Research On The Tax Preferential System Of Charitable Trust In China

The third distribution is the distribution of wealth in which social subjects voluntarily participate in charity.As a new way of philanthropy,charitable trusts are an important force in promoting the role of the third distribution.Charitable trusts have been in development for six years since they were introduced into China in 2016 and established in the form of law.They have played a huge role in poverty alleviation and the fight against the epidemic,but their overall development is far below expectations.Charitable trusts take advantage of their own value preservation and appreciation advantages to absorb idle funds from the society and continue to invest in charitable causes.The state should give charitable trusts certain tax preferential measures,which reflects the financial support for charitable trusts themselves,and also fully affirms the subjects engaged in charitable undertakings.This reflects the country’s policy orientation and value advocacy.However,at present,China lacks a special preferential tax system for charitable trusts,and the corresponding policies are not clear enough,which seriously hinders its development.This paper starts with the definition of transnational transplantation from public trust to charitable trust and the relationship between the two,and then analyzes the principles and theoretical basis of the charitable trust tax preference system.Secondly,it analyzes the practice of charitable trusts in my country and the current situation of tax incentives,and analyzes the legislative difficulties existing in the tax incentive system of charitable trusts,the legal risks of the curve model enjoying tax incentives,and the existing problems of double taxation.Finally,in response to the above problems,the following countermeasures and plans for improving charitable trust tax preference system are put forward: first,to improve the legislative level of charitable trust tax system and to integrate its tax preferences with reference to charitable donations;second,to empower trust companies to issue donation bills The third is to implement the principle of substantive taxation,so as to avoid double taxation;the fourth is to build a tax avoidance prevention mechanism for preferential tax system.To sum up,it is hoped that the relevant suggestions put forward in this paper can help to improve the preferential taxation system of charitable trusts in China,thereby promoting its benign development;and then making charitable trusts play an active role in the third distribution.