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Korea Tax Accounting Technician Level 2 (TAT 2급, South Korea)

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The Korea TAT 1급 (Tax Accounting Technician Level 1) is a prestigious 90-minute computerized certification administered by KICPA requiring 70/100 points to pass. These 100 practice questions provide comprehensive coverage of advanced financial accounting under K-GAAP, corporate tax adjustments and income disposals, VAT common input tax settlement, and year-end income tax withholding with worked numerical solutions.

Sample TAT 1급 (Tax Accounting Technician 1) Practice Questions

Try these sample questions to review concepts for the TAT 1급 (Tax Accounting Technician 1) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under General Accounting Standards for Non-Public Entities (일반기업회계기준 제10장 유형자산), Hanguk Co. acquired land on January 1, 2024, for KRW 100,000,000 and elected the revaluation model (재평가모형). On December 31, 2024, the appraised fair value of the land is KRW 125,000,000. How should the revaluation increase of KRW 25,000,000 be recognized in the financial statements?
A.Credited directly to retained earnings (이익잉여금) without passing through comprehensive income
B.Offset against accumulated depreciation with no entry made to equity accounts
C.Recognized immediately as non-operating income (영업외수익) in the current statement of profit or loss
D.Recognized in other comprehensive income as revaluation surplus (기타포괄손익-재평가잉여금) and accumulated in equity
Explanation: Under General Accounting Standards for Non-Public Entities Chapter 10, when an asset's carrying amount increases as a result of a revaluation, the increase is recognized in other comprehensive income (기타포괄손익) and accumulated in equity under revaluation surplus (재평가잉여금). It is not recognized in current profit or loss unless it reverses a revaluation decrease previously recognized as an expense.
2Daehan Co. previously recognized land with an acquisition cost of KRW 100,000,000 revalued up to KRW 125,000,000 at the end of 2024 (creating a revaluation surplus of KRW 25,000,000 in equity). On December 31, 2025, due to an economic downturn, the fair value of the land drops to KRW 90,000,000. What accounting entries should Daehan Co. make for the revaluation decrease of KRW 35,000,000?
A.Reduce revaluation surplus (기타포괄손익-재평가잉여금) by KRW 25,000,000 and recognize revaluation loss (당기손익-재평가손실) of KRW 10,000,000
B.Reduce retained earnings directly by KRW 35,000,000 without affecting current profit or loss
C.Recognize the entire KRW 35,000,000 revaluation loss immediately in current profit or loss
D.Recognize the entire KRW 35,000,000 reduction directly as a negative component of revaluation surplus in equity
Explanation: Under the revaluation model, a revaluation decrease is first offset against any existing revaluation surplus (재평가잉여금) recognized in other comprehensive income for that specific asset. The remaining excess decrease of KRW 10,000,000 (KRW 35,000,000 decrease minus KRW 25,000,000 surplus) must be recognized as an expense in current profit or loss as revaluation loss (재평가손실).
3At the end of 2025, Samwon Co. evaluates a specialized production machine for impairment. The carrying amount of the machine is KRW 45,000,000. The estimated net selling price (순매각가격) is KRW 38,000,000, and the value in use (사용가치) based on discounted future cash flows is KRW 41,000,000. What is the impairment loss (유형자산손상차손) to be recognized in profit or loss?
A.KRW 0
B.KRW 3,000,000
C.KRW 4,000,000
D.KRW 7,000,000
Explanation: Under General Accounting Standards, the recoverable amount (회수가능액) is the higher of net selling price (순매각가격 KRW 38,000,000) and value in use (사용가치 KRW 41,000,000), which is KRW 41,000,000. The impairment loss is the excess of carrying amount over recoverable amount: KRW 45,000,000 - KRW 41,000,000 = KRW 4,000,000.
4On January 1, 2023, Mirae Co. acquired machinery for KRW 50,000,000 (useful life 5 years, residual value KRW 0, straight-line depreciation). On December 31, 2023, after recording regular depreciation of KRW 10,000,000, an impairment loss of KRW 12,000,000 was recognized, reducing the carrying amount to KRW 28,000,000. On December 31, 2024, regular depreciation of KRW 7,000,000 (KRW 28,000,000 / 4 years) was recorded, leaving a carrying amount of KRW 21,000,000. On that date, the recoverable amount of the machinery recovered to KRW 34,000,000. What is the reversal of impairment loss (유형자산손상차손환입) recognized in 2024 profit or loss?
A.KRW 7,000,000
B.KRW 9,000,000
C.KRW 12,000,000
D.KRW 13,000,000
Explanation: Under General Accounting Standards, the reversal of an impairment loss cannot exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in prior years. Without impairment, the carrying amount at December 31, 2024, would be KRW 50,000,000 - (KRW 10,000,000 x 2) = KRW 30,000,000. The maximum reversal is KRW 30,000,000 - KRW 21,000,000 = KRW 9,000,000, not the full difference up to recoverable amount (KRW 34,000,000 - KRW 21,000,000 = KRW 13,000,000).
5Hanil Co. constructed a new commercial building during 2025. Construction began on January 1, 2025, and was completed on December 31, 2025. Payments made to contractors were as follows: January 1 KRW 100,000,000; May 1 KRW 60,000,000; and September 1 KRW 90,000,000. What is the weighted average accumulated expenditure (가중평균 적격지출액) for borrowing cost capitalization purposes in 2025?
A.KRW 150,000,000
B.KRW 170,000,000
C.KRW 180,000,000
D.KRW 250,000,000
Explanation: The weighted average accumulated expenditure is calculated by weighting each progress payment by the fraction of the year it was outstanding: (KRW 100,000,000 x 12/12) + (KRW 60,000,000 x 8/12) + (KRW 90,000,000 x 4/12) = KRW 100,000,000 + KRW 40,000,000 + KRW 30,000,000 = KRW 170,000,000.
6On January 1, 2025, Goryeo Co. obtained a specific loan (특정차입금) of KRW 100,000,000 at an annual interest rate of 7% specifically to finance the construction of a production facility. Construction continued throughout the entire year of 2025. Unused portions of the loan were temporarily deposited in a bank savings account from January 1 through April 30, earning interest income of KRW 1,200,000. What is the capitalized borrowing cost (특정차입금 자본화이자) for 2025 under General Accounting Standards?
A.KRW 8,200,000
B.KRW 7,000,000
C.KRW 5,800,000
D.KRW 4,666,667
Explanation: Under General Accounting Standards Chapter 18, borrowing costs eligible for capitalization on specific borrowings are the actual borrowing costs incurred during the period less any investment income earned on the temporary investment of those borrowings. Total interest incurred is KRW 100,000,000 x 7% = KRW 7,000,000. Deducting temporary interest income of KRW 1,200,000 yields capitalized borrowing costs of KRW 7,000,000 - KRW 1,200,000 = KRW 5,800,000.
7Bando Co. constructed qualifying machinery during 2025 with weighted average accumulated expenditures of KRW 160,000,000. Specific borrowings allocated to the project were KRW 100,000,000 at 6%. The remaining KRW 60,000,000 was financed from general borrowings. General borrowings outstanding during the entire year consisted of: - Loan A: KRW 80,000,000 at 5% annual interest (interest KRW 4,000,000) - Loan B: KRW 120,000,000 at 7.5% annual interest (interest KRW 9,000,000) What is the capitalization rate for general borrowings and the amount of general borrowing costs capitalized in 2025?
A.Capitalization rate 6.0%, capitalized borrowing costs KRW 3,600,000
B.Capitalization rate 6.25%, capitalized borrowing costs KRW 3,750,000
C.Capitalization rate 6.5%, capitalized borrowing costs KRW 10,400,000
D.Capitalization rate 6.5%, capitalized borrowing costs KRW 3,900,000
Explanation: The capitalization rate for general borrowings is total general borrowing costs divided by total principal: (KRW 4,000,000 + KRW 9,000,000) / (KRW 80,000,000 + KRW 120,000,000) = KRW 13,000,000 / KRW 200,000,000 = 6.5%. The expenditure financed by general borrowings is KRW 160,000,000 - KRW 100,000,000 = KRW 60,000,000. Capitalized general borrowing cost is KRW 60,000,000 x 6.5% = KRW 3,900,000 (which is within total actual general interest of KRW 13,000,000).
8On January 1, 2024, Jinheung Co. capitalized KRW 60,000,000 as development costs (개발비) fulfilling all recognition criteria for intangible assets, with an estimated useful life of 5 years and zero residual value (straight-line method). Amortization for 2024 was properly recorded. At the end of 2025, after recording 2025 amortization, Jinheung Co. identified clear indicators of impairment. The recoverable amount of the development project was estimated at KRW 26,000,000. What is the impairment loss on intangible assets (무형자산손상차손) to be recognized for 2025?
A.KRW 8,000,000
B.KRW 10,000,000
C.KRW 12,000,000
D.KRW 22,000,000
Explanation: Annual amortization is KRW 60,000,000 / 5 years = KRW 12,000,000. At December 31, 2025 (after 2 years of amortization), the carrying amount before impairment is KRW 60,000,000 - (KRW 12,000,000 x 2) = KRW 36,000,000. The recoverable amount is KRW 26,000,000. The impairment loss is KRW 36,000,000 - KRW 26,000,000 = KRW 10,000,000.
9On January 1, 2025, Sejong Co. issued bonds with a face value of KRW 10,000,000, a 3-year maturity, and an annual coupon rate of 5% paid annually on December 31. The market effective interest rate at issuance was 7%. The issue price of the bonds was KRW 9,475,100. Using the effective interest method (유효이자율법), what is the bond discount amortization (사채할인발행차금 상각액) and interest expense for the year ended December 31, 2025?
A.Interest expense KRW 700,000; discount amortization KRW 200,000
B.Interest expense KRW 663,257; discount amortization KRW 500,000
C.Interest expense KRW 663,257; discount amortization KRW 163,257
D.Interest expense KRW 500,000; discount amortization KRW 174,967
Explanation: Under the effective interest method, interest expense equals carrying amount multiplied by effective rate: KRW 9,475,100 x 7% = KRW 663,257. The coupon payment is KRW 10,000,000 x 5% = KRW 500,000. The discount amortization is the difference between interest expense and coupon paid: KRW 663,257 - KRW 500,000 = KRW 163,257.
10On January 1, 2026, directly after paying the annual coupon for 2025, Namsan Co. redeemed early all of its outstanding bonds with a face value of KRW 20,000,000 for KRW 19,400,000 in cash. As of January 1, 2026, the carrying amount of the bonds was KRW 19,100,000 (face value KRW 20,000,000 less unamortized discount of KRW 900,000). What gain or loss on bond redemption (사채상환손익) should Namsan Co. recognize?
A.Gain on bond redemption of KRW 300,000 (사채상환이익)
B.Gain on bond redemption of KRW 600,000 (사채상환이익)
C.Loss on bond redemption of KRW 300,000 (사채상환손실)
D.Loss on bond redemption of KRW 900,000 (사채상환손실)
Explanation: The gain or loss on redemption is calculated as the carrying amount of the bonds minus the redemption payment: KRW 19,100,000 - KRW 19,400,000 = -KRW 300,000. Because the cash paid (KRW 19,400,000) exceeds the carrying amount of the debt liability (KRW 19,100,000), Namsan Co. must recognize a loss on bond redemption (사채상환손실) of KRW 300,000.

About the TAT 1급 (Tax Accounting Technician 1) Exam

The Korea Tax Accounting Technician Level 1 (TAT 1급) is the highest tier of the Accounting and Taxation (AT) qualification series certified by the Korean Institute of Certified Public Accountants (KICPA). Governed under national accreditation standards, TAT Level 1 validates advanced competency in General Accounting Standards for Non-Public Entities (일반기업회계기준), Corporate Tax Act tax reconciliation (법인세 세무조정), Value-Added Tax complex allocations, and Wage Withholding and Year-End Tax Settlement (원천징수 및 연말정산). This 100-question practice bank provides an English-language study adaptation with authentic calculations and exact Korean tax terminology.

Exam sponsor: Korean Institute of Certified Public Accountants (한국공인회계사회 / KICPA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Single 90-minute session combining Theory (30 points: Financial Accounting, Corporate Tax, VAT, Income Tax) and Practical (70 points: Financial Accounting entries, Corporate Tax adjustment forms, VAT returns, Year-End Settlement data entry) executed on 더존 SmartA(iPlus). Minimum passing score is 70 points out of 100.

Time Limit

90 minutes

Passing Score

70 points out of 100

Exam / Certification Fees

KRW 39,000 per grade (KICPA AT 응시료, at.kicpa.or.kr)

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Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

25 of 100 questions

Advanced Financial Accounting (재무회계 — 일반기업회계기준)

General Accounting Standards for Non-Public Entities (일반기업회계기준): tangible and intangible asset revaluation and impairment, capitalization of specific and general borrowing costs, plain-vanilla bonds payable amortized cost, convertible bonds and bonds with warrants accounting, finance vs. operating leases, revenue recognition under long-term construction contracts (percentage-of-completion), and accounting changes and prior-period error corrections.

35 of 100 questions

Corporate Tax Adjustments (법인세 세무조정)

Corporate Tax Act (법인세법): tax reconciliation principles (결산조정 vs. 신고조정), income disposals (소득처분: 배당, 상여, 기타사외유출, 유보), gross income inclusions and non-taxable items (간주임대료, 수입배당금 익금불산입, 부당행위계산부인), deductible and non-deductible expenses (감가상각비 시부인, 기업업무추진비/접대비 한도초과, 기부금 한도, 대손충당금 한도, 업무무관이자), tax loss carryforwards, corporate tax brackets, and minimum tax (최저한세).

20 of 100 questions

Value-Added Tax Advanced Practice (부가가치세 실무)

Value-Added Tax Act (부가가치세법): common input tax allocation and year-end final settlement (공통매입세액 안분계산 및 정산), input tax recalculation for depreciable assets (납부세액 재계산), deemed input tax credit on agricultural commodities (의제매입세액공제), bad debt tax credits (대손세액공제), deemed supply of goods (자가공급, 개인적공급, 사업상증여, 폐업시 잔존재화), deemed rental deposit interest VAT, and statutory VAT penalties.

20 of 100 questions

Income Tax Withholding & Year-End Settlement (원천징수 및 연말정산)

Income Tax Act (소득세법): taxable vs. non-taxable wage and salary items (식대, 자가운전보조금, 보육수당 비과세), monthly withholding tax table application, daily worker withholding tax, year-end tax settlement deductions and credits (기본공제, 추가공제, 주택자금공제, 연금계좌세액공제, 의료비·교육비·기부금·월세액 세액공제), and retirement income tax calculation with executive retirement compensation limits.

Preparing for the TAT 1급 (Tax Accounting Technician 1) Exam

What You Need to Know

  • Passing score: 70 points out of 100
  • Assessment: Single 90-minute session combining Theory (30 points: Financial Accounting, Corporate Tax, VAT, Income Tax) and Practical (70 points: Financial Accounting entries, Corporate Tax adjustment forms, VAT returns, Year-End Settlement data entry) executed on 더존 SmartA(iPlus). Minimum passing score is 70 points out of 100.
  • Time limit: 90 minutes
  • Exam / certification fees: KRW 39,000 per grade (KICPA AT 응시료, at.kicpa.or.kr) Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

TAT 1급 (Tax Accounting Technician 1): Suggested Study Strategy

1Master the Mechanics of Corporate Tax Disposals: Memorize the precise distinction between 유보 (reserve timing differences that affect equity), 기타사외유출 (statutory penalties, donations, or entertainment limits that leave the company without individual taxation), and 인정상여/배당 (outflows attributable to executives or shareholders triggering secondary income tax withholding).
2Internalize Common Input Tax Formulas: Drill the four stages of VAT common input tax: initial allocation (안분계산), final return settlement (정산), subsequent asset recalculation (재계산 at 5% or 25% per period), and deemed input tax credit on agricultural purchases (의제매입세액공제).
3Calculate Effective Interest Amortization Accurately: Practice bond amortization schedules under the effective interest method, particularly for convertible bonds with redemption premiums (상환할증금) and conversion right adjustments (전환권조정).
4Practice Step-by-Step Year-End Tax Settlements: Understand the exact hierarchical ordering of wage deductions, basic personal exemptions (기본공제 150만원), housing fund deductions (주택자금), and tax credits (의료비 15%, 교육비 15%, 기부금 15%/30%, 월세액 15%/17%).
5Know Statutory Thresholds for 2026: Familiarize yourself with non-taxable meal allowances (월 20만원), child-care allowances (월 20만원), basic entertainment expense base limits (중소기업 3,600만원), and Corporate Tax statutory rate tiers.

Frequently Asked Questions

What is the TAT 1급 examination and who administers it?

TAT 1급 (Tax Accounting Technician Level 1) is the premier professional taxation certification administered by the Korean Institute of Certified Public Accountants (KICPA / 한국공인회계사회). It is a nationally accredited qualification (국가공인 민간자격) that certifies top-tier practical competence in corporate tax adjustments, VAT filings, payroll withholding, and advanced financial accounting for corporate finance departments and CPA/tax accounting firms.

What is the examination structure and passing requirement for TAT 1급?

The examination is a 90-minute computer-based test combining Theory (30%) and Practical (70%). The theory portion consists of multiple-choice questions on financial accounting, corporate tax, VAT, and income tax. The practical portion requires candidates to execute complex accounting transactions, corporate tax reconciliation forms, VAT returns, and year-end payroll settlements on 더존 SmartA(iPlus). A composite score of 70 points out of 100 is required to pass.

Which accounting standards are tested on TAT 1급?

TAT 1급 tests the General Accounting Standards for Non-Public Entities (일반기업회계기준 — K-GAAP), which apply to non-public enterprises in South Korea. Key topics include asset revaluation, impairment testing, borrowing cost capitalization, convertible bonds and warrants, lease accounting, and long-term construction contracts.

What are the primary tax adjustments covered in the Corporate Tax section?

The corporate tax module emphasizes tax reconciliation (세무조정) and income disposals (소득처분). Candidates must calculate statutory additions to gross income (익금산입), deductions from gross income (익금불산입), deductible additions (손금산입), and non-deductible expenses (손금불산입), while classifying income disposals into dividends (배당), bonuses (상여), other external outflows (기타사외유출), and reserves (유보).

How is this practice bank structured compared to the official examination?

The official KICPA examination combines 30 points of multiple-choice theory with 70 points of hands-on software simulation. This 100-question practice bank adapts the entire breadth of both theoretical rules and practical software calculations into rigorous, scenario-based multiple-choice questions with step-by-step arithmetic and bilingual Korean terminology.

What are the registration fees and exam frequency for TAT 1급?

The examination registration fee is KRW 39,000. KICPA administers the AT qualification examinations approximately six to eight times per year across designated testing centers throughout South Korea.