| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 93 === In response to the public concern, Taiwan has adopted the imputation tax credit system since January 1st, 1998. Although the new tax reform can eliminate double taxation, the implementation of additional 10% surtax on undistributed surplus earnings has engendered lots of comments. Based on the disputations resulted from the new tax system, we conduct an empirical research analyzing the impacts of the implementation of additional 10% surtax on undistributed surplus earnings on the enterprises’ innovation. The empirical results in this research can be summarized as follows:
1. Imposing 10% surtax on corporate undistributed surplus earnings has adverse effect on capital accumulation, in turn leading to reduction in incentive of enterprises to conduct innovative activities.
2. Compared to the traditional industry, adverse effect of this new system is more profound for firms in the high-tech industry. The results indicate that high-tech industry is the major victim under the new tax reform. Therefore, imposing additional 10% surtax on high-tech industry will be an obstacle to enterprises’ growth and increase its operating risks.
3. Compared to unconstrained firms, we find out that the new tax system have less effects on constrained firms. Owing to considering the poor profitability, we can infer that non-tax factors have greater influence on the innovation of constrained firms relative to tax factors.
Key words: additional 10% surtax on undistributed surplus earnings, the imputation tax credit system, innovation
|
|---|
