Research On The Taxation Of Individual Capital Gains In China

Capital has always been a hotspot of public concern,which stems from the virtuality,high liquidity and high profibility of capital.In recent years,China's capital market has entered a fast track,However,in the face of the rapid development of the capital market,the taxation of capital gain has been very slow.It is a fact that has been a lack of systematic and programmatic tax regulation on capital gain taxation.The fairness of individual income tax on capital investment income is becoming more and more important.The rich have a greater proportion of investment assets such as equity and real estate than the poor.Due to the insufficiency of the comprehensive individual capital gain taxation system,the burden of individual income tax falls mainly on the working classes,which further causes social instability and psychological unbalance.At the same time,there is a problem of repeated taxation when individual transfer buildings or land use righrs.Finally,large-scale tax and fee reductions have put greater pressure on the national fiscal revenue.Therefore,it is necessary to establish a comprehensice individual capital gain taxation system,which is aid in maintains the inregrity of the income tax system,improve tax fairness,eliminates repeated taxation,establishes a multi-link taxation system to reduce tax avoidance,increase fiscal revenue and regulate national consumption and investment.This article is based on income tax theory.Firstly,the definition,classification and characteristics of individidual capital gain tax is studied.Secondly,study the history,development,current policies and problems of individual capital gain tax in China.Thirdly,studies the individual capital gain taxation policy selection and international experience are studied.Finally,the idea of desiging the capital gains taxation system in China is put forward and the reform effect is measured.Based on the above logic,the main research results of this article are:The first is the use of income tax thory to conduct research on individual capital gains.The definition,classification and characteristics of individual capital gains is studied,and the concepts of capital gains and investement income is analyzed.In order to maintain tax fairness,individual capital gain tax should be treated differently from labor income;in terms of tax efficiency,capital gain tax has “lock-in effect”;when analyzing the relationship between capital gains and investment income,capital gains can be divided into consumption gains and productive gains.The second is to study the distory,evolution,current status and existing problems of individual capital gain taxation.Through the research,the main power of the promoting policy evolution are: the degree of protection of private property rights,the development of real estate registration system,the income distribution of residents and gap between rich and poor,and the levy time sequence of different type of individual income.In addition,through the research of current individual property transfer income and individual capital gain income tax policies,the main problems are:unfair taxation of capital gain,double taxation of individual transfer of real estate,lack of overall planning,tax rate does not consider the individual's comprehensive income level,and there are blank ares in current policy design.The root of the above problems is policy decenrealization.The reasons for decentralization include historical traditions,lack of core policy objectives,and underdevelopment of indivisual trust system and investment market.The third is the main policies celection and international experience of individual capital gain taxation.The main policies include: significance of individual capital gain taxation,taxation models,taxation objects,the division of long-term and short-term capital gains,tax rate design,treatment of capital losses,inflation adjustment,and the tax preference policy options.The fourth is to put forwad the individual capital gain tax system in China.It is appropriate to establish“Comprehensive Income+Capital Gain Income+Bussiness Income”in individual income tax.The tax rate of individual capital gain tax rate is a two-level progressive tax rate,which is refers to the individual's total income level and one preferential tax rate.Tax preference is mainly on encourage the individual investment,technological innovation and development of small businesses,to protect the needs of living life and reduce the tax burden of low-income earners.Currently,it is no need to adjust for inflation,and individuals should be allowed to use capital losse to offset capital gains in the current year and beyond.In addition,when only considering the change of tax rate,the calculating results of the sample data of individual transfer of Restricted Stocks and quitu show that the progressive tax system of individual capital gains tax has a certain effect on improving the overall tax equity,The effect of regulating the income of high-income people is more obvious.After the reform,the fiscal revenue increased by 49.05% compared with that before the reform,which contributed significantly to the fiscal revenue.At the end of this aiticle,it is proposed to cancel the stamp duty the land value-added tax on securited transaction levied on individuals,and put forward suggestions to improve the indivisual capital gains tax sysrem.