Research On Individual Income Tax Policy Of Dividend In China

Since 1978,China's economy has developed rapidly and has become the world's second largest economy.In this process,the income of residents has continuously increased and the sources of income have been increasing.The increasing income of residents made residents' investment awareness stronger.They hope that there will be more channels to participate in investments,so as to obtain more investment income.Since the restoration of China's securities market in 1990,in the process of promoting China's economic development,it has played an irreplaceable role in actively enacting the economy,lowering the financing threshold and improving the quality of financing.The continuous development of the securities market has brought about a further increase in the income of residents.The property income of Chinese residents,especially the dividends income obtained from the securities market,is also increasing in the proportion of residents' income.In China's personal income tax law,there is a problem in the personal income tax policy for dividends in the securities market—the economic double taxation.Duplicate taxation on the economic dividend dividends will have a very serious impact on various market players in the securities market.Although China has introduced a series of policies to reduce economic duplication and guide long-term investment,this paper empirically studies the turnover rate in the securities market in 2011-2014 and finds a truth: The Caishui [2012] No.85 for preferential personal income tax policy can play a role in curbing speculation and guiding long-term investment to a certain extent,but the effect is not strong.At the end of the article,after studying the advantages and disadvantages of the two methods of eliminating economic double taxation adopted by OECD countries and eliminating economic double taxation from the personal income tax level,the paper proposes that China's dividend personal income tax policy will be carried out in the future.The basic principles that should be followed in the process of optimization,and specific policy measures are proposed from the short-term,medium-term and long-term stages.