Reform Proposal for the Taxation of Agricultural Corporation
Asian Tax Journal Vol. 7 No. 1 (2006), pp. 71-88
Abstract
This study analyzes current tax laws of agricultural corporations, and suggests following reforms for strengthen the competitiveness of agricultural corporations. First, the tax exemption period of corporate income tax of cultivating crops should be agreed with that of individual agricultural income tax. Second, farming association corporations should be included the corporations which can be taxed based on accounting income according to Article 72 of Special Tax Treatment Control Act. Third, application of Alternative Minimum Tax on the reduction of taxable income besides cultivating crop income of agricultural corporation company is undesirable. Fourth, "cultivating seed and seedling business" on Additional Table 1 of Enforcement Decree of Small and Medium-Sized Enterprise Act should be replaced by "cultivating crop business". Fifth, it is advisable to extend loss carry-back period of agricultural corporations to three years, and to introduce agricultural income averaging system. Sixth, in the long run, agricultural income tax rate should be decreased.
Keywords
- taxation of agricultural corporation
- agricultural income averaging
- agricultural income tax
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