National Tax Revenue Up KRW 95.4 Trillion Through September... Corporate Tax Up KRW 51.9 Trillion

September National Tax Revenue Report from the Ministry of Finance and Economy

Through September this year, national tax revenue totaled KRW 385 trillion, up KRW 95.4 trillion from a year earlier. Corporate tax revenue rose by nearly KRW 52 trillion as installment payments of provisional corporate tax prepayments were reflected in the figures.

According to the “September National Tax Revenue” report released on October 30 by the Ministry of Finance and Economy, cumulative national tax revenue through September reached KRW 385 trillion, up KRW 95.4 trillion (33%) from the same period last year.

The collection progress rate was 80.5% of the revised estimate announced last month (KRW 478.6 trillion), or 92.7% based on the supplementary budget, the highest level in the past five years. National tax revenue for September alone was KRW 55.2 trillion, up KRW 26.4 trillion from the same month last year.

By tax category, corporate tax revenue through September reached KRW 127.8 trillion, up KRW 51.9 trillion from last year, leading the increase in national tax revenue. The semiconductor boom boosted profits at semiconductor companies, while installment payments of provisional corporate taxes based on first-half results also increased, driving corporate tax revenue higher. In September alone, corporate tax revenue totaled KRW 36.2 trillion, up KRW 23.6 trillion (187.6%) from last year.

Income tax revenue reached KRW 110.8 trillion over the same period, up KRW 15.7 trillion from last year. The increase reflected higher earned income tax revenue, partly due to larger performance bonuses, as well as higher capital gains tax revenue amid an increase in real estate transactions. In September alone, income tax collections rose by KRW 1.2 trillion to KRW 9.7 trillion, a record high for the month of September.

An official at the Ministry of Finance and Economy explained, “The increase in provisional corporate tax prepayments and other factors meant that cumulative corporate tax revenue through September exceeded income tax revenue. However, from October onward, income tax revenue is expected to grow more rapidly and once again surpass corporate tax revenue.”

Value-added tax revenue totaled KRW 67.5 trillion through September, up KRW 7.4 trillion from the same period last year, partly due to an increase in imports and private consumption. However, collections for September alone were KRW 2.4 trillion, unchanged from a year earlier (KRW 2.4 trillion).

Securities transaction tax revenue totaled KRW 9.9 trillion through September, up KRW 7.5 trillion (311.1%) from the same period last year, reflecting increased trading value and the restoration of the tax rate to its previous level. Trading value in listed shares surged by KRW 537.8 trillion from the previous month, and an additional KRW 500 billion was collected in September alone. The special tax for rural development increased to KRW 10.3 trillion in cumulative collections through September, driven by increased KOSPI trading value.

Inheritance and gift tax collections rose by KRW 200 billion in September alone, partly due to an increase in real estate gifts, while customs revenue increased by KRW 100 billion, partly due to higher imports. On a cumulative basis through September, collections were up KRW 2 trillion and KRW 500 billion, respectively.

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