Study On The Tax Policies Of Financial Lease Industry In China

Financial lease is a new type of lease mode which developed quickly in recent years in China; it consisted of two kinds of business model:financing lease and operating lease. Financing lease produced in the United States after World War Ⅱ, yet the operating lease is an advanced business model of financing lease. Financing lease was introduced in China since 1981 and evolved into the new development stage of financing lease and operating lease coexisted after experienced many historical stage such as start-up, development, trough and re-development. How to recognize and deal well with China’s tax policies of financial lease industry is becoming a key problem for financial lease to achieve a long-term development.At this stage, China’s rules such as laws, accounting, tax and regulatory relevant to financial lease were defined based on the basic business mode of lease and the operating lease was not taken into account. So I think it was necessary to refine the core definition and basic feature of the difference between lease, operating lease and commercial lease from the overall height of the industry, thereby formed the basic concept of financial lease. Meanwhile, the author made a regression analysis according to historical development data about financing lease and macroeconomic data during the same period, pointed out the positive correlation between the two variables and cleared the necessity of the state should support the development of financial lease.Based on clearing the definition of financial lease and the role of it played the positive incentive to our countries’ macroeconomic, the author generalize, compare and analyze its related tax policies from the height of financial lease industry, pointed out the shortcomings of the financial lease policies especially during the period of experiment in business tax was changed into value-added tax in China:First, the tax burden of taxpayers increased significantly, the lease companies engaged in financial lease must take on one hundred and ninety percent up tax burden after business tax was changed into value-added tax; Second, it is the principal bills problem encountered in the sales and repurchase business;Third, interest on borrowings and interest on bonds issued and so on can’t obtain legal and effective deduction voucher; Fourth, the barriers to drawback after collect immediately are too difficult to achieve; Fifth, there is double taxation in assets transfer service and interest expense deduction, after the buyout of assets, the ownership of lease assets is no longer owned by lease company, the lease company can’t longer issue value-added tax bills to lessee, the lease company will take on the additional value-added tax for the transferred assets.After comparing the financial lease business and related tax policies in some developed countries such as England, American and Japan, the author proposed some suggestions in financial lease industry about the tax reform:from the macro perspective, we should establish a unified, uniform and transparent lease tax system, form the full coverage situation for financial lease industry, and adopt the tax policy of encourage and support and tilt the financial lease industry combined with the adjustment of the national industry policy; from the perspective of tax optimization, we should reduce the overall tax burden in the process of lease goods circulation by the ways such as differences in value-added tax rates, unified treatment with financing lease and operating lease, allow the interest expense on assets transfer to deduct value-added tax sales combined with the business features of financial lease industry, encourage the lease company or lessee avoid the tax reasonably through some methods such as Accelerated depreciation. On the same time, take advantage of the superiority that FTA can pilot first and accelerate to push on the tax reform related to financial lease.In this thesis, many methods are used including logical analysis, comparative analysis, quantitative analysis, case analysis and so on, trying to draw more creditable and valuable conclusions from multiple aspects.