Research On Tax Incentives System Of Charitable Trust

Charitable trust is a basic mode of modern charity. As early as in 2001 when Trust Law was enacted, charitable trust was first stipulated in law. There wasn’t a truly example of charitable trust until Wenchuan earthquake happened in 2008. However charitable trust didn’t have any development opportunity due to this event. “Quasi charitable trusts” with charitable purposes have been increasing. Pure public charitable trust is still difficult to develop. There are many reasons for the slow development of charitable trust in China, the main reason is lack of tax incentives. Trust Law of PRC has clearly stipulates “the government encourages the development of charitable trust”. The Charity Law issued recently has mentioned tax incentives for charitable trust, however, until now, the specific tax incentives have not yet been introduced.This article intends to build the tax incentives system of charitable trust and will have a discussion on the content, objective and administration of tax incentives in order to finally build the specific system. This article has four parts:The first part clarifies the prerequisite of giving tax incentives to charitable trust in China. Firstly, it demonstrates the necessity and legitimacy of giving tax incentives to charitable trust which is the premise of this research. Secondly, it determines the basic tax system and operation mode of charitable trust to lay the foundation of the specific tax incentives measures of charitable trust. Finally, it clarifies the content of tax incentives for charitable trust in order to indicate the direction of building tax incentives system for charitable trust.The second part mainly introduces the content system of tax incentives for charitable trust. Firstly, it discusses the content of tax incentives in the establishment of a charitable trust and takes the experience of foreign countries for reference. Secondly, it discusses the content of tax incentives in the operation of a charitable trust and takes the experience of foreign countries for reference. Finally, it studies out the content system of tax incentives for charitable trust based on the above discussion.The third part mainly introduces the object system of tax incentives for charitable trust. Firstly, it analyzes the affirmation ways and authority for the object of tax incentives of charitable trust and takes the experience of foreign countries for reference. Secondly, it analyzes the treatment after the object of tax incentives of charitable trust losing the qualification and takes the experience of foreign countries for reference. Finally, it studies out the object system of tax incentives for charitable trust based on the above analysis.The fourth part mainly clarifies the administration system of tax incentives for charitable trust. Firstly, it discusses the tax registration system of charitable trust for consideration of the possibility to link up charitable trust to the current tax registration system in China. Secondly, it discusses the filing(examination and approval) system of tax incentives for charitable trust for consideration of the possibility to link up charitable trust to the current filing(examination and approval) system of tax relief in China. Thirdly, it discusses the reporting system of tax incentives for charitable trust for consideration of the possibility to link up charitable trust to the current reporting system of tax relief in China. Finally, it discusses the supervision system of tax incentives for charitable trust for consideration of the possibility to link up charitable trust to the current supervision system of tax relief in China.