• New & Renewable Energy
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• v.16 no.4
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• pp.65-75
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• 2020

The value of tangible assets depreciates over their useful life and this depreciation should be adequately reflected in any tax or financial reports. However, the method used to calculate depreciation can impact the financial performance of solar projects due to the time value of money. Korean tax law stipulates only one method for calculating the depreciation of solar photovoltaic facilities: the straight-line method. Conversely, USA's tax law accepts other depreciation methods as solar incentives, including the modified accelerated cost recovery system (MACRS) and Bonus depreciation method. This paper compares different depreciation methods in the financial analysis of a 10 MW solar system to determine their effect on the financial results. When depreciation was calculated utilizing the MACRS and Bonus depreciation method, the internal rate of return (IRR) was 10.9% and 16.4% higher, respectively, than when the Korean straight-line depreciation method was used. Additionally, the increased IRR resulting from the use of the two US methods resulted in a 20.5% and 27.4% higher net present value, respectively. This shows that changing the depreciation calculation method can redistribute the tax amount during the project period, thereby increasing the discounted cash flow of the solar project. In addition to increasing profitability, USA's depreciation methods alleviate the uncertainty of solar projects and provide more flexibility in project financing than the Korean method. These results strongly suggest that Korean tax law could greatly benefit from adopting USA's depreciation methods as an effective incentive scheme.

• 한국사회정책
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• v.20 no.3
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• pp.77-115
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• 2013

The purpose of this study is to present empirical evidence for discussion of financing social welfare via estimating optimal tax burden in the main member countries of the OECD by using Hausman-Taylor method considering endogeneity of explanatory variables. Also, the author produced an international tax comparison index reflecting theoretical hypotheses on revenue-expenditure nexus within a model to compare real tax burden by countries and to examine feasibility of tax increase in Korea. As a result of the analysis, the higher the level of tax burden was, the higher the level of welfare expenditure was, indicating the connection between high burden and high welfare from the aspect of scale. The results also indicated that the subject countries recently entered into the state of low tax burden. Meanwhile, Korea had maintained low burden until the late 1990s but the tax burden soared up since the financial crisis related to the IMF. However, due to the impact of foreign economy and the tax reduction policy, it reentered into the low-burden state after 2009. On the other hand, the degree of social welfare expenditure's reducing tax burden has been gradually enhanced since the crisis. In this context, the current optimal tax burden ratio of Korea as of 2010 may be 25.8%~26.5% of GDP based on input of welfare expenditure variables, a percent that Korea was investigated to be a 'high tax burden-low ITC' country whose tax increase of 0.7~1.4%p may be feasible and that the success of tax system reform for tax increase might be higher probability when compare to others. However, measures of increasing social security contributions and consumption tax were analyzed to be improper from the aspect of managing finance when compared to increase in other tax items, considering the relatively higher ITC. Tax increase is not necessarily required though there may be room for tax increase; the optimal tax burden ratio can be understood as the level that may be achieved on average when compared to other nations, not as the "proper" level. Thus, discussion of tax increase should be accompanied with comprehensive understanding of models of economic developmental difference from nations and institutional & historical attributes included in specific tax mix.

• 한국산학경영학회:학술대회논문집
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• 2004.11a
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• pp.101-123
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• 2004

This study examines empirically the significant changes in tax payments when the consolidated tax return is introduced in the future. We estimate the consolidated tax payments under the eight cases which are classified as such : whether only 100% ownership subsidiaries should be included or 80% and over, whether all subsidiaries should be included or only subsidiaries with loss, and whether unrealized profits from intercompany transactions should be excluded or not. After estimating the consolidated tax payments, we test the difference between the consolidated tax payments and the sum of the individual tax payments of the subsidiaries. The results of the test show that the consolidated tax payments are significantly less than the sum of the individual tax payments of the subsidiaries. We interpret that the inclusion of the losses of the subsidiaries in the consolidated tax base makes the tax payment decrease. Based on our analysis about 3.8 billion Won per each parent company would decrease due to the introduction of the consolidated tax return. And we find that under the mandatory consolidated tax return system the significant difference between the consolidated and individual tax payment exists except that the only 100% ownership subsidiaries are included and unrealized profits from intercompany transactions are not excluded. However, when the parent companies have the discretion to select the consolidated subsidiaries, the consolidated tax payments are significantly less than the sum of the individual tax payments of the subsidiaries regardless of the ownership percentage, inclusion of the loss of the subsidiaries and exclusion of the unrealized profits.

• Korean Journal of Construction Engineering and Management
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• v.11 no.2
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• pp.64-73
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• 2010

The stagnation of unsold houses is recently aggravated due to domestic and overseas crisis of finance and real-sector economy and domestic housing construction is in serious difficulty. Thus, tax support is necessary for national housing construction. Due to the current tax exemption system of national housing, V.A.T. paid in the construction of national housing is not deducted. Namely, it is ascribed to consumer as it is reflected in the construction cost. This research intends to analyze the limit of V.A.T. tax exemption system, to present the necessity of applying zero rate and to calculate the scale of non-deduction of V.A.T. purchase tax amount for national housing by analyzing the construction site of apartment house of house constructor in order to analyze the effect of zero rate when it is applied on the basis of above ground. In the zero rate system, V.A.T. is not collected from the consumers like the present tax exemption system. However, the purchase tax amount borne in the construction of national housing is deducted totally. As purchase tax is deducted, constructor will promote supplying national housing thanks to the effect of solving financial difficulties and improving liquidity. Since the architecture cost and parceling-out price can be lowered due to the improved liquidity of constructor, the policy will actually help the people without house.

• Environmental and Resource Economics Review
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• v.31 no.4
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• pp.531-559
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• 2022

It is necessary to study the need for introduction of nuclear energy tax in Korea to internalize the externality cost of nuclear power and to make more balanced taxation system considering LNG and coal power. This study adopts choice experiment method to estimate the willingness to pay (WTP) for possible new tax on nuclear power. The finding is that the tax on nuclear fuel is more preferable to other tax base with KRW2.19/kWh of WTP, compared to KRW1.46/kWh for nuclear waste. The WTP for using the tax revenue to facilitate economic activity is KRW6.39/kWh compared to KRW6.12/kWh of WTP for funding climate change investment. The finding suggests that the design of nuclear power taxation needs to focus more on the use of tax revenue than on the choice of tax base.

• 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.

• Korean Journal of Heritage: History & Science
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• v.41 no.1
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• pp.35-55
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• 2008

This paper is written to results of excavated ChungJu ChangDong site located in ChungJu and the article Keumcheonchang in Joseonwangjosilrok. The structure rerics of compositing cornerstone-distance 420cm has been showing to Keumcheonchang of legend in region people. The solution to problems is that the enforcement of the river-shipping service linking Han River and NakDong River. King Taejong commanded the new tax-warehouse of 200 Kan to built at Keumcheon in ChungJu and named Keumcheonchang for the receipt of innner region and KyengSang Province. King Sejo established the foundation of the government owned tax-grain transportation systerm for the strong centralization by the sovereign right. This logistic system is gone the middle and the latter of Joseon Dynasty. Joseon Dynasty is absolutely dependent the national finance for government operation on the tax-grain from HaSamDo(ChungCheong JeonLa KyengSang) region. JoUn(tax-grain transportation by shipping) is the best logistic system in Korea surrounding sea. Joseon Dynasty has refomed the logistics base on GoRyeo's system that the Tax-grain transportation system by shipping. There is the tax-warehouses reducing from 13 numbers to 9 numbers and making up for the weak points in the matter of the Japanese Pirate and the ship wreck in transporting in the sea. The ship wreck in the sea specially make the matters of the reducing tax and political issues. We know that Keumcheonchang is operated ChuaSuCham(the government agency for taxgrain transportation by shipping at a warehouse) from King Taejong 11(1,411)year to King Sejo 11 (1,465)year. There is the result of enforcement the river-shipping service system for social stabilization and forward their new ideal in the first half Joseon Dynasty.

• Management & Information Systems Review
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• v.12
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• pp.227-245
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• 2003

In this paper, it is indicated that, currently, foundation of small and medium businesses is generally increasing in number, but the establishment of manufacturing companies is very slow. This is because of many factors interfering with promotion of the opening of small and medium businesses such as endless bakruptcies of the businesses and uncertain perspective. Therefore, it will be expected to encourage people to start business and activate establishment of small and medium sized manufacturing companies by improving tax support systems and providing tax support information services for founed companies and foundation supporting companies.

• Journal of the Korea Society of Computer and Information
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• v.14 no.8
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• pp.153-159
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• 2009

This study focuses on how the recognition of year-end-settlement affected on the effectiveness of individual tax return according to the tax law and its influence on the participation of employee. After the careful analysis, the founding of the satisfaction level of workers from the annual tax return can be summarized as follows: When the knowledge of year-end-settlement is high, it influences positively on the effectiveness of tax return for workers. The recognition of tax return system is the main ingredient to increase the participation of the tax return. Although the recognition of year-end-settlement did not affect on the satisfaction of workers directly, effectiveness of tax deduction and the participation in the year-end-settlement are closely linked to the satisfaction level of tax return, It is confirmed that when the recognition of year-end-settlement is high. the more people actively participate in year-end-settlement and it contribute to the positive effect on the satisfaction level of employee, As a result, it is very important to find the ways to promote and educate annual tax return system to workers as well as revise the tax law to maximize the year-end-settlement for employee.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.7
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• pp.3223-3231
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• 2013

Fire service budget must be increased continually to supply sufficient fire service for safety life of people. A way to increases fire service budget is to plan and improve regional resources facilities tax system. The purpose of this articles is to analyzes the relationship between regional resources facilities tax and fire service budget, fire service investment budget, socioeconomic factor, fire service demand. To do this, this study sets up five hypotheses based on the theoretical backgrounds and the past research. The statistical methods used for the verification of hypotheses are multiple regression analysis and t test. The analysis showed that regional resources facilities tax was positive significant variable for fire service investment budget and fire service budget and socioeconomic factor was a positive significant variable for regional resources facilities tax. And the analysis showed that fire and rescue variable of fire demand factor were positive significant for regional resources facilities tax.