On The Improvement Of China's Individual Income Tax Law

In the market economy, personal income tax is one of the main categories of taxes in a nation's tax structure, and it is also the principal resource in a country's financial revenue. According to the contemporary tax theory, personal income tax is the most important subject while studying the country's tax system, because it is flexible, and it can redistribute the revenue and make the economy stable, etc.Since 1980s, China's income tax system has been through a lot of changes, which is now fit for China's market economy for the most part, but it still has a lot of problems at present. This article is mainly about:-The recollection of the birth of personal income tax; the development and the experiences of the income tax in western countries.-Advice to better China's income tax system according to the successful and useful experiences from other countries and the reality of our country.The author tried to give solutions for the improvement of China's income tax in two respects: tax system and procedure.1 On tax system: turning scientific personal income tax model system; enhancing the amount of personal income tax -free; bettering personal income tax-discount system; reducing personal income tax rate and grade; widening income personal income tax areas, etc.2 On procedure: changing the mode of personal income tax-collection; bettering deputy personal income tax collection system; computerizing the management; reinforcing supervision system; increasing the awareness of personal income tax payers, etc.