The ruling People Power Party (PPP) is pushing for an inheritance tax revision whereby the rate and taxable amount are set on gains from trading inherited assets, instead of their value at the time of the owner’s death.
Advancing the move is growing frustration among corporate entities and individuals without tens of billions of won to pay the tax at a nomial maximum rate of over 50 percent, the highest among OECD countries, second only to Japan’s 55 percent.
The rate soars to nearly 60 percent when a 20 percent surtax is included on the largest shareholders of major firms passing down their stocks to family members. The OECD average is 25 percent.
Many end up abandoning their family businesses at the expense of the otherwise strong growth potential of small- and mid-sized enterprises.
Korea is one of the few advanced economies without a grace period for inheritors to wind down a family business, unlike Canada, Australia, Sweden and New Zealand.
The ruling People Power Party (PPP) is pushing for an inheritance tax revision whereby the rate and taxable amount are set on gains from trading inherited assets, instead of their value at the time of the owner’s death.
Advancing the move is growing frustration among corporate entities and individuals without tens of billions of won to pay the tax at a 커뮤니티 nomial maximum rate of over 50 percent, the highest among OECD countries, second only to Japan’s 55 percent.
The rate soars to nearly 60 percent when a 20 percent surtax is included on the largest shareholders of major firms passing down their stocks to family members. The OECD average is 25 percent.
Many end up abandoning their family businesses at the expense of the otherwise strong growth potential of small- and mid-sized enterprises.
Korea is one of the few advanced economies without a grace period for inheritors to wind down a family business, unlike Canada, Australia, Sweden and New Zealand.