Pregledni rad
Exit Tax on Corporations
Irena Klemenčić
orcid.org/0000-0003-3804-946X
; Institut za javne financije, Zagreb, Hrvatska
Sažetak
Exit tax on corporations is a capital gains tax imposed on companies when moving their residence to another country. The causes of emigration may be business-related or with the aim of moving the company a low-tax jurisdiction. The basic goal of the exit tax is to provide countries with a tool for protecting their tax base by taxing the events which would otherwise result in the loss of the countries' taxing rights. However, taxing unrealized capital gains has proven to cause many problems in practice.
The aim of this paper is to analyse the exit tax features, especially regarding taxation of companies. Therefore, the paper commences by describing the scope and methods of collecting exit tax and questioning its justifiability. Exit tax is analysed as a tax avoidance strategy, but also as a means of avoiding double taxation. Further, the systems of determining companies' tax nationality are analysed – namely the incorporation system and the real seat system, with an investigation into the effects of moving companies’ residence within each of them. Cases relating to exit tax were discussed before the European Court of Justice by addressing certain procedural matters of exit taxation, primarily in cases regarding the freedom of establishment. An overview of national exit tax systems in Italy, the Netherlands, the United States of America, and Croatia is followed by the author’s conclusions.
Ključne riječi
exit tax; residency of companies; corporation tax; freedom of establishment
Hrčak ID:
164774
URI
Datum izdavanja:
29.7.2016.
Posjeta: 1.549 *