문화접대비 과세제도의 문제점과 개선방안

Abstract

This study analyzes taxation on cultural entertainment expenses (“CEE” hereafter), and discusses how it can be improved. Although CEE has increased since its adoption in 2007, CEE still accounts for very small portion of firms’ total entertainment expenses, which is caused by strict regulations on CEE’s lower bound for its deduction from taxable income. The most important regulation is “3% rule”, which requires that CEE should be bigger that 3% of total entertainment expenses for tax deductibility. However, surveys show that firms’ interest in CEE is very high and CEE is expected to soar up if the regulations on it is either eased or annulled. Because the “culture management”, which can be helped through CEE, can contribute to firms’ competitiveness, this study suggests practical plans to revise tax laws to improve CEE taxation as below. First, current CEE taxation, which gives firms little tax benefits, should be more tax deductible by allowing that either (i) CEE should be fully tax deductible unlike other entertainment expenses, (ii) 3% rule should be replaced by lower percentage rule, or (iii) CEE should include more cultural expenses than it currently confines. Second, the term of “total entertainment expenses” for calculating CEE’s lower bound should be more clearly defined lest firms should be reluctant to take advantage of CEE taxation for fear of future tax imposition. Finally, tax benefits for culture manufacturers and suppliers such as reserves for culture business and investment tax credits should be provided so that they should produce quality culture goods and, as a result, CEE should be stimulated.