A Study of Taxation on Trust in the ROC

• Main Authors: Su-Lan Lee, 李素蘭
• Other Authors: Jiu-Young Jian
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/08881272632834847214

碩士 === 中原大學 === 會計研究所 === 91 === Abstract The concept of trust originated from the Anglo-American Law countries. One can not only use trust to manage and exploit personal assets, but also to engage in public interested affairs, most modern countries adopt the concept of trust due to its flexibility. Following the promulgation of the Trust Law, the Trust Business Law and trust related tax laws, the utilization of trust is getting popular in the ROC. As a result, many complicated tax issues in relation to trust occur as well. This study looks into the tax issues arising from trust in the hope to provide clearer understanding to the public and tax authorities and a guideline for future amendment of the trust related tax system. We currently adopts the Trust Conduit Theory and Substance Taxation Rule to deal with the trust relation taxation. That is, no tax will be imposed on the assets transferred for trust purpose, but the income tax will be imposed on the beneficiary who receives the proceeds of the trust in substance. Thus, the main points of this study include: 1. Collecting, studying and analyzing domestic and foreign periodicals, books, articles and research reports in connection with trust and taxation on trust written by scholars and experts in order to clarify the principles and fundamental concepts of taxation on trust. 2. Looking into the general operation and taxation rules of the trust system in the British, America and Japan, and further understanding the evolution of the trust system and trust related tax laws and guidelines for taxation on trust in the ROC. 3. Examining the current trust related tax laws in the ROC, analyzing the ax issues arising after the trust system came into force, and providing suggestions with reference to various laws and regulations. In respond to the needs of the changing and multi-culturalized society, the promotion of the concept and business of trust will be the trend for the development of our economy and society. Although our current taxation system in relation to trust is quite thorough, there are some disputable issues. We do hope the relevant government agencies will clarify such issues and make corrections if necessary, so the industry will know how to follow, the disputes will be avoided and the taxation on trust will go smoothly.