The Group Tax Relief System requires companies to calculate taxable income by consolidating the profits and losses of the entire group. These companies are expected to perform similar tasks as the parent company, including tax-effect accounting. Compared to other companies that are not under group governance, the procedures are more complex, especially the calculation for processes related to profit and loss consolidation and carryforward deduction of net operating losses. This imposes a significant burden on the tax departments.

Furthermore, many wholly-owned subsidiaries lack tax officers, making it even more challenging for such companies to comply with the system. Most companies using tax-effect accounting and the group tax consolidation system adopt systems provided by TKC Corporation. However, inputting data into these systems is highly complicated, requiring not only an understanding of the rules but also familiarity with the system’s specific characteristics.

To alleviate the stress, we offer support related to the group tax relief system for fully controlled subsidiaries.