This study analyzes the current status of the business income tax system and suggests improvements.
Taxation on business income is not based on a reporting system, but on a government evaluation system, which is determined by the tax authorities. Taxation types are classified into bookkeeping business holders and non-bookkeeping business holders, and further divided into five types: document determination, on-the-spot survey determination, estimation determination, and report determination. Of these, document determination and estimation determination are most common.
The percentage of bookkeeping business holders has recently increased, and it is necessary that their business income is efficiently taxed. Since the business income tax requires considerable administrative costs, tax authorities have set standard rates of income and return as indices to determine the scale of reported incomes. While this could reduce taxation costs, it should be closely evaluated for efficiency, as compared to taxation costs and tax revenues. In addition, as it is not optimal that for taxation balance that the taxation authority applies different standard rates of incomes by kind, area, or total income, from the viewpoint of industrial strategy, the application of different standard rates of income should avoided.
In conclusion, the current business income taxation system should be converted to a tax report system, under which tax is determined based on the taxpayer report. Scientific objectivity of tax auditing is required, through the use of statistical sampling to determine taxpayer fraud. Additionally, it is necessary for tax authorities to consistently and unerringly collect tax. It is also urgently necessary to improve the rate of bookkeeping businesses by supporting non-bookkeeping businesses in their transition.
사업소득 과세제도의 현황과 과제(Current status and future propositions for business income tax system)
[서울] : 한국개발연구원
|Series Title; No||정책연구시리즈 / 92-14|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|