The Effect of the Alternative Minimum Tax on Tax Burden : Evidence from the TSEC Taiwan 50 Index

• Main Authors: Wen-Yi Lin, 林文義
• Other Authors: Hsien-Feng Lee
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/99316276994514215352

碩士 === 國立臺灣大學 === 經濟學研究所 === 95 === Following the integration of individual and business income tax system, the Alternative Minimum Tax (AMT) system, instituted in 2006, is another major income-tax reform Taiwan undertakes. Just three days before the AMT’s implementation, Taiwan Semiconductor Manufacturing Co’s (TSMC) biggest stockholder – Royal Philips Electronics N.V. in Taiwan dumped the amount of NT$120 billion TSMC shares, marking the largest stock deal in Taiwan’s history. The purpose of this thesis is to investigate the effect of the AMT system on Tax Burden by using the TSEC Taiwan 50 Index as a sample. The Taiwan 50 Index comprises the top 50 companies by market capitalization in Taiwan. Based on the Break-even Point theory of financial accounting, a corporate AMT rate will be estimated after all variables are examined. The 50 companies listed on the Taiwan 50 Index are further categorized into three industries: the electronics, financial and tradition industry. After economic indicators including corporate sizes, profits and R&D capabilities are extracted from their parent companies’ annual reports, an empirical analysis of the estimated AMT rate was undertaken. The major findings are as following: 1.The AMT system is effective in restraining tax breaks. Companies that avoid too many taxes owe more AMT. 2.The AMT system mostly applies to the most competitive and mega-sized companies in Taiwan. 3.Under the integration of the income tax system, most of the tax revenues come from individual taxpayers. In future legislation should stress the importance of personal income taxation while reconsidering the effect of the AMT system on economic efficiency and taxation equity.