The Study On Tax Law Of Reits In China

Public offering Real Estate Investment Trusts (REITs) will be issued soon, however, relevant tax laws and regulations has not been formulated. If we fully apply the existing tax system to REITs, it will inevitably results in tax law obstacles of REITs. Therefore, it is necessary to support the introduction of tax laws and regulations to promote REITs institutional advantages.In our trust law,the transfer of ownership is not clearly defined.This results in double taxation on income tax; the ambiguity of REITs’ law position and taxpayer qualification give rise to the uncertainty of REITs’ taxpayer; the conflict of local legal system and REITs also induce some problems:the tariff is not clear, the tax burden is high and tax evasion.By the comparison of trust tax law of the United States, Britain, Japan, Chinese securities investment fund tax law,the suggestions of formulating our tax law of REITs are:avoid double taxation, the fund manager withhold tax, tax incentives, combat tax avoidance,administrative regulations timely revise tax law system.