Study On Tax Related Issues Of Diamond Trading In Shanghai Diamond Exchange

With the continuous development of China's economy,people's demand for material culture is constantly rising.As the queen of jewelry,diamond enjoys a self-evident market position.Adam Smith said the market is the invisible hand allocate resources,while China to become the second largest market of diamond,diamond suppliers around the world have to look to China,government is also more and more attention to diamond industry in our country,more because of the physical properties of diamond itself to smuggling,causes our country market is expanding and the tax is not increased,smuggling illegal ACTS more impact principle of fair competition in the market.Therefore,the Chinese government draws lessons from international experience and combines China's national conditions to explore the establishment of the Shanghai diamond exchange and introduce a series of tax policies in order to combat the smuggling phenomenon of the diamond industry,regulate and promote the healthy long-term development of the diamond industry.Firstly,this paper introduces the development process of Shanghai diamond exchange and the evolution process of diamond exchange's tax policy from the research background,purpose and significance of tax related issues of Shanghai diamond exchange.Research purpose and significance of the study is to explain why Shanghai diamond exchange tax policy and tax related issues,and perfect the tax policy,tax related problems for sde and the importance of the diamond industry development in our country,the research ideas and methods are in this paper,we study the module decomposition,tells the research path,the convenience of the reader to understand,then put forward in this paper,we study the innovations and there may be insufficient.As an important tax policy of Shanghai diamond exchange,and one of the preferential policies of China's value-added tax,it is of positive significance.However,the member units of diamond exchange generally have the problem of VAT withholding,and the accumulated amount of tax withholding becomes larger and larger over the years.Secondly,in this paper,the Shanghai diamond exchange transaction process,involving the tax policy of the tariff,value-added tax,enterprise income tax,stamp duty,from member scale,the import volume of Shanghai sde management present situation,the conclusion of sde respectively in Shanghai three tax related issues including tax left for,government subsidies accounting processing,the trading of rough diamonds and within the tax-related issues for analysis.At the same time,combining theory with practice,this paper adopts case analysis method.According to the two versions of government subsidy accounting standards issued in 2006 and revised in 2017,taking member A company as an example,it compares and analyzes the differences in accounting confirmation and measurement of government subsidy under the old and new standards through the results of different accounting rules adopted for company A's government subsidy.Meanwhile,the accounting treatment of government subsidies has a universal impact on the quarterly income tax of member units of Shanghai diamond exchange.Government subsidies are a derivative of the policy of levying and refunding VAT immediately,so as to deeply analyze the tax-related problems existing in the policy of levying and refunding VAT immediately.In addition,this article through to the United States,Belgium and other countries of the diamond compares and analyses the related tax policy in tax neutral theory,international taxation principle,under the guidance of sde tax policy should be in China are put forward in the context of the specific conditions of both internationally accepted standards,should not only keep our diamond industry international competitiveness,the international coordination of tax policy,and to ensure that the interests of the basic tax in our country.Finally,according to the understanding of literature review and practical case analysis in this paper,the conclusion is drawn that in order to standardize the diamond market in China,Shanghai diamond exchange should maintain the consistent preferential tax policies of the diamond industry,be similar to the tax policies of international peers,and maintain China's competitive advantage in the world diamond industry.It is more important to pay attention to the tax-related problems under the current tax policy,solve the problems from the perspective of practice,and continue to improve the policy on the theoretical level,so as to adapt to the continuous development of the era and industry.At the same time,it has accumulated valuable successful experience,hoping to provide some reference for the future standardization and development of other jewelry categories.