Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]
On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income.
The decline in tax on dividends is a definite step in the right direction. Nonetheless, the top bracket dividend tax rate cut was slightly less than what market was expecting.
Given that about 15%-25% dividend tax rates are more common in other developed countries, Korea’s reduction of dividend taxes is likely to be welcomed highly by many global investors.
