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S.Korea to Cut Planned Income Tax on Dividend Payouts, Media

SEOUL, Nov 28 (Reuters) - South Korea's ruling and opposition parties agreed on Friday to lower income tax on dividend payouts to a maximum of 30%, from the government's proposal of 35%, domestic media said.

Lawmakers of the ruling Democratic Party and the main opposition People Power Party told reporters they had reached an agreement, the Yonhap news agency and other media said.

In annual tax code revisions announced in July and currently being reviewed by parliament, the government said it would tax dividend income separately to encourage higher dividend payouts by companies.

But investors criticised its proposal of a maximum of 35% as too high.

Reporting by Jihoon Lee; Editing by Clarence Fernandez

Source: Reuters


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