On 21 July 2022, Korea’s Ministry of Economy and Finance announced the 2022 tax reform proposals (the 2022 Proposals).
The proposals outlined several significant potential changes, including the following:
- The five-year application period limitation for special taxation of foreign workers would be terminated from 1 January 2023.
- Introduction of the financial investment income tax would be deferred from its current expected start date of 1 January 2023 to 1 January 2025.
- Introduction of the tax on virtual assets will be deferred from its current expected start date of 1 January 2023 to 1 January 2025.
It is still unclear whether these proposals will become law, but these should still be closely monitored by taxpayers to ensure they are adequately prepared in the event they are legislated.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
