In South Korea, taxes for the largest companies will increase to 25%

The maximum tax rate on profits of South Korea’s largest companies in 2018 will increase to 25% from 22%.

Within the framework of the bill on the budget of the country agreed by the ruling and opposition parties, the largest companies will be those with a tax base of at least 300 billion won ($ 270 million), Business Korea reports.

Currently, South Korean companies pay a 10% tax at a taxable base of up to 200 million won, 20% on a base in the range of 0.2-20 billion won and 22% if it exceeds 20 billion won.

In the country there are 77 companies with a tax base of more than 300 billion won, based on corporate reporting for 2016. This makes 0.01% of the total number of enterprises in South Korea, which number about 590 thousand.

The government expects that the measures taken will increase tax revenues by 2.3 trillion won ($ 2 billion).

The list of leading enterprises in the country includes, among others, chip makers Samsung Electronics Co. and SK Hynix, steel foundry POSCO, automaker Hyundai Motor Co. and chemical Lotte Chemical Corp.