Top 10 Profit-Making Companies Had an Effective Corporate Tax Rate of 18.6% Last Year...Mid-Sized Companies 18.5%, Small Businesses 13.4%

[Asia Economy Sejong=Reporter Kwon Haeyoung] The effective tax rate, which represents the actual tax burden of the top 10 companies by net income last year, was 18.6%, similar to that of mid-sized companies.

According to data submitted by the National Tax Service to Kang Junhyun, a member of the Democratic Party of Korea, on the 25th, the effective tax rate of the top 10 companies with the highest net income under tax law, which is the corporate tax base, was 18.6% last year. The effective tax rate is the ratio of total tax burden to the tax base, indicating the actual tax burden.

The tax base of the top 10 companies was 32.9284 trillion KRW, and the total tax burden was 6.1208 trillion KRW, resulting in an effective tax rate similar to that of mid-sized companies. The corporate tax base reported by 4,975 mid-sized companies was 25.0516 trillion KRW, and the total tax burden was 4.6251 trillion KRW, with an effective tax rate of 18.5%.

The effective tax rate of the top 100 companies was 21.1%, and that of the top 50 companies was 20.8%. The effective tax rate of 833,128 small and medium-sized enterprises was relatively low at 13.4%.

Top companies by net income tend to receive significant tax reductions through foreign tax credits, research and development credits, and other deductions, resulting in the actual tax paid being lower than the tax amount based on the tax base. Last year, the deduction and exemption amount for the top 10 income companies was 2.0417 trillion KRW, accounting for 20.5% of the total deduction and exemption amount for all corporations (9.9393 trillion KRW). The share of the total tax burden (60.2372 trillion KRW) borne by the top 10 income companies was 10.2%.

This content was produced with the assistance of AI translation services.