Research On The Tax Incentive System Of China's Foundations

Since reform and opening up, the economy has developed rapidly, following a lot of problems. Among them, the problem of widening gaps between rich and poor caused by disparate development is remarkable. In recent years, Gini coefficient above 0.4 published by National Bureau of Statistic (NBS) which means the gap between rich and poor in our country has reached a cordon. Philanthropy is the third distribution of social wealth. It plays an important role in adjusting the distribution of social resources and promoting the flows of wealth. The healthy growth of Non-Profit Organizations(NPO) represented by foundations, and enhancing social forces input social charity benefit the function changes of government and smooth transition of social transformation period.The aim of this research is by means of analyzing the foundations tax incentives system in force in our country, and learning experiences from other countries or regions to give advice to perfect foundations tax incentives system in China, and promote foundations to give full play to the social development of transformation period.This research mainly adopts the empirical approach, through searching and studying the domestic and foreign literature, to comprehend the research status and research achievement in this field, and learn from the valuable data and information to complete the argument in this research. In addition, this research also adopts the comparative approach, comparison with foundations tax incentives system in other countries or regions, thus get the appropriate conclusion which can be applied to our country.This research includes four parts. The first part elaborates relational theory of foundations, and introduces briefly of the development of foundations in China. The form of foundations is according with social trends in our country and conduciving to the progress of the society, the second part introduces briefly of extraterritorial foundations tax incentives systems. This research selects three areas, including the U.S.A, England and Hong Kong. Because the U.S.A is the the most advanced nation in foundations, England is the oldest nation of the formal development of foundations. Besides, the development of foundations in Hong Kong is very prosperous, many Hong Kong’s foundations contact with mainland more and more closely, the three samples can provide a reference to perfect foundations tax incentives system in China’s mainland. The third part cards the foundations tax incentives system in force in our country and point out its deficiencies, such as the disordered legislative system, the limited range, and tax procedures laws need to improved. The forth part propounds how to perfect foundations tax incentives system in China. Making its countermeasures and suggestions through legislative guidelines, Tax substantive law, tax procedures law and supporting measures.This research suggests that our country should support and encourage the development of foundations as soon as make specific norm and guidance. Build up a scientific tax incentives system, fill in the vacancy of tax substantive law, standard tax procedures law, and formulate corresponding supporting measures.