Samsung Electronics said in a regulatory brief today that due to the company’s operating profit set a new record last year, the company expects to pay 16.8 trillion won (about 15 billion US dollars) in corporate tax this year. It increased by 20.1% year-on-year.
Samsung is expected to use 28.6% of its operating profit last year to pay corporate tax. Samsung’s consolidated financial statements show that Samsung’s operating profit in 2018 reached 58.9 trillion won, a record high. This estimated tax also hit the highest in Samsung’s history, 2.4 times the company tax paid by Samsung in 2015, more than 14 times that of 2009. The specific corporate tax to be paid by Samsung will be determined in April.
Samsung’s record corporate tax stems from a record high in its operating profit and a revision of the Korean tax law. The boom in the storage chip industry last year drove Samsung’s profit to a record. The Korean government has raised the maximum tax rate for companies with taxable incomes of more than 300 billion won from 22% to 25%.
Last year, Samsung paid a corporate tax of 16.8 trillion won worldwide, 70% of which was collected by the Korean government. In 2017, Samsung’s sales in the Korean market accounted for approximately 10% of its total sales.
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Colin has been working in the business industry for quite a sometime and he recently made the decision to become a full-time business journalist. At Daily Research News, he also helps us take care of the business writing.