Reflections On Perfecting The Tax System Of Securities Transaction In China

In recent years, with the development of social economy and the constantly improvement of the securities turnover, the scale of the Chinese securities market has undergone rapidly changed. By now, Chinese securities market has formed a functional multi-level capital market which includes the market in the field and the market over-the-counter that can meets different investment needs and financing needs. However, by contrast of the high-developed securities market, the construction of the corresponding tax system has been in a lagging level. This tax system with obvious shortcomings cannot follow the step of the securities market development, and even to some extent, it begun to restrict the market development.The construction of the securities market tax system has been a complex issue, because it not only refers the general taxation problems but also it has to deal with the complex financial market. The management measures of securities market tax system must to shroud every aspect of the securities which includes the securities offering, securities trading and securities holding, extra. This paper will start from the tax system of the securities trading part, and divide the taxation form which is referred in this part into income tax and behavior tax.The main body of this paper is divided into four parts. The first part will describe the current situation of Chinese securities market tax system. The second part will analyze the function of securities trading taxation system and its impact on the development of securities market, and then highlighting the importance of securities trading tax system’s construction. The third part will review the current securities trading taxation system and find out its malpractice and not functional aspects. In this part, firstly, this paper will place extra emphasis on the discussion of the Chinese securities trading stamp duty, analyses its defect and deficiency. Secondly, this paper will analyze the reason of the securities trading income tax’s lack and its affections. From the actual situation, the fourth part will put forward some considerations and suggestions of the construction of securities trading taxation system.