• Journal of Applied Tourism Food and Beverage Management and Research
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• v.13 no.1
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• pp.81-110
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• 2002

The temporary tax deduction on investment cutting the corporate income tax within 10% of the amount of investment is aimed at stimulating the investment for economic activity. 25 business sectors are applied to this tax law and in tourism, the accommodation registered by tour promotion law and international convention plan business belong to it. I'd like to mention the problem of the temporary tax deduction on investment amount for hotels and suggest better solutions. This tax law is so temporary applied that we shouldn't get tax deduction after June 30, 2002. So, we can't get income tax deduction on the investment out of the available period. And further more this tax law has a rule not real investment but solely new project investment for hotels. There are numbers of difference between real investment and new project investment. The amount of investment is based on an object of acquisition taxation. And also there are numbers of difference between real investment and an object of acquisition taxation. For example, landscape construction is a great part of hotel construction but it's not an object of acquisition taxation. For running hotel business, we also need lots of equipments such as linens utensils for restaurant and decorations for hotel interior. But these are also excluded from this tax law. As you know, these equipments can be regarded as product equipments in manufacture industry. Therefore we should take the specificity of hotel investment into consideration and expand the role of the temporary income tax deduction on investment amount for hotels.

• Health Policy and Management
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• v.20 no.3
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• pp.36-57
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• 2010

The degree of income inequality deepened by health care expenditure was useful in assessing the health security level. This exploratory study was conducted to provide a basic evidence to prove the necessity of reinforcement the benefit coverage of South Korea's health security systems. Data from the Household Income and Expenditure Survey of Korea and Luxembourg Income Study were used. Income inequality indices before and after deduction of health care expenditure were computed, and the degree of the increase in the indices was compared among 13 countries. The degree of decrease against the effect of income inequality reduction policies by health care expenditure was determined. The relationships between the national characteristics and the increase in income inequality were examined. In South Korea, all income inequality indices increased after deducting health care expenditure, but the difference was not high compared to the mean of 13 countries. However, the degree of decrease against the effect of income inequality reduction policies by health care expenditure was high, compared to the mean of 13 countries. The proportion of public sector spending on health care proved to be statistically significant with the increase of income inequality indices (p<0.05). In the context of the continuous increase in health care expenditure, if benefit coverage of health security systems is not reinforced, income inequality will all the more increase due to health care expenditure. In the establishment of the policies for reinforcement of the benefit coverage, income inequality after deduction of health care expenditure should be continuously monitored.

• Journal of Venture Innovation
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• v.1 no.1
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• pp.83-98
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• 2018

This paper makes a theoretical approach to the differences between transaction tax and capital gains tax when the financial instruments are traded and imposed taxes in K-OTC market, a newly emerging off-board market. Since it is difficult to reduce risk to the level which investors would like to pursue - depending on the taxation methods of portfolio-composed financial instruments - when it comes to forming a synthetic bond to hedge risk, this paper also seeks for effective taxation methods to make this applicable. First of all, to thoroughly review the taxation balance of synthetic bonds, this paper analyzed the effects of the transaction tax and capital gains tax imposed upon synthetic bonds according to the changes in final stock price and strike price in K-OTC market, and analyzed after-tax profit differences among them depending on whether income tax deduction took place or not. As a result of the research upon the tax gap in transaction tax and capital gains tax according to the changes of final stock prices, it was shown that imposing transaction tax is more likely to be effective for some level of risk hedging with replicating portfolio considering taxation policies and financial markets, since the effect of the transaction tax has a much lower tax gap than that of capital gains tax. In addition, in relation to whether income tax deduction was permitted or not, it was proved that the effect of the transaction tax and the capital gains tax vary depending on the variation in the strike price. Above all, it was shown that if the strike price is lower than the stock price, the transaction tax will be less affected by the existence of income tax deduction than the capital gains tax, while both will be equally affected by the existence of income tax deduction if the strike price is higher than the stock price. Further study would be to demonstrate the validation of this in the K-OTC market with actual financial instruments and, also, to seek for a more systematic hedging method by using a ratio analysis approach to the calculation of the option transaction tax

• Journal of the Korea Society of Computer and Information
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• v.23 no.10
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• pp.165-172
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• 2018

This study was conducted to investigate the relationship between life satisfaction of the elderly and their transfer income (public transfer and private transfer income) using the 11th data of the Korea welfare panel study. In the analysis results, the public transfer income was analyzed to have a significantly positive (+) effect on the life satisfaction in the case of the elderly in general households while in the case of the elderly in low income households, private transfer income was analyzed to have a significantly positive (+) effect on life satisfaction. These results suggest that the public transfer income is 1,019,200 won (monthly average 849,000 won) in the case of the elderly in general households, and the public transfer income is found to have an effect to stabilize the income, which can be expected to increase the life satisfaction. However, in the case of the elderly in low income households, it was found to be 5,080,500 won (monthly average 424,000 won), half of the public transfer income of the elderly in general households. In the case of the elderly of low income households, it can be assumed that the private transfer income, which is the "uncomfortable" income source, fills up the unstable income stabilization gap and raises the life satisfaction. As a policy suggestion, first, by supplementing the basic pension system, which is an irrational part of public transfer income for the elderly with low income, it is necessary to design policy alternatives to enable economic stabilization of the elderly in low income households. Second, it is also necessary to actively review the introduction of income deduction plans for the transfer income of family members for the low income elderly households.

• 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.

• Journal of Digital Convergence
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• v.15 no.10
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• pp.151-160
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• 2017

Giving behavior can be defined to be a behavior intended to benefit the society's charity works and public works via sharing one's financial resources. The determinants of giving behavior largely consist of sociodemographic factors, such as the income, age, gender, religion, education level, residential areas, and tax deduction policy, etc. This paper considers the income level, self-esteem, and perceived responsibility toward social welfare, as the major research variables. Statistical results, based on 2014 Korean Welfare Panel data, show that the income level and self-esteem have positive influence on participation intention in charitable giving. However, welfare responsibility has negative impact on participation intention. Second, household income was the only salient, negative factor for giving efforts defined as the amount of donation over income, implying that the higher income brackets are giving less money relative to their income level, than those with lower income level. Contrary to our expectation, self-esteem and welfare responsibility were not statistically significant explanatory variables.

• Korean Journal of Construction Engineering and Management
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• v.20 no.5
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• pp.12-20
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• 2019

This study analyzes and suggests improvement direction for the problems of housing related market laws and policies that cause sudden changes according to the application criteria. These laws and policies include income deduction from housing subscription, monthly rent loan for housing stability, high price house, penalty points from poor quality construction, and real estate brokerage commission. Each has one or more specific values that decide application criteria causing noticeable different results. Benefit or loss can be decided when an application range is changed by a small difference of the application value near to the boundary. This study suggest to use equations instead of a certain values to remove those sudden changes and to make them steadily increasing slopes which can be lines or curves. The concept can be applied to other laws and policies that have significantly different results between criteria.

• Journal of Korean Society of Forest Science
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• v.82 no.2
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• pp.128-138
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• 1993

This study was carried out to improve forest tax system corresponding to Korean forestry status. Especially, special regard was paled in order to promote forest investment as a result of improvement measures. As a result of this study, the establishment of new system which allow deduction as a loss when forest investment occurred is more effective than present forest income tax system, which gives tax-exemption on cutting of artificial forests. Some detailed adoption technique of that system was examined in various viewpoint. Also, it is indicated that this improvement measures was already adopted generally in some developed countries.

• Journal of Digital Convergence
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• v.16 no.8
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• pp.109-116
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• 2018

This study examines legal regulations and major issues related to income taxation of religion in the income tax law enacted from 2018, and examines the right improvement method. The purpose of this study is to propose an improvement plan through the analytical review of the legal issues related to the income of religion in 2018 and the main issues of taxation. The results of this study are as follows: First, it is the best way to define religious income as a separate item in earned income. Second, it is the best way to apply the deduction system for earned income in the application of deductible expenses. Third, precise and transparent reporting on income of religious persons is required, and a measure should be enforced to impose withholding tax obligations. Fourth, in order to restore transparency and reliability of expenditure related to religious activities, it should be expanded to submit details of total income and expenditure of religious groups. This study provides practical implications for the related field research by providing the starting point and basic data of the discussion on the income taxation system of the religious person.

• The Journal of Fisheries Business Administration
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• v.50 no.1
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• pp.1-15
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• 2019

Offshore trap fishery managers have payed in advance to attract excellent fishing crew in the minium grantee lay system. This practice can intensify competition among fishery management bodies and increase the burden of fishery manager about income tax and four social insurance programs. The purpose of this study is to identify the problems of advance payment practice in terms of fishery manager in offshore trap fishery. The main results of this study are as follows. First, under the TYPE 1 model, which is the current wage payment manner, there is a risk that fishery manager will not able to return the prepayment paid in advance when the income of fishery management bodies decrease. Second, the TYPE 2 or the TYPE 3 model which reduces or abolishes advance payment can alleviate the burden of fishery manager relative to the deduction of redemption amount, incentive to induce artificial expenses, income tax and four social insurance programs. In conclusion, advance payment practice in offshore trap fishery is placing a heavy burden on the fishery manager. In order to solve these problems in the future, we need to find solutions through similar case studies.