On Legal Issues Of Trust Taxable Income

With the continuous development and prosperity of market economy, the trust is aspecial financial system shows the development trend of trust industry has graduallybecome a hitherto unknown, together with the banking, securities, insurance financialmodel.To normalize trust income tax law system has also become increasinglyprominent.In the "one law and two regulations"(that is,"the people’s Republic of ChinaTrust Law","Trust Investment Company management approach","Trust InvestmentCompany trust funds management measures") promulgated, the development of trustindustry has been further standardized, but the current tax system of our country did notmake clear provisions on the issues of trust income tax.The legal attribute of trustarchitecture is the ownership of the trust property and the right to benefit from the phaseseparation, i.e. the principal transfer the trust property to the trustee, the trustee to manage,use and disposition of the trust property in the trust contract frame, and the trust propertyby the trustee benefit does not belong to the trustee but attributable to thebeneficiary.Because of the particularity of the trust, the trust activities free from tax on theedge.In China’s current taxation of trust can only apply the provisions of the tax law aboutgeneral economic business, it lacks the special regulation of strong correlation,so in thecourse of levying taxes the inevitable problems: the taxpayer is not clear, it is difficult todefine the object of Taxation, tax link is still unclear, the applicable tax rate can not beunified, so that some companies in the prospectus of the trust products, can not be makethe trust income tax.Not only that, along with the continuous development of the trustsystem, has happened or will happen in the legal relationship of trust tax must have therelevant laws and regulations to protect the country’s tax interests and the legitimate rightsand interests of taxpayers, to provide a stable and orderly legal platform for the trustsystem to achieve its financial function.This makes timely perfect trust tax legislation hasbecome an urgent problem to be solved in China’s legal construction faces.