A Study on the Taxation of Transnational Labor Services

ASIA unversity > 管理學院 > 財經法律學系 > 博碩士論文 > Item 310904400/108027

Please use this identifier to cite or link to this item: http://asiair.asia.edu.tw/ir/handle/310904400/108027

Title:	A Study on the Taxation of Transnational Labor Services
Authors:	CHANG, WAN-HUA
Contributors:	財經法律學系
Keywords:	Income from sources in ROC;Short-term business trip;Performing service remuneration;Business profit;Digital economy
Date:	2017
Issue Date:	2017-09-20 05:40:38 (UTC+0)
Publisher:	亞洲大學
Abstract:	The taxation power is a symbol of state sovereignty over the territory. The taxation on natural person in Taiwan is based on the territorial principle, primarily focusing on the "income sources of the Republic of China" for an individual. For profitable business, the taxation is based on either the territorial or the nationality principle, depending on the establishment of headquarter within the state boundary. If the headquarter is located within the state boundary, the nationality principle of taxation applies for both the domestic and the foreign income. On the other hand, a business without a headquarter in the state will be exempted and only follows the territorial principle for the income sources in the Republic of China. However, the factor contributing to double taxation resides in the issue of overlapping scope of taxation power from two or more countries. Avoiding double taxation is attributable to the appropriate division of tax income of involving parties. The OECD Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the United Nations version of tax treaty have unified the scope of exercise of taxation power and the division of tax income in case of overlapping taxation power. In addition, the determining criteria for the sources of income in the Republic of China are also listed in Article 8 of the Income Tax Act. The increasing frequency of international exchanges and business development among nations has greater impact on the human labor turnover or the provision of transnational labor services. This study provides analyses on the transnational labor service income for individual, which is considered as remuneration according to the Article 8-3 of the Income Tax Act of the Republic of China. However, is the taxation of income from business trip, dispatched personnel and performer justified in accordance with the OECD tax regulation? Furthermore, the proceeds of the provision of labor services for the profit-making business could be determined as the business profit in the Article 8-3 and 8-9 or as other income in the Article 8-11, and thus, how would the labor income be characterized by the Article 8? It is necessary to analyze and clarify in this study if the determining criteria of the Ministry of Finance and the Executive Yuan complies with the OECD Taxation Agreement. In recent years, the rise of the digital economy and e-commerce on a large-scale has rendered the traditional taxation system insufficient in dealing with the current situation, which causes the loss of taxation for countries due to the characteristics of virtual network platform used by the foreign profiting businesses. The OECD proposed in response to the situation and the tax law in Taiwan was amended in 2016 in compliance with the international regulation. This study analyzes the tax reform in the case of Uber business to see if it is consistent with the international standard, as well as discussing the necessity of countermeasure to the rise of digital economy in challenge of the current tax law.
Appears in Collections:	[財經法律學系] 博碩士論文

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