The Study On The Tax Issues Related To Crowdfunding

Crowdfunding has the trait of sustaining inovation and starting-up spontaneously.It is helpful to enriching the multi-level capital market and make it possible to solve the problem that the investors find it difficult to search the excellent items to participate in and meanwhile the middle and small-sized entreprises even with good projects can't have the financial support.At the same time,the frequnt explosion of risk on crowdfunding also need the sociaty to pay enough attention.After all,this is a novelty,with not yet clarified regulatory ideas,not mature mode of operation,and not clearly relevant industry laws.Many people with illegal purpose regard the crowdfunding as a convenient tool for them to profit by riding.Therefore,the tax on the participants should be designed to encourage the healthy and the rapid development of the crowdfunding platform with great ability of controling risks and encourage the participants to actively support the inovation and starting up a new business.This research will take these following steps to achieve the purpose:1)Get the general situation of the crowdfunding and its stage of development.It has four classification,such as the reward crowdfunding?the lending-based crowdfunding?the equity-based crowdfunding and the donate-based crowdfunding.And with its development,we can summarize that the platforms with great ability to collect the information and to control the risk can defeat the competors and survive in the end.With the expansion of the market scale,the number of the platforms is shrinking.2)The core competive ability of platforms is the ability to collect the information by the big data.The convinience and rapidity of internet economy is also their advantage.The paticipants can easily communicate and connect with each other on the platforms.Such traits conform to the trends of the times that the innovation and entrepreneurships should be encouraged and multi-level capital market can be set up to promote financial deepening.3)The development of internet economy is ahead of the times and relevant legal and tax enviroment has difficulty to catch up with.Traditional tax system can't cover the crowdfunding and tax blank exists.The situation is bad for the sustainable and healthy development of crowdfunding and meanwile force the pefection of tax system.It's a positive process that the contradiction boost the development of things.4)The crowdfunding is gradually becoming a mature industry.Its taxation should coodinate with the economy offline.The entities whever they are should assume the equal tax responsibility if they have the same business nature and scale.We can focus on the circumstances that the tax management online is difficult and related infrastructure for tax drop behind.This may attract the entities to transfer the business online to escape taxation and tax evasion will be suffered.5)The research is based on the study of operations of different crowdfunding methods and correlative cash flows.On the foundation of the study,this article attempts to generalize the probable taxation problem and search the solution.6)This research at the following step draws on the expenrience from the USA and Bratain taxation system for crowdfunding.The EU levy VAT on economic activities and USA is the origin of crowdfunding with sane income tax system.Generally speaking,USA and Bratain trends to regard the tax as a tool for encouge cowdfunding development especiallly the items regarding inovation and start-ups.7)Then this ariticle tries to put forward the project for bettering and reforming the taxation system aiming at balancing prohibiting tax evation and encouraging inovation and start-ups.8)Try to suggest for the reforming of taxation management and it's also a key step for avoiding taxation losing.On the foundation of analysis of the crowdfunding process and characteristics,I attempt to seek out how to improve the tax system for crowdfunding.And this is the main innovative part.The main shortcomings of the article are that firstly,the crowfunding is developping and changing and the remaining tax system to apply to it may fail to achieve the goal.Secondly none of the playforms has be on the stock market and it's quite difficult to achieve their financial statements,so it's hard to grasp their tax situation.