Tax Increase by 200,000 Won per Person Next Year

It is expected that in 2008, each person will pay about 4.34 million won in taxes, an increase of 200,000 won from this year.

The Ministry of Finance and Economy expects that the total real estate tax will exceed 3 trillion won for the first time in 2008. According to the “2008 National Tax Income Bill” released by the finance ministry on Sep. 14, the internal revenue for next year, which covers both national taxes and local taxes, will grow by 5.1% (10.376 trillion won) to 210.82 trillion won. Among the whole internal revenue, national tax revenue is expected to increase by 4.6 percent (7.3 trillion won) to 165.63 trillion won next year.

The 2008 budget report shows that the tax burden per person will rise to 4,340,000 won, up 200,000 won from this year’s expected amount 4,140,000 won, and the tax rate/GDP ratio is expected to show a 0.4 percent year-on-year decline from 22.2% to 21.8%.

Under the bill, the earned income tax will increase by 8.8 percent to 14.7724 trillion won from this year’s 13.5833 trillion won. Accordingly, the earned income tax burden per person will grow from 2,020,000 won to 2,140,000 won.

The ministry’s 2008 budget report also says that the government will collect 3.827 trillion won in comprehensive real estate taxes, which is a dramatic increase of 34.3% (from 2.2947 trillion won to 3.0827 trillion won), and 3.951 trillion won in succession and donation taxes, which is a 23.4% year-on-year increase (from 3.2006 trillion won to 3.951 trillion won).

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