SEOUL, Sept. 27 (Korea Bizwire) — South Korea’s chip giant Samsung Electronics Co. outpaced its U.S. archrival Apple Inc. in terms of corporate tax ratio to net income in the first half of 2018, a local think tank said Thursday.
Samsung Electronics paid 28 percent of its net profit in corporate tax for the January-June period, higher than Apple’s 14 percent, the Korea Economic Research Institute (KERI) said in a statement.
KERI is a think tank under the Federation of Korean Industries, the country’s major business lobby.
Samsung Electronics’ corporate tax ratio rose from 23.8 percent a year earlier, but Apple’s dropped from 24 percent, the statement said.
The reversal in the payment burden between the two chip giants comes after Korea raised the corporate tax ratio to 25 percent from 22 percent while Apple’s tax burden was lessened, a KERI researcher said.
Net profit does not mean the bottom-line net figure after all taxes are levied but rather the net figure before corporate taxes are levied, he said.