A Study on Legal Systems of Personal Foreign Income Tax in U.S.A and Taiwan

• Main Authors: HSIEH, MING-CHE, 謝銘哲
• Other Authors: 林俊宏
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/46012127104539798940

碩士 === 逢甲大學 === 財經法律研究所 === 105 === This study is prompted by the fact that the US government has been taking taxation action in recent years on people with US citizenship and green card holders, and has gradually established the "Foreign Account Tax Compliance Law" and other relevant laws and regulations to request foreign governments as well as domestic and foreign banks to provide information on such individuals’ overseas income. This action, other than leading to international legal disputes, also leads to the panic of the high income population with US citizenship. 　　In Taiwan, many of the high income population only make a very low tax payment through tax relief and planning measures, or even does not have to pay any tax. To improve this situation, the Taiwanese government has adopted a Alternative Minimum Tax, with a reference to the implementation of in the United States, in order to improve the taxation fairness situation and include overseas income, which is currently non-taxable, into the scope of income which is subject to the income tax. However, overseas income items and other items in the Alternative Minimum Tax scope do not seem to be the same in nature, and result in different tax rates and legal sources applicable to domestic and overseas income. Besides, there are limitations in the current taxation practice and technology. Therefore, there is still some space for discussion regarding whether or not overseas income is to be included in the Alternative Minimum Tax. This study aims to discuss the scope of the Alternative Minimum Tax if overseas income is to be included, in order to analyze whether there is indeed space for improvement in the current taxation practice of our country. 　　In order to pursue taxation fairness, social justice as well as economic development, and to include overseas income into the income tax in order to pursue a sustainable development of the tax system, a comprehensive tax collection system is required so as not to make the legal declaration effect greater than the actual tax benefit. In terms of the long-term tax reform in Taiwan, it should be taken into account factors such as tax fairness, neutrality, fiscal balance and economic development, and couple them with the overall financial reform plan for a comprehensive assessment. The paper, then is focus on whether the laws and regulations of the United States should be referred to, and whether the personal income tax should be based on the principles of both nationality and territoriality for enhancing our tax collection technology, reducing the cost of tax collection, as well as enhancing the governmental revenue and improving the situation of unfair tax burden by increasing the obligation of taxpayers and relevant units handling overseas income, or signing double taxation treaties for cross-border cooperation. Conclusions and recommendations are then made accordingly.