Research On The Subject Of Value-added Tax For Contractual Securities Investment Funds In China

Contractal securities investment funds are the main organizational form of China’s securities investment funds.With their advantages of “centralized investment,expert operation,and risk diversification”,they play an increasingly important role in the capital market.To a large extent,the tax system of VAT affects the development of the contractual securities investment fund industry.The unclear and unreasonable definition of the taxpayer is a problem that cannot be ignored in China’s contractual securities investment fund VAT collection rules.In Chapter One,the legal deconstruction of contractual securities investment funds and the legislative investigation of VAT collection rules are carried out.The prominent feature of contract-type securities investment funds is that they adopt contract-type organizational forms and invest in specific securities products.It evolved on the basis of trusts and was constructed in accordance with the basic principles of trusts.However,it is more organized and independent and professional than traditional trusts.The legislative changes related to contract-based securities investment funds from business tax to value-added tax reflect the development path of continuous trial and error and adjustment.Although it has been established,it is still not sound.Chapter Two is to question the current two models of the VAT taxpayer of contractual securities investment funds in China.First,The "Cai Shui [2016] No.140" and Article 8 of the "Securities Investment Fund Law" on the subject of contractual securities investment fund value-added tax payment taxpayers are analyzed separately,which followed the principles of formalism and substantive taxation,respectively.Taking the "fund manager" as the VAT taxpayer will cause problems such as the break of the VAT deduction chain,violation of the independence of fund property,repeated taxation,and confusion in tax declarations.Taking "fund holders" as taxpayers has followed the principle of substantial taxation,and it is not necessary from the perspective of tax collection efficiency and cost.Chapter Three demonstrates the qualification of the VAT taxpayer of the contractual securities investment fund itself..Contract-based securities investment funds have their own names,properties,rules and regulations,and an organization.They are an organic combination of people and property.Due to the independence of their property,independence of responsibility,subjectivity in practice,and business continuity It should meet the requirements of legal persons in civil and commercial law at both the due and actual level.And because it has the ability to afford the tax revenue and the ability to pay taxes,it can become the subject of tax law.As an indirect tax,value-added tax can be passed on to end consumers through a complete deduction chain.As a taxpayer,you only need to have the tax burden capacity and tax burden transfer ability that the tax authority can grasp.It is more reasonable to treat contractual securities investment funds as the taxpayer of VAT.Chapter Four examines the legislation of the VAT taxpayer of extraterritorial contract-type securities investment funds.In the EU’s legislation and judicial practice,the identification of VAT taxpayers is based on "implementing economic activities" as the core standard.As long as a subject continues to independently engage in economically substantive behaviors,it can become value-added by having an economic tax burden.The subject of tax payment,regardless of its legal form.Chapter Five proposes a path to restructure the VAT collection rules of contractual funds in China: contractual securities investment funds should be the VAT taxpayers,the fund managers should be the withholding agents,the fund custodians should be the tax assistants,the financial regulators should be tax facilitators,and establish an information communication and coordination mechanism between the tax department and the financial supervision department,with a view to further achieving the goals of tax neutrality and "business-to-business-increase",and achieving a win-win situation for tax collection and management and financial supervision.