Korea Tax Accounting Level 1 (세무회계 1급) key terms

The process of adjusting accounting income under the applicable tax rules to derive the relevant taxable amount.

An adjustment removing an accounting expense from the deductions allowed for tax under the relevant rule.

An adjustment adding an amount to the taxable income calculation when required by the applicable tax treatment.

A difference in accounting and tax recognition that can reverse in a later period under the relevant treatment.

A difference that does not reverse through ordinary later recognition of the same item under the defined treatment.

Classification of an adjustment according to its legally relevant attribution and character, not automatically a single default category.

Application of eligible tax losses against income under the relevant year, limits and conditions rather than an assumed unrestricted offset.

Collection of tax by a payer from a specified payment under the applicable rules, not necessarily the recipient’s final liability.

The employment-payment amount included in the relevant tax calculation after applying the actual classification and exclusion rules.

An amount owed in connection with employee remuneration or related deductions, requiring reconciliation to the supporting payroll record.

A reconciliation of annual earned-income tax under the applicable rules with the tax already collected through withholding.

An amount reducing the relevant income or taxable base under the applicable calculation rather than directly reducing calculated tax.

An amount reducing calculated tax subject to relevant conditions, distinct from an income deduction or an automatic cash refund.

The amount payable to an employee after the specified deductions, which must be distinguished from gross remuneration.

VAT calculated on the relevant taxable supplies under the applicable rate, timing and transaction rules.

VAT incurred on purchases, whose recoverability depends on the applicable business use, evidence and statutory conditions.

Application of a zero output rate within the relevant VAT framework, distinct from an exempt transaction’s input-tax consequences.

Treatment removing a supply from positive output taxation under the applicable framework, with relevant consequences for input tax recovery.

A document evidencing a relevant transaction and tax information under the applicable requirements, not automatic proof of deductible input tax.

An amount containing both the supply value and the tax calculated at the stated rate, requiring separation for the appropriate calculation.

Assignment of a shared amount between relevant activities or categories according to the applicable documented method.