TAT 1급 (Tax Accounting Technician 1) key terms

A seller's output VAT, computed by applying the tax rate to the taxable supply price for goods or services provided in a taxable period, before deducting input tax paid on purchases.

VAT paid or payable by a business on purchases and expenses used for taxable supplies; it is deducted from output tax, but only where the purchase relates to the business and supporting tax invoices exist.

The VAT finally payable for a period, equal to output tax minus deductible input tax, with reductions for credit-card sales and other adjustments; a negative result becomes a refundable amount.

The statutory VAT invoice a supplier issues to a corporate or business purchaser, showing supply price, VAT, and both parties' registration numbers; it is the primary document supporting input tax deduction.

A zero percent VAT rate applied to exports and certain foreign-currency supplies, which produces no output tax yet still allows input tax to be deducted or refunded.

A small business taxed under the simplified VAT regime, applying a lower effective rate to turnover rather than full output-minus-input computation; input tax deduction is limited and tax invoices cannot generally be issued.

A VAT taxpayer subject to the standard regime, computing output tax on supplies, deducting input tax, and required to issue tax invoices for business purchases.

The corporate tax base: taxable income for the year after deducting carried-forward losses and non-taxable income and applying tax credits and additions, on which the corporate tax rate is applied.

A corporation's income for a business year, computed by adjusting accounting profit for tax additions and deductions under corporate tax law before applying loss carryforwards.

The principle that certain items are recognized for tax only if they were also reflected in the financial statements, such as bad debt allowances and depreciation, limiting tax-only deductions.

The systematic allocation of a depreciable asset's cost over its useful life; for tax, the company chooses an allowed method and useful life, and the deduction is capped by the amount booked.

A rule treating the unrecovered book value of a depreciable asset as immediately expensed for tax when the asset is used for a business purpose other than its original use, such as a change to non-business use.

A reserve recorded for estimated uncollectible receivables; corporate tax allows a deduction only within statutory limits and only when the reserve is actually booked in the accounts.

A receivable confirmed uncollectible and written off, such as through bankruptcy or statute-barred debt; it is deductible for corporate tax when statutory evidence requirements are met.

A tax loss that cannot be fully offset in the current year and is carried forward within statutory limits to reduce the tax base of later business years.

For income tax, total global income after deductions for personal exemptions, pension and insurance, and special deductions, to which progressive marginal rates are applied.

The sum of interest, dividends, business, employment, pension, and other income for a resident, aggregated and taxed together on a progressive scale for the year.

Income from employment, including wages, salaries, bonuses, and allowances paid for services; it is aggregated into global income after employment income deductions and is subject to year-end settlement.

The year-end reconciliation in which an employer recomputes an employee's annual income tax using actual deductions and credits and adjusts withholding already collected during the year.

The withholding of income tax by a payer at the time income is paid, later remitted to the government; it is a collection mechanism, not a separate tax, and is credited against final liability.

The progressive rate structure applied to income tax bases, where marginal rates rise in brackets from the lowest to the highest, so the average rate is below the top marginal rate.

A tax on gains from transferring land, buildings, and certain other assets, computed separately from global income using acquisition cost, transfer price, and allowable expenses.

The gain on disposal of an asset, calculated as transfer price minus acquisition cost and allowable capital expenditure, before applying the deduction and tax rate.

The cost of acquiring an asset for capital gains purposes, determined by actual purchase price, or by prescribed estimation methods when actual cost cannot be verified.

The rate applied to a corporation's tax base, structured in brackets by tax base amount; the applicable rate depends on the bracket and the company's status.

The process of adjusting accounting profit to arrive at taxable income by adding back non-deductible expenses and subtracting non-taxable income or extra deductions, documented in a tax adjustment statement.

A timing difference created when an item is recognized for tax in a different year than for accounting; the reserve is reversed in later years to keep total tax and book treatment aligned.

An accounting expense that tax law disallows, such as fines, excessive entertainment, or certain reserves; it is added back to accounting profit when computing taxable income.

Accounting revenue or gain excluded from taxable income, such as certain capital contributions or tax-exempt grants; it is subtracted from accounting profit in the tax adjustment.

The periodic filing of a VAT return reporting output tax, input tax, and the resulting payable or refundable amount, due within the statutory filing window after each taxable period.

A financial statement presenting assets, liabilities, and equity at a point in time, based on the accounting equation; it is the starting point for many tax adjustments.

A financial statement reporting revenues and expenses for a period and the resulting profit or loss, which is the accounting profit adjusted in the corporate tax computation.

The accounting basis recognizing revenues when earned and expenses when incurred, regardless of cash timing; tax law generally follows it but overrides it for specific items.

The certificate issued when a business registers with the tax office, assigning a taxpayer identification number required for issuing tax invoices and filing VAT returns.

The framework statute governing tax law interpretation, taxpayer rights, assessment periods, and remedies; it applies across national taxes unless a specific tax law provides otherwise.

The period within which the tax authority may assess or correct a national tax, generally several years from the filing deadline, extended for fraud or failure to file.

An administrative penalty added to tax for non-compliance such as late filing, underreporting, or failure to issue invoices; it is generally not deductible for corporate or income tax.