CHEONGJU, May 7 (Korea Bizwire) — The city of Cheongju has seen its local corporate income taxes double due to SK Hynix‘s record sales last year.
According to a May 6 statement from city officials, a record-high 88.8 billion won (US$ 82.1 million) in local corporate income taxes was collected, far beyond the city’s estimate of 46.8 billion won (US$ 43.2 million).
SK Hynix reportedly paid 38.1 billion won (US$ 35.2 million) in taxes to the Heungdeok-gu Office in Cheongju.
The semiconductor manufacturer has been exempted from paying local corporate income taxes due to corporate losses which have persisted since 1996.
However, the company saw its sales grow to record levels in 2014, and paid 10 percent of its corporate income taxes to local governing bodies in Chengju, as local corporate income taxes have been transformed into an independent tax for local governing bodies from this year.
The company operates a semiconductor plant in Cheongju and another in Icheon.
SK Hynix also paid 54.1 billion won (US$ 50.0 million) to the city of Icheon in Gyeonggi-do, giving the budget-tight city much needed fiscal relief.
A Cheongju official said that the city would have information about its final tax collection on May 15.
By John Choi (email@example.com)