Abstract

The exit tax can be generally considered to be imposed not only for the purpose of blocking tax avoidance, but also in the level of securing the right of taxation for income that has not been taxed to the point of conversion to non－resident. It is because loss of the authority of taxation can be caused, provided that no tax has been imposed for the untaxed parts among the income generated until the point of converting resident to non－resident. Therefore, it is necessary to review its introduction to Korea, under the circumstance where the international taxation has been in a keen competition in present. On introducing the exit tax, tax payer should be subjected for the residents on the tax law who are converted to non－resident, regardless of intention of tax avoidance or renunciation of nationality. However, it is reasonable to consider the ones who have settled in other countries and ruptured the residential relationship with Korea, as it is rational to exclude regarding even the temporary non－residents as the tax payer for the exit tax indiscriminately in consideration of collection of tax authority and the tax payer. Property and eligible deferred compensation items became subjects for the object of taxation for the exit tax. In case of the property, as it is general that taxation has been processed in its disposition for the capital gain that was generated during its possession；it should be subjected for taxation because the right of taxation can be difficult to be exercised in the case of its disposition after converting residents to non－residents. Eligible deferred compensation items should be subjected fro taxation, because there will be a problem that taxation is further no longer unavailable unless a separate taxation has not been imposed in conversion to non－residents for this, as taxation has been processed certain parts in the point of receipt of income in future after receiving deduction/tax credit and a certain income during accumulation to gain the future income. Concerning the way of imposing the exit tax, it is reasonable to impose tax after calculating capital gain with regarding all the assets have been transferred in the market value in the point that the residents have been converted to non－residents. However, there is possibility of difficulties in an actual exercise of taxation, such as dispute over taxation for the unrealized gain, and problem in assessment of appraised value according deemed disposition, in the point when disposition should be taken in account. Therefore, preparation for these problems should be accompanied.

Keywords

• exit tax
• expatriation tax
• emigration tax

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