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Major features of tax code revisions proposed by the government

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(Globalpost/GlobalPost)

SEJONG, Aug. 6 (Yonhap) -- The following are key features of the tax code revisions proposed by the government on Wednesday, which include measures focusing on funneling corporate profits to households, shareholders and investors.

- Provides tax deduction on salary hikes larger than previous three-year average raise

- Lowers taxes on dividend income from 14 percent to 9 percent

- Levies taxes on companies that fail to spend a government-set amount of their income on investment, salaries and dividend payments

- Allows accelerated depreciation for facility investments made by small and service-sector businesses

- Extends income deduction on credit card spending for two years

- Expands income deduction on the use of check cards and cash receipts

- Expands tax deduction ceiling on personal annuity savings and retirement pension products from 4 million won to 7 million won

- Eases tax burden on those receiving severance pay in pension form

- Expands tax benefits on investments in safety facilities

- Raises the duty free purchase ceiling from $400 to $600

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