“업무용승용차 관련비용의 손금불산입 등 특례 제도”에 관한 小考

The special taxation about exclusion from deductible expenses of business purpose vehicles’ related costs in the corporate tax law(Article 27-2) and the income tax law(Article 33-2) which was implemented from 1 January 2016 is a special regulation that reflects public demand and policies by restricting private use of business purpose vehicles and preparing approval standards of related costs according to certain conditions to fulfill ability to pay principle. The purpose of this study is to analyze the special taxation about exclusion from deductible expenses of business purpose vehicles’ related costs which reflects the latest amendment of relevant tax laws in 2018, and not only review the latest issues of business purpose vehicles until now, but also provide several improvement suggestions for raising effectiveness of this special taxation. And the following suggestions are presented in this study. First, it is necessary to grant the right of choice about depreciation method and differentiate limited amount of depreciation cost, given the taxpayer’s position. Second, the regulation of restricting inclusion in deductible expenses for corporations whose main business is leasing real estate is inappropriate, because it is against the tax equalitarianism. Third, it is necessary to prepare the regulation for granting inclusion in deductible expenses by business usage ratio not being against the principle of substantial taxation in the case where a corporation doesn’t take out a business insurance for business purpose vehicles or doesn’t write out the log book consulted by the Director of the National Tax Service and the Minister of Strategy and Finance even if it registers for a business insurance for business purpose vehicles, apart from the fact that it is possible to take administrative measures in above-stated circumstances. It is the same for individual business(no need to take out a business insurance for business purpose vehicles), if he or she doesn’t write out the above-stated log book. Fourth, it is imperative that the costs which exceed the limitation of the business purpose vehicles’ depreciation cost will be taxed as internal reverses rather than other outflow of income according to enforcement ordinance of the corporate tax law, and the amounts which exceed the limitation of business purpose vehicles’ loss on disposal should be taxed as the disposition of income which is appropriate for economic substance rather than other outflow of income according to enforcement ordinance of the corporate tax law. Fifth, it is necessary to specify required records including operation record to improve effectiveness of the special taxation. At last, according to adopting the special taxation, it is necessary to amend the value-added tax law(Item 5, Paragraph 1, Article 39), because the method which can calculate business usage ratio is introduced on the special taxation and the contents of rulings and decisions by Supreme Court and Constitutional Court become obsolete. Even though it has been 2 years since the special taxation was established, it is still in the process of being settled, considering that the provisions of this regulation have been gradually amended and added. As the cumulative number of registered vehicles in Korea is increasing and the weight of imported vehicles is increasing, I hope that this study will helpful for the executive branch and the legislative branch to establish policies on business purpose vehicles related policies and to legislate the business purpose vehicles related laws.