Samsung, SK hynix E-File Taxes Revealing Zero Corporate Tax Due

Corporate Tax Implications Amid Semiconductor Downturn

In an unprecedented turn of events, tech giants Samsung Electronics and SK hynix have not made corporate tax payments for the previous year, marking a notable shift due to operating losses. The semiconductor industry’s slump has been cited as the primary cause for this unusual financial outcome.

The detailed business report from Samsung Electronics, released on April 23, showed an operating loss of 11.52 trillion won ($8.37 billion) based on individual financial statements. While consolidated statements, including subsidiaries, indicated a profit, the standalone figures reflected a deficit leading to the absence of corporate tax payment for the first time since 1972.

Similarly, SK hynix’s separate financial statements revealed an operating loss of 4.67 trillion won, which further expanded to 7.73 trillion won in the consolidated accounts. This resulted in the company also not fulfilling its corporate tax obligations in March.

Both companies have been proactive in response to the declining product prices within the global semiconductor market. SK hynix began scaling back production at the end of 2022, and Samsung Electronics followed suit in April of the previous year.

Despite the lack of tax payments in March, it is important to note that the total tax contribution from these companies for the year may not be nil. This is due to the practice of making advance interim payments on corporate taxes. These payments are typically made in August, with a settlement occurring in March of the subsequent year.

As the semiconductor industry shows signs of rebounding, optimism is growing for both Samsung Electronics and SK hynix. Samsung has already reported promising preliminary results for the first quarter, with sales reaching 71 trillion won and operating profits at 6.6 trillion won. SK hynix is also poised to release its first-quarter results soon, with the industry eagerly awaiting what is expected to be a positive report.

For individuals and businesses alike, understanding how to do taxes, particularly e file taxes, remains crucial. Whether it’s learning how to do your taxes, finding ways to file your taxes, or navigating through complex com taxes systems, staying informed is key. As seen with these tech giants, the fluctuations in profitability can significantly impact taxes or taxes obligations.