On 23 December 2022, Korea’s National Assembly passed the 2022 tax reform bills from the Government with some amendments. The finalized 2022 tax reform bills outlined several significant changes, including the following: (i) The five-year application period limitation for special taxation of foreign workers will be extended to 20 years from 1 January 2023; (ii) Introduction of the financial investment income tax will be deferred from its expected start date of 1 January 2023 to 1 January 2025; and (iii) Introduction of the tax on virtual assets will be deferred from its expected start date of 1 January 2023 to 1 January 2025. The final bills legislated contained several changes from the original tax reform proposals announced on 21 July 2022.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
