The Study Of Construction Of The Securities Taxation In China

Securities are goods and investment tools as well as the certificate of properties.The securities market has accelerated the development of the market economy just because the proper nature and function of securities.In the past years our securities market has made great progress and gotten into a phase which took the developed countries about two hundred years to achieve.By the end of February 2008,the number of the companies on market has been 1547,the number of securitise has been 2020,the total equity has been 4283.4 billion and the market value has exceeded 28771.8 billion which was 1.71 times as much as GDP of 2007.From these numbers,we can see that after having developed for nearly 30 years,the securities market of our country has developed into considerable size and has become quiet an important element in market economy.In constrast to the quick development of the securities market,the construction of the securities taxation,which is one of the tools regulating the development of the securitise market, is lagged behind seriously, ,and the supervision of the taxation also can't meet the need of the market.The defects of the tax system become more obvious as the securities market develops faster and constraint the improvement of it.Instead of being an efficient tool in promoting the development of securities market,the lagged tax system blocks the quick pullulation of securities market.Considering the condition of the tax system of the securities market in our country,I believe my study in this field will be helpful. In the 11th National Committee of the Chinese People's Political Consultative Conference held in march ,2008,improving tax policies for a multi-level capital market was pointed as the first proposal,which means the reform of securities taxation is inevitable.In the thesis I propose my thoughts of completing securities taxation system on the basis of analysis and remark of the current system and the introduction of advance experiences of developed countries.Chapter 1:The theory of taxing on securities and the design of taxes-The expositions on securities taxation on theoretical level.Taxing on securities reflects the jurisdiction of political power,and is the request of implementing tax philosophy and the development of securities market.Usually taxation on securities is set in four links,that is turnover tax on issuance of securities,securities dealing tax on securities transactions,income tax on interest,dividend,bonus and price difference of securities exchange,and presentation tax on transfer of securities.Totally,tax base of these taxes is either the turnover or the income.Different tax bases have different economic effect on the scale,structure and price of securities market.Chapter 2:The status and the imperfection of the securities taxation in our country-Analysis on the operation of securities taxation and the defect on separate tax related.To analyze the status of securities taxation in China,a brief introduction to the history of the securities market is necessary.The securities market has experienced several successive phrases since it is founded in 1981.They are the phase of pullulation, reformation and quick-development.There are four taxes set in three links currently,which are the stamp tax and business tax on securities exchange,income tax including individual tax and corporation tax on gains from holding securities and corporation tax on profit from securities exchange.Chapter 3:Introduction to securities taxation of developed countries and the reference we can get-Analysis on taxation design of mature securities market and the reference for us.In this chapter,I introduce the tax system in securities market of USA,Japan,England and Germany to find the reference we can get in design of our own securities taxation.Chapter 4: Establish the theoretical framework for the securities market- Construction of securities taxation on theoretical level.The taxation policy in capital market should be oriented to guild rational investment,promote long term investment and restrain short term investment,protect the benefit of small investors and support the development of agencies.So we can construct a multi-level and multi-link securities taxation which can harmonize tax collection and reflect equity.Chapter 5:Specific suggestions on the construction of securities taxation in our country contraposing the status in quo.The design of any tax system should fit the setting which it operates in,otherwise the tax system not only can't play a good role in the regulation of economy,but also induce some anti-effects.So contraposing the status in quo,some specific suggestions are put forwarwd.Firstly, readjust the stamp tax;secondly,raise securities transaction tax;thirdly,collect capital gain tax cautiously;fourthly,defer collecting legacy and presentation tax;finally, eliminate double tax on dividend and bonus,and cancel the taxation on bonus shares.