Finance minister rules out plan to revise corporate tax
The finance minister said Friday that the country has no plan to revise the corporate tax rate.
Minister of Economy and Finance Hong Nam-ki made the comment in an annual parliamentary audit of his ministry.
South Korea cut its highest corporate tax rate to 22 percent in 2009 from the previous 25 percent but raised it back to 25 percent last year.
Currently, 101 large firms pay 25 percent corporate tax, accounting for 0.01 percent of all Korean firms, according to the ministry.
In July, Korea said that it would raise the tax credit rate on corporate investment in the latest move to help companies invest more amid a sharp decline in facility investment.
The government plans to increase the tax credit rate to 2 percent for large companies’ investments from the current 1 percent for next year, according to the ministry.
The temporary hike — a key part of this year’s tax code revision — is designed to encourage companies to increase their investment at a time when Korea is struggling to revitalize the economy.