National Tax Revenue Up 8.4 Trillion Won by March... Corporate Tax Increases by 6.5 Trillion Won

Status of National Tax Revenue in March Announced by the Ministry of Economy and Finance
Corporate Tax Surges, but Overall Collection Rate Falls Short of Last Year
Tax Revenue Outlook Remains Bleak Amid Economic Uncertainty and Tariff Hikes

It has been revealed that national tax revenue for January to March of this year increased by 8.4 trillion won compared to the same period last year. This surge is mainly due to a sharp rise in corporate tax revenue, as companies are paying significantly more taxes this year following improved performance last year. However, the tax revenue progress rate slightly lagged behind that of a year ago. The outlook for tax revenue remains bleak, as the economic forecast has worsened since the budget was set, largely due to factors such as the tariff hikes imposed by the Trump administration.

According to the Ministry of Economy and Finance's announcement on March national tax revenue, the cumulative tax revenue for March 2025 reached 93.3 trillion won. This is an increase of 8.4 trillion won (9.9%) compared to the same period last year.

The tax revenue progress rate compared to the annual budget was 24.4%, falling short of the recent five-year average of 25.4%. It also lagged slightly behind the progress rate of 25.2% recorded during the same period last year.

Regarding the slower pace of national tax collection, Cho Moonkyun, Director of Tax Analysis at the Ministry of Economy and Finance, explained that this is due to the base effect from an unprecedented surge in tax revenue during the 2021-2022 pandemic period, which was driven by an economic rebound and an overheated asset market. As for the fact that the current progress rate is even lower than last year’s, he commented that he does not consider it a particularly meaningful figure.

National tax revenue collected in March alone amounted to 32.3 trillion won, an increase of 5.5 trillion won (20.4%) compared to the same month last year.

By tax category, cumulative corporate tax revenue for January to March reached 25.2 trillion won, a sharp increase of 6.5 trillion won (34.6%) from a year earlier. This was due to improved performance among companies that are liable for corporate tax. Corporations with December fiscal year-ends pay their corporate taxes annually in March or April, based on the previous year’s performance.

Another major category, income tax revenue, totaled 30.3 trillion won, an increase of 2.8 trillion won. The Ministry of Economy and Finance explained that this was due to increased labor income resulting from expanded bonus payments and a rise in the number of employees. Value-added tax, which along with corporate and income taxes makes up the three major tax categories, fell by 1.5 trillion won to 18.7 trillion won, mainly due to increased tax refunds.

Due to the partial reversal of the flexible fuel tax rate reduction, the transportation, energy, and environment tax also rose by 300 billion won to 3 trillion won. However, securities transaction tax revenue fell by 600 billion won to 800 billion won, due to a decrease in transaction volume.

The outlook for future tax revenue remains unfavorable. This is because export performance is expected to deteriorate significantly due to tariffs imposed by the Donald Trump administration, and domestic demand is also weak. In addition, the economic growth forecast has been significantly lowered compared to when the government set this year’s revenue budget. Regarding concerns over a possible tax revenue shortfall again this year, Director Cho stated, "We plan to closely monitor the downside risks to the economy stemming from global economic uncertainty and to review the performance of major tax categories."