Tax Expenditure Evaluation
According to Article 142 of the Restriction of Special Taxation Act and Article 135 of its Enforcement Decree, the Minister of Strategy and Finance may conduct ex ante and ex post evaluation of special taxation. Tax Expenditure Evaluation is divided into ex ante management through Preliminary Feasibility Study for Special Taxation and ex post management through In-depth Evaluation of Special Taxation.
The amendments to the Restriction of Special Taxation Act in 2014 sets the regulation for Preliminary Feasibility Study for new projects which generate annual tax benefit of 30 billion won or more and In-depth Evaluation for expiring Special Taxation.
- Role of PIMAC
PIMAC was designated in 2014 as one of specialized institutes for Tax Expenditure Evaluation based on amendments to the Restriction of Special Taxation Act.