The new government hints at lowering corporate and inheritance taxes… The speed of the introduction of multiple voting rights, a long-cherished dream of the venture industry

Choo Kyung-ho, a deputy prime minister of economy and candidacy for the Ministry of Strategy and Finance, said that the inheritance tax should be lowered by introducing an inheritance acquisition tax. The corporate tax also needs to be reviewed in the direction of easing the taxation system. In addition, the Yun Seok-yeol government decided to introduce the system of multiple voting rights, a long-cherished dream of the venture industry. Accordingly, the paradigm shift is expected to accelerate from the income-led growth of the Moon Jae-in government to private-led growth.

On April 25, Candidate Chu responded to a written inquiry on pending issues requested by Democratic Party lawmaker Yang Kyung-sook, who belongs to the National Assembly Planning and Finance Committee ahead of the personnel hearing, regarding the reform of the inheritance tax system, saying, “Considering the principle of flexible burden, rationalization of the taxation system, and international trends, the current inheritance tax We need to convert the system to an estate acquisition tax,” he said. The tax burden is the principle that those who are able to pay the tax pay the tax. The current inheritance tax system is an estate tax that is levied on the total amount of inherited property. The estate acquisition tax is levied according to the amount inherited by an individual, not the entire inherited property, so the tax burden caused by the progressive tax can be reduced.

It also suggested a review of the current corporate tax system in the direction of easing the tax burden on companies. Candidate Chu said, “Considering the high level of the highest tax rate and the complex tax base, it is necessary to review the current corporate tax system.” “The corporate tax system can be improved to actively support private-led growth in terms of taxation and strengthen the international competitiveness of companies,” he added. The current maximum corporate tax rate is 22%, but it will rise to 25% for the taxable portion exceeding 300 billion won. Analysts believe that a method of returning the highest corporate tax rate, which was raised from 22% in the first year of the Moon Jae-in administration to 25%, will be possible.

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