Research On The Policy And Law Of Tax Incentives In The Rural Financial Sector

Through the function of surplus economy lack, financial industry can effectively allocate social idle funds, support the development of modern economy. Similarly, Rural Finance play an important role on the development of rural economy in our country, however, the characteristics of the rural economy to make rural financial predicament of high risk and low income. There is Market Failure in the field of rural finance, needing reasonably use of government fiscal and taxation policies on rural finance regulation.This paper from the present situation of rural finance tax preferential legal system and implementation effect, for the current tax policies to support the defects of rural finance, system perfect Suggestions are put forward, by analytic methods like historical, comparative and normative demonstration. Respectively from the basic theory of rural finance tax preferential system, the present situation, the legal analysis, effect and existing problems, and complete system five aspects were studied.In the first part, define the article object of study. Respectively introduces the rural finance and rural finance tax preferential system of basic concepts. The basic concept of rural finance is the basis of this paper the research object, rural finance is essentially a kind of credit transactions,is the function of support rural economic development. Rural financial tax system in this paper, that is, financial supports to the preferential tax policy in the field of “agriculture, rural areas and farmers”. It is mainly through to the financial sector and agricultural business specific tax exemption or reduction of rural financial institutions, in the form of tax deduction and first levied then returned and tax break. Its function goal is to support part of rural financial institutions, to stimulate the rural financial market, improve the rural financial system.In the second part, the paper analyzes the present situation of the legal system of tax incentives in the rural financial sector. According to the agricultural loan business and the specific financial institutions as standard, analyzing the change of the policy content and policy background. According to the agricultural loan business as standard, tax incentives are mainly agricultural loan reserves of pre-tax deductions, farmers' micro-credit interest income tax and business tax relief, as well as the planting, breeding of insurance premium income amount write-downs duty tax, etc. In addition, each different periods of agriculture-related financial institutions enjoy preferential tax policies are summarized accordingly in the paper.In the third part, the paper mainly makes legal analysis on tax incentives in the rural financial sector,through the basic principle of tax-law. Respectively from the Principle of Legalism of Tax Revenue, the principle of Proportionality and principles of Taxing on Capacity three angles, the paper makes the analysis of legitimacy, legitimacy and fairness. Conclusion: because of the lack of Higher-level Law, the legislative level of Tax incentives is low and part of the content is not clear wait for a reason, rural financial tax system does not conform to the Principle of Legalism of Tax Revenue; Preferential tax system compared with the direct financial support measures, to market the perversion of smaller, more in line with the taxation neutral principle, in the process of support the development of the rural finance is more appropriate choice of the principle of Proportionality, meet the requirements of legitimacy; Part of the preferential object of preferential policies is unreasonable, that made the same agricultural business of different financial institutions bear the unequal tax burden, the difference of tax treatment does not conform to the Principle of Taxation Fairness.In the fourth part, the paper mainly analyzes the effect of Tax Incentives in the Rural Financial Sector and the existing problems. From three aspects of increment of agricultural loan business, the profitability of agricultural financial institutions and the impact on the national tax revenue to inspect the implementation of Tax Incentives in the Rural Financial Sector. Conclusion: After the relevant preferential tax policy, agriculture loan growth significantly, preferential tax policies for financial institutions to expand agricultural financial business positive incentive effect is obvious; Main agricultural financial institutions profit levels rising, the preferential tax policy to reduce tax burden of agricultural financial institutions effect is obvious, but there are further perfect space; The preferential tax policy of our country has a little influence on overall financial income scale, conform to the principle of moderation. In addition, through the analysis of the status of the comb, legal and practical analysis, found that there is a lack of long-term mechanism tax incentives in the rural financial sector, that can't meet the requirement of diversified rural finance, and inconsistent with the overall structure of rural financial tax system, etc.In the fifth part, the paper puts forward Suggestions for the System Improvement aiming at the existing problem of Tax Incentives in the Rural Financial Sector. First of all, preferential tax legislation level through ascension and build system of tax expenditure, implementation supports the long-term mechanism of the rural financial development. Secondly, through the coordination of rural financial tax system “universality” and “special” relationship, to meet the needs of the diversification of rural financial system. Finally, combining with finance theories such as “Inclusive finance” and “to replace the business tax with a value-added tax”, to establish Tax Incentives in the Rural Financial Sector conforming to the overall structure of rural financial tax system, from three types of taxes as the business tax, value-added tax and enterprise income tax is presented. Of course, the preferential tax system is just one of the means in regulating the rural financial market, need to interact with other means of financial support, can more effectively promote the development of rural finance.