중소기업 가업승계 관련세제 개선방안

Abstract

With the quick aging of small and medium business founder generation, there has been a hightened interest in the succession of family businesses, and active social discussions on it. However, in the case of Korea, succession of family businesses is not easy due to the high inheritance tax, gift tax and other excessive expenses for passing down family businesses. In the event that it is not easy to pass down family businesses and the owner reach old ages, the development of the company stagnates and in the worse case, it can result in closing down of the business and thus have highly adverse effects on the national economy. In developed countries, it is perceived that 'succession of family businesses are very important for the stable growth of the national economy, maintaining employment and for enhancing the competitiveness of small and medium businesses'. Thus, epochal policy changes are being attempted on inheritance taxes and fostering successors. This study examines the issues of inheritance and taxes in Korea for succession of small and medium family businesses, while benchmarking developed countries in order to suggest tax system reform plans that support continued growth of companies through succession of family businesses. Results of the study and summary of the issues and reform measures on inheritance taxes are as seen below. First, the current inheritance tax rate is high compared to other developed nations. This is not only unfitting to the international trends, but the excessive taxes impedes upon savings resulting in the retardation of extended growth potential. Therefore, the current inheritance tax should at least be lowered to the level of income taxes. Second, from 2009, the family business inheritance tax deduction was increased and thus up to 10 billion won can be tax exempt depending on the years in business making it highly effective for smaller businesses. However, for succession of family businesses that are categorized as mid-sized companies, it cannot be definitely stated that it will greatly reduce the load of inheritance taxes. Therefore, it is necessary to soften the conditions for family business succession tax exemptions and to raise its max amount. Furthermore, it would be desirable to annul this limit in the long run. Third, in the case of succession of small and medium sized family businesses, it is typical that they are they largest shareholder. In Korea, it is deemed that there is a management right premiums for succession of the largest shareholder's stocks and therefore there are additional taxes. Meanwhile, foreign countries actually gives preferential treatment for succession of management rights and family businesses compared to inheritance of other properties. We should also get rid of the stock extra evaluation system that hinders succession of management rights for small and medium businesses, corresponding to the international standards. Fourth, the installment payment period for inheritance taxes in Korea is short compared to foreign countries and therefore, its effectiveness is lower. Because most assets are tied down as businesses assets, small and medium businesses have lower cash liquidity and therefore, there is risk of smaller investments and lower profitability due to the inheritance taxes. Thus, there is a need to sufficiently extend the period for annual installment plans. Fifth, there is a need to implement inheritance tax cut systems according to the performance of family business succession like that of Germany. By lessening the tax duties of companies, it can get rid of the illegal inheritance practices of company owners, promote corporate investments from a long term perspective, which can result in improve global competitiveness and making it possible to create jobs and wealth. Thus, it can be expected that the profits are returned to the society and resulting in a favorable circulation. It is necessary to establish support policies that can improve the national competitiveness and create jobs through successful family business succession and preventing closing down of existing businesses in the rapidly changing global environment. It is hoped that this study is used as fundamental information when the tax agencies legislate laws on family business succession policies in the future.