S.Korea to start taxing Kospi 200 futures, options in 2016
SEOUL Aug 8 (Reuters) - South Korea will start taxing popular stock price index options and futures transactions from 2016 as part of changes to tax rules following an annual review, the finance ministry said on Wednesday.
The government will levy a 0.001 percent tax on the value of Kospi 200 futures contracts and a 0.01 percent tax on the premiums for Kospi 200 option contracts starting Jan. 1, 2016, the Ministry of Strategy and Finance said in a statement.
The ministry said the new taxes on the two heavily traded derivatives would raise about 100 billion won ($88.6 million) in tax revenue per year.
Derivative contracts for the Kospi 200 index, comprising the top 200 stocks on the country's main stock exchange, are among the most heavily traded products in the world.
Other changes adopted after this year's review include an increase in the lowest corporate income tax rate and lowering of the minimum amount of taxable income from financial investment.
South Korea has long been recognised by investors and experts for its prudent fiscal management but is keen to boost tax revenue to deal with an expected rise in spending as its population rapidly ages.
($1 = 1129.1500 Korean won) (Reporting By Se Young Lee; Editing by Choonsik Yoo and Jacqueline Wong)
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