Corporate Tax Up by 14.4 Trillion Won, a 49.6% Increase
Income Tax Rises by 7.1 Trillion Won, Up 12.3%
Due to increases in corporate tax and income tax, national tax revenue for the first half of this year was 21.5 trillion won higher than during the same period last year.
The Ministry of Economy and Finance announced on the 31st that, as of the cumulative total up to last month, this year's national tax revenue reached 190 trillion won, an increase of 21.5 trillion won (12.7%) compared to the same period last year. The execution rate compared to this year's revised annual estimate from the supplementary budget (372.1 trillion won) is 51.5%. This is similar to the average execution rate over the past five years (51.6%).
The increase in national tax revenue is attributable to the rise in corporate tax. The amount of corporate tax collected up to last month this year was 45 trillion won, a sharp increase of 14.4 trillion won (46.9%) compared to the same period last year. This is the result of improved corporate performance last year as well as increases in corporate interest and dividend income.
During the same period, income tax amounted to 65.3 trillion won, up by 7.1 trillion won (12.3%). The increase was influenced by a rise in bonus payments and an increase in the number of employees, which led to higher earned income tax. The growth in capital gains tax due to increased payments for finalized overseas stock declarations also contributed to the increase.
Value-added tax recorded 39.9 trillion won, a decrease of 1.4 trillion won (3.3%). The transportation, energy, and environment tax increased by 900 billion won (16.5%) to reach 6.2 trillion won.
Looking only at last month, national tax revenue was 17.7 trillion won, an increase of 1 trillion won (0.9%). Although value-added tax and securities transaction tax decreased, the increases in income tax and inheritance and gift tax led to a slight overall increase.
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