The Research On The Tax Policy Of Charitable Trust Based On Equity Donation

Charitable trusts,as an important form of public welfare,have flourished in the United Kingdom,the United States,Japan and Taiwan.Compared with other charitable forms,charitable trust has very prominent advantages.With its unique advantages of the trust system and the excellent,professional management of the trust property,it can obtain economic benefit by operating the resources.After the implementation of the trust property to maintain or increase its value,it was used in the public domain,thus better able to promote the development of philanthropy.On September 1,2016,the charity law of the People's Republic of China was officially implemented,and charitable trusts were officially launched in anticipation.Over the past year,charitable trusts have shown great vitality.Also,trust companies and charities have shown great enthusiasm.To December 31,2017,57 charitable trusts were put on record.A breakthrough took place in the trust property types-from the traditional form of money to expand into equity property.Trading patterns of charitable trust are in constant innovation,has now formed four major charitable trust modesl.In order to protect the benign development of charitable trusts and the tax interests of the country,the corresponding tax policies should be regulated for charitable trusts.Accordingly,a good tax policy system can,in turn,guide and promote the normative development of charitable trusts.However at present,Chinese tax law on charitable trust taxation is not yet clear specific regulations.However,some current tax policies don't fit charitable trust models.If they do not improve,they will severely restrict the development of charitable trusts.In this paper,by way of case study,we explore the donor,charitable foundations,the trust company and the beneficiary's tax treatment situation under four different type of charitable trust modes.We also experiment their tax treatment under the traditional donation charity.Through the horizontal comparison,no matter what kind of charitable trust model adopted,the overall tax burden is more than traditional donated mode's.But different charitable trust has different reasons.Through comparative analysis,it is found that the current charitable trust has the following problems:(1)the current tax system is difficult to meet the needs of emerging types of donated assets;(2)the subject of taxation is not comprehensive;(3)lack of clear trust tax policy reflecting the orientation;(4)the trust company cannot satisfy the demands of the donor to enjoy tax benefits;(5)the charitable activities of the trust company do not have the tax-exempt status of non-profit social organizations.This paper proposes the following policy Suggestions:(1)extend tax incentives to individual' s donating equity and enterprises and individuals' donating real estates;(2)clearly define the subject of taxation;(3)to introduce a policy guidancing explicitly that the trust's substantive beneficiaries pay the tax;(4)enjoy tax benefits according to the filing documents;(5)comparing the tax benefits of charitable trusts with charitable donations.