Research On Individual Income Tax In Trust

Collective capital trust is the most common form of commercial trust in China.As a professional investment tool,it has two unique requirements compared with ordinary trust:first,the trustee must be a trust company;second,the trustor and the beneficiary must be the same personThe research subject of this paper is the individual income tax system in the collective fund trust.Due to the lack of special legal provisions on trust income,the collection and payment of personal income tax in trust is very confusing in practice.There are four main problems.First,the nature of the income is unknown;Second,double taxation of the income at the level of trustee and beneficiary;Third,the trust principal cannot be deducted from the proceeds;Fourth,the withholding agent of individual income tax is unknownThe trust in our law does not have the legal personality,and is only regarded as a property collection.Tax authorities of property income tax is based on the ownership of property.Trust was born in the common law system,and its property has the dual ownership system,which is in conflict with the unitary ownership system in China.Therefore,in the civil legislation of trust,China adopts a vague attitude towards the identification of the ownership of trust property.The avoidance of ownership in the civil law and the tax method based on ownership in the tax law lead to the confusion of trust tax payment.It can be found that the dual ownership system in the common law system is actually the separation of the rights and powers in the ownership in the continental civil law.What really causes the property income tax liability is the realization of the usufruct in the ownership,which is unrelated to other rights in the ownership.Although the ownership of trust property is controversial,the powers to make profits attributed to the beneficiary.When the trust distributes the proceeds to the beneficiary,the beneficiary's right to enjoy the "proceeds" is realized,and the tax obligation of the beneficiary occurs in this link.This is the basic logic chain of the income tax on trust income,on this logic basis,this paper also puts forward a series of rule-based Suggestions on the specific rules of the income tax system of trust income.