China Banking And Securities Industry Tax Reform Study

Following continuous opening of China financial market after entry WTO, the domestic finance enterprises of China not only will confront severe challenge from foreign financial institutions in China financial market , but also be faced with the whole world and participate the international competition. However, compared with the foreign bank and securities firm, the current finance industry of China exists very obvious difference not only in the capital strength but also in the operation and management. It is the result of the development history of China finance industry and lag of the finance structural reform, is also affected by the irrational macroscopic economy policy especially the finance and tax policy. Although the finance and tax policy is just the exterior condition of enterprise competition in the market economy, it is the important factor that creates or confines the fair market competition environment.For a long time, the special relation between finance and banking in China had resulted in that finance carry out the special tax policy to the bank industry. The whole tax level of the bank industry is higher than that of manufacturing industry and non-financial service industry. The tax level of domestic-funded finance enterprises is higher than that of foreign-funded finance institutions. Overweight tax level make that the capital adequacy ratio of the finance enterprise cannot be ensured and development lose reserve strength. Secondly, the taxation structure of China bank and securities industry is irrational. The taxation is irregular and unscientific. The tax treatment is unfair among different businesses and different tax-payers. The abnormal taxation certainly results in the abnormal development of the bank and securities industry. The difference between the taxation of China bank and securities industry and the foreign taxation that include the taxing scope, the abstraction and materialization of taxation, the taxation operation, the sanction and transparency of tax law, the seriousness of taxing administration and tax policy choice, not only provide the opportunity for the foreign finance institution which can carry out tax planning, moreover tax equity, but also likely lead to that the foreign financeinstitution lack confidence to China market and policy, finally affect its investment and result in tax unfairness among tax-payers. Reforming the taxation of the bank and securities industry and constructing scientific and perfect taxation system of the bank and securities industry is the internal demand of domestic and international economy situation.The fundamental rule that our country bank and securities industry tax system was regulated and reformed is: unit the domestic and foreign organization's tax system to be impartial burden, optimize the tax system, enlarge the levied tax range,clear-cut tax policy orientation entire frame and fundamental thinking that bank and securities industry tax system is as follows: First, construct the integrated bank and securities industry tax system and the negotiable securities trade tax system, achieve to adjust all levels different banks and tax revenue system that different banking capitals and prosperities segment are levied completely. Second, constructing entire form complete set and harmonization bank and securities industry tax system ,design the fair and reasonable bank and securities industry entire tax burden level . avoid the problem of leave-out and repeatly levying tax .Third, achieve the tax system standardizing ,improve the tax system operation transparency and binding force. Fourth, broaden the tax foundation together with degrading tax burden, transform business tax in the bank industry tax system into the added value tax . Fifth, levy taxes completely together with implementing the specially designate tax revenue, clear-cut orientation of banking tax policy . Six, unit bank and securities industry inside and outside gains tax system together favorable tax, collect the capital profit tax completely, realize impartial tax s...