Research On Tax Preferential Issue Of Equity Donation

Since the establishment of China’s first stock exchange in 1986,30 years of development has accumulated a large number of high-net-worth people.The assets of these high-net-worth individuals are not in cash,but in their own equity.The most direct way for them to devote themselves to charity is equity donation,which not only saves the high cost of equity realization,but also helps maintain the stability of the held company in the financial market.For the charitable organizations that are donated,the equity of the enterprise can not only produce continuous dividends,but as the scale of the enterprise expands,the value of the equity will also continue to grow.The charitable organization can earn dividends through the invested company or sell the equity income for a long time.Get a steady stream of cash to support charitable activities.Therefore,equity donations are becoming more and more popular.However,at the same time,the public welfare donation of high-net-worth individuals is likely to cause doubts about their true purpose.China’s 2009 Ministry of Finance’s Notice on Financial Notices on Corporate Public Welfare Donations(Caiqi[2009]No.213)(hereinafter referred to as Document No.213),liberalized restrictions on public welfare donations,Broaden the scope of the forms of property that can be donated in China.However,at the same time,equity donation is a new thing in China,and its tax incentives are in the Notice of the Ministry of Finance and the State Administration of Taxation on the Income Tax Policy of Public Welfare Equity in 2016(Cai Shui[2016]No.45)(hereinafter referred to as "Document 45""),but strictly limit the conditions for tax incentives for equity donations.Only strictly eligible equity donations can enjoy tax benefits.Is such a strict restriction necessary for public welfare donations in other forms of property?Can such strict conditions achieve the effect of encouraging high-net-worth individuals to participate in public welfare undertakings?How to regulate the situation of "fake charity really avoid tax"?How to establish a reasonable tax incentive system for equity donations?It is worthy of the problem of this paper.This paper hopes that through the theoretical basis of tax incentives for equity donations and the comparative study on the status quo and extraterritorial provisions of China’s equity donation tax,I hope that it can help the rational improvement of China’s equity donation tax incentives.This paper is divided into five parts.The first part is the question.For China,the time of equity donation does not last long.China has also liberalized the prohibition of equity donation in recent years.The current conditions of tax incentives are too strict.In the case of the existing equity donation,it is difficult for the equity donation to meet the conditions,and all bear high tax burden,which is not conducive to the development of China’s equity donation.There are few theoretical studies on the tax incentives for equity donations,so the author proposes to study the tax incentives for equity donations.The second part is the actual analysis of the tax incentives for equity donations.Firstly,it explains the meaning of the text,and clarifies the connotation and extension of the tax incentives for equity donations studied in this paper.Secondly,it demonstrates the legal basis of the tax incentives for equity donations and the equity donations to China.The status quo of tax incentives is analyzed.The third part is to study the construction of the tax incentives for equity donations.Based on the analysis of the current situation of tax incentives for equity donations in China,the paper summarizes the gap between the status quo and the state of the system in China and proposes the construction principles.The author believes that the state should be the balance of encouraging donations and anti-tax avoidance purposes.The fourth part is to examine the status quo of tax incentives for equity donations.Through the analysis and comparative study of the extraterritorial law experience and the current legal provisions of China,the problems existing in the current legal norms in China are analyzed.At the same time,through the typical case of equity donation in this chapter,the dilemma encountered in the practice of equity donation in China is analyzed.The fifth part is based on the analysis of the fourth part,and puts forward some suggestions for the tax incentive system of China’s equity donation,hoping to help the development of China’s public welfare undertakings.