home Publications

Periodicals

Cost Estimates & Tax Issues

Title NABO Estimations & Tax Issues (Issue 7)

  • Views
    29
  • Date
    2019-05-31

NABO Estimations & Tax Issues (Issue 7)

Published on 31 May 2019
Published by Estimates and Tax Coordination Division of the Estimates and Tax Analysis Office


I. Stocktaking of the Fiscal Demands of Legislative Bills Approved in 1Q 2019
 Among the 135 legislative bills approved in the first quarter of 2019, there are 53 (39.3%) budget-related bills that affect national and local government finances. Implementation of these bills is expected to result in an annual expenditure increase of 212.1 billion won over the next five years (2020-2024).

 

Ⅱ. Analysis of Major Policy Issues related to Estimation and Taxation
 ·An introduction and the financial status of the employment insurance and industrial accident compensation insurance systems are provided, along with a forecast of the expected fiscal changes over the next 10 years when government plans such as the reinforcement measures for health insurance coverage are incorporated.
 ·A review is conducted on how the income replacement ratio and monthly average pension payment rate of individual subscribers of the NPS Fund will change, depending on the subscriber‘s individual characteristics such as their income level, subscription period and the time (age) of initial subscription.
 ·As a separate tax system was implemented on annual rental real estate income totalling 20 million won and lower as of January 2019, a summary of the tax incentive system for lease business operators is provided. Also, examples of separate taxation are analyzed by different categories, depending on whether the lease business is registered and according to different income levels.

 

Ⅲ. Estimations and Taxation Trends in Korea and Overseas
 ·A summary is made of the performance and trends related to national tax revenues in the first quarter of 2019.
 ·A summary is provided on the main issues regarding the global corporate tax system following the emergence of the 4th industrial revolution and the development of digital information and telecommunications technology.
 ·A summary is offered of the recent discussion trends regarding the family business succession system, with a focus on the inheritance taxation system, in order to support the seamless succession of family businesses.
 ·An introduction to the history of the credit card income tax deduction system is included, as well as a summary of the recent discussion trends regarding the extension of its sunset clause.
 ·An introduction is provided on the property possession tax trends following the increased realization rate of the real estate disclosed price in 2019.
 ·Analyses are conducted on the additional fiscal demands as well as the main issues regarding proposed legislative bills on mandating the utilization of private police guards—police officers hired by the private sector—within medical facilities and supporting or subsidizing the associated expenses.

  List     
footer
faceboock top