Save article

Saved

 

News

Korea proposes reduced securities transaction tax rates on securities traded on the stock exchange

On 21 March 2019, Korea’s Ministry of Economy and Finance announced proposals (the Proposal) to reduce securities transaction tax rates on securities traded on Korea’s stock exchanges, to mitigate investors’ tax burden, increase venture capital investments and revitalize capital markets. The Proposal will become effective as of 3 June 2019 following public hearings held through 13 May 2019.

The following table summarizes the proposed changes:

Stock exchange
Current rate
Proposed rate

KOSPI Market1

0.15%

0.1%

KOSDAQ Market

0.3%

0.25%

KONEX Market

0.3%

0.1%

The Proposal also reduces the securities transaction tax rate from 0.5% to 0.45% on securities traded over-the-counter or non-listed securities traded. However, this is expected to be included in the 2019 tax reform proposals, which are generally announced in July or August.

Endnote

1. Agricultural and fishery community special tax, rate equal to 0.15%, would also be imposed in addition to securities transaction tax.

EYG no. 001936-19Gbl

Download this Tax Alert as a PDF file.

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

TAGS

Font size

Tax topics >

No filter criteria selected.

Industries >

No filter criteria selected.

Countries >

No filter criteria selected.

 < Close

Connect

 < Close

Countries

 < Close

Tax topics

 < Close

Industries

 < Close

Regions

 < Close

0 articles have been saved