Personal Income Tax Study

The Individual Income Tax is the tax that imposed on all kinds of taxable income obtained by individuals. It started from Britain, in 1799. Individual Income Tax has the characteristics of fair, flexible and avoiding tax repeated. Individual Income Tax is not only the important source of the national fiscal revenues, but also has important functions of regulating personal income distribution as well as increasing the growth of economics. As a kind of "modern tax" in collecting fiscal revenues and making income distributions fair, the Individual Income Tax has already been paid attention to by all the countries around the world day by day.As the Individual Income Tax of Australia is the main tax of the state and uses the same means to list incomes and deductions as ours, and its Comprehensive Income Tax Mode is our goal, it is more perfect and exert the double banlanced functions of both organizing fiscal revenue and adjusting economics well, so this article is going to take Australia and China as samples, to compare their Individual Income Tax, and find out the advantages that we can use for reference.The article has four parts.The first part is the general introduction of Individual Income Tax, including the definition, common features, functions, and the history.The second part is the main part of the article. It compared and analysized the differences between the Individual Income Tax of Australia and that of China, including the differences of status, taxation mode, and the basic taxation system. The last aspect, the basic taxation system, is the main section of this part.In the third part, I gave simple conclusions for the Individual Income Tax of Australia and China respectively, and analysized their difference further.In the last fourth part, I gave some suggest to the Individual Income Tax of China. I suggested some basic thinkings first, then suggested more material ways of how to improve it according to each items that I mentioned in part two.It can be seen from the comparisons above that the main reason of the differenceof Individual Income Tax Systems between developed countries such as Australia and China is the different economic levels. The productivity level of China is still low. Secondly, the choice of the mode of the Individual Income Tax is affected by its status subjectively. Thirdly, the theoretical foundation of the Categorized Income Tax and the Comprehensive Income Tax is different. In addition, the difference of basic tax systems of the Individual Income Tax is the comprehensive reflection of all the tax factors. Last but not least, the lack of declaring and paying tax relate to the weakness of citizen's consciousness and social system.Combining with the reality of our country, the guidelines of improving the Individual Income Tax System should be: combine income with regulations, and consider the efficiency principle properly. To improve the Individual Income Tax of China, we should choose a long-term taxation mode which can suit our country's national conditions, that is the Comprehensive Income Tax Mode, and we should adjust the judgment of taxpayer's standard, define the range of objects of taxation again, adjust the tax rates structure, adjust the deductions standard, add tax allowance, and regard the family as a unit to declare and pay taxes.This text is one of the few articles that compare the Individual Income Tax Systems between Australia and China nowadays in China. I suppose it can be used by someone in the study in the field of Individual Income Tax in the future.