Chapter 594 - Certificate of Inno-Biz (1) – Part 1
Gun-Ho was thinking about the corporate tax that he would have to pay.
‘GH Development wouldn’t be imposed on corporate tax at all, or the amount should be nominal since it’s not generating any profit. But the problem is Dyeon Korea. It’s generating a significant amount of profits, and they are being accumulated in the reserve.
If I just let it be as it is now, we will have more than 10 billion won in the reserve by the end of this year. If I assume the corporate tax is 22%, the government will take 2.2 billion won out of 10 billion won. If we make even more by working harder and generate 100 billion won, we will have to give 22 billion won to the government. To make the situation worse, say, the workers form a labor union, and claim that they are entitled to a piece of the pie since the company is making a lot of money because of their hard work, then I will have to give away part of the profits.
The tax rates which a company falls into depends on its taxable income level. If we make less than 200 million won, we will have to pay 10% of it as corporate tax. If we make more than 20 billion won and less than 300 billion won, the tax rate will be 25%. Their reasoning to impose the tax is that a company could make money because the society provides the desirable business environment and market. If I say I am being extorted for the money that I made, they would say that I’m an unscrupulous businessman.’
Gun-Ho looked outside the window while tying his hands together behind his back. The internal auditor was crossing the yard toward the building entrance.
Gun-Ho asked for the secretary— Ms. Seon-Hye Yee.
“Yes, sir?”
“Please ask the internal auditor to come to my office, and prepare two cups of tea for us. Thank you.”
“Yes, sir.”
A moment later, the internal auditor entered Gun-Ho’s office.
“Please have a seat, Mr. Internal Auditor.”
Secretary Seon-Hye Yee brought two cups of tea and placed them on the table.
“I just wanted to have a cup of tea with you.”
While sipping his tea, the internal auditor said, “Dyeon Korea is doing very well. Not many companies achieve this much in their first year. It is very rare.”
“I think we will be imposed with a significant amount of corporate tax.”
“I’ve been actually thinking about it. The government no longer gives any special tax benefits to a joint venture company that is using foreign investment funds, these days. The proper tax rate would be in the range between 20% and 22%.”
“Of course, we will raise their salaries. Why don’t you bring up this issue during our next executive meeting? It would be better that way rather than you and I decide it in this room right now. If you make the proposal during the next meeting, I will give my official approval.”
“Thank you, sir. I will do that.”
It was Friday, and Gun-Ho went to work at GH Building in Sinsa Town.
When he arrived at work, he called for Assistant Manager Ji-Young Jeong to his office.
“Did Mr. Woon-Hak Sim come to pick up his passport?”
“Yes, sir. I gave his passport back to him with a visa to China on it.”
“Hmm, I see.”
Gun-Ho then made a call to Seukang Li.
“Oh, Gun-Ho Goo. I’ve heard that you finally received the bus line permit in Antang City.”
“We will use the buses manufactured by Daewoo in Guilin.”
“You are not visiting Shanghai City anytime soon to see me?”
“Today is Friday… I can go to Shanghai City early next week. What do you think? Things seem to be going well in Antang City, so I think I can take some time off from that business in Antang City.”
“I have a meeting in Beijing City on Tuesday, so Wednesday will be perfect for me. Let’s have a drink.”
“Sounds good. Do you often see Jien Wang these days?”
“Nah. He has been very busy with writing a book. It seems that he will be busy for a while.”
“Really? Well, it must be a part of his work since he is a scholar. I will see you on Wednesday then.”