A Legal Reflection on Reform of Internet Finance Tax

Abstract

Abstract: Internet finance is a product of the interaction of many industries in this information era. On basis of internet, it is quite often free from present taxation regulations on the financial industry. Legal absence in this newly-merging financial form requires urgent solution as it develops. Taking online P2P (peer to peer) lending as an example and referring to legislation experience in EU and US, this paper centers on taxation mode for internet finance from three main categories of taxes like enterprise income tax, individual income tax and business tax, and at the same time gives special attention to the top-level institutional design of internet finance tax and its detailed application in the process of value added tax (VAT) pilot reform.
Key words: Internet finance; Taxation legislation; Online P2P lending; VAT pilot reform