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South Korea’s finance ministry renews call to simplify taxation

South Korea's Ministry of Economy and Finance has renewed its call for corporate tax reform that centres on simplifying the taxation bracket and cutting taxes for large-sized firms. The government plans to simplify the brackets to three and lower the ceiling to 22%. The ministry said even international organisations, such as the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) had advised to lower the top tax rate for companies and simplify the tax base. Among the members of the OECD, 24 countries, including the US, have only one tax rate, and 11 countries, including Australia, have two. The ministry said only South Korea and Costa Rica have a four-bracket system. South Korea's top corporate tax rate already hovers above the OECD average of 21.2%.

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