Offshore Financial Market Tax Policy Analysis And Reference

The international offshore financial business was born in the fifties and sixties of the last century, although only six decades to develop, but its momentum was irresistible force. According to the business relationship between onshore and offshore markets, offshore financial markets can be divided into three categories, namely, separation of offshore financial markets, internal and external financial markets, as well as hybrid offshore havens offshore financial markets. There are various factors affecting the development of offshore financial market. The tax factor in the development of offshore has always played a special and important role, but this market is not suitable for China.International offshore financial business was born in the fifties and sixties of the last century, originated in European dollar loan business, because of its characteristics of offshore, is known as the overseas financial. The offshore financial market refers to the phase separation and domestic regulation system in the legislation, the market is not restricted by local laws and regulations and tax system and can enjoy the preferential treatment of taxation, convertible for non-residents international currency lending, foreign exchange trading, securities investment services such as the international financial markets, and engaged in offshore financial business activities at the center of the city s also known as offshore financial centers. There are many factors affecting the development of offshore financial market, generally can be classified as three main factors, namely the location factors, system elements and regulatory system. Location factors mainly include natural factors and macroeconomic factors; system elements mainly around the financial control, preferential tax system and perfecting laws and regulations on three aspects; regulatory system include regulatory arrangement, management subject exit regulation, market access regulation and market oversight. And in the process of the development of offshore financial, tangible factors such as space distance and geographical advantage to the influence degree of the offshore financial market is weakening, at the same time tax policy and the financial system, especially for offshore financial tax policy tilt is showing a more important role.Looking back the history of China’s offshore financial business, to pilot and development of China’s offshore financial summary for exploring, expanding, summary of cleaning, Although China’s offshore financial business progress for more than 20 years in the twists and turns, but our country complete set of tax system for offshore financial business activities. Now, in order to deepen the reform and opening up, China (Shanghai) set up free trade area, and offshore financial business is one of the business in Shanghai. But Shanghai free trade zone, taking the financial tax policy with the characteristics of offshore funds in cross-border investment and needs to match. First of all, Shanghai free trade zone offshore financial tax system taxation legislation system. Secondly, the specific legal system of tax problems mainly include: offshore financial withholding tax rate on the high side; free trade zone within the offshore company loss make up for weaknesses. Offshore financial lacks of preferential tax policy.In order to deepen reform and opening up. China (Shanghai) free trade zone is established. The offshore business is one business that is actively explored by the Shanghai Free Trade test area. To make the Shanghai FTZ develop into Asia and the world-class offshore financial markets. China should learn from successful international offshore financial center, under the tide comply with fiscal reforms and international norms of the premise of the Shanghai sub-test area of trade financial taxation, especially offshore tax system design and innovation, focusing on the business system, the regulatory system and preferential policies, the formation can be copied. By combing the international offshore financial market development, market classification and supporting tax. Shanghai FTZ should take limited infiltration mode, a moderate liberal tax policies and enhance international cooperation to prevent tax base erosion and profit transfer.