What Is Financial Depreciation?

The financial tax system is a general term for a series of tax policy laws and regulations formulated by the government for financial activities.

Financial tax system

Right!

The financial tax system is targeted by the government

It consists of three parts: one is

Financial tax system reduces tax burden

1. Reduce business tax burden. In order to reduce the tax burden of the financial industry and improve the international competitiveness of China's financial industry, the business tax rate of the financial industry should be further reduced to make it consistent with the tax rates of the transportation and construction industries. If consideration is given to fiscal affordability and regional fiscal impact, steps can be taken to gradually reduce it.

2. Business tax is levied on net income. The business tax will be levied on the full amount of the turnover, and will be levied on the net interest margin of all payment businesses. At the same time, when the financial industry is allowed to levy taxes, it is allowed to directly deduct the charges on behalf of the relevant expenses.

3. Levy business tax on transactions between financial institutions. It is conducive to maintaining the uniformity of taxation policies, improving the utilization efficiency of bank funds, and effectively preventing loopholes in tax evasion, as well as the fair tax burden of domestic and foreign financial enterprises.

4. Adjust the business tax policy for financial leasing business. It is recommended that financial leases with investment nature be treated as investment in fixed assets and enjoy preferential taxation policies for investment deduction; when business taxes are levied on financial lease business, discrimination against domestic currency financing should be eliminated. For leaseback businesses, adjustments should be made to their business characteristics Tax policy to eliminate double taxation.

5. Establish and improve the taxation system for trust businesses. The trust tax system should be designed according to not only the tax types, who benefits (who has taxable behavior) who bear the tax liability, and the tax is not re-levied, which is convenient for collection and management. In the design of business taxes, value-added tax, corporate income tax, personal income tax and other taxes. According to the nature of the parties to the trust and the content of the trust business and the income in the various links of the trust, the corresponding taxes are levied separately. ^[2]

6. Change business tax to value-added tax at an appropriate time. One current view is to change the financial industry from collecting business tax to value-added tax. It is believed that repeated taxation can be completely solved, and a fair tax burden is conducive to the development of China's financial industry. However, levying value-added tax on the financial industry has many difficulties in actual tax treatment. Due to the large number of business services provided by the financial industry and the nature of business services, the verification is difficult and the cost is large. Therefore, the collection of value-added tax requires that the level of tax collection and management be implemented on a considerable basis. In order to develop the financial industry and enhance the international competitiveness of China's financial industry, it is a long-term plan to levy value-added tax on China's financial industry, and it should be implemented when the conditions are ripe.

Financial tax system

1. Unified corporate income tax system. After China's entry into the WTO, China's various restrictions on foreign financial institutions will gradually be liberalized. If the tax policy that favors foreign financial institutions continues to be implemented, it will inevitably result in unequal treatment of tax burden on domestic and foreign financial enterprises, resulting in unfair tax burden and hinder Consequences of the development of domestic financial enterprises. Therefore, it is advisable to unify domestic and foreign-funded corporate income taxes, unify the tax rate, and appropriately reduce the corporate income tax rate to 24%. Unify the tax base, make unified provisions for the treatment of various deduction items, assets and finances, eliminate unreasonable pre-tax deduction restrictions, and adjust and formulate reasonable deduction items and standards. Unify tax preferences, gradually eliminate tax preferential policies for foreign-funded financial industries, adjust tax preference policies to change the way in which domestic and foreign capital are divided into preferential policies, and implement preferential policies according to the different businesses of banks.

Financial tax system

2. Unify the property tax (real estate tax, vehicle and vessel use tax) paid by domestic and foreign financial enterprises. At the same time, urban maintenance and construction tax and education surcharges are levied on foreign-funded financial enterprises, which is in favor of a fair tax burden. Promote enterprises to compete on the same starting line. ^[2]

Financial tax system optimizes tax system and strengthens tax collection and management

1. Taxation of financial derivatives. According to international practice, the taxation of financial derivatives in various countries generally has the following basic characteristics: (1) no separate tax types; (2) a compound tax system generally levied in the three links of issuance, trading, and income; (3) according to Taxation is determined by the nature and characteristics of financial derivatives; (4) General taxation rules apply without special regulations. Therefore, China can set up taxation items for financial derivatives in business tax, value added tax, stamp tax, corporate income tax, and personal income tax. Based on the characteristics of the emerging and forthcoming financial derivatives, we will study and determine the specific taxation objects, taxation links and applicable tax items, calculation basis, tax rates, and taxation methods. (See Table 1) In designing the tax burden level, considering that China's financial derivatives are still in their infancy, it should not be too high. For some emerging businesses, businesses that encourage development adopt low-tax and tax-exempt policies.

2.Secondary market levies securities transaction tax instead of stamp duty

In order to make China's taxation of securities transactions more accurate and more standardized, and change the phenomenon of narrow collection and serious loss of tax sources, China's current stamp tax on securities transactions should be abolished and securities transactions tax should be used for secondary market transactions. Instead, it's true. The following aspects should be considered when setting up the securities transaction tax: (1) The taxation scope of the securities transaction tax should include all securities listed and traded, including stocks, bonds, and investment funds, and cover all categories of the capital market Market transactions, including primary markets, secondary markets, OTC, etc. <2) The one-way taxation system based on the actual amount of securities transfer and the seller of securities transactions as the taxpayer is conducive to encouraging long-term investment and curbing speculation. (3) When designing tax rates, consider the risk of securities investment and the actual level of returns, and set different tax rates for different types of securities and trading methods. (4) Collection management. The stock exchange tax shall be withheld and paid by the exchange, and it is proposed to divide it into a central tax.

3. Choose the right time to levy capital gains tax

Financial tax system

The so-called capital gains tax is simply a tax on the spread income (capital gains) obtained by investors in securities trading. For capital gains tax, there will be an "investment lock-in" effect, an "income effect" that affects the size of the securities market, and a "substitution effect" that affects the duration of securities holdings. Therefore, the levy of capital gains tax will affect the enthusiasm of investors and the activeness of transactions, and it will also help regulate the fairness of social distribution and increase fiscal revenue. At present, many countries in the world are taxing capital gains on the transfer of securities to curb excessive speculation in securities. Therefore, the introduction of capital gains tax is a long-term trend in the construction of China's securities tax system. However, the formation of capital gains tax places higher requirements on the development level of the national securities market and the foundation of the tax system. At present, considering that the establishment time of China's securities market is relatively short, investors' psychological capacity is fragile, there are still many irregular and illegal activities in the market, and the level and basis of tax collection and management are relatively low. The time is not yet ripe. However, with the continuous development and improvement of China's securities market, people's investment ideas are becoming more rational and the level of tax collection and management is constantly improving. It is inevitable to choose the right time to levy capital gains tax. It can not only embody the principle of fairness of taxation, but also prevent the arbitrage and tax avoidance phenomenon of capitalization of dividends. To levy capital gains tax, the following principles should be followed: (1) adhere to the principle of light taxation (2) adhere to the principle of universal levy (3) adhere to the principle of encouraging medium and long-term investment (4) adhere to the principle of deducting capital losses from capital gains (5) Adhere to the principle of indexing capital gains. Capital gains tax designed in accordance with the above principles is conducive to the healthy development of the securities market.

4. Strengthen tax collection and management. While adjusting the tax burden of financial enterprises, it is necessary to further improve the tax system, make the financial tax system develop towards the legal, standardized and institutionalized direction, strengthen tax collection and management, and plug the loopholes in collection and management. With the development of network technology and the development of online banking, the realization of paperless transactions is an improvement of banking business. However, it has also brought new requirements for taxation work. It is required to strengthen the construction of the tax collection and management system for financial network transactions in order to prevent The loss of national financial taxes. ^[2]