Study On The Income Tax System Of Individual Equity Transfer

On December 7,2014,State Administration of Taxation issues Measures for the Administration of Individual Income Tax on Equity Transfer Income(for Trial Implementation),effective on Jan 1,2015.The regulatory document stipulates new rules on the scope of equity transfer,the responsibilities of equity transferor,equity transferee and the company invested,equity transfer income and equity original cost,time limit of taxpaying,tax management of tax authorities and so on,partly solving the problem of tax levy,certainty and operational improved.However,after the analysis on the regulatory documents,some theoretical and practical problems remain unresolved,some provisions are still not very reasonable.How tax on personal equity transfer income affects individual will of equity transfer and willingness to venture capital investment but also has an important part of how a start-up enterprise becomes larger and stronger.Therefore,the study of equity transfer tax policy has significant effect on how tax policy plays a role in adjusting income distribution,and can adapt to encourage individual to invest,start business,and meet economic development needs.This paper mainly discusses the unsolved theoretical and practical problems on the equity transfer of current personal income tax system and inadequacies of the existing provisions involving time limit of taxpaying,equity transfer income,equity original cost,and subject of tax payment and so on.And it compares the individual income tax on equity transfer of other country and area and disuses what can be learned here from.Finally the paper recommends how to improve the equity transfer of personal income tax system.