The government promotes a method to impose capital gains tax on capital gains for all listed stock transactions.

The policy to cut the current securities transaction tax of 0.25% was phased out.

It is also expected to introduce a'profit and loss' system, which taxes only net income by calculating losses and profits on financial investment income, such as stocks, and a'carry forward deduction' system, which imposes transfer tax by subtracting losses from this year from profits next year.

According to the government, the Ministry of Strategy and Finance is planning to announce a plan to advance the financial tax system this month, which includes the direction and schedule for future reforms of the financial investment income tax system.

Amendments to related laws such as the Securities and Exchange Tax Act and the Income Tax Act are included in this year's tax amendment.

The government has announced that it will prepare a reconciliation plan between the securities transaction tax and the capital gains tax in the first half of this year as a follow-up measure following the 23-year reduction in the securities transaction tax.

At the meeting of the mid- to long-term tax policy deliberation committee meeting held last month, the Minister of Strategy and Finance Kim Yong-beom said, "This year, we plan to advance the taxation system for financial investment income in the direction of raising tax equilibrium and increasing investment neutrality in response to the changing financial environment." "

First of all, it is a policy to comprehensively expand the taxable scope of financial products.

In the medium term, we will introduce the introduction of total taxation on stock transfer gains.

Nowadays, most investors pay securities transaction taxes without withholding capital gains tax.

The targets of both capital gains tax and transaction tax are limited to major shareholders with a stake greater than or equal to a certain standard (1% KOSPI, 2% KOSDAQ) and more than 1 billion shares held per item.

Accordingly, it is known that the target for transfer tax limited to large shareholders will be extended to individual investors, and detailed criteria for taxation such as basic deduction and tax rate will be set.

There is an observation that the introduction time will be as early as 2023.

There are also observations that the company will expand step by step because of concerns about side effects such as shrinking stock trading.

According to the current law, the schedule to expand the taxable object of the transferable tax by lowering the standard for holdings by major shareholders from KRW 1 billion to KRW 300 million from April next year will continue to be implemented without the'deferred action' requested by the financial investment industry. I did it.

The plan is to gradually expand the investment to less than 300 million won for taxation after the preparation period.

As the scope of the transfer tax is expanded, the securities transaction tax will be gradually reduced accordingly.

It is suggested that the current securities trading tax of 0.25% (KOSPI includes special tax for farming and fishing villages) will be reduced by 0.05 percentage points annually starting next year.

The government cut taxes on listed stocks such as KOSPI (including agricultural tax) and KOSDAQ by 0.05% in 23 years last year.

In this regard, as the ruling Democratic Party and the Democratic Party have issued a ``gradual abolition of securities transaction tax and the introduction of the transfer tax of listed stocks'' as a general election pledge, it is interested to state whether the government will ultimately go through phasing-down of the transfer tax and ultimately ``repeal''. Shoot.

In the past, the ruling party and the financial investment industry have alleged that, if the securities trading tax and the transfer tax are paid on the stock investment profit, it is equivalent to a'double tax', so that the securities trading tax should be completely abolished and converted into a transfer tax.

However, the government is concerned that the abolition of the securities transaction tax and the conversion to the transfer tax may make tax forecasts difficult due to uncertainty in the capital market, leading to poor tax stability.

It is also impossible to ignore the fact that securities transaction revenues have reached an annual average of 5 trillion won in recent years.

Therefore, it is observed that the government will keep some of the transaction tax in order to secure tax revenue.

Looking at examples of other countries promoting the transition from transactional taxation to income taxation, Taiwan failed and Japan took 16 years to settle.

There is also a counter-argument that the transfer tax and securities transaction tax cannot be asserted as a double tax because the taxable object and the purpose of taxation are different.

In addition, it is known that the government is also considering ways to eliminate the'blind spot' of financial investment products by imposing taxes on non-taxable equity funds, over-the-counter derivatives, and gains on transfer of bonds.

The government is also pursuing a plan to introduce both profit and loss allowance and carry-over allowances in line with the timing of applying full taxation on stock transfer gains.

Profit and loss calculation is a method of consolidating taxation on total net profit only by carrying forward deduction for losses by combining investment gains and losses within the same financial investment product, such as a fund, or between stocks, bonds, and funds.

In other words, you're only taxing when you profit from the entire investment portfolio of one investor.

It has been pointed out in the current transaction taxation system that the tax principle of'where there is income is tax' is not obeyed when a financial investor trades multiple times even if he or she sees a loss in the portfolio.

In this regard, it is observed that the government will examine the'profit and loss between products' step by step in the future, and will first introduce'the profit and loss within the same product'.