2025 Tax Law Amendment Proposal – International Tax
2025.09.01.
On July 31, 2025, the Korean Ministry of Economy and Finance released the 2025 Tax Law Amendment Proposal, which includes reversing tax cuts implemented under the Yoon Suk Yeol administration by increasing the corporate income tax rates and securities transaction tax rates, and introducing a qualified domestic minimum top-up tax (“QDMTT”) under the Korean Global Anti-Base Erosion (“GloBE”) rules. The proposed amendments are subject to approval by the National Assembly (Korean Parliament) and, if approved, will mostly become effective from January 1, 2026.
The new administration under President Lee Jae Myung made it clear in the 2025 Tax Law Amendment Proposal that it would work to reduce the fiscal deficit left by the previous government while laying a foundation for economic growth through targeted tax incentives for national strategic technologies.
We have summarized the key proposed changes which relate to international tax or may have an impact on multinational enterprises (“MNEs”) with investments or operations in Korea. We will monitor the developments of the legislative process and provide additional updates if there are any significant changes to the proposed amendments.
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