| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 96 === The government uses investment tax credits for particular economic and societal purposes. For a long time the tax credits have focused on the hi-tech industries, and have led to unfairness in the tax system. To uphold tax equity and to ensure tax revenue for the country, Taiwan has adopted Income Basic Tax Act (the Alternative Minimum Tax, AMT) since January 1, 2006.
In this study we analyze the effective tax rates of listed and over-the-counter companies from two periods: the years preceding the Alternative Minimum Tax (AMT) (2002-2004), and the years following the AMT (2006). We examine the variations in effective tax rates of hi-tech industries and traditional industries during two periods above and identify factors which explain the changes in effective tax rates over these periods.
The evidences we present support the view that the AMT resulted in a significant increase in the level of hi-tech industries’ effective tax rates and an abridgement in the difference of the effective tax rates between the hi-tech industries and the traditional industries. The empirical results show that the effective tax rates of companies with more capital gain of securities and future markets increased significantly following the AMT. On the other hand, the results also show that the effective tax rates of companies with more expenditure on R&D increased significantly following the AMT.
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