• Title/Summary/Keyword: Tax Incentives

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A Study on Rational Improvement of the Pension Income and Retirement Income Taxation (연금소득 및 퇴직소득 세제의 합리적 개선방안에 관한 연구)

  • Lim, Sung-Jong
    • Management & Information Systems Review
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    • v.36 no.1
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    • pp.215-232
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    • 2017
  • [Purpose] The purpose of this study is to point out the issue of pensions and retirement income tax which were amended from 2012 to 2016 and present a rational and intellectual improvement to this issue. [Methodology] This study was carried out a literature survey about the tax laws of pension income and retirement income. In order to confirm the differences between the case-by-case tax burden, calculated the effect of tax burden by presenting the examples in the case of retirement income. [Findings] It is necessary to apply the differential multiples in accordance with the seniority when leaving the company rather than applying the five times or 12 times in the tax base as the current retirement income tax. Also, It should be given the flexibility of pension income to ease the requirements of inevitable temporary receipt of a pension income. In addition, it is needed to expand separate taxation threshold which is current 12 million won. Finally, the annual limit of tax incentives for IRP should be increased significantly more than the current 7 million won. [Implications] The improvement of the study is to offer suggestions on the revision of retirement income and pension income taxation to the tax authorities or National Pension Service and retirement pension providers. The result of this study is expected to be used as reference to develop policy options on the legislative process.

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A Study on the Effect of Environmental Tax Policy on Trade Competitiveness in Kyoto Protocol Age (교토의정서체제에서의 환경세정책이 무역경쟁력에 미치는 영향에 대한 연구)

  • Kwon, O-Sung
    • Journal of Environmental Policy
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    • v.8 no.2
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    • pp.145-164
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    • 2009
  • Environmental problems, such as the depletion of natural resources, global warming, and the destruction of ecological systems, are among the most serious problems facing the planet. Since the early 1990's, many OECD countries have undertaken green tax reforms by introducing new environmental taxes to protect the environment. Environmental taxes have been used as an instrument of environmental policy more than direct regulation because economic instruments have a comparative advantage over direct regulation in terms of cost effectiveness and pollution abatement incentives. However, one important reason why green tax reforms have not progressed is due to fears regarding the negative effect of environmental taxes on international competitiveness in the industry and trade sectors. The main purpose of this paper is to analyze the effects of environmental taxes on industry and trade by using a theoretical model to compare the effects of environmental taxes on pollution-intensive and energy-saving industries.

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The Economic Effects of Tax Incentives for Housing Owners: An Overview and Policy Implications (주택소유자(住宅所有者)에 대한 조세감면(租稅減免)의 경제적(經濟的) 효과(效果) : 기존연구(旣存硏究)의 개관(槪觀) 및 정책시사점(政策示唆點))

  • Kim, Myong-sook
    • KDI Journal of Economic Policy
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    • v.12 no.2
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    • pp.135-149
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    • 1990
  • Housing owners in Korea have a variety of tax advantages such as income tax exemption for the imputed rent of owner-occupied housing, exemption from the capital gains tax and deduction of the estate tax for one-house households. These tax reliefs for housing owners not only conflict with the principle of horizontal and vertical equity, but also lead to resource misallocation by distorting the housing market, and thus bring about regressive distribution effects. Particularly in the case of Korea with its imperfect capital market, these measures exacerbate the inter-class inequality of housing ownership as well as inequalities in wealth, by causing the affluent to demand needlessly large housing, while the poor and young experience difficulties in purchasing residential properties. Therefore, the Korean tax system must be altered as follows in order to disadvantage owner-occupiers, especially those owners of luxury housing. These alterations will promote housing-ownership, tax burden equity, efficiency of resource allocation, as well as the desirable distribution of income. First, income tax deductions for the rent payments of tenants are recommended. Ideally, the way of recovering the fiscal equivalence between the owner-occupiers and tenants is to levy an income tax on the former's imputed rents, and if necessary to give them tax credits. This, however, would be very difficult from a practical viewpoint, because the general public may perceive the concept of "imputed rent" as cumbersome. Computing the imputed rent also entails administrative costs, rendering quite reasonable, the continued exemption of imputed rent from taxation with the simultaneous deduction in the income tax for tenants. This would further enhance the administrative efficiency of income tax collection by easing assessment of the landlord's income. Second, a capital gains tax should be levied on the one-house household, except with the postponement of payments in the case that the seller purchases higher priced property. Exemption of the capital gains tax for the one-house household favors those who have more expensive housing, providing an incentive to the rich to hold even larger residences, and to the constructors to build more luxurious housing to meet the demand. So it is not desirable to sustain the current one-house household exemption while merely supplementing it with fastidious measures. Rather, the rule must be abolished completely with the concurrent reform of the deduction system and lowering of the tax rate, measures which the author believes will help optimize the capital gains tax incidence. Finally, discontinuation of the housing exemption for the heir is suggested. Consequent increases in the tax burden of the middle class could be mitigated by a reduction in the rate. This applies to the following specific exemptions as well, namely, for farm lands, meadows, woods, business fields-to foster horizontal equity, while denying speculation on land that leads to a loss in allocative efficiency. Moreover, imperfections in the Korean capital market have disallowed the provision of long term credit for housing seekers. Remedying these problems is essential to the promotion of greater housing ownership by the low and middle income classes. It is also certain that a government subsidy be focused on the poorest of the poor who cannot afford even to think of owning a housing.

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On the Incidence of Redistributive Capital Taxations (소득재분배(所得再分配)를 위한 자본조세(資本租稅)의 전가분석(轉嫁分析))

  • Moon, Hyung-pyo
    • KDI Journal of Economic Policy
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    • v.12 no.2
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    • pp.121-134
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    • 1990
  • This paper examines the redistributive potential of capital taxations within the two-class overlapping generations model, where only capitalists are intergenerationally linked through heritable capital stocks. In particular, the dynamic welfare incidence of two different capital taxations is examined; first a capital income tax levied uniformly on interest earnings, and second, an estate tax levied on the intergenerational transfers of capital stock within the capitalists' families. Redistributive effects are measured by examining how the permanent and unanticipated changes in proportional capital income tax and estate tax rates affect workers' welfare when the proceeds in each period are distributed, in a lump-sum fashion, among young workers. It is shown that, except for in the short run, both the capital taxes are ineffective and may actually lower the workers' steady state welfare through the shifting of tax burden toward workers from capitalists. Differential incidence analysis shows that redistributive potential is diminished further when the lump-sum transfers are financed by the estate tax rather than by the capital income tax. Although the model examined in this paper is based on simple and strong assumptions, this study suggests that redistributive policy using the capital taxations may only have distortionary effects in the long run, without improving workers' welfare, by incurring dead-weight loss unless additional fiscal measures are implemented to increase the investment incentives.

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Environmental Management Accounting Perception and Implementation in the Automobile Industry in Vietnam

  • TRAN, Ngoc Hung;HOANG, Thanh Hien;NGUYEN, Thi Thuy Hanh
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.941-949
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    • 2020
  • This study aims to investigate the factors which impact the possibility of Environmental Management Accounting (EMA) implementation in automobile companies in Vietnam. A survey was carried out with automobile enterprises' managers, getting 198 usable respondents, with data and theoretical model analyzed by using SPSS with EFA method. Results indicated that in Vietnamese automobile enterprises, the possibility of EMA implementation was driven by elements including motivation to reduce production costs, reactions to environmental issues, compliance to legislation, procedures and processes in the working environment which they are in business. The government and professional institutions should play a vital role in promoting EMA practices by issuing specific guidelines and continuous training. Besides, tax authorities should apply the favor policies such as tax incentives to stimulate interest enterprises to implement EMA. However, this study's results only reflect about 63.7% of the impact to the implementation of EMA in Vietnamese automotive enterprises, so there are still some other factors that should be found out in the future researches. This is the first attempt to systematically analyze enterprises' perception and willingness to apply EMA in Vietnamese automobile industry. This study contributes to not only the existing empirical literature of EMA but also enterprises' managers in Vietnam and other transitional economies.

Toward Optimal System of Financial Support for Higher Education (대학교육 지원체계의 합리화 방향 - 소득연계식 학자금융자제도를 중심으로 -)

  • Yun, Jungyoll
    • Journal of Labour Economics
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    • v.37 no.4
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    • pp.89-112
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    • 2014
  • This paper characterizes an optimal combination of grant and income-contingent loans (ICL) from efficiency and equity points of view as a government subsidy program for higher-education. In particular, we show that it is always desirable to introduce ICL for students regardless of their household incomes, and also provide arguments for the superiority of tax-financing system to loans with risk-premium as a financing mechanism of ICL. From policy point of view, this paper suggests a need for the extended coverage of our ICL system, while justifying its current tax-financing system.

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Factors Influencing the Choices of Accounting Policies in Small and Medium Enterprises in Vietnam

  • PHAM, Cuong Duc;PHI, Trong Van
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.687-696
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    • 2020
  • Accounting policies are principles and practices by which an entity uses to recognize, measure and report economic transactions. Improper application of accounting policies can lead to misrepresentation of firms' financial position and performance which consequently results in incorrect accounting information to the users. This paper aims to investigate the factors influencing the choices of accounting policies in small and medium enterprises (SMEs) in Vietnam by reviewing relevant literature to build a research model. The research model comprises of one dependent variable that is income-decreasing accounting procedures and six independent variables namely the firm size, financial leverage, incentives, auditor, accountants, and tax policies. After this, the authors collected primary data from more than 200 questionnaires sent to directors and chief accountants of the SMEs for the period 2018 to 2019. We then used Ordinary Least Squares regression method (OLS) to analyze the data. The results showed that four factors influenced selection of accounting policies in which auditors are associated with income-increasing accounting policies; and there are three factors associated with income-decreasing accounting policies which are, company size, tax and accountant. Especially, the research results indicate that company size has a significant influence on the selection of accounting policies in the SMEs. Based on the results, we propose instructive suggestions for regulators and lawmakers improve choices of accounting policies in the SMEs.

Environment of Doing Business in East Asia : South Korean Experience

  • Malek, Jihene
    • The Journal of Industrial Distribution & Business
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    • v.7 no.1
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    • pp.19-25
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    • 2016
  • Purpose - The purpose of this paper is to aim to stress the importance of doing business environment in South Korean economy. The theoretical justification is based on neo-institutional theories and new business management including Porter's Model as main justifications of state intervention due to the market failures to promote a competitive environment of doing business. Research design, data and methodology - The methods to be taken is to provide a comparative performance analysis, and offer in terms of doing business and economic freedom sub-index complemented by Korean reforms diagnostics. Results - The main results underlined the key factors explain the success of business environment in South Korea such as: a simplified registration procedures, a target tax incentives, the removal of business barriers, the improvement of legislative and regulatory framework, target reforms, property right and technical norms, good governance and the quality of institution, a role of a well-functioning legal framework, a strong competition framework, and the transparency of regulation, etc. Conclusion - A competitive environment of doing business is based on the target national strategies, appropriate reforms responding to national needs and good governance system.

A Study on Promotion of Metal-Plating Industry in Korea(I) (우리나라도금공업의 육성에 관한 연구(I))

  • 라규일
    • Journal of Surface Science and Engineering
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    • v.15 no.1
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    • pp.24-38
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    • 1982
  • The Objective of this study is to analyze structural and operational aspects of the govern-ment, its associations, industries and academic associations related to metal-plating industry, and thereby recommend ways of promotion of subsector, which is yet to be developed. Stages for the implementation are proposed as follows. 1) Stage One: Preparation for formation of proper atmosphere. ⅰ) Clearance of unlicenced metal-plating factories. ⅱ) Strengthening of functions of the association. ⅲ) Provision of incentives through the tax system. 2) Stage-Two : Modernization and maturity ⅰ) Introduction of system for indicating quality of products. ⅱ) Implementation of joint and cooperative-based programs ⅲ) Technical advancement of the closed system and anti-pollution treatment. 3) Stage Three : Settlement ⅰ) Systematic use of statistics and information. ⅱ) Standardization of quality of the products.

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The Assessment of Recyc1ing of Garbage Discharged from Metropolitan City (대도시 음시물쓰레기 재활용 방안 평가)

  • Hong, Sang Pyo
    • Journal of Environmental Impact Assessment
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    • v.8 no.1
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    • pp.133-139
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    • 1999
  • Community residents are tend to evade waste treatment facilities such as waste landfills, waste incinerators. Therefore, decision-makers of waste management are concerned about the reduction and recycling of food garbage. As a treatment alternative of food garbage which consists of 30% of municipal waste, producing compost and feed stuff from food garbage is environmentally amenable. In considering the characteristics of food garbage are putrid and high moisturized, methods of landfilling and incineration for food garbage are environmentally inadequate. For the institutionalization of food garbage recycling, separate discharge, establishment of collection system, securing of market for compost and feed stuff manufactured from food garbage, and tax and financial incentives for food garbage recycling facilities are necessary.

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