A Comparative Study Of Individual Income Tax Law Between Korean And China

The current individual tax system in China has been in force since 1980.It has taken an active role in increasing the financial income and regulating personal income distribution. With the development of the reform and opening-up and the promotion of the socialist market economy, the economic life and the structure of our economy has witnessed drastic change and personal income has been increasing fast .Therefore, individual income tax began to become one of those important tax sources of financial income and a kind of fastest growing tax. However, present individual income tax system has exposed some problems during its being undertaken. The globalization of the world economy under the frame of WTO demands that we have to adjust our individual income tax system actively in accordance with our economy development situation.As for the study on the international comparison from the aspect of tax system, we mainly compare the tax system between China and developed countries, eg. Europe, America and Japan. However, we have made little study on our neighbor country Korea. Also, there is few paper about it. China and Korea have common origins on the aspects of history, culture, custom and so on .The individual income tax is the main tax of the state .We can learn a lot from Korean successful reform in the individual income tax in recent years. Korean Comprehensive Categorized Income Tax System is our goal, and it is more perfect and exert the double balanced functions of both organizing fiscal revenue and adjusting economics well .So, this paper takes Korea and China as samples, to compare their individual income tax, and find out the advantages that we can use for reference. Moreover, the paper compares the individual income tax between Korea and China from two aspects of substantive law and law of impose and control.The paper is divided into nine parts.Introduction. It mainly deals with the concept of individual income tax, the study background, the study meaning, the main idea, the outline and the creation of the paper. Chapter1. It introduces the developing history of individual income tax in China and Korea. Then, it analyzes the characteristics of a few periods of Korean individual income tax reform in recent years, Also, it points out the legislative disadvantages of Categorized Income Tax in China, and deals with the inspiration of Korean legislative reform in individual income tax to China.Chapter2. It compares the individual income taxation mode between China and Korea. Beginning from the introduction of current Categorized Income Tax System,the Comprehensive Income Tax System and Mixed Income Tax System, this chapter mainly analyzes the characteristics of Mixed Income Tax System in Korea,and finds out the problems of current mode of individual income taxation in China.Chapter3. It compares the tax law between China and Korea from the aspect of legal subject.Chapter4. It compares the tax law between China and Korea from the aspect of legal object.Chapter5. It specifically explains the relative regulations about expense deduction of individual income tax in Korea. Combining with the reality in China, it analyzes the defect of Chinese expense defect system.Chapter6. It makes a comparison of structure of individual income tax rate in Korea and China.Chapter7. It deals with the comparison of taxation way,and finds out problems of individual income taxation system further.Chapter8.Conclusion. On the basis of study on the individual income tax system in Korea, it points out the disadvantages of present individual income tax system. Moreover, it puts forward some suggestions on the reform of individual income tax in China.