Legal Regulation Of Tax Preference For Charitable Donations In China

The Charity Law of the People's Republic of China formally promulgated and implemented in 2016 is the mother law in the field of charity in China.This is a milestone for our country,and marking that our charity has officially entered the track of the rule of law.At the beginning,the Charity Law was enacted in the hope of protecting the rights and interests of charitable subjects and promoting the development of charitable undertakings through legislation in the field of charity.However,more than two years have passed.Although the total amount of charitable donations in China has improved to some extent,the improvement of relevant systems still needs to be strengthened,especially the tax preferential legal system of charitable donations.Tax preference is an important means to encourage charity.To promote charity,we must make great efforts on tax preference of charitable donation.At present,there are some problems in the legal system of charitable tax preferences in China.Firstly,in the structure of charitable donation tax preferential tax system,the structure of charitable donation tax preferential tax system can not match and unify with the current tax structure in the economic system.That is to say,the tax structure of charitable donation tax preferential tax system is centered on income tax,while the tax structure under the economic system is dominated by commodity tax.Secondly,in terms of tax preferences for charitable donations,the tax categories are single,and most of them are relatively small in the national tax collection.At the same time,there is a situation of paying more attention to income tax than to other kinds of taxes,and some kinds of taxes are missing.Thirdly,in terms of tax incentives for charitable donations,the preferential tax rate is low,the scope of preferential tax receivers is small and the scope is narrow,which restricts and hinders charitable organizations from enjoying tax reduction and exemption.Finally,from the specific provisions of tax preferences for charitable donations,there are phenomena that deviate from the basic principles of Taxation in the process of legislation and practice in China.At the same time,the relevant supporting system also has defects and omissions in legislation,that is,the application of the main body carry-over and deduction system is single,the specific provisions are not clear,unreasonable,the formulation of non-monetary donation related provisions of the main body is unreasonable,the specific provisions are unreasonable.Blankor imperfect,not specific,it is difficult to give full play to the role of the support system,more difficult to make tax preferences in charitable donations to play the greatest role,more difficult to promote the development of charity.Based on the above reality,this paper mainly includes the following aspects in view of the problems and shortcomings of the legal system of tax incentives for charitable donations in China:The first part is the introduction.In view of the development of charitable donation in China at present,this paper puts forward the necessity and significance of studying tax incentives for charitable donation,understands the progress and specific situation of this research at home and abroad,and determines the research ideas and innovations of this paper by means of certain research methods.The second part is mainly about the basic theory of the legal system of tax incentives for charitable donations.Firstly,it defines charitable donation and analyses the concept and legal nature of charitable donation;secondly,it analyses the theoretical basis of tax incentive charitable mechanism from the sociological,economic and political perspectives,which is mainly based on the third income distribution theory,Pareto optimal theory and limited government theory;finally,it analyses the free value and order of tax preferences for charitable donation.The value,justice value and efficiency value are elaborated,and the significance of tax preferences for charitable donations is explored.The third part is to analyze the current situation and problems of the legal system of tax preferences for charitable donations,that is,to investigate the tax system structure,tax types,preferential intensity and specific provisions of tax preferences for charitable donations.It is believed that the main problems existing in the current legal system of tax preferences for charitable donations in China are that the structure of tax preferences for charitable donations is unreasonable,and the tax categories are single and single.Some tax categories are missing,charitable tax incentives are small,and relevant supporting systems are imperfect.The fourth part is the establishment and reference of the tax preferential legal system for charitable donations abroad.By introducing the legal system of charitable tax preferences in the United States,Japan and Taiwan,this paper summarizes the successful legislative experience of tax incentives for charitable development from the development model ofcharity,the way of charitable tax preferences,the tax structure and specific provisions adopted.The fifth part is the focus of this paper,which is to improve the legal system of tax incentives for charitable donations in China.This paper suggests that China should follow the basic principles of taxation when perfecting the legal system of tax incentives for charitable donations.Under these conditions,firstly,we should improve the tax preferential system of charitable donation: adjust the tax structure of charitable donation tax preferential,and achieve both commodity tax and income tax;Improve the supporting system,levy inheritance tax;improve the tax preferential system of non-monetary donation,join the third-party evaluation agencies to evaluate the value of non-monetary donations,and increase the strong intervention of notary departments to notarize the evaluation process,so as to ensure that donors can get the tax preferences they deserve.Secondly,we should increase tax incentives for charitable donations: expand the scope of eligibility for pre-tax deduction of tax incentives for charitable organizations;incorporate profit-making income of charitable organizations into the scope of tax exemption;and innovate tax deduction rates for income tax.It is suggested to adopt the tax rate of "archiving and grading deduction",improve the carry-over deduction system,expand the applicable subject and scope of the carry-over deduction system,and extend the period of carry-over deduction to six years.