NIEs의 租稅構造와 稅制改革

Tax Structure and Tax Reform in NIEs: Korea, Taiwan, Singapore and Hong-Kong

This paper addresses the differences and similarities in tax systems and structures and discusses tax reform issues in the ’90s of NIEs. In the mini-states(Singapore and Hong-Kong), the tax system depends predominently on direct tax, whereas the maxi - states(S.Korea and Taiwan). for the most part, show a balanced structure between direct and indirect tax, though the structure is tilted in favor of indirect tax. This difference is probably due to several factors such as the difference in industrial structures, developmental and industrial policies, and trade policies. The ministates which rely on direct tax have less severe tax equity problem than the maxistates which rely on indirect tax. Hong- Kong which is free market oriented is said to be the most competitive in tax system among NIEs. For Hong-Kong's tax systemis based on rules of games whose cardinal principle is tax neutrality. The developmental policies of Singapore, Taiwan and S. Korea are characterized by governmental market intervention. This related to the fact that in these countries tax privileges for certain industrial sectors have become a distinct feature of the tax system. However, with the emergence of incipient patterns of democratization, the tax systems in S. Korea. Taiwan and even in Singapore are bound to be restructured. That is why fine-tuning tax will. for the most part, become irrelevant. However. fine-tuning remains relevant to hightech development. The changing internal and external environments such as environmental control, social overhead capital financing, financing of local autonomy and trade liberalization necessitate a restructuring of existing tax structures in NIEs.