Evaluation and Guidance of Tax Reforms in Korea
Asian Tax Journal Vol. 7 No. 3 (2006), pp. 127-140
Abstract
The current tax system of Korea is too complicated and difficult for economic entities to clearly understand and implement. In addition, tax exemption is excessive and the rate of capturing tax revenue items is low, making the tax system in Korea inefficient. Considering these problems, Korean government currently makes a significant effort to reform the tax system of Korea.The purpose of this paper is to evaluate the outcomes of the tax reforms to date and to provide guidance to the future tax reform, based on changes in recent economic and social environment in Korea. This paper specifically focuses on the regulations related to tax exemption and tax imposition rate. It suggests that the future tax reform should focus on a decrease in tax rates and an increase in tax imposition rate, instead of focusing on an increase in tax rates.
Keywords
- Tax Reforms
- tax system