The Research On Economic Double Taxation Of Dividends

Since the taxation reform, the income tax plays an increasingly important role in the process of economic development in China mainland. However, some weak points and drawbacks of its natural defects also seriously hamper the development of China’s socialist market economy, of which the dividends economic double taxation is one of the focus issues, this paper would take an exploration into this issue, and put forward corresponding advice as reference.At the theoretical level, this thesis begins on the logical starting point "the source of economic double taxation of dividends", mainly focuses on some basic theoretical issues about economic double taxation of dividends. Included are redefinition of "economic double taxation", identification of the contradiction between principle of "Taxing on Capacity" and "economic double taxation", characteristics analysis its negative impact on China’s economic development.At the practical level, by analyzing the current situation and weak points of China income tax law, combined with other countries’ deduction programs, this thesis provides some suggestion to perfect the taxation system. For current transitional, application of the "dual tax rate act" should be the best choice. As for long term choice, should adopt imputation system with improvement of every set of supporting measures.