245 S. Korean firms subject to global minimum corporate rate scheme: ministry

SEOUL, Dec. 20 (Yonhap) -- A total of 245 South Korean companies are expected to be affected by a new global agreement on a minimum corporate rate, the finance ministry said Monday.

The ministry unveiled details of the Pillar 2 of the Base Erosion and Profit Shifting (BEPS) approved by 136 countries earlier this year.

The regime called for a minimum corporate tax of 15 percent for multinational enterprises with annual revenue exceeding 750 million euros.

The program, designed to prevent multinational businesses from dodging taxes, is scheduled to take effect in 2023.

The ministry projected 245 South Korean companies are expected to be subject to the rule.

The ministry said it aims to revise tax codes next year after conducting related research in the first half of the year.

Under another rule, dubbed Pillar 1, multinational firms with global sales of more than 20 billion euros and profitability of at least 10 percent will need to pay 25 percent of their profits in excess of a margin of 10 percent to markets where they have business activities and earn money.

colin@yna.co.kr
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