China's Real Estate Investment Trusts Tax Research

After the new millennium,the global real estate market ushered in the "land ofcapital" era. Especially since the2008financial crisis in the United States overall, not justthe U.S. economy overall decline, the global economy has been hit. Among them, thefirst encounter was undoubtedly the real estate market crisis. Under the financial crisis,experts and scholars knowledgeable nature of the real estate market has to see onlythrough diversification of the capital, diversify risk and ensure sustained and stable yields,in order to meet the huge demand of investors in the market, to ensure healthy and stabledevelopment of the property market. As early as1990, Nobel laureate Professor WilliamSharpe and Merton Miller, both on the basis of logical deduction and empirical analysispredicts the development trend of the global financial industry in the21st century is a realestate securitization, financial restructuring and innovative financial instruments.Summing up the lessons of the U.S. subprime mortgage crisis, to achieve this theypredicted that the prerequisite is to ensure that the virtual economy and real economyequilibrium, financial innovation and financial stability in harmony. In the adjustment ofeconomic structure, now China’s many real estate companies will a lot of energytransferred to financing, especially financing of securitization as a way to raise theircapital strength. In the open diversified financing channels and methods, theestablishment and development of REITs (Real Estate Investment Trust, referred to asREITs), I think it is the best solution to the problem, the most promising and moststrategic means of financing.The stock market and real estate market is the country from20of the world sincethe1990s the two fastest growing markets. From the real estate market, real estate late1990s began to develop rapidly, according to the statistical report, the average annualgrowth rate has been as high as35.6%. Because the process of rapid urbanization andhousing for our residents just need will lead our country in the future there will still besome real estate development. At present, the proportion of real estate loans in the bankall loans in the banking sector needs to face the problem too, for which a correspondingincrease in bank lending conditions to reduce real estate project loan risk. And the real estate bubble serious regional market, prices rose more than the income level of residents,but also over a number of international metropolis price level. Therefore, the real estate isan urgent need to open up foreign bank financing channels to solve the problem ofproject development and funding operations.However, the introduction of REITs process, with the support of our country doesnot have a tax system, in accordance with the existing tax laws, the tax burden is tooheavy, and the presence of double taxation and other issues, and therefore, this paperanalyzes by comparing the United States, Australia, France, Hong Kong the developmentprocess as well as tax benefits of these four cases belong to different continents countryor region REITs analysis, re-use schematic tax calculations, estimates its tax burden, thetax burden is too heavy draw our conclusions and analyze the reason, the existing taxpolicy proposals to improve the level of tax burden REITs promote its implementation inChina.The case studies, the use of the principle of tax neutrality tax principles, theprinciple of the catheter, as well as the principle of avoiding double taxation occursincome tax principles as a basis for tax policy for China REITs made a number ofrecommendations, which the study of China REITs have a strong level of tax burdenpractical significance. However, as in the actual course of the study, the processconditions such as the presence of too uniform impact on incomplete data collection orthat may have some impact on the final results of the study, but it does not affect theirstudy of tax policy in REITs the practical application of the reference value.