Research On The Legal Systems Of Tax Preferences On Charitable Donations

Tax preference is a special regulation to encourage and make allowance for some certain taxpayers and objections of taxation. Strictly speaking, tax concessions are an integral part of tax. It is belong to the scope of law, not part of policy areas. It is the law that regulates whether the charitable donors should enjoy tax preferences or not. With the development of philanthropy and the expansion of the subjects and ways of charitable donations, our country’s legal system of tax incentives should meet higher requirements. But now, the Chinese active tax preferences on charitable donations has been lagged, many ways of donations have no corresponding preferential measures in the law. It has not fully exerted its encouraging and criterion functions, but has been the factor of restricting the more development of philanthropy, and urgently needs to be reformed and perfected. All kinds of preferential measures of charitable donations are scattered in different laws and regulations, which bring great difficulty to the charitable donors in enjoying tax concessions and do not conducive to the development of philanthropy.According to the entity law, the ways of the current approaches of donations in our country and the degrees of tax preferences on different ways of donations, which is helpful for the donors top choose the most appropriate way of donations so as to make the best use of tax concessions. Taxes related preferential laws of charitable donations, exploring the tax concessions according to the different taxes, such as turnover tax, income tax and the taxation of property behavior, which will help us to find out the inadequacy of our legal system from related foreign systems so as to fill the gaps in our laws or efforts to increase tax preference and seek the maximum support for the donors. Under the Tax Procedure, China’s current tax reduction procedure of the charitable donations, which is found quite complicated and time-consuming. We can set up a special agency, strengthen the cooperation between departments and other ways to reduce the application time and increase application efficiency. Optimizing recommendations which proposed with the combination of the foreign experience and our country’s current tax system are feasible. In all, constructing a reasonable legal system of tax preferences on charitable donations and stimulating the development of philanthropy, will guide and encourage the charitable donations of the individuals and the corporations and promote the realization of a harmonious socialist society through the improvement of the legal system of tax incentives on charitable donations.