The taxation of foreign income in Alternative Minimum Tax
Date Issued
2008
Date
2008
Author(s)
Chen, Shiu-Nuan
Abstract
The governments all over the world are devoted to encourage the advance in economy. They adopt tax exemption benefit to make the industry upgrade. Our gorvernment also adopts this way to reward to Hi-Tech industries and individuals. But for a long time, government doesn’t examine wheter it’s still suitable and make the expiration date The excess of tax exemption benefit is too much to impede the taxation growth, erode the tax basic, weaken the country strengh, slow the economic development and widen the vicious circle.ntegrity of Tax system in Taiwan is ranking behind other countries in Asian. To reform this situation, the government takes Alternative Minimum Tax into consideration. As putting Alternative Minimum Tax into pratice, the fair of the tax will enhance. One of practicable method to be taken over is making foreign income be one of the Alternative Minimum Tax item and adding to taxable income. However, the foreign income is different from other adding items. The distinct tax rate, legislation and the particularity make the foreign income adding to taxable income hard to implement.he study is to compare the internaltional pratice and dicuss feasibility in implementing Alternative Minimum Tax and its added item- foreign income. How the effect will be if the Alternative Minimum Tax put into practice. Wheter the added item-foreign income will make the tax more correspond to the international trend and fairness of the taxation.o reform the tax system, it is must to consider other tax and follow the three pricincles: fairness of the taxation, justice of the society and development of the economy. It lacks mature technology of imposition to add the foreign income into taxable income cause the announcement effect more than the essence of tax revenue. In long-term aspect, we should take account of fairness and neutrality of the taxation, the balance of finance, the development of the econmy and match up the overall reformation of finaice. To upgrade tax revenue, improve tax system and slove the unfairness of the taxation we should change the personal tax to personal-cum-territoriality, improve technology of imposition, reduce tax collection cost, develp obligation of individuals and proceeds generated outside the organs, set anti double taxation agreement and directive tax supplant indirective tax.
Subjects
Alternative Minimum Tax
Fair Taxation
Foreign- source income
Foreign Tax Credit
Tax Treaty
Type
thesis
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