Study On The Legal Issues Of Tax Preference Of Non-profit Organizations In China

The arise of non-profit organization is an important events in the second half of the twentieth century,Nowadays non-profit organization play a significant role in environmental protection,poverty elimination,education and culture developing and the diverse needs of the community meeting.Non-profit organization have overcomed the government and market mechanisms weaknesses to a certain extent and have played an irreplaceable role in counterbalancing the hegemony of state power and market supremacy.With the transition of the economic functions and transformation of the society,the structure of"small government,big society"is coming into being step by step in china,NPO has obtained unprecedented development.The importance of NPO in the social management and the cultivation of civic culture is gradually appearing.It is the objective require for china to promote the development of non-profit organization.However the developmen of non-profit organization face the contradiction between the cause of expansion and funding shortfalls in china currently.The key to resolve this contradiction is the government provide indirect assistance to NPO through tax allowance or the government raise funds by use of commercial-oriented mode of operation.These two instruments is largely depend on the the state's tax incentives to achieve.It will push forward the development of NPO through tax preferential benefit,because the tax laws of preferential reduce the operating costs cf NPO by making use of economic levers,regulating the daily supervision of NPO and encouraging the community to donate.Therefore,it will play a crucial and decisive role for the promotion of the development of China's non-profit organizations to establish a sound legal system of tax incentives.It is of great significance for the nurturing and development of non-profit organizations to carry out forward-looking study of the legal system and form the tax system environment to encourage and regulate the development of NPO.In this paper,using the basic principles of tax law,by comparing the theory with practice,I conduct a systematic and in-depth examination and discussion for the legal issues of tax allowance that is for non-profit organizations.This dissertation is made up of five chapters:Chapter one is introduction,which introduces the background of the selected title,domestic and international literature riew,the research method ,the research object and the innovation in this article.Chapter two clarifies the definition of non-profit organization ,the characteristic of non-profit organization in China and the legal base of tax preference of non-profit organization.Chapter three introduces the preferential tax policies of non-profit organization in the typical countries aboad and generalizes useful enlightenments for chinese non-profit organization through international comparison studies.Chapter four comprehensively analyzes the preferential tax policies of non-profit organization in china at this stage and specially points out main problems at this stage:the dividing line between the benfitial income and non-benfitial income is indistinct;subject qualification for tax payers is unqualified;tax laws system related to NPO structure is imperfect;the encouragement to tax allowance of donation is deficient,the institution tax reduction and exemption for donation is unsound;the tax-free procedure is unreasonable and tax management are lagged.Chapter five propose improved suggestions:land down the standard and distinguish the exploitation of non-profit organizations;clear qualified subject of non-profit organizations that enjoy tax incentives;systemize Chinese NPO tax law and construct non-profit organizations tax legal system;give prominence to the preferential taxation system of donation and encourange donation;Standardize tax collection and management of non-profit organization and guarantee fair.