South Korea to Lower Top Tax Rate on Dividend Income: Kyunghyang

South Korea’s government and its ruling party reached a consensus to lower the top tax rate on dividend income to 25% from 35% as part of a broader effort to boost the country’s stock market, the Kyunghyang Shinmun reported, citing unidentified sources.

• The measure would allow income from stock dividends to be taxed separately at a lower rate, rather than being combined with other income that can be taxed at up to 45%
• Supporters say the change will encourage businesses to pay more dividends, which will attract investors, while critics say it will mainly benefit wealthy investors since high-income ...