Research On The Reform Path Of China's Securities Trading Stamp Tax

In November 2018,the draft of the "People's Republic of China Stamp Tax Law" was released to the public,and the abolition of stamp duty on securities transactions and how to reform it has become a hot topic of discussion.As an important tax in the current securities trading tax system in China,the defects of its tax system design are obvious.The limitation of the behavioral tax makes the tax unable to play a good role in regulating the stock market.In the international arena,most developed countries do not levy stamp duty on securities transactions,and have relatively mature experience in the design of the securities transaction tax system,such as broad tax base,applying progressive tax rate,and formulating tax incentives.This paper uniquely investigates the function of stamp duty on securities transactions,and analyzes the most important functions considered by the relevant subjects of the tax.Combined with domestic and foreign research,the most critical function of the stamp duty of securities trading has not been effectively realized in practice.The reason is because the current securities trading tax system in China is not perfect.The taxation of China's securities trading links is mainly concentrated in the securities transaction stamp duty,personal income tax and corporate income tax,of which the securities transaction stamp tax accounts for the vast majority of transaction costs.Drawing on the experience of the advanced tax system in the United Kingdom and the United States,building a capital gains tax system is the most reasonable reform path for China's securities trading tax system.This paper proposes to unify the tax related to securities transactions scattered among multiple taxes into the capital gains tax system and collect capital gains tax independently.This tax belongs to the income tax type,has an innate tax system advantage,and has a broad tax base,which not only includes the capital gains of securities products transactions,but also those of real estate and tangible movable assets.However,this paper only studies the capital gains of securities transactions.Finally,the article will propose the current reform of the securities tax system from the short-term and long-term sides: in the short-term,to make up for the current tax loop of securities transaction stamp tax;in the long run,it is recommended that China cancel the stamp duty on securities transactions,integrate the relevant tax system,independently collect capital gains tax,and construct a capital gains tax system for securities trading.