[Summary of Key Revisions]
■ Establishment of Productive Finance Individual Comprehensive Asset Management Account (ISA) and General ISA Refinement (Act on Special Taxation §89의2·§91의24·§91의29, Income Tax Act §129의2·§146의2) = Establishes a 'Productive Finance ISA' for investment in domestically listed stocks, etc. Provides full tax exemption benefits for interest and dividend income, and a 10% income deduction for young participants (aged 15-34). The annual contribution limit is KRW 20 million, the total contribution limit is KRW 200 million, and the contract period is 3 years (maximum 10 years). General ISA adjusts the contract period to a minimum of 3 years and a maximum of 5 years, and abolishes the annual contribution limit rollover.
■ Exemption from Agricultural Special Tax for Productive Finance ISA (Agricultural Special Tax Act §4) = Adds Productive Finance ISA to the list of savings products exempt from agricultural special tax.
■ Addition of Productive Finance ISA Conversion Funds to Additional Contributions to Pension Accounts (Income Tax Act §40의2) = Includes the amount converted from Productive Finance ISA upon maturity as part of additional contributions to pension accounts.
■ Additional Deduction Limit for Pension Account Taxes with Productive Finance ISA Conversion Funds (Income Tax Act §59의3, Income Tax Act §118의2) = Reflects 10% of the amount converted from Productive Finance ISA to a pension account in the additional deduction limit for pension account taxes.
■ Establishment of Tax Benefits for Business Growth Collective Investment Schemes (BDCs) (Act on Special Taxation §91의30 Newly Established) = Applies 9% separate taxation to dividend income generated from investments in Business Growth Collective Investment Schemes (BDCs), up to a limit of KRW 100 million in contributions. The application period is until December 31, 2029.
■ Expansion of Allowance for Loan Loss Provision Limit for Productive Sector Loans (Presidential Decree §61) = Expands the allowance for loan loss provision recognition limit for loans to start-ups, venture companies, and National Growth Funds in the productive sector.
▶ Source: https://n.news.naver.com/article/123/0002387731?sid=101
