Regulating Capital Gain Tax

From the end of 2006 until today, China's securities market has been in a constant oscillation changes, and the stock market changes affect the majority of equity investment in the hearts of lovers all the time. Stock market through the equity transaction, that is, acts of buying and selling stocks to generate buying price and selling price spreads, partly spread called the capital gains.Produce capital gains, whether positive or negative direction of change of direction, whether it is on the change of subject or content of the change easily and so on, will affect the tax adjustment. Capital gains from the change of the tax law implied in the basic legal point of view, the change of private rights is an important prerequisite. Variation on the equity securities market, directly affecting the redistribution of social wealth and social stability and unity, for capital gains tax law issue is related to the securities market, the sustained and healthy development of the necessary conditions for building a harmonious society is an objective requirement is to build important content of a harmonious society. From the taxation point of view to study the elements, the state taxes usually have a variety of elements, not only requires a substantive element, but also a procedural element. Occurred in the economy that is taxed, or the tax element of total composition and then sign, at this level can be seen, the tax issue is not just a purely "financial problems", taxes, tax rates cannot simply by the "financial" need to be, only when the "first hand" of market failure, as a "second hand" under the law and other relevant means, the state can use its intervention, which in turn should have legislative standards. From a practical point of view the tax system to study the stock market equity capital gains arising from transactions related to income tax, sales tax, stamp duty, and many other types of taxes, rights and obligations of each tax, as well as the rights and obligations by pointing to the object is different from the specific quantity and the right its influence on development of securities markets vary widely. As a result, for tax legislation in principle, the law enforcement on the study can be seen corresponding to each of its legal consequences.Since 2008 to 2009 was a period of great change tax laws, the old law abolished, and the implementation of the new law. I think that it is necessary to the new law on the securities market of the capital gains tax law to clarify, so the initial part of the article were carried out in accordance with the various types of taxes introduced the new law, and with the old wears contrast, analysis of both the similarities and differences. One of the most concern is the new "business tax" on individual stocks in the stock market made gains on the sale, it will be classified as business tax individual taxpayers of this tax items, while the old tax law which will be outside the scope of individual line on a tax - . China's securities market has its own peculiarities: large stock price fluctuations, most of the scattered households holding equities are not motivated to invest in stocks but in order to earn the price difference in a short time, which was essentially a disguised form of "radio luck" behavior, for exempt from business tax and personal income tax, would encourage such behavior. The same time, which in turn is bound to lead to individuals and businesses and organizations of inequality between the dominant position of taxpayers, tax liability does not, and so many problems, the new "Business Tax" in the main body of this reform is actually on the tax status of additions and amendments to have a profound meaning, while the new Enterprise Income Tax Law does not have subject to change.May 30, 2007 the Ministry of Finance to adjust stamp duty on securities transactions, which led to vast numbers of shareholders for the Ministry of Finance has the right to develop and require people to carry out this tax order issued by a sudden doubt. China's "Constitution" Article 56 stipulates that Chinese citizens have the obligation to pay taxes in accordance with law. That people cannot help the Ministry of Finance has the right to formulate an emergency and is a national tax laws into question. What is the tax the legal doctrine, why should the stock market equity transaction tax; this is its legal basis. This May 29, 2007 late in the evening all of a sudden the Ministry of Finance released revised rate of stamp duty and announced that since May 30, 2007 started, this is also a legal basis for it, the author describes his humble opinion: the Ministry of Finance as an executive body does not have the qualifications authority enact laws, their sudden release of the natural rate of stamp duty changes is a violation of the statutory tax doctrine. But the tax is not just a legal act, too, as a country's macro-control means, from this point of view, this is an act of state, and has not actionable.The result of the equity transactions, it is impossible only gains of revenue, foreign capital gains tax is usually used the net proceeds of the sale of shares adjusted for income, but more of China's existing securities market regulator Securities and Exchange stamp duty. As an act of stamp duty tax, as long as the behavior occurs, regardless of whether gains and losses are included in the scope of taxation required to raise the stamp duty rate, suppressing the stock market, this apparent act with the nature of the penalty tax is used in the stock market and the International Organization of Securities Complete developed countries the market is very different. Then appeared such a phenomenon: a loss may have to pay taxes, a profit may still not pay taxes, which resulted in taxable capital gains of the question: in the end stamp duty on securities transactions played a role in what is of stamp duty by "shell" on the capital gains tax, "City" or the collection of stamp duty on securities transactions in violation of tax fairness doctrine.Equity trading in the securities market on the purchase amount is bound to reach the actual manipulation of power; this case arises to purchase sources of funds. Stock purchase or merger transaction situation, study its sources of funds, is divided into equity capital and debt funds, which own funds and loan funds. Incur obligations to fulfill the purpose of a listed company, its debt interest payments can be produced each year before income taxes from the taxable income in offsetting; and dividends generated by its own funds to pay dividends only after the allocation of corporate income tax. This raises its own funds and borrowing funds in the income inequality, so countries have also introduced a regulation related policies such unfair treatment, and strive to achieve maximum fairness.Why do I turn the Ministry of Finance to adjust the stamp duty that is a national act? This is a special time caused by international and domestic environment: the large number of "hot money" influx of China's securities market, will continue to raise our country's stock market, the stock market trend violently out of control momentum, and to be swept by the pre-crash sets of the money fled. Thailand's financial crisis in China in order to avoid reproduction in China only introduced to suppress the stock market to adjust the stamp duty policy. This policy has greatly inhibited the "hot money" fleeing the stability of the Chinese economy. The "size of the non-" appearance, but also raises tax on the stock market for the emergence of new cases, how to deal with a lively discussion: "Size not" sell-off of its tax-free basis for that? Ban non-listed shares listed on the tax revenue loopholes; tax issue is how the tax laws on how to make a response and enhancements.In the third section, States on the equity trading system and its relevant provisions of the tax law did compared with that of the international well-developed securities markets in general practice and the characteristics of China's securities market but also compared the tax law and international differences .The fourth part, the author concluded, on the face of China's stock market capital gains arising from equity transactions of the tax law and tax issues of international comparative study, put forward our views on possible improvements in fit, including the strengthening of the legislative process improvements, increased the role of experts, improve procedures for the importance of various proposals and put forward to build our securities entities, the idea of tax law: redefining the scope of taxation on the tax subject to Trap; abolition of stamp duty, building the Securities and Exchange capital gains tax. Of course, I knew it was only on the securities industry tax law studies and recommendations of the superficial, but China's securities industry is very underdeveloped and immature, hoping to see our country as soon as possible to build a new basic sound securities tax law.