SEOUL: South Korea’s National Tax Service (NTS) has reported that corporate tax revenue is expected to increase sharply in 2015. According to the NTS, declarations of corporate earnings rose nearly 11 percent in the first quarter of this year, compared with the same period of 2014.
It has been indicated that corporate tax revenue could therefore rise by around KRW5 trillion (USD4.5bn) in 2015, and the NTS could reach its target of KRW46 trillion (after only KRW42.7 trillion in 2014).Shortfalls in tax revenue experienced in South Korea over the past few years have been largely caused by the country’s sluggish economic recovery.
The possible recovery in tax revenue comes amid political discussions as to whether the Government will need to raise taxes to fund President Park Geun-hye’s promised welfare reforms.
