Bill cuts capital gains tax for multiple homeowners

The Finance Ministry on Friday unveiled a revised tax bill which removes the additional capital gains tax burden on multiple homeowners as part of efforts to stimulate the property market.

Multiple homeowners, with the exception of those possessing three or more homes in speculative regions, will be applied the same capital gains tax rates as those who own a single home when selling their houses.

The bill also includes raising the minimum tax rate for large companies that receive various tax benefits from the current 14 percent to 15 percent, imposing taxes on financial income of more than 30 million won, down from the current 40 million won; expanding taxation on gains from stock transfers by major shareholders; and introducing transaction taxes on derivatives.

Special consumption tax, which is currently levied on fur products, watches and jewelry with factory prices of over 2 million won, will be imposed on bags of that price range as well.

Under the revised bill, corporate tax deduction rates linked to employment will be raised, tax reliefs will be expanded for companies that relocate their operations from abroad to Korea, social welfare businesses as well as small- and medium-sized firms that employ graduates of special vocational high schools.

The limit for deep-sea sailors’ non-taxable income earned abroad will be raised from the current 2 million won to 3 million won per month, and inheritance tax credits for family business successions will be given to a greater number of firms.

In a bid to support the nation’s growth engines, the revised bill offers greater tax relief for green growth industries including extended tax exemption periods for eco-friendly vehicles, expanded tax benefits for research and development, and for small ventures including greater income tax deductions for individuals investing in start-up ventures.

The ministry also said it sought to stimulate domestic demand by removing individual consumption taxes on energy-efficient home appliances, members-only golf courses,

By Kim So-hyun (sophie@heraldcorp.com)