The Study of 10% surtax on Retained Earinings in the Integrated Income Tax System

• Main Authors: Lin Yen - Yu, 林燕瑜
• Other Authors: Ma Chia -Ying
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/36238536196367713481

碩士 === 國立臺北大學 === 會計學系 === 90 === Since 1998, the Integration of enterprise and personal Income Tax System has been carried out to solve the double levied taxation problem. One of criticism on the new system is that 10% surtax on the enterprise retained earnings. The main issue is whether the calculating base on book value or taxable value. This paper explored the difference between earnings imposed on tax pursuant to corporate accounting books and actual earnings based on the viewpoints of the scholars, accountants, tax officers, and businessmen. This paper found that instead of taxation accounting base, assessment of 10% surtax should be base on the definition of finance accounting. The detailed conclusions are as follows： 1. Reducing the difference between taxable income and financial accounting income, the tax laws should be amended to match financial accounting theory. 2. Assessment of 10% surtax should be base on the definition of finance accounting income in place of the definition of taxable income. 3. Solving problems in the treatment of accounting after the practice of the integration of income tax system, Financial Accounting Standard Committee should issue relevant financial accounting standards communiqués as soon as possible. 4. Canceling undistributed earnings surtax and increase profit-seeking enterprises income tax. 5. Canceling the preferential treatment in tax gradually. 6. Giving an exemption of small undistributed earnings to upgrade efficiency. 7. Designing the expert system to calculate the 10% surtax on undistributed earnings, the balance of imputation credit and the creditable ratio. 8. Carrying out the integration of income tax system to promote long-term economic development and create a good investment environment, the government has to wide publicized the accounting treatment and co operate with the academic community and industrial circles.