Abstract

The purpose of this study is to develop a policy direction for establishing and settling plans from a tax perspective to successfully settle the recently finalized version of IFRS 17 through consideration of policy directions overseas, especially in Europe. In this paper, the cases of each country were reviewed to establish the principle of the direction of revision of the tax law to solve these issues and can be summarized as follows. Although considerable time has passed since the implementation of International Financial Reporting Standards, many EU countries are expected to maintain their own standards independently, which will not have a significant tax impact on the introduction of IFRS 17, but the future establishment of the Solvency Ⅱ is expected to reduce the applicability of the national standards, which is expected to increase the tax impact and take active countermeasures. In this paper, four policy directions were presented in consideration of the current response direction in Europe. First of all, maintaining the current corporate tax law and making tax adjustments based on the financial statements of IFRS 17 are the first, and the second is to maintain the current corporate tax law and prepare separate tax－purpose financial statements based on IFRS 4, and the third is to revise the corporate tax law to enhance consistency with the current corporate tax law and, finally, to increase consistency with IFRS 17. In the case of IFRS 17, it was judged that it would be more effective to use a formal consultative body (TF) centered on taxation authorities to gather and cooperate with relevant agencies and industries, given that the effect on the insurance industry as a whole is more important than the introduction of IFRS 4. Thus, in this paper, the policy authorities and the industry urgently proposed to organize and operate such a consultative body (TF) to prepare a reasonable tax system that conforms to the direction of development of the domestic insurance industry as soon as possible and to establish a successful road map.

Keywords

• IFRS 17
• Insurance Accounting
• Insurance Taxes
• Policy Directions for Insurance Taxes

Related Articles

• How to Revise Tax Laws to Reasonably Calculate the Education Tax Base of Long-term Non-life Insurance Contracts Based on the Critical Review on a Recent Supreme Court Case

  Byung Wook Jun

  27(2) 181-205

  Abstract Full Text for PDF Full Text for XML

• The Effects of the Application of the IFRS 9 Expected Credit Loss Model：Focusing on Abnormal Loan Loss Provisions and Value Relevance of Bank

  Seung Uk Choi

  26(6) 43-86

  Abstract Full Text for PDF

• How Firm Size Affects Financial Reporting Quality After IFRS Adoption

  Yu, sangwhun , Park, jaehwan

  26(5) 35-61

  Abstract Full Text for PDF

• The Effect of Certification Type of Sustainability Report on Cost of Capital

  Park, Sung Jong

  25(5) 9-35

  Abstract Full Text for PDF

• The Effect of Changes in Accounting Environment on Sales Classification of Related Party Transactions15)：Focusing on the Adoption of Articles 45－3 in the Inheritance Tax and Gift Tax Law

  Boyoung Kim

  24(3) 57-91

  Abstract Full Text for PDF