from a year ago, and capital gains taxes decreased by KRW 11.1 trillion ( -53.6 %) to KRW 9.6 trillion. Two tax items, including corporate tax and capital gains tax, decreased by a total of 30.2 trillion won, accounting for 70% of the total tax revenue deficit. The remaining value-added tax ( -6.1 trillion won), gift tax ( -900 billion won), securities transaction tax ( -700 billion won), and comprehensive real estate tax ( -300 billion won)스포츠토토 also decreased.
Meanwhile, the earned income tax, which is the tax paid by office workers, increased alone. The cumulative earned income tax from January to July this year was 37 trillion won, an increase of 100 billion won (0.3%) from a year ago. Earned income tax collected 5.8 trillion won in July alone, an increase of about 200 billion won compared to the previous year.
If this trend continues, earned income tax at the end of this year is expected to increase by more than 1 trillion won compared to last year. Due to the worsening economy and the impact of the tax cut policy, corporate tax, transfer tax, and comprehensive income tax are decreasing one after another, but only the taxes paid by office workers with glass wallets are increasing.
Next year’s earned income tax share is expected to be 17.8%… Corporate tax has fallen to 21.1%.
Earned income tax has been increasing rapidly in recent years. Last year, the amount of earned income tax collected by the National Tax Service was 60.4 trillion won, a 72% increase compared to 2017 (35.1 trillion won). It significantly exceeds the overall national tax increase of 49.2% during the same period.
The share of earned income tax in total national taxes is also increasing. The share of earned income tax, which was only 13.2% in 2017, increased to 15.3% last year. This proportion is expected to increase to 17.8% next year.
According to the government’s national tax revenue budget for next year, total revenue is expected to decrease by 33.1 trillion won (6.3%) compared to this year, but earned income tax is expected to increase by 1.5 trillion won (2.4%) to 62.1 trillion won. On the other hand, due to worsening corporate performance this year, corporate tax next year is expected to decrease to 77.7 trillion won. The share of corporate tax in national taxes will decrease from 22.5% in 2017 to 21.1% next year.
Rep. Ko Yong-jin said, “Due to the impact of the worsening economy and the tax cut policy, tax revenues such as corporate tax, transfer tax, and value-added tax have shrunk, but only the taxes paid by office workers with glass wallets are increasing.” He added, “Those who really need a break in the speed of taxation are not large corporations, but office workers. “He explained. He then pointed out, “The government said that if taxes were cut for companies, investment would increase and taxes would increase, but as a result, tax revenues were lost due to a massive tax revenue collapse.”