Korea Tax Accounting Technician Level 2 (TAT 2급) key terms
Korea Tax Accounting Technician Level 2 (TAT 2급) · Get comfortable with the vocabulary.
- Accrual
Recognition of an expense or revenue in the relevant period even when the corresponding cash movement occurs at another time.
- Prepayment
A payment whose benefit relates to a later period, requiring appropriate allocation rather than immediate recognition of the whole amount as expense.
- Carrying amount
The recorded amount of an asset after relevant accumulated depreciation, impairment or other adjustments under the applicable accounting basis.
- Depreciable amount
The asset cost or relevant substitute amount less the residual value used in the specified depreciation model.
- Reconciliation
Comparison of related accounting records with investigation and resolution of differences supported by reliable evidence.
- Source document
The underlying evidence for a recorded transaction, such as an appropriate invoice, contract or payment record.
- Cutoff
Assignment of transactions to the proper accounting period based on the relevant recognition criteria rather than convenience.
- Withholding
Collection of tax by a payer from a specified payment under the applicable rules, not necessarily the recipient’s final liability.
- Taxable remuneration
The employment-payment amount included in the relevant tax calculation after applying the actual classification and exclusion rules.
- Payroll payable
An amount owed in connection with employee remuneration or related deductions, requiring reconciliation to the supporting payroll record.
- Year-end settlement
A reconciliation of annual earned-income tax under the applicable rules with the tax already collected through withholding.
- Income deduction
An amount reducing the relevant income or taxable base under the applicable calculation rather than directly reducing calculated tax.
- Tax credit
An amount reducing calculated tax subject to relevant conditions, distinct from an income deduction or an automatic cash refund.
- Net pay
The amount payable to an employee after the specified deductions, which must be distinguished from gross remuneration.
- Output tax
VAT calculated on the relevant taxable supplies under the applicable rate, timing and transaction rules.
- Input tax
VAT incurred on purchases, whose recoverability depends on the applicable business use, evidence and statutory conditions.
- Zero rating
Application of a zero output rate within the relevant VAT framework, distinct from an exempt transaction’s input-tax consequences.
- VAT exemption
Treatment removing a supply from positive output taxation under the applicable framework, with relevant consequences for input tax recovery.
- Tax invoice
A document evidencing a relevant transaction and tax information under the applicable requirements, not automatic proof of deductible input tax.
- Tax-inclusive amount
An amount containing both the supply value and the tax calculated at the stated rate, requiring separation for the appropriate calculation.
- Allocation
Assignment of a shared amount between relevant activities or categories according to the applicable documented method.