A Study On Economic Double Taxation Of Dividends

A double taxation exists in the income tax in china'current classical system:business income tax on company profits and private income tax on stock interests .In the aspects of resource allocation efficiency.it has resulted in a series of problems such as distortions between company departments and non-company departments between stock interest distributions and retained profits,and between bonds and stocksabout financing means. In the aspects of tax burden fair ,it has resulted in the unfair between companies and non-companies ,does not show the vertical fair principles of revenue,either.With the development of market-economy,the problem of the economical double taxation on dividends is becoming prominent day by day The solution to the economical double taxation on dividends is an urgent issue in the taxation system reform in China The Subtraction of other counties has their specialities.Based on the comparison of the foreign countries',to refer to foreign experience and combine the actualities ,China should adopt the double tariff system to ease the economical double taxation on dividends in a short period of time ;adopt the more idealistic imputation credit system in the long period of time.