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Half of businesses exempted from corporate tax due to business slump in 2015: data

All Headlines 10:17 April 05, 2017

SEOUL, April 5 (Yonhap) -- Nearly half of South Korea's companies were exempted from corporate tax in 2015, government data showed Wednesday, as many experienced a deficit due to the prolonged economic slump.

About 47.1 percent, or 280,000, out of the total 590,000 registered corporations were exempt from corporate taxes in 2015, according to the statistics provided by the National Tax Service. The comparable figures were 46.2 percent in 2011, 46.5 percent in 2012, 47.1 percent in 2013 and 47.3 percent in 2014.

"They did not pay corporate taxes as they were in the red due to a slump in business," an NTS official said.

About 46.8 percent, or 8.1 million, out of the country's total 17.3 million salaried workers also were exempt from earned income tax due to a lack of taxable income in 2015.

The figures rose sharply to 48.1 percent in 2014 from 32.4 percent in 2013.

The dramatic surge was attributed to a tax law revision which allowed many low-income earners to be eligible for tax exemption rather than paying low rate taxes.

The NTS data also showed the top 1 percent of corporations paid 75.9 percent of the total corporate tax while the top 10 percent paid 91.7 percent in 2015.

In terms of earned income tax, the upper 1 percent paid 32.6 percent of the total earned income tax and the upper 10 percent paid 75.9 percent in 2015.

In consolidated income tax, the upper 1 percent paid 47.4 percent of the total and the upper 10 percent paid 85.7 percent of the total in 2015.

Half of businesses exempted from corporate tax due to business slump in 2015: data - 1

hdh@yna.co.kr
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