해외유보소득 방지를 위한 경영참여소득면제 도입방안

Abstract

Most of the OECD member states apply taxation of the source approach on overseas dividend income in order to cope with increase in overseas reserves income. Korea, along with the United States, maintains taxation of the residence approach on overseas dividend income that does not fit the international flow. Under the current tax system, there is a high possibility of reserving overseas income excessively in order to avoid the taxation of the residence approach. Excessive overseas reservations may distort the distribution of investment in domestic and overseas, and the economic profit of overseas advancement can not be returned to Korea. In Korea, it is necessary to improve the equity of the tax burden on domestic and overseas investment and to distort the distribution of investment by applying the taxation the source approach even if the dividend income is overseas. The taxation of the source approach on overseas dividend income can eliminate the blockade effect of the overseas reserves income and induce the inflow of money into the domestic market, and a multinational corporation can become an attractive place in Korea because there is no additional tax burden at the head office location. The effect of the transition can be seen in the case of Japan, which introduced a similar system in 2009. In Japan, dividends from overseas subsidiaries have more than doubled since the introduction of the system, and the amount of overseas reserves has also decreased sharply, and the domestic reflux ratio has increased to 95.4% in 2010. As a specific plan to introduce the system, it is necessary to introduce a the participation exemption in income deduction of 95% for overseas dividend income received from an overseas subsidiary with 25% or more ownership by domestic corporation. In the long term, the share ratio should be reduced to 10% in line with international trends. In principle, the CFC rule should not be applied simultaneously with the participation exemption. However, if the participation exemption is introduced, it may cause side effects such as double tax exemption of the residence state. Therefore, it is necessary to exclude the application of the system to the overseas dividend income generated in the state such as a tax haven. On the other hand, the CFC rule related to passive income that does not meet the purpose of avoiding tax avoidance should be relaxed. In the case of intellectual property(IP) rights, royalties from IP acquired through self-conducted research and development activities are not applied to the CFC rule.