April 26, 2024
Industrials
Foreign firms comprise 14% of corporate tax in Korea
[THE INVESTOR] Foreign companies operating in South Korea comprised nearly 14 percent of the country’s corporate tax income in 2015, the national tax agency said on Jan. 8.
Multinational firms, accounting for only 1.5 percent of the county’s 673,374 companies at the end of 2015, earned a combined 664 trillion won (US$552.38 million) and paid a total of 5.3 trillion won in corporate tax that year, data from the National Tax Service showed.
Their earnings, however, accounted for almost 15 percent of the nation’s overall corporate earnings of 4,468 trillion won and their company taxes mark 13.6 percent of total corporate taxes valued at 39 trillion won in the same year, the data said.
“Foreign firms operating here are relatively bigger than domestic ones in terms of size. The size of their (individual) income and taxes often exceeds that of local companies,” an NTS official said.
Seven out of 10 foreign companies in South Korea are from the US, Japan, Hong Kong, Singapore and China, with operations centering in the services, wholesale and retail businesses, according to NTS data.
Foreign firms here include multinational firms directly controlled by their parents in their home and countries and foreign-invested firms.
(theinvestor@heraldcorp.com)
Multinational firms, accounting for only 1.5 percent of the county’s 673,374 companies at the end of 2015, earned a combined 664 trillion won (US$552.38 million) and paid a total of 5.3 trillion won in corporate tax that year, data from the National Tax Service showed.
Their earnings, however, accounted for almost 15 percent of the nation’s overall corporate earnings of 4,468 trillion won and their company taxes mark 13.6 percent of total corporate taxes valued at 39 trillion won in the same year, the data said.
“Foreign firms operating here are relatively bigger than domestic ones in terms of size. The size of their (individual) income and taxes often exceeds that of local companies,” an NTS official said.
Seven out of 10 foreign companies in South Korea are from the US, Japan, Hong Kong, Singapore and China, with operations centering in the services, wholesale and retail businesses, according to NTS data.
Foreign firms here include multinational firms directly controlled by their parents in their home and countries and foreign-invested firms.
(theinvestor@heraldcorp.com)
