Research On Personal Securities Capital Gains Tax

Capital gains taxation taxes revenue realized through capital trading in stock market, which has been adopted by most of countries. However, there is huge divergence not only in principle but in practice. Therefore, capital gains taxation still hasn't been a stable tax. In order to keep the healthy development of stock market, capital gains taxation of individual investors hasn't been started in China since we established our stock market. As the development of stock market in China, more and more people pay close attention to capital gains taxation, and people concern about whether this tax will be started. In the past few years, there were some rumors that capital gains taxation would been started. And these rumors had a terrible influence to stock market, which had been discussed by many experts. Looking into the future of the development of our stock market, we will adopt capital gains taxation sooner or later, and the key problem is when and how. In modern economic life, the stock market has a more important position, so if we start to adopt capital gains taxation, the influence will be very wide and complicated. In order to solve the difficulties of capital gains taxation in practice, different countries have their own institution. Through analyzing the economic effects, feasibility and necessity of capital gains taxation systematically, learning the experiences of other countries, and linking the situation of China, this paper proposes the definite project of adopting capital gains taxation in China, and raises the possible problems and solutions in practice.The innovation of the paper is showed below. Firstly, this paper provides the overall vision about capital gains tax in China and designs the system of this taxation. This is innovative and forward-looking. Most of the papers about capital gains tax in China are discussing whether the capital gains tax should be adopted or not. And this paper mainly provides how to adopt the capital gains tax in China. So, the topic of this paper is innovative. Secondly, this paper proposes the difficulties which we may have if we start to adopt the tax and the related solution. So, this paper has practical significance. Through research the economic development trend of China, adopting the capital gains tax is the inevitable choice, and this tax will have to face a series of problems, such as the huge impact on stock market and when to start the tax. These problems must be solved, and this paper provides the related suggestion to these problems.This paper consists of six chapters.Chapter 1 provides the background of this problem, summarizes the literatures in and out of China, and explain the location of this paper.Chapter 2 primarily provides the theoretical analysis of capital gains tax including the concepts and features, theoretical basis and socio-economic effects.Chapter 3 lists the institutions of America, England and Australia, and summarized the international experience.Chapter 4 shows the institutions of capital gains of our country and the problems we have in this situation.Chapter 5 analyzes the feasibility and necessity of capital gains taxation in China. Then this paper proposes the definite project of adopting capital gains taxation in China. The range of taxpayer is the person who engages transaction of securities. This paper only studies the problem of personal taxpayer. The collection methods refer to ordinary income tax. The range of the tax includes stocks in and out of China. The tax rate is proportional. The tax basis is the capital gains which have been realized. This part makes related design about relief of capital gains and treating the capital deficit and designs related preferential policy.Chapter 6 analyzes the possible difficulties of adopting the capital gains tax in China and provides the related countermeasure and suggests. There are two difficulties if our country starts to adopt the capital gains tax. The first one is the tax will have a big influence to the stock market. The second one is how to choose a most reasonable time to adopt the new tax. In order to solve the difficulties, this paper provides several suggestions including publicizing the tax to the populace in order to improve the understanding of the ordinary investors, following the principle that the new taxation will not tax the capital gains realized before it starts, the new taxation will take the place of stamp duty gradually and legitimately, and choosing a reasonable time to start the new taxation according to the situation of the macroeconomic and stock market.