Research On China's Current Stock Market Tax Optimization

With almost thirty years’ development, the security market in China has significantachievement. However, compared with the mature security market in other countries,there are still some issues to be concerned and solved. One of the major issues is theunorganized tax system which occur lack of accordance and longevity, and lack ofeffective management of the securities market. Therefore, it is important and necessaryfor us to do some research on the optimization of the tax system of securities market inChina.This paper studies the theories and practices of tax system of the securities market.It starts from the characters of the securities market, analyses the relationship of tax andsecurities, and the function and effectiveness of the tax system of securities market inChina and other representative countries. In the practice analysis, this paper discusses therecent situation of the tax system of securities market in China, the drawbacks and theroot causes behind it are studied. Then it studies the practice of the tax system ofsecurities market in developed countries in terms of transaction process, profit processand legacy process, extracts those valued experience that we can refer to and apply in theoptimization of the tax system in Chinese securities market. Finally, as the inclusion, thispaper gives out some advices and suggestions of the reform on the tax system ofsecurities market by the summary of the above.