Tax law reform bill also amends inheritance tax; Deputy Prime Minister for Economy: ”Reflect the changing economic situation and reduce the burden on the middle class” = South Korea

Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance Choi Sang-mok said the inheritance tax law, which will undergo the first major revision in 25 years, is a "next-former law that reflects the changing economic situation and eases the burden on the middle class."
During a briefing on the 2024 tax reform bill held at the Government Complex Sejong on the 22nd, Choi responded to a question about whether there might be criticism that the bill was a tax cut for the wealthy by saying,
"There may be a debate about further tax cuts for the wealthy. However, the tax has not been revised for 25 years. As the overall economic level has risen, people in the middle class have also become subject to the inheritance tax."
He added, "The idea is to reduce the burden on people in the middle class, who are now subject to inheritance tax, compared to the target group in the past."
Choi said, "There are many opinions that inheritance tax is a burden even when inheriting a family business, so rather than simply reducing taxes for the wealthy, we should focus on corporate succession and the economy.
When asked about the background to the drastic increase in the inheritance tax child deduction from 50 million won to 500 million won, he said, "The spouse deduction is a condition.
"In terms of the portion that provides preferential treatment to large families, if we increase the child deduction, it will have the effect of increasing the flat deduction," he said.
Regarding the exclusion of the comprehensive real estate tax reform bill from the tax law revision bill, the government said, "Through various efforts under the Yoon administration, the burden of the comprehensive real estate tax was reduced.
However, there are still areas that need improvement, and some have pointed out that fundamental reform is necessary. "To fundamentally revise it, we need to consider the impact on local taxes and the relationship with fixed property taxes, so
Regarding the reduction in tax revenues due to the tax reform bill, Choi said, "The impact of this year's tax reform bill on next year's tax revenues will be negligible."
"Tax revenue shortfalls fluctuate in the short term depending on various economic conditions," he said. "We are concerned about the tax revenue shortfall last year and this year. However, this is a 20
"This is the result of the economic slowdown in 2022 and last year," he said. "We hope that next year, overall corporate performance will be favorable and the tax revenue environment will improve. Tax policy is based on a medium- to long-term perspective, with the aim of improving economic vitality and the livelihood of the people.
"We should also consider stabilizing the patient's vitality and reducing side effects at the same time," he added.