"Transaction Tax Exemption for Stock Losses"...Ahn Cheolsoo Proposes Amendment to Special Taxation Act

Representative Ahn Proposes Amendment to the Restriction of Special Taxation Act on July 28

Assemblyman Ahn Cheol-soo of the People Power Party is promoting a bill to exempt securities transaction tax and the special rural development tax for investors who do not realize capital gains from stock investments.

On July 28, Assemblyman Ahn announced that he had sponsored the revision to the Restriction of Special Taxation Act reflecting these measures.

Under the current law, securities transaction tax is imposed based on the transaction amount regardless of whether profit or loss was made on stock transfers. Additionally, stocks traded on the securities market are subject to a separate rural special tax. As a result, even investors who dispose of stocks at a loss are required to pay taxes, leading to criticism over tax equity issues.

The proposed revision includes provisions exempting securities transaction tax and the special rural development tax in cases where there is no capital gain resulting from the stock transfer.

Assemblyman Ahn stated, "Taxes should be levied equitably according to the taxpayer's ability to pay," and pointed out, "The current system, which collects transaction taxes even from investors who incur losses, fundamentally contradicts the basic principles of tax justice."

He added, "Recently, as stock market volatility has increased, more individual investors are being forced to sell in loss-making positions. I will do my utmost to ensure the swift passage of this bill to relieve the tax burden on investors who have sustained losses and to establish a rational taxation system."

This content was produced with the assistance of AI translation services.