A Study On Taxation Of Transnational Gains Derived From Alienation Of Corporate Shares

The alienation of shares is one of important ways for international capital flow and gains derived from alienation of shares are usually classified as capital gains. Capital gains are dealt with in very different ways in domestic laws of countries all over the world. There are still many disagreements with regard to the allocation of rights to tax transnational gains derived from the alienation of shares in the international taxation coordination. Chinese tax authorities might be confronted with more difficulties in the taxation of transnational gains derived from alienation of shares. The study on rules in international tax treaties with respect to share alienation is definitely of importance in theory and practice.Some important issues in taxation of transnational gains from alienation of shares are discussed in details and some suggestions are also given to make our taxation rules better. There are totally six parts in this thesis, including preface, chapter 1 to 4, and concluding remarks.Chapter 1 deals with basic issues about taxation of transnational gains derived from alienation of shares. In this chapter, transnational gains from alienation of shares and tax treatment are firstly discussed and international coordination and basic rules thereto are also studied to support the following discusses on this topic.Chapter 2 deals with taxation on gains from alienation of shares in immovable property companies. In this chapter the following issues are discussed: definition of immovable property, definition of immovable property company provision and the requirements to apply the provision, sources of share values, the impact on taxation rights of immovable property company, etc.Chapter 3 deals with taxation on gains derived from the alienation of substantial interest shares and other shares. The following issues are mainly discussed in this chapter: the theory of substantial interest shares and other shares, the interaction between substantial interest shares provision and immovable property provision, the requirements for applying other shares provision.Chapter 4 deals with provisions with respect to taxation on gains from alienation of shares in tax treaties concluded by China with other countries. The tax treaties concluded by China and their relationship with Chinese domestic laws are discussed firstly in this chapter. Also, some suggestions are provided with regard to the rules in international tax treaty conclusion.In the concluding remarks, the author reiterates the principles in legislation and practice about taxation of transnational gains derived from alienation of shares.