A Study of Controlled Foreign Corporation Regimes:with Focus on United States,GERMANY,JAPAN,CHINA and TAIWAN

• Main Authors: FANG,CHNG-YIN, 方晶瑩
• Other Authors: WEI, WEN CHIN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/14730722156732061997

碩士 === 國立高雄應用科技大學 === 財富與稅務管理系碩士在職專班 === 105 === Due to the differences of tax regulations between countries, Multinational enterprises take advantage of the different taxation system in minimizing tax cost in order to maximize overall profits. Multinational enterprises not only bear the risks of the double taxation, despite the concern of double taxation, the tax cost saved provides incentives to take the risk to exploit such differences to reduce tax burden. The most common pattern of tax avoidance would be setting up subsidiaries in tax haven or low-tax regions and shifting the income to low-tax regions in order to reduce tax burden.Governments have put the various anti-avoidance laws in effect to prevent tax avoidance. OECD also releases final report on CFC rules under BEPS Action 3 to allow countries without CFC rules to implement recommended rules directly and countries with existing CFC rules to modify their rules to align more closely with the suggested version.The Final Report discusses six building blocks for the design of effective CFC rules:Definition of a CFC (including the definition of control),CFC exemptions and threshold requirements,Definition of CFC income,Computation of income,Attribution of income,Prevention and elimination of double taxation. After the outbreak of the Panama document in 2016, anti-tax avoidance action is carried out in full swing across the world.In Taiwan, the Article 43-3 of Income Tax Act of Taiwan was also passed to regulate the taxation system of controlled foreign companies. In this study,we integrate and analyze the taxation of foreign countries with the CFC rules implemented and more comprehensive international tax law systems. Then we review the process of anti-avoidance in Taiwan, discuss the possible problems and give advice for adopting the CFC rules in the future.