Fi­nance min­is­ter rules out plan to re­vise cor­po­rate tax

The Korea Times - - FINANCE -

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.

Hong Nam-ki

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