Reasons for Proposal and Major Provisions

The current Act stipulates that when calculating the amount of corporate tax for each business year of a domestic corporation, the amount calculated by applying the tax rate relevant to the tax base bracket shall be aggregated with the amount of corporate tax for any capital gains from the transfer of land, etc. and any corporate tax computed by applying special tax provisions for promoting investment and collaborative cooperation.

However, countries such as the United Kingdom have recently imposed a windfall tax of 25% on gas and electricity providers, and it has been suggested that Korea should also impose a separate corporate tax rate on large enterprises above a certain size whose income in a business year exceeds a certain level. 

Accordingly, this Amendment newly inserts an excess income tax and prescribes that where a large enterprise with a tax base greater than 30 billion won has a total income for a business year that exceeds the average income from the previous three business years by more than 20%, an additional corporate tax of 20% shall be imposed on the excess amount (Article 4 (1) and Article 55-3 newly inserted).