The National Assembly revised 17 Tax Acts (15 national and 2 local) at three plenary sessions on 10, 23, and 27 December 2019. This year, the government is trying to revitalize the Korean economy by expanding the tax exemption system, such as the extension and expansion of the tax credit for investments in facilities for productivity improvement and the excise tax cuts for replacing old vehicles. Other revisions include setting the earned income deduction ceiling and raising the transfer rate of local consumption taxes.
The confirmed national tax revenue budget for 2020 is 291.9969 trillion Korean won. The government revenue budget proposal was 292.391 trillion won. However, during the National Assembly deliberation, 42.52 billion won was reduced to provide more tax support, such as implementing a temporary excise tax cut for membership purchases at golf clubs on Jeju Island and in low employment/business presence areas.