The Research On The Income Tax System In The Republic Of China

Income tax is one of the most important taxes in the world today in many developed countries, with the burden fairness, popularization, income clearly, elastic, and convenient collection advantages, is recognized as world’s benign tax. Chinese income tax system dated between late Qing Dynasty and early the Republic of China, which were the result of Western Learning in early twentieth century, the system choice of Modern Chinese social and economic development. Since the implementation of the income tax as the main direct taxes, the tax system began to make real change and gradually embarked on the path of the modern tax system.The setting of income tax was a product of economic development in a certain stage, but the fuse just was the financial require coping with the war. Income tax originated in the industrialization of the earliest British, followed by Germany, Australia, Russia, Canada, the United States imposed the income tax for the wartime needs. Due to the strong vitality of income tax, it promotes faster and faster and becomes the main tax in the vast majority of countries and regions today.China’s raising conferences to organize the setting of income tax began with late Qing Dynasty and early the Republic of China, which was closely related with the economic, political, social and tax system reform at that time. In the late Qing Dynasty, many experts had heated theoretical discussion on the introduction of income tax, which had done a lot of public opinion preparation for its introduction. Xuantong second year (1910), the Degree branch of Qing government drew up Income Tax Thirty Draft Articles to improve the tax structure and ease the financial pressure with reference to developed countries’income tax system practicing. Although the draft has been sent to the advisory council for consideration but it was being in suspense, and soon the Revolution of1911broke out, the collapse of the Qing Dynasty made the introduction of the income tax system plan to be premature death.Beijing government of the Republic of China issued Income Tax Act in January1914, which was considered as the beginning of the formal legislation of the Chinese income tax. Subsequently the local tried to levy income tax, but due to regulations’ start and lack of practice, the process of collection encountered heavy resistance, the society from all walks of life generally reflected the income tax’s wide range, levy procedures’numerous, business people were not easy to accept, which brought on weak implementation.In1921, Beijing government enforced the income tax, taking the lead in Beijing to levy salary income tax, and for official salary withholding part, but the effect was not obvious. Later, the increasingly financial difficult made official’s salary was difficult to guarantee, the official salary income tax had to stop and the complement of income tax had become a standstill.The failure of income tax’s complement between the late Qing Dynasty and early the Republic of China, was not only subject to the wisdom of unopened, backward economy, social unrest, the government lack of power and other environmental factors, but also subject to income tax and its matching rules defects, income tax system content was relatively complex, commerce and industry organization was not perfect, the new accounting methods couldn’t promote, which had seriously restricted the income tax’s active function and restrained people’s enthusiasm and identity to the good tax.After the founding of the Nanjing national government, it committed to the tax system reform, and the priority was the implementation of income tax. At that time, China had provided with the income tax collection’s social, political, and economic aspects condition, and to cope with financial difficulties’urgent need also made the income tax was poised to strike. In July1936, the national government had announced the" Provisional Regulations". It was divided into business income, salary income and interest income three categories. After the complement of income tax, the second category of public servants paid to income from remuneration and the third category of bonds and deposit interest income tax with effect from October1,1936, and the rest of the levy with effect from July1,1937. As a result of Provisional Regulations" and " income tax provisional rules" were classified income tax system, taxation scope was narrow, tax rate was lower, tax reduced items was more, collection method was simple, National Treasury Department has also taken a series of measures, which carried out more smoothly and gradually showed effect. So far, from the late Qing Dynasty began to raise conferences to introduce income tax to the ultimate success of implementation had gone through a long30years, which was a milestone in the history of the Chinese tax.Income tax in the Republic of China had experienced from simple to complex, from classified income tax to gradually develop into comprehensive income tax. Initially offered only to the business, salary and securities account payable three kinds of income taxes. With the further implementation of income tax and domestic and international situation changes, income tax gradually embarked on the legalization and the process of levy" expansion". In January1943, the national government had promulgated The income tax law of leasing and selling properties, which was the official introduction of the income tax on leasing and selling properties. In February the same year, the national government issued Income Tax, adjusted the tax rate, increased the penalty, at the same time abolished Provisional Regulations. In April1946, the national government issued the revised Income Tax, made larger changes to the original Income Tax, divided the classified income tax for enterprise income tax, payable income tax, the securities deposit income tax, income from lease of property tax and a certain tax five categories, and began to levy comprehensive income tax. In addition, in October1938, national government promulgated Extraordinary Period Excessive Profits Tax Regulations to impose excessive profits tax; in January1947, the promulgation of Special Too Gains Tax reformed the very period of excessive profits tax as a special excess profits tax, although named by Profits Tax, in fact was the income tax.Income tax of Nanjing national government officially organized in October1936, from it to1949Chinese Kuomintang exit the central of historical arena, which lasted for13years. From the promulgation of Provisional Regulations to set the income tax, the legislative process experienced by the promulgation of income tax regulations to formal legislation, Which was a process according to the current situations development constantly revising and adjusting Income Tax. In this process, the income tax by new taxes had gradually become an important part of state tax, most of the time the income rise, income tax levy scope expanded gradually; the regional popularity was throughout the country. The setting of income tax system in the Republic of China was an epoch-making revolution in the tax system history, as the income tax during the start-up process of enriching and improving, laid a solid foundation for the Chinese modern tax development.In the late Republic of China, for a full-blown of civil war, business and industry suffered a heavy blow to the site of the Kuomintang-controlled areas to accelerate narrow sources of tax revenue shrink even more serious. National Government had even set aside the income tax legal basis, and trampled the tax principle, take the way of the estimated payment, apportioned, forced recruitment of exorbitant levy and extortion, the development of the war period and the continuous improvement of the benign tax of substantial income tax, pulled off the discontent of the people a bad tax, anti-levy refuse to pay intensified, ultimately resulting in income tax existed in name only. The running track of the Late Republic of China income tax is both a microcosm of the changing times, to a certain extent, the intensification of social contradictions, boosting social change through the old income tax system, complete bankruptcy, and the birth of a new income tax system.The Republic of China spared no effort in implementing the income tax system and be successful, not only marks the traditional tax system began conversion to a modern tax system, has also become the world of benign tax of the income tax collection and continue to play an important role in the beginning. From the period of the Republic of China many income tax litigation cases, the income tax in the implementation process was still flawed, leading to the Republic of China income tax system to carry out a tortuous process. The twists and turns of the Republic of China income tax system to promote the process, left a valuable experience for future generations, namely the implementation of the income tax system must conform to the trend of the times, to learn the strengths of other countries; full attention to high-level, the parties continue to promote; the easier issues first, making steady progress; collection and management measures effective supporting measures apply; to protect the interests of taxpayers, pay attention to tax fairness. Republic of China income tax founder of early failure, but also makes us realize that to be implemented must speed up economic development success, to maintain political stability and government decrees, and constantly improve the quality of, and strengthening the tax law publicity and education, to take corresponding measures. Income tax in formally organized, there are also the implementation of time constraints, the system is changed frequently, difficult to comply with; internal thinking at all levels of government and tax authorities are not uniform, the implementation of inter-regional imbalances; double taxation, public and private unconscionability; for plundered the wealth of the people harsh and unauthorized camp, self-destructive tax code many deficiencies which lessons to be learned.Income tax has become one of the main taxes in China, from the international, domestic tax system development and change; it will occupy a dominant position in Chinese future tax system tax. To make the income tax becomes the main source of national finance faster, and better play its functional role, it is necessary to include in income tax system and income tax system, comprehensive and in-depth research, continuing to draw lessons from the current income tax system, and perfect the existing income tax system. The successful implementation of the Republic of China income tax is the beginning of the Chinese income tax, the contents of the current income tax system with the Republic of China income tax system have many similarities, such as the scope of the collection, tax reporting method, taxes and levies class means, which in itself is the heritage of history and learn from. Republic held the success or failure of the income tax, to constantly improve and refine the current income tax system has a lot of inspiration to contemporary. Learn from successful experiences and lessons of the Republic of China held the income tax should be fully adhere to the philosophy of the reform and development, continuous improvement and perfection of contemporary income tax system; deepen the tax according to law, protect the legitimate rights and interests of taxpayers; to avoid double taxation and the virtual surplus real tax; promote information management tax improve the collection and management level; deepen the internal reform of the tax authorities to stimulate the team dynamic. In the new historical period, and give full play to the functional role of the income tax, continue to promote economic development and social harmony.