Study On The Tax System Of Charitable Trust In China

Charitable trust is a basic mode of modern charity.As for the flexibility and efficiency of its simple operation procedure,it is generally considered as a low threshold for people to participate in public welfare undertakings.As early as in 2001 when Trust Law of the People's Republic of China was enacted,the first truly charitable trust appeared in China in 2008.With the promulgation of the Charity Law of the People's Republic of China in 2016,and the introduction of the concept of charitable trust,charitable trust in China has been further standardized,and charitable trust projects put on record of the registration authority increased year by year.However,behind this prosperous market,the chronic illness of the tax revenue of charitable trust get much attention and affirmation in social circles.Reconsidering the charitable trust in our country,all the existing laws and regulations embody the support and encouragement of the state,emphasizing the rationality and legitimacy of giving tax preference,but the specific provisions have been delayed,and the taxation system have been absent for a long time.So it is common to see that the annual reports of charitable trust notified the trustor impossible to give a tax deduction invoice,and looking forward to the relevant laws and regulations published.No tax deduction can be given to the trustor when it established,and the tax burden may be higher than the no-charitable trust as the result of referring to the general business transaction taxation system in operation,which is the embarrassment faced by all charitable trust projects.So that experts believe that lack of tax policy hinders the development of charitable trust.The straits of charitable trust development can be summed up in following three aspects: Firstly,the problem of tax preference.As charitable projects,the imperfect tax preferential system,the insufficient incentive measures and the lack of execution have fundamentally hindered the development of charitable trust projects and destroyed the enthusiasm of the public participating.Secondly,the double taxation.In China,tax levy is related to the transfer of property.The multiple property transfer of charitable trust causes the multiple tax collection,which increases the tax pressures to charitable trust.Thirdly,the tax avoidance.Charitable trust is no exception to the fact that the genetics of tax avoidance are rooted in the blood of trust.This problem was not obvious in the early stage,but there are numerous extraterritorial examples.To face up to the problems caused by the absence of taxation system in the development of charitable trust in China,we should crack them from the following aspects: First,constructing the tax entity rules of charitable trust.Charitable trust is so different from private trust.It should stipulate the tax payers,tax categories and taxable objects of charitable trust according to the principle of tax fairness,and adjust the existing tax provisions such as income tax and value-added tax.Second,determining the tax procedure rules of charitable trust.Clarify the tax collection link,supervision system and relief ways of charitable trust,safeguard the interests of all parties in charitable trust and clarify the responsibilities of relevant departments.Third,constructing the charitable trust tax system through the design and perfection of the taxation and control system.To more exact,forming the norm of charitable trust system through the implementation of tax preferences,repeated taxation and tax avoidance procedures.