Research On The Legal Issues Of Tax On The Donation Of Public Stock Rights

With the continuous improvement of China's capital market and the enhancement of the awareness of social welfare in recent years, more and more entrepreneurs express their hopes to donate their shares to the society for the using of social welfare. Specialized fund organizations are constantly established in the name of company or individual. To donate with money and to donate in kind are traditional forms of donations. Compare to them, to donate with stock rights is very different, which contributes to the necessity of formulating a special law on it. To donate for charity is encouraged according to Chinese law. Both the donors and the recipients can enjoy preferential taxation policies. To reserve assets in the form of fund becomes a trend that are popular among the enterprises, but the legal nature of which are various. Different purposes of the funds lead to different results on taxing, some funds are established for avoiding taxes not for charity, which are denied by most of the countries and regions .Therefore, to distinguish true stock donations from untrue donations and affirm those qualified ones are especially important. To donate with stocks is a new phenomenon in China and few studies on it can be found. How to further perfect the tax laws to promote the development of stock donation is an issue that worthy of being considered and discussed.Therefore, the paper analyzes the legal nature of public stock donation and tax law's guidance on the charitable donations. With the introduction of present tax policies on stock donation. Shortages and defects will be found both in supporting and regulating the stock donation. Therefore, using the experience of developed countries for reference is suggested. Furthermore, regulations be made should conform to the situations in our country. Charity funds established by stock rights should be encouraged through the preferential tax policy. The phenomenon that avoiding tax under the veil of donation should be prohibited in order to guide entrepreneurs to take on more social responsibility and play an active role in social life.