Korea′s corporate tax to GDP ratio is 6th in OECD   한국, GDP 대비 법인세 비율 OECD 6위

Korea′s corporate tax to GDP ratio is 6th in OECD 한국, GDP 대비 법인세 비율 OECD 6위

With many of the world′s economies lowering
their corporate tax rates, local businesses in Korea,… whose corporate tax to GDP
ratio is one of the world′s highest,… are increasingly calling for tax relief.
Shin Se-min reports. Korea′s corporate-tax-to-GDP ratio
is one of the highest among OECD countries,… which is why local firms have argued their
payment burdens need to be reduced. According to an OECD report,… the figure
for Korea stands at three-point-four percent as of 2013, down point-three percentage
points from the year before. That puts it in 6th place among the OECD′s
32 member nations, in a tie with the Czech Republic and Israel.
Norway topped the list with eight-and-a-half percent,… followed by Australia and Luxembourg.
Many of the world′s leading economies have been lowering their corporate tax rates,…
in a bid to strengthen the competitiveness of local companies.
Global accounting firm Deloitte says that 36 of the world′s 143 countries have lowered
their corporate income tax rates in the last five years.
Ireland is planning to introduce a policy that lowers the rate for R&D companies to
six-point-two-five percent, far lower than the global average of just over 23 percent.
In Japan,… the Abe administration has vowed to lower the effective corporate tax
rate to the 20-percent range, from the current rate of just over 35 percent.
And in the U.S., companies that bring their overseas production facilities back home already
qualify for lower rates. Given the global trend, local economic think
tanks have increased demand for lower corporate tax rates in Korea.
The National Tax Service says Korea′s current corporate tax rate stands just over at 24-percent.
But the country′s main opposition New Politics Alliance for Democracy party says lowering
corporate tax rates in the past has only weakened the country′s tax revenue base,… forcing
the government to issue more bonds. Shin Se-min, Arirang News.

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