콘텐츠 바로가기
로그인
컨텐츠
  • HOME
  • SEARCH
PLUS Text Size MINUS RESET
FACEBOOK TWITTER Linked In

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Economic System

Print

Can tax incentives for electronic payments reduce the shadow economy? : Korea's attempt to reduce underreporting in retail businesses

Related Document
Frame of Image
  • Can tax incentives for electronic payments reduce the shadow economy?
  • Sung, Myung Jae; Awasthi, Rajul; Lee, Hyung Chul
  • World Bank Group


link
Title Can tax incentives for electronic payments reduce the shadow economy?
Similar Titles
Sub Title

Korea's attempt to reduce underreporting in retail businesses

Material Type Reports
Author(English)

Sung, Myung Jae; Awasthi, Rajul; Lee, Hyung Chul

Publisher

[Washington DC, U.S.] : World Bank Group

Date 2017-01
Series Title; No Policy research working paper / 7936
Pages 55
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic System
Holding World Bank Group
License

Abstract

Increasing tax revenues by reducing the shadow economy has been a central goal of tax policy and administration in the Republic of Korea since the National Tax Service was established as an independent agency in 1966. This paper examines the Tax Incentive for Electronically Traceable Payments, which was introduced by the Korean tax authorities in 1999 to promote payments made using credit cards, debit cards, and electronic cash receipts in business-to-consumer transactions. The tax incentive allows wage and salary earners to claim tax deductions for eligible purchases made using electronically traceable payments when they file their year-end income tax settlements. The tax incentive scheme greatly contributed to changing the Korean economy into a cashless economy over the past decade and a half. Card payments as a ratio of Korea’s gross domestic product have ranked the highest in the world since 2005, reaching 49 percent in 2014. (The rest omitted)