Analysis of the 2022 Tax Revision Bill

Published on Nov., 2, 2022
Published by First Tax Analysis Division

   The world is shifting from an era of low prices and low interest rates to an era of inflation, with a trend where policy stances are quickly changing from those that promote proactive fiscal stimuli to those that aim to significantly curtail government spending. Domestically, changes in the demographic structure and international trade landscape are increasingly threats to the growth potential of the Korean economy, intensifying structural constraints.
   In this transitional period, the government's Tax Revision Bill for 2022 places economic revitalization as a priority to enhance economic efficiency and growth potential through tax cuts and tax simplification. The bill includes measures to stabilize people's livelihoods as well. This upcoming regular National Assembly session will likely discuss whether the government-announced Tax Revision Bill contains directions and strategies necessary to respond to socio-economic changes in various aspects such as the effectiveness of measures to enhance economic vitality and livelihood stabilization, the income redistribution effects of taxes, taxation equity, and fiscal soundness.
   Pursuant to the 2022 Tax Revision Bill submitted by the government, this report provides analysis of major revisions such as tax revenue effects and tax burden incidences, tax expenditure maintenance status, income tax bracket adjustment of its standard tax base, corporate tax rates and the bracket adjustment of its standard tax base, and deferral for financial investment income taxation, etc.