| Summary: | 碩士 === 義守大學 === 管理科學研究所 === 88 === Abstract
From January.1.1999, our government of the Republic of China had replaced the previous classical tax system with the integrated income tax system that the corporate level can be used to offset the shareholders individual income tax. Thus it can solve the problem of double taxation of dividend income.
One year after implementing the new system, the preferential tax treatments prescribed under the Statute for Upgrading Industry had a tremendous change in January.1.2000. It produced the impact not only in the tax burden of the enterprises but also spreading over the following items including the way of the business financing, the method of account management, the policy of the dividend distribution and the investment and finance of shareholders.
During the period of the drastic changes in the tax system, the tax burden of dividend income had become the focus of all the taxpayers. So the purpose of this research is to explore the space of the tax planning under the new integrated system and propose the methods of the tax planning and offer our suggestions.
In the process of collecting a lot of related tax laws and regulations and giving the questionable investigation to both tax officers and general public engaged in taxation job in Kaoshiung area, this research finds out some conclusions and suggestions. I think it will be help to following individuals and enterprises in the tax planned field such as sole ‘proprietorships’ ‘partnerships’ ‘profit-seeking enterprises applied the expanding paper auditing system general corporation’ ‘high-tech companies’ (excluding pre both) and ‘individual shareholders’.
The major conclusions and suggestions include:
1. Under the new system, the total burden on dividend income has been reduced from 55% to 40% just like the other kinds of income, and utilyzing the tax planning, the highest tax rate will reduce to 32.5%. Compared to the persons receiving salary, the salary income just reducing NT60000 of the salary income special deduction is considerably lower. To eliminate the unfair of the lower amount, we suggest promoting the amount of the salary income special deduction to maintain the equity of taxation.
2. Under the imputation system, the corporations must set up an Imputation Credit Account (ICA) to keep track of the corporate income tax paid and the imputation credit they have allocated for shareholders. So the income tax structure had become very complex. To make sure that the imputation credit is recorded correctly, we suggest simplifying the related regulations and reinforce education and propagation. So that we can create a convenient taxation environment for both tax personnel and the taxpayers.
3. Keep on adopting the expanding paper auditing system that had been implemented many years, meanwhile, prevent the enterprises from using false heads to reduce tax burden illegally.
4. Under the new system, the tax burden will be equal between financing from equity and from debt. If an enterprise finances from debt and deposits its money in the bank, it would have the preferential tax treatment of NT﹩270000 exemption. So in order to strengthen the sound enterprises we suggest canceling this tax preference.
5. Tax-exemption treatment should review and revise or even abolish and replace it with the other subsidy encouragement. So it can simplify the tax system and make tax administration more convenient.
6. Under the new system, the tax rate would reduce to the lowest 20%, if an enterprise invests in domestic industry from abroad. So we suggest the Ministry of Finance to issue or revise related tax regulations to curb evasion and other illegal cases.
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