Research On The Legal System Of China’s Securities Transaction Tax

With China’s sustained and rapid economic growth, the stock market has beendeveloped rapidly.Stock market provide the financing channels,inject great vitality toour economy and bring a lot of wealth to our citizens.However,due to the tax legalsystem of stock market is still not complete,it have’t played a role in regulatingincome distribution,the stock market has exacerbated the polarization between thehaves and have-nots in China.In this context,it is necessary to improve China’s legalsystem of securities transaction tax.Taxes in the process of securities transaction include stamp duty on securitiestransaction,securities transaction tax and income tax.In China the main type of taxesin the process of securities transaction is stamp duty on securitiestransaction,regulation of securities transaction also rely mainly on stamp duty onsecurities transaction.But the collection of stamp duty on securities transaction lacklegal basis,it need to be replaced by the appropriate taxes.China’s securitiestransaction income tax legal system is not perfect too,individual’s gain of stocktransaction is still tax-free,inconsistent with the principle of tax fairness.Whether andHow should the securities transaction income tax be taxed is one of the emphasis ofthe dissertation.Currently,there are a lot of research on the stamp duty on securities transactionand securities transaction tax.As long as there is a dramatic change in the stock market,many people began to study stamp duty on securities transaction,but all arebasically the same,they proposed that the collection of stamp duty on securitiestransaction lack legal basis and should be abolished.There are many doctoralthesis,master’s thesis on securities transaction income tax,by theoretical analysis andcompared with the international tax law system,they proposed that capital gainsshould be taxed to improve our legal system.This dissertation will divide the taxes in the process of securities transaction intothree types of taxes,including stamp duty on securities transaction(nature ofbehavioral tax),securities transaction tax(nature of turnover tax) and securitiestransaction income tax(nature of income tax).As the stamp duty on securitiestransaction in China is essentially securities transaction tax,the two studiedtogether.By comparing the stamp duty on securities transaction among stamp duty andsecurities transaction tax in other countries,analyse the reasonable position of stampduty on securities transaction and then learn from the practices of other countries andregions,after that I will propose three measures of the stamp duty on securitiestransaction reform.By analyzing the development of China’s securities transactionincome tax,as well as compared to other courities and regions’s practice,design ourcountry’s legal system of securities transaction individual income tax.The innovation of this dissertation is as follows.First,new research perspective,thedissertation is foused on the taxes in the process of securities transaction.Second,usecomparative analysis method to study other countries and regions’s tax law system ofsecurities transaction,and learn from their advanced experience,then give somesuggestions on the improvement of the reform of our country’s tax law system ofsecurities transaction,provide some reference for future legislation.Third,in the aspectof designing legal system of securities transaction individual income tax,I proposed todistinguish between the restricted shares and not-restricted shares,charge differenttaxes,I also proposed implement progressive tax rate.