South Korea: Government announces inheritance tax reform after 25 years

25 July 2024_ The South Korean government has presented a plan to reform the inheritance tax, reducing the maximum rate from 50% to 40% and increasing deductions for children. This is the first comprehensive overhaul of inheritance tax in 25 years, aiming to ease the tax burden on families, particularly those with multiple children. The reform also provides for a significant increase in deductions for children, from 50 million to 500 million won. The news was reported by 경향신문, highlighting the government's intent to make the tax system fairer and more favorable to taxpayers. The reform, which will be debated in Parliament in September, could have a significant impact on around 83,000 taxpayers and result in a reduction in tax revenue of around 4 trillion won in the coming years.