Corporate tax exemptions will amount to some 13 trillion won next year to account for one-fifth of all exemptions.

The finance ministry’s tax expenditure budget for 2023 submitted to the National Assembly on Tuesday includes 69-point-three trillion won in exempted taxes, delivered in the form of deductions and tax-free benefits.

Of this total, 40-point-four trillion won covers income tax exemptions, taking up the largest proportion at over 58 percent.

The second-largest exemption is for corporate taxes at nearly 12-point-eight trillion won next year. Eligible deductions include corporate investments or expenses incurred in hiring research personnel.

As the percentage of income tax reductions benefiting individuals declines, corporate tax breaks continue to account for a larger ratio, rising from 15-point-six percent last year to 18-point-four percent next year.