International Comparison Of Capital Gains Tax System And Its Reference To China

The problem that if need to impose tax on capital gains and how has existed for a long time. Every country will face this problem when economy develops to certain stage, so we are. During the two sessions in 2008, most investors concerned the topic which is imposing tax on capital gains timely. Countries with economy maturally developed, like USA, British and Japan, all have established capital gains taxation system. UN Model Tax Convention and OECD Model Tax Convention both have made rules on capital gains. However, since there is big difference in tax range, tax extent and tax method of capital gains, capital gains tax is imposed according to relevant tax law in different countries. It is because in the matter of Double Taxation Convention coordinating taxing right in multinational capital gains, usually, there is no corresponding regulation in agreement about if should impose tax on capital gains and how to impose. In our country, it is almost blank about capital gains tax rules, neither the present tax system made clear setting for capital gains. Capital gains taxing content is mainly on the rules of individual income tax, business income tax and land value increment tax. There is no setting on capital gains tax legally. As the capital market keeps developing and become mature, income from capital transferring keeps growing, which greatly widen the taxing base of capital gains. Taxing is beneficial for financial income. More important, the developing capital market demands taxation system to regulate it. Therefore, when adjusting and reforming the tax system, it should closely meet the demand of our financial and social development, especially needs to compare and study the capital gains taxation rules in advanced countries, in order to establish taxation system corresponding to economic globalization and corporation economic diversification. In this way, it can help promote social accumulation, reasonably guide investment, regulate capital market, efficiently distribute resources, inhibit short-term speculation and avoid financial risk. Thus, the research of capital gains taxation system has great realistic significance.Main idea of the essay: firstly, analyze the basic theoretical questions about capital gains and its taxing, including the concept setting, origin analyzing and so on, providing theoretical foundation for the system design. Secondly, research and analyze mature capital gains tax rules in international and capital gains tax settings in developing countries. Double Taxation Convention sets rules for multinational asset gains taxation, which reflects the existing problem in our present capital gains taxation law and provides new ideas to our capital gains taxation construction. Lastly, referring to our present rules and practice of income tax, try best to make some research on how to perfect capital gains taxation in future and based on this to promote some constructive ideas to complete our capital gains taxation law system.