Research On The Tax-law Regulation Of Equity Donation In China

In2009, the Ministry of Finance issued a document which released the restrictionson public welfare equity donation,which greatly widened the scope of public welfaredonation in China,and it provides a good opportunity for the development of ourcountry’s public welfare donation.But due to the equity donation in China is still a freshdonation mode, the laws and regulations are lack of clear specifications,especially the taxlaw which impacted the equity donation significantly is lagging behind.Public welfareequity donations tax regulations scattered among "Enterprise Income Tax Law","PersonalIncome Tax Law","Foundation Management Regulations" and the notification issued bythe Ministry of Finance and the State Administration of Taxation,but the legislative levelof these regulations is too low, and there are contradictions between the provisions of thedepartment.Many laws and regulations are unfair to the non-profit organizations,ithindered the development of China’s public welfare undertakings, and needs to beimproved.This paper is divided into Introduction and the body of the article,the body of thearticle contains four chapters.First chapter is about the concept of "equity donation",andsummarizes the three typical characteristics to distinguish it from other forms ofdonations, the equity is different from the property rights, and equity donation program iscomplicated and the value of equity is uncertain.The second chapter is the study of thetheoretical basis of public welfare equity donation’s tax regulation and to provide atheoretical support for it’s applicable tax incentives.The third chapter analyzes two typical cases of China and the United States,Cao Dewang donates equity to establishHeren Foundation and the case of Buffett’s equity donation.The paper sorts out thecurrent public welfare equity donation system in our country and studies on the Foreigninstitutional to Find out the problems of our country’s equity donation.The last chapterput forward my suggestions based on the above problems.The paper mainly adopt empirical study method and comparison method based on thetypical cases,and analysis the problems reflected, analyze the causes to find thecorresponding countermeasures.I refer to foreign outstanding model and practicalexperience to construct the concrete system in our country, and put forward schemewhich accords with the situation of our country.