Study On The Collection And Management Strategy Of Individual Income Tax In Shenzhen

Since Chinese tax reform in 1994, individual income tax increases by an average of 34% steadily. Personal income increased the individual income tax with the fastest growth rate in China, but it resulted in the most serious tax erosion of taxes. With the increase of income gap between people, the function of adjusting income distribution is becoming weaker and weaker. Nowadays, the society voice of tax reform gets stronger day by day. Therefore, how to improve the system of tax collection and management, to prevent individual income tax erosion is particularly important.This paper uses standard argument structure analysis and empirical analysis method. Taking Shenzhen as an example, this paper analyzes the problem exposed in the practice by the basic level from the classification system of personal income tax, and puts forward some suggestions on optimal and reasonable scheme. As for the currently proposed of tax management mode, i.e. "tax declaration and optimizing service as the basis, the computer network, the centralism collection, key inspection, strengthening the management of tax collection", we deeply discuss the potential problems that occurred by basic level tax authorities in practice. According to the personal income tax situation of Shenzhen, we analyze the four aspects of the existing tax system mode, i.e. the collection agencies administration level is not high, the personal income tax withholding system is not in place, and in case of penalty defeat, etc. Based on these, we put forward the implementation of Shenzhen combined classification and comprehensive individual income tax system, and a gradual consummation mode of personal income tax system of China. With the measures taken by this paper, we can optimize the individual income tax withholding tax collection and management system, improve the level of modernization and the social credit system, and increase the dynamics of tax evasion punishment.The contribution of this paper is:most researches focused on the influencing factors of tax system recently, while this thesis emphasizes on practicality and collection and management strategy of individual income tax, where the idea of "Shenzhen first trial classification and comprehensive combination of individual income tax system" is of strong maneuverability.