Research On The Legal Issues Of Tax In Chinese Commercial Factoring

As a new trade financing tools, Chinese commercial factoring industry is favored by smes, factoring companies and commercial banks.Since circular of the ministry of commerce on issues related to commercial factoring pilot projects in 2012, Tianjin and Shanghai had launched a test to commercial factoring firstly, which turned a new situation of Chinese commercial factoring industry. After this, there is a new upsurge of commercial factoring pilot projects in Chinese cities such as Guangzhou, Chongqing, Dalian, with good development momentum, which played an important role in the field of economy increasingly. No matter the volume of business or the number of the enterprise were impressive results, which viewed the prospect of Chinese commercial factoring industry.Meanwhile, without the perfect industry system and legal system,inevitably there would has many problems in infancy Chinese commercial factoring. And one of problems is the tax exposure which caused extensive concern and had bad impact on the development of the industry, such as the lack of robust tax accounting rule and system of taxation.In the European and American countries, commercial factoring industry developed and showed good financial benefits for decades, so China will actively promote the development of factoring industry continuously toward the refinement and asset secialization in the future. How to create a harmonious and standard environment of tax law for commercial factoring is the problem that the state and enterprises need to face. This paper takes the commercial factoring industry in Pudong district of Shanghai as the object of the research, and to study on the tax legal dilemma of Chinese commercial factoring industry. First, to analysis current developing status of Chinese commercial factoring industry, then mainly analysis the circumstance of tax law on commercial factoring in the condition of imperfect industry system, like tax treatment of asset securitization, the scope of business tax with a value-added tax, the collection of business tax on the balance. Secondly, comparing with Germany’s tax law on commercial factoring with Chinese to summarizes the beneficial experience. Thirdly, being both practicable internationally and applicable domestically to put forward constructive and practical measures so that promote the development of Chinese commercial factoring industry.