Tax Support for the Service Industry in Korea

Yeolyong Sung ()
Additional contact information
Yeolyong Sung: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 22-8, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: Tax support is a type of industrial policy instrument used to reallocate resources and help achieve economic policy goals. Unlike other policy instruments such as subsidies and financial support, tax policy is an indirect support tool that has the same effect as ex post incentive payments in inducing specific actions by economic agents because it lowers the tax burden to be paid after the economic agents take those actions. It is for this reason that tax support is occasionally called a “hidden subsidy”. There are various terms used to refer to tax support, such as tax expenditure, tax preferences, tax incentives, and so on, often dependent on the context in which these tools are applied. In Korea, tax support is provided in the form of tax reductions or exemptions, non-taxation, deductions to taxable income, tax credits, preferential tax rates, and tax deferrals, according to the provisions of the special taxation. This paper explores tax support schemes for the service industry in Korea over the past decade and describes some pressing issues for tax support policy for the service industry.

Keywords: service industry; tax support; tax policy; tax breaks; tax credits; Korea; taxation (search for similar items in EconPapers)
JEL-codes: H21 H25 L80 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2022-06-01
New Economics Papers: this item is included in nep-pbe
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4190757 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kieter:2022_008

Access Statistics for this paper

More papers in Industrial Economic Review from Korea Institute for Industrial Economics and Trade Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Aaron Crossen ().