일본의 국외자회사 배당 소득면제 제도와 정책적 시사적

Abstract

Korean companies have proactively relocated their production facilities, etc. to foreign countries in order to enhance their competitiveness following global trends, but this has led to a decrease in domestic investments and the employment rate as well as in the domestic demand. For the purpose of preventing international double taxation of dividends received from overseas subsidiaries and inducing dividend payments by overseas subsidiaries in order for such dividends to be used to boost domestic demand and promote domestic investments, Japan abolished the indirect foreign tax credit regime and instead adopted the foreign dividend exemption regime, under which dividends received from foreign subsidiaries are non-taxable, in 2009. Given that relevant Korean policies/systems and the economic environment of Korea are similar to those of Japan in many ways, it may be useful for Korea to observe Japanese policies or how Japan improves their systems, etc. in resolving problems Korea is facing. In this regard, this study reviews the Japanese foreign dividend exemption regime and issues to be considered when Korea adopts a similar regime as well as its administrative implication. Once adopted, the foreign dividend exemption regime will have the following effects: First, considering that the Japanese and U.K. foreign dividend exemption regimes have resultantly increased dividend payments by overseas subsidiaries to their Japanese/U.K. parent companies, the foreign dividend exemption regime, once adopted by Korea, will likely induce an inflow of retained earnings of foreign subsidiaries to Korea to be used for domestic investments and R&D, etc. Second, problems arising under the current foreign tax credit regime of Korea such as capital export neutrality damaged, excessive profits retained/reserved within foreign subsidiaries, and unintended crediting of additional foreign taxes in case of cross-crediting, etc. will significantly be resolved. Third, as other accompanying effects, the international taxation system of Korea will be simplified and the issue of double taxation of dividends received from foreign subsidiaries will substantially be resolved, with the effect that corporations will take a neutral position in establishing their dividend policies. However, in connection with adopting the foreign dividend exemption regime, the following concerns may be raised: First, multinational enterprises will transfer their capital or income from Korea to countries with lower tax rates. Therefore, systems should be modified or developed to prevent such transfer of capital or income. Second, domestic corporations will relocate to countries with lower tax rates. Therefore, relevant laws and regulations should be amended to prevent imbalance in taxation between domestic and overseas investments.