China's Capital Gains Tax System Feasibility Study

In recent years, China's capital market continues to develop, from capital circulation yields rise ceaselessly, for a capital gains tax base will expands unceasingly. As a capital market securities market, after all these years of development, has gradually step right on track, capital market main body of investment by past single national body toward diversified subjects transformation. On the one hand, international capital inflows multi-facetted characteristics, our country by issuing B shares and bonds to raise the number of foreign capital increase gradually, and securities capital accounts for foreign direct investment proportion is now rising. On the other hand in state-owned enterprises in assets reorganization, the establishment of a modern enterprise system process, also more and more take securities financing ways, these are for the implementation of the capital gains tax to provide the possibility. Not only city of securities trading markets, and China's futures market, real estate market, property right trading market and money market also are constantly moving in the right direction, entered the healthy and orderly development of options, the period of the realty or municipal patent and property such as trade, to the implementation of the capital gains tax system conditions are already has initially, capital gains tax is the tax base in enhances unceasingly. China imposing a capital gains tax, theoretically, has its necessity, economy and taxation role and reaction effect is the basic ideas of economic tax view. Economy and taxation relationship is: economy is tax sources, economy can determine taxation of production and development; And tax will give economic a reaction which, it can promote or hinder economic development. Economy in society's continuous development and continuous improvement of the capital market, make capital gains tax system establishment be vividly portrayed. Meanwhile, regulating the capital gains tax system consummation will promote the economic development of our country's capital market continuously, make the norms. In implementing Chinese capital gains tax system, will improve our tax law system, since the 1980s, China's economic situation produced a great change. The new economic situation, not only for our country economy and international capital market standards create conditions, and changed the world capital market funds to, at present, our country has become the world's second largest capital investment. Tax system, as an important lever of macro economic control, the role of are getting more and more serious. In the mid 1990s the new tax system in our country implemented smoothly, but in China the tax system construction and tax environment has also started towards the internationalization and standardization of economic investment direction great strides. If the implementation capital gains tax system, can develop new type tax base, improve the government's tax function, improve our tax system, beneficial to China in various complex international situation, and countries to sign equivalence, corresponding to the bilateral taxation agreements, promote in the international economy and taxation in the field of international cooperation and exchanges. Meanwhile, can say for sure imposing a capital gains tax will be beneficial to keep our capital market of fairness and justice investment environment. Capital gains with negative income and capital gains unearned attributes of this kind of special self nature, brought up in capital market speculation, especially some malicious mercenary behavior, the benign development of capital market generated extremely bad influence, caused a great hindrance. For our country is a developing country case, more likely to produce some investors blind speculation and purposeful speculation. Implementing capital gains tax system that will be to maintain fair investment behavior of capital market with favorable safeguard.