Analysis Of Tax Reform On China's Securities Market

China's current securities taxation is based on securities stamp tax as the main body.The existing stamp duty on stock transactions volume is a unified collection of 0.1 percent of the tax rate,which of the single rate is unfair,ignores the size of the trading volume and the length of the holding period and seriously hinders the healthy development of securities markets.According to differences of stages of development and functions of securities markets,this paper begins to explore the targets of securities market tax system, analyze existing deficiencies in the tax system,introduce the pros and cons of capital gains tax,refer to foreign securities market taxation and put forward a initial reform of China's securities market taxation.Next,models based on the framework of corporate finance are built for analyze the mentioned blue print.Finally,the tax reform proposals for the securities market taxation are given.In this paper,breaking traditional theoretical analysis,the model introduces corporate finance theory to the taxation analysis.On one hand,the stamp duty is combined to the theory of the company value,the model of which is used to further analyze the feasibility of the stamp duty on issue market.On the other hand,this paper tries to find the fit tax rate for dividend income through followers' dividend effect.After the discussion about tax reform on China's securities market,this paper argues that the levy of stamp duty in the issue market,the introduction of capital gains tax instead of stamp duty in secondary market,and the introduction of dividend income tax are necessary.At the same time,a progressive tax system and a tax bite are adopted.The framework of tax reform for the securities market is given in the end of this paper.