Home Business [단독] Corporate local income tax’double taxation’… The government eventually vomited 42 billion.

[단독] Corporate local income tax’double taxation’… The government eventually vomited 42 billion.

by news dir
It was found that the government’s non-deductible of the foreign tax paid for corporate local income tax, which was concluded to be double taxed, was virtually fully refunded in three years after the Supreme Court’s first ruling in favor of the first taxpayer (corporate) in 2018.

According to the’Corporate Local Income Tax Refund Status by Local Government’ received through the Ministry of Public Administration and Security on the 30th, the total amount of refund for non-deductible amount of corporate local income tax foreign tax paid by local governments as of the end of April was totaled 442 billion won. . The number of cases is 13,393, which means that companies have paid more than 13,000 times of taxes that they do not have to pay.

In 2014, the government reorganized local income tax into a dual system of individual local income tax and corporate local income tax, and maintained the provisions for personal local income tax deductions and reductions, but corporate local income tax abolished the tax deductions and reductions in order to prevent a decrease in the tax revenue of local governments. did.

At the same time, when foreign companies paying local income tax, the issue of double taxation has arisen, and domestic companies have filed a lawsuit against local governments for the return of double-taxed taxes. In 2019, the Supreme Court ruled the taxpayer’s first victory, and the Tax Tribunal successively raised the hands of businesses, and local governments started to refund money in 2019.

Accordingly, it is reported that Samsung Electronics, SK Hynix, Hyundai Motor Company, and CJ received local tax refunds.

The Ministry of Public Administration and Security initially estimated the total amount of refund to be around 430 billion won, but it is estimated that most of the refunds have been completed as the actual refund amount was 432 billion won. The local government that refunded the most tax returned a total of 188.8 billion won (4847 cases) to companies in Gyeonggi-do.

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