The Study Of Capital Gains Taxation In China

Since the birth of the capital gains tax, it is a controversial tax. Even in developed countries, such as the United Stated, the tax system of capital gains tax has been debated. China's capital market after so many years of development have made significant progress, but in recent years, the non-tradable shares issues produced from shareholding reform and the booming of real estate market make the distribution of income levels of society to be further serious, causing ordinary working people strongly dissatisfied. More and more attention has been paid to use the advantages of macro-control of capital gains tax to solve these problems.In this paper, using the theoretical and empirical research method and combining the concept of capital gains at home and abroad, the author redefined the capital gains tax and analyzed the connotation of capital gains tax. The key point of the research is the capital gains tax's influence of capital investments, securities and natural income distribution. Through the study of our current tax laws regarding to the capital gains tax, the author analyzed the problems of China's capital gains tax, especially analyzed the taxation of the transfer of non-tradable shares beginning at January 1 in 2010, and proposed for the existing problems and countermeasures and suggestions. The study of the capital gains tax system is of great significance in social income distribution equity and national macroeconomic control.The first part of this paper is the introduction and the main point of this part introduces the research background, significance, research methods, the study of the condition of capital gain tax at home and abroad, the shortage and innovation of this paper, focusing on the capital gains tax research status. The second chapter discusses the basic situation on the capital gains tax, and described the relationship of income and capital gains. After making certain the relationship between them, the definition of capital gains tax was given. This chapter analyzes the way of capital gains tax for the choice of tax, accrual based capital gains and realization-based capital gains, and discusses the advantages and disadvantages between them. This chapter also describes the tax basis for capital gains tax. The third chapter focuses on the economic effects of capital gains tax, such as the effects of capital gains tax on capital investment, income distribution effects, and analyzes the effects of the capital gains tax on the Stock Market taking Taiwan for example. From a macro point of view, the introduction of capital gains tax is not conducive to capital investment and to the supply of savings, but comparing to the supply of savings, capital investment capital gains tax was more sensitive to capital gains tax when the tax rate was the same, capital investment reducing more than the savings. Therefore, in order to reduce the capital gains tax's negative impact on investment, we can give the capital investment favorable by taking the form of tax subsidies. In the micro level, through the analysis of all income groups in the United States founding that high-income class is the main owner of capital gains, low-income access to the capital gains are usually less. Therefore, capital gains tax is in favor of social redistribution of wealth and contributes to the rationalization of social redistribution. The fourth chapter analyzes the current tax laws of the capital gains tax and analysis of the problems of it in detail, putting forward the measures and recommendations according to the problems and the actual situation of the capital gains tax in our country. Capital gains tax is a relatively complex tax, the tax system design involves a wide number of stakeholders, but as long as we can build corresponding supporting measures to strengthen the collection and management, and stick to tax fairness and efficiency principle, capital gains tax system which is suitable for China can be established absolutely.