A Study On Income Tax Integration For Eliminating Double Taxation Of Dividends

The development of China's capital market and the diversification of enterprise organizational forms make the investment channels of our residents more abundant and the sources of income are more extensive.With the improvement of market economy consciousness,the enhancement of investment ability and the broad and full access to information,Chinese residents are more able to participate in social investment.With the significant increase in social investment participation,China's property income of the residents also maintained a rapid growth.However,the income gap between urban and rural residents in China,especially dividend income gap is also growing.There is a double taxation on dividends income of our residents.Double taxation will not only lead to low-income earners to bear the tax burden of high-income earners,but also result in inequality between different investment projects and unfairness between different financing methods.Although the government has introduced a number of tax policies to reduce the dividend double taxation to some extent.The original intention of these policies is only to encourage long-term investment but not to eliminate duplication of taxation.These tax policies to reduce the dividend double taxation lead the unfairness between limited liability company and the stock company(listed).There are five chapters in this paper,which are as follows:Chapter one: Introduction.This part mainly analyzes the background and significance of this research.Then it introduces literature review at home and abroad.Finally,it explains the innovation and shortcomings.Chapter two: The Theoretical Basis of Income Tax Integration.This chapter mainly elaborates the theoretical basis of Income Tax Integration from four aspects: "virtual legal person" theory,tax structure theory,the necessity of enterprise income tax and the consideration of fairness and efficiency.Chapter three: An analysis of the historical evolution about dividend double taxation and the unfairness of income tax.This chapter elaborates the history of the dividend double taxation from three aspects: the participation rate of capital market,the increase of property income and dividend and the policy of dividend taxation.Income investors,different investment projects,organizational forms of different enterprises and different ways of financing four angles elaborated the income tax system unfairness.The inequality of the income tax system is expounded from four aspects: the high and low income investors,the different investment projects,the organizational forms of different enterprises and different financing methods.Chapter four: International experiences and comparisons of methods about avoiding dividend double taxation.This chapter analyzes the advantages and disadvantages of the seven kinds of taxation methods,as well as the sequencing of the tax reduction effect,which shows the superiority of the income tax integration system.Chapter five: System design of completely avoiding double taxation of dividends.This chapter discusses the basic framework of the system of income tax integration by analyzing the theoretical basis of income tax integration and the guiding principle of the system of income tax integration.It also puts forward the realization route of the income tax integration system and related suggestions.