The Impact of Taiwan listed company’s Effective Tax Rate and R&D Expenditure after the Profit-Seeking Enterprise Income tax rate reducing policy and the termination of Statute for Upgrading Industries

• Main Authors: WANG,SHIN-YI, 王心怡
• Other Authors: YANG,SHE-CHENG
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/46299695527101308424

碩士 === 東吳大學 === 會計學系 === 101 === Taiwanese government has adopted the Profit-Seeking Enterprise Income tax rate reducing policy and pushed the termination of Statute for Upgrading Industries in order to protect traditional industry, conform to the principle of fair taxation, and increase the fairness among the industries competition. The thesis analyzes financial data of listed company from 2006-2011 to examine whether the tax burden for traditional industry has been alleviated since lower enterprise income tax rate has been adopted and the Statute for Upgrading Industries has abolished. The change of tax system may affect the expenditure of R&D and personnel training which refer to the development of new technologies within the company. The empirical research suggests that after tax reform, the enterprise income tax rate is lower, which achieve the government’s primary purpose to alleviate the tax burden. Tax burden for traditional listed company has a significant downward trend, suggest that government has achieved to protect the traditional listed company through enacting of tax reform. Although the Statute for Upgrading Industries abolished in 2010, due to the five year tax holiday, the real tax burden for high-tech industry still show a downward trend. The tax reform may solve partial tax unfairness exists between different industries; however it still can’t make up for the loss from the tax credit. High-tech industry’s expenditure of R&D and depreciable asset that spend after the termination of Statute for Upgrading Industries will increase effective tax rates since the supporting reform measures provides less tax incentives compare to Statute for Upgrading Industries. The more profitable the high-tech company is the more tax credits it can apply, which result in a negative relationship between company’s profit ability and its actual tax burden. As for the expenditure of R&D, the research result shows that there’s no significant changes exist on the spending proportion. This may result from Statute for Industrial Innovation continues to provide tax incentive after the termination of Statute for Upgrading Industries.