The purpose of this report is to make suggestions on reforming Korean corporate income tax law for the adoption of International Financial Reporting Standards(IFRS). After reviewing the differences among the K-IFRS(IFRS adopted into Korean corporates in 2011), the current Generally Accepted Accounting Principles(K-GAAP), and the current Korean corporate tax law, this study analyzes several tax issues and then suggests amendments for those issues.
Some reforms needed after adopting the K-IFRS are as follows;
First, K-IFRS apply the fair value evaluation method when they measure the values of the tangible and intangible assets, etc. However, the tax law needs not adopt the fair value evaluation, because the profits and losses from changes in fair value are yet not realized and therefore not taxable.
Second, there are several expense items that firms should reflect on their financial statements in order to make them tax-deductible. There are differences in recognition criteria of these expense items between the corporate tax law and K-IFRS. After the adoption of K-IFRS, firms face tradeoffs between tax savings and potential benefits from not violating K-IFRS. To resolve these such problems, some tax codes are needed to be revised so that the recognition differences can be adjusted through tax reconciliation. (The rest omitted)
- 국제회계기준(IFRS)의 도입에 따른 세법 대응방안에 관한 연구(A study on reform of corporate income tax law for the adoption of international financial reporting standards)
- 심태섭 외
국제회계기준(IFRS)의 도입에 따른 세법 대응방안에 관한 연구(A study on reform of corporate income tax law for the adoption of international financial reporting standards)
서울 : 한국조세연구원
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|