Summary: | 碩士 === 國立清華大學 === 高階經營管理碩士在職專班 === 104 === Abstract
The initial purpose for this thesis is to study whether the tax for cash dividends combined with Individual Income Tax is reasonable in Taiwan Stock Market, and we also want to know the weakness or the limitation for Ex-dividend System in Taiwan. After the implement of Imputation System for the Integrated Income tax in Taiwan, cash dividends of natural persons must be calculated in Integrate Income tax. By definition, Income tax must be a period charge levied on both earned net income and unearned net income, so we can simply understand that the income Taxable Base is original income deducting the necessary expenses.
Nowadays the Taiwan Government levied a Dividend Tax on cash dividends from natural persons means that the Taiwan Government treating cash dividend as actually one of a net income item for the natural persons: and we can obtain our first conclusion from the Taiwan Government Policy that cash dividends is independent on the stock price. In the same time, we can get the “Ex-Dividend Reference Prices” published on Taiwan Stock Exchange (TWSE) website where the Authorities also put the formula for computing the reference prices on, and we can obtain our second conclusion from the Taiwan Government Policy that cash dividends is dependent on the stock prices. There seems to be a contradiction between the different departments of Taiwan Government for its cash dividend policy. On the one hand, the Government treats cash dividends as nature person’s actual income, but on the other hand, the Government treats cash dividends are original from deducted stock price.
Because of the policy contradiction from Taiwan Government, some investors have questioned the government. TWSE issue a press release on 2015/10/21,” An Explanation for Ex-Dividend Policy”, it explained “Cash Dividends Policy is settled on theoretical base, and the principle is also the same with the international market. ”ON the other way, the Tax Deduction Ratio for Cash Dividends was reduced to half of the original in 2015, the situation also highlights that cash dividends be treated as actual personal net income.
Base on the apparent inconsistency of the government policies, we want to study the researches and academic report about the cash dividends and income Tax policies related to cash dividend in different countries. We will discuss these issues in many point of view, and hope to find some relationships between cash dividends, stock price, and Cash Dividends Income Taxes
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