Study On China's Securities Market Systerm

Along with the stable development of China's economy quickly, and the securities market as promote economic development boosters. Good tax system in the securities market is able to increase revenue, regulating income distribution, and is an important means to control the securities market.Securities market system to run through the following mechanism: The Government conduct a series of tax policy adjustments, according to the macroeconomic situation.As result,tax burden changes will lead to the changes of variables such as transaction costs,the size and structure of the securities market, investors profit,which changes the behavior of investors.Meanwhile,these changes will arouse these variables change.Eventually led to changes in the allocation of economic resources, thus affecting the stock market and the operation of economic entities.China's securities market taxation has not formed a complete system. However, some of these are of offside and others are absent in many areas. Meanwhile, frequent changes in tax policy, some of which is the lack of fairness and efficiency. The investors aren't taxed at issue link,levy securities transactions at trading and bequests link and levy enterprise income tax and personal income tax at proceeds link. Therefore, it is a long-term and profound significance to improve the security market tax system for advancing the development of China's securities markets.Most foreign countries in the issuance of securities, the imposition of stamp duty, registration license tax, capital tax. Most countries levied on the securities transaction tax originally, in recent years many developed countries abolished it because of undermining the mobility of capital. The countries which have mature securities market levy on capital gains and adop a different approach to avoid duplication of investment income tax.On the form of securities transfers of property levy estate or gift tax. We have employed comparison research method to review the taxation system in developed countries' security markets and generalized the following suggestions for taxation system implementation, including: 1) Set up a scientific and systematic taxation regulation structure for security market; 2) Securities system design reflects the characteristics of relatively stablet;3) Set up the most efficient security-taxation system in accordance with the current national situation;4) Apply low tax-rate policy in general so as to impulse the development of the security market. 5) securities trading income tax cautiously.This paper put forward the following proposals to improve China's securities tax system: 1) To levy stamp duty in the issuance market; 2) levy securities transaction taxes in the exchange market replacing stamp duty ; 3) To levy the personal securities exchangeincome tax at right time and take personal credit from the investment law to avoid doubletaxation; 4) Wait to levy legacy and bestowal duty at the point of demising the securitiesassets.