현물출자의 과세이연에 대한 몇 가지 쟁점 검토 = Reviewing Some Issues on the Tax Deferral for In－kind Investment

다국어 초록 (Multilingual Abstract)

[Purpose]The aim of this study is to examine various controversial issues related to the deferral of taxation on in－kind investments and present solutions.
[Methodology]The study first provides an overview of three key aspects.：(1) the tax deferral on in－kind investments under Article 47－2 of the Corporate Tax Act, (2) the tax deferral on in－kind investments when establishing or converting a holding company under Article 38－2 of the Restriction of Special Taxation Act, and (3) the tax deferral on in－kind investments when a private business entity is converted into a corporation under Article 32 of the Restriction of Special Taxation Act. Based on this overview, the study draws reasoned conclusions through detailed discussions of interpretative issues and legislative theory.
[Findings]The results of the study can be categorized into three main findings.
(1) Regarding the tax deferral on in－kind investments under Article 47－2 of the Corporate Tax Act, when a corporation contributes assets that have not been used in its business in kind, and the recipient corporation utilizes these assets for its existing business, it is reasonable not to permit tax deferral. This conclusion is supported by the interpretation of the statutory language, legislative history, objectives, and consistency with tax provisions related to mergers and divisions.
(2) In relation to the establishment and conversion of holding companies under Article 38－2 of the Restriction of Special Taxation Act, tax deferral on in－kind investments of stocks should be abolished and aligned with Article 47－2 of the Corporate Tax Act.
(3) When a private business entity converts into a corporation under Article 32 of the Restriction of Special Taxation Act, it is advisable to shift from the carryover tax method to the accelerated depreciation allowances method concerning in－kind investments. However, a secondary tax liability should be imposed on the converting corporation to enhance tax collection.
[Implications]This study contributes to improving the tax deferral system for in－kind investments by addressing ambiguities in the interpretation of tax deferral provisions.