On Improvement Of Individual Income Tax Law In China

Individual income tax is a tax category divided out from the tax revenue regards different objects of taxation as the standard. It collects tax on the natural person's income. Individual income tax law, refer to adjusting the government revenue general name of the legal norm of social relationships taking place with management in the individual income tax between the natural persons.The history that our country collects the individual income tax is very short, the first individual income tax law of the People's Republic of China was issued in 1980, with economic reform, the constant improvement of the gradual pluralism, the irrigation of the income level in the income of the citizen of our country, our country issued the interim regulations of the individual income tax again in 1986, and the interim regulations of income tax of self-employed entrepreneur in urban and rural areas in 1987. As a whole, three tax revenue laws and regulations play a positive role in maintaining our country rights and interests, increasing financial revenues and regulating the personal income etc. but these three laws and regulations distinguished the different paying taxes accord to the personal income, made different tax rates, obviously lack the fairness. In 1994, these three laws and regulations were replaced by the new individual income tax Law. Our country's individual income tax law made a big step towards the reasonableness and regularization. As time went by and the further developing of the market economy in China, the conflicts between this new law and the economic life became more and more, and the gap between this new law and the tendency of worldwide taxes revolution. From then on, more and more people were interested in improving and perfecting the individual income tax law, and how to improve it became the subject that all kinds of people cared. Under this circumstance, this article is divided into three parts to study it on the basis of the present outcomes. Chapter one, current situation and trend of the individual income tax law of our country. Firstly, it briefly introduces the present circumstance of individual income tax law of our country. Secondly, it indicates the tendency of the individual income tax law of our country after the entry into the WTO .We should accord with the international customs step by step in the selecting of the tax system, the enlarging of the tax basis and the reducing of the tax rates, and increasingly improve them.Chapter two, the analysis of the problems in the current individual income tax law of our countryâ… .Unreasonable factors of the tax system mode of individual income tax law of our country. This article chiefly states that there are some deficiencies in the current system of classified income tax which made the tax burden unfair on the taxpayers who have the equal incomes.â…¡. the range of choosing the tax basis is too narrow. It chiefly indicates that the tax basis of individual income taxation in China is narrow compared with the other countries and the tax credit is also simpler than international customs. So the substantial injustice of the tax burden will badly affect the legislation aim of individual income tax law. â…¢. the rate of our country's individual income tax is designed too trivial. The current tax rates are the flat tax rate and progressive tax rate. This two tax rates cannot reach the equilibrium of the tax burden. It is a difficult question to design a reasonable system, which is suitable for the tax system. â…£. the selecting of the extent of the tax preference in our country' individual income tax law is irregular. There are big differences in the tax preference between our country' individual income tax law and international customs, which results too much tax abatement and exempt and too specific regulations. So it is difficult to realize government's guidance but leads to the loss of the tax and the augment of the tax evasion.â…¤. It is unharmonious between our country's individual income tax and the compensation of the complementary taxes. Thi...