As the major goal of taxation, which is a monetary payment that a nation or a local government imposes on everyone who fulfills certain taxation conditions without return to secure fiscal revenue, is to procure the financial resources needed for the government’s budget, financing through taxation is essential as long as a nation exists. In particular, several nations around the globe are preparing ways to expand tax revenue to improve their fiscal soundness amid the financial crisis that began in the US in 2008 and the recent fiscal crisis in Europe.
As taxation, which is also one of the important sources of income for national finance, has a significant impact on the economic activities of individuals and corporations and income distribution, most advanced countries are making efforts to establish an efficient and fair taxation system while collecting a certain amount of revenue. In this regard, it is necessary to understand the taxation system in Korea, how advanced countries are reforming their taxation systems in response to the recent economic situation, and what the issues and matters for discussion are in order to reform Korea’s taxation system in a reasonable manner going forward.
To this end, the National Assembly Budget Office published “Understanding of Taxation and Issues” with a focus on income tax, corporate tax, and VAT in 2013. In addition, to improve the utilization and timeliness of the report, which is focused on understanding the three major tax items and pending issues, NABO is now publishing its revised version that reflects the revisions made so far and recent pending issues, etc. and is additionally publishing International Taxation Volume, which handles taxation issues in line with the expansion of international transactions and Statistics Volume, which summarizes and organizes the major statistical data of each tax item.
At this juncture where the establishment of tax policy is more important than ever with the procuring of resources in response to the expansion of welfare demand, along with policies for economic recovery, the tax system reform is emerging as a major pending issue. We hope this report is utilized in the deliberation process of tax system reform and is widely helpful in the legislative activities of lawmakers, and we will continue to make efforts to understand Korea’s tax system and analyze the effects of major related issues.
As taxation, which is also one of the important sources of income for national finance, has a significant impact on the economic activities of individuals and corporations and income distribution, most advanced countries are making efforts to establish an efficient and fair taxation system while collecting a certain amount of revenue. In this regard, it is necessary to understand the taxation system in Korea, how advanced countries are reforming their taxation systems in response to the recent economic situation, and what the issues and matters for discussion are in order to reform Korea’s taxation system in a reasonable manner going forward.
To this end, the National Assembly Budget Office published “Understanding of Taxation and Issues” with a focus on income tax, corporate tax, and VAT in 2013. In addition, to improve the utilization and timeliness of the report, which is focused on understanding the three major tax items and pending issues, NABO is now publishing its revised version that reflects the revisions made so far and recent pending issues, etc. and is additionally publishing International Taxation Volume, which handles taxation issues in line with the expansion of international transactions and Statistics Volume, which summarizes and organizes the major statistical data of each tax item.
At this juncture where the establishment of tax policy is more important than ever with the procuring of resources in response to the expansion of welfare demand, along with policies for economic recovery, the tax system reform is emerging as a major pending issue. We hope this report is utilized in the deliberation process of tax system reform and is widely helpful in the legislative activities of lawmakers, and we will continue to make efforts to understand Korea’s tax system and analyze the effects of major related issues.