업무용승용차손금불산입 특례제도 및 비영업용승용자동차 매입세액불공제의 문제점과 개선방안

The purpose of this study is to review whether the business-purpose passenger vehicle taxation program in effect since January 1, 2016, is being operated in accordance with the purpose of the program and if there are any issues with the application of the provisions of such regulations and find possible ways to improve them. In addition, it is the intent of the author to evaluate the necessity of the tax deduction for the purchase tax for business-purpose passenger vehicles in the value-added tax due to the introduction of the taxation program for business-purpose passenger vehicles. The intent of the amendment of the tax laws to include this program is to establish a system for taxation of the business-purpose passenger vehicles so that their personal use can be prevented, and the purchase of highly expensive vehicles can be reduced through taxation. To prevent the personal use of business-purpose passenger vehicles, incorporated businesses are required to purchase the insurance that is dedicated to the employees only, while it is also required to prepare the operation log of the vehicles. If such a vehicle is not covered by business-purpose vehicle insurance, then the loss is not to be recognized. As a result, the form took priority over the practice. To limit the purchase of highly expensive passenger vehicles, limitations were placed on the depreciation cost and the related costs. To separate the business-related uses and personal uses, it is now a duty to keep the operation logbooks of such vehicles. While it has become essential to keep the operation log, there is an excessive amount of taxation cooperation cost, and the issue of efficiency in verifying the authenticity of these logs was raised, as well. To discourage the purchase of highly expensive passenger vehicles, the depreciation cost is calculated using the straight-line method, while the service life is limited to five years. The depreciation cost in excess of 8 million won per year, which is the annual limit, will not be recognized as loss. Only the amount within the limit will be recognized. Also when disposing of the vehicle, the gains and losses due to disposal of the vehicles also have an annual limit in order to prevent the recognition of the costs that were not recognized being included in the loss amount all at once. For this, however, there is an issue of having to depreciate over many years, even if the vehicle no longer exists. The taxation system for business-purpose vehicles has been operated in the fields of corporate tax and the income tax. While there were amendments to prevent their personal use and excessive recognition of their costs, the amendment of the Value-Added Tax Act, which many have regarded as necessary for many years, never happened. The Value-Added Tax Act has a provision that prevents the tax deduction of the purchase tax amount for non-business-purpose small passenger vehicles. For this, the purchase tax amount is not deducted at all, even though the vehicle is used entirely for business purposes. Some argued that the current regulations on the no-deduction of the purchase tax amount in the Value-Added Tax Act obstruct fair taxation and are against the calculation principles of value-added tax. Despite this, the deduction is still not allowed due to the reason that it is tough to determine the deduction by differentiating the business-purpose uses and personal uses of small passenger vehicles. However, the newly introduced business-purpose passenger vehicle taxation program requires that operation logs are kept to separate the business-purpose uses and personal uses. As the logs can be used as the specific evidence to separate such uses, the ground for not allowing the purchase tax deduction for business-purpose passenger vehicles has weakened, eventually. To improve the current issues, it is necessary to remove the provision that makes the subscription of the business-purpose vehicle auto insurance mandatory and introduce a new provision to impose surcharges to those who fail to subscribe to such insurance. If they do subscribe such insurance, it is possible to restrict the use of the vehicle by the spouse or family members, preventing the personal uses to a certain degree. Therefore, the existing provision, which requires only the incorporated businesses to subscribe such insurance, should be amended to extend such obligations to the non-incorporated private businesses as well. It would be more desirable to have the amended depreciation cost provisions to limit the purchase of highly expensive passenger vehicles abolished. The provisions on the limits of the depreciation and the loss on disposal are the causes of inefficiency and complexity of the taxation program for business-purpose passenger vehicles. If the vehicle is solely used for business purposes, the limitations of the depreciation will only have a deferring effect on the loss, making it questionable as a practical measure. And, the attribution of the cost will mismatch with the reality to a severe degree, causing an insufficiency of cash. Another replacement provision should be introduced in addition to the operating log provision. The current rules set forth that, if the operation logs are not kept, then the ratio of the cost for business-purposed operation is calculated arbitrarily, and the non-business-related uses are not included in recognition of the loss amounts. In addition to the taxation cooperation cost of keeping such a log, it is practically impossible to verify the contents of such a log. An alternative method that is capable of calculating the costs for the business-purpose passenger vehicles can be calculated using the straight-line method of the log is not kept. In order to comply with the principle of all-stage tax deduction of the value-added taxes, it is necessary to amend the provisions of the law to deduct the purchase tax amount for business-purpose passenger vehicles. The newly introduced business-purpose passenger vehicle taxation program requires that operation logs are kept to separate the business-purpose uses and personal uses. As the logs can be used as the specific evidence to separate such uses, the ground for not allowing the purchase tax deduction for business-purpose passenger vehicles has weakened, eventually. It is believed reasonable to allow the tax deduction except for the portion corresponding to personal use. It is a step forward to an improved set of provisions and making taxation more reasonably by creating a general framework for the systems related to business-purpose vehicles. After the revision, the issues with the relevant provisions should be identified, while new rules for the improvement of the system are to be prepared.