S. Korea sees corporate tax decline amid economic slump

SEOUL, Jan. 7 (Yonhap) -- The amount of corporate taxes reported by companies in
South Korea plunged last year from a year earlier as a protracted economic slump
drove down business profits, the nation's tax agency said Thursday.
According to the National Tax Service, corporate taxes reported by companies last
year fell 16.5 percent from a year earlier to 31.14 trillion won (US$27.41
billion).
The decline is attributed to the global economic crisis that affected the bottom
lines of many businesses. including financial firms and small and medium-sized
enterprises.
The number of companies that reported over 500 billion won in corporate taxes
increased to eight from the previous year's six, while those paying from 100
billion won to 500 billion won declined to 33 from 46 over the same period.
Meanwhile, the total number of companies that reported corporate taxes last year
increased 0.9 percent to 401,990, exceeding the 400,000 mark for the first time.
Manufacturers accounted for the largest share with 87,461 firms, followed by
wholesale businesses with 81,660, builders with 76,312 and service companies with
74,391, the tax agency said.
kokobj@yna.co.kr
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