Open AccessDiscussions on Tax-Exemption of Taiwan’s Non-Profit Organizations Based on Diverse Perspectives
Author(s) -
Cheng-Wen Lee,
Yi Hu,
San-Jung Peng,
Hui-Hsin Hsu
Publication year - 2022
Publication title -
advances in management and applied economics
Language(s) - English
Resource type - Journals
ISSN - 1792-7544
DOI - 10.47260/amae/1233
Subject(s) - tax exemption , subsidy , public economics , business , public relations , economics , market economy , law , political science
Taiwan’s non-profit organizations (NPOs) have flourished in various service fieldsand become a third party of concatenation with government and businesscommunity. Numerous NPOs involve their activities in cross-organizationalcooperation with the governments and the private enterprises, and take importantroles and functions in our modern society. However, because of the fiercecompetitions in market and the rapid social changes, NPOs are facing the samemanagement issues with profit making organizations, such as financial difficultiesor lack of resources. Therefore, this study aims to discuss whether or not NPOsshould be granted the benefit of tax-free or tax-exemption based on diverseperspectives, such as subsidy argument, organization’s public welfare and naturebased on donatives theory, viewpoint of defining, measuring and assessing tax base,altruism theory and sovereignty theory. This study combines the interview andquestionnaires to explore the issue on NPO management. A total of participants are395 interviewees and amongst them, only 180 respondents have filled out the validquestionnaires. In our conclusion, we find that people mostly agree the NPO’s taxexemption, and however, the degree of participants’ approval for donors’ incomeand inheritance tax-relief is more than the degree of the NPOs itself.JEL classification numbers: A10, D71, H51.Keywords: Non-profit organization, Public welfare, Tax-exemption, Donation.