Study Of China's Taxation Costs Actualities And Countermeasures

Beginning with the theoretical explanation of taxation costs concepts, contents and components of target system, this paper probes into the significance of our nation's taxation costs. It analyses the present situation and the causes of our taxation costs. And it also advances the main countermeasures to reduce the taxation costs. This paper consists of three parts: The first part defines the concepts and contents of taxation costs in terms of theory preciseIy~analyses the components of the target system of taxation costs and the main factors influence the taxation costs; studies and inquires into the important meaning of taxation costs in our country. This paper indicates that the aim of investigating taxation costs is to find out the internal relationships between revenues and taxation costs; to make good use of taxation outlays; to find out the approaches that reduce taxation costs; to achieve the greatest benefits through lowest administration management costs. In a word, investigating taxation costs ; taking active countermeasures; reducing taxation costs through reforms will take on very important theoretic and realistic meanings. The second part states generally the main situation of our country抯 taxation costs combining with practice. This part also analyses and concludes the reason why the total amounts of taxation costs in our country is increasing so rapidly ; taxation costs and revenues ratio is so high; great diversities occur in different sections. This part points out the main reasons that result in taxation costs in our country .and these reasons are divided into macroscopically system factors and microcosmic management factors. Macroscopically system factors go as follows: finance system is not very perfect; levying system is not very optimizing; organization setting is not very reasonable ; levying reform disbursal is increasing and so on .Microcosmic management factors go as follows: costs concept is dim; levying means are getting behind; personnel diathesis is low; personnel outlay is increasing highly ; capital construction outlay is great; charges of line of duty is expanding and so forth. The third part puts forward the basic countermeasures that reduce the taxation costs in our country. The countermeasures are taking the following five aspects into account: strengthening the management systems of costs; perfecting systems of poverty tax; improving the modes of levying taxes; simplifying the organizations installations purifying tax environments. These countermeasures demonstrate that reducing taxation costs and improving levying efficiency is a systems engineering. This systems engineering needs to carry out efficiency principles in each tache, these taches include taxation constructs; levying modes; management instruments; organizations installations; personnel diathesis trainings; taxation environments. The systems engineering also needs to establish rules combining with market economy and to establish levying systems adapting to local actualities. In addition this systems engineering needs to realize optimizing combinations of levying factors; to realize legalizatiorn standardization systematization of taxation managements. So we can achieve the greatest benefits through lowest taxation costs.