Improvement In Legal System Of Taxable Income Of China’s Individual Income Tax

As one of the most important tax, the individual income tax had become inadaptable tothe requirements of economic. This problem could be solved if we made some reformation tothe legal system of individual income tax. The legal system of taxable income of individualincome tax is most important of all the ingredients.The central issue of this paper is perfection of the legal system of taxable income ofindividual income tax. There are five parts in this article to discuss the legal system of taxableincome of individual income tax.The first part can be divided into three sections. The first section is mainly about theconception of taxable income of individual income tax. The second section is aboutcharacteristics of taxable income of individual income tax. The third section is about thetypes of taxable income of individual income tax.The second part of this article is about the weaknesses of China’s legal system of taxableincome of individual income tax.In the third part I compared China’s legal system of taxable income of individual incometax with those of UK, USA, Japan and Germany.The fourth part is of the most importance in this paper, in which I discuss the perfectionof the legal system of taxable income of individual income tax. Firstly we could dividetaxable income of individual income tax into four types: income from labor; income frombusiness; income from property and right; accidental income. Then I discuss the perfection ofZero Bracket Amount. In the third section I discuss the perfection of expense deduction. Andin the last section I discuss the perfection of taxable income of individual income tax fromstock trading.I sum up the article and put forward a conclusion in the last part of the paper. Although itmay be a little more complicated and ineffective if we reform the legal system of taxableincome of individual income tax as which I have discussed in the paper, it’s still worth to dothis.“Don’t suffer from few but suffer from not and all” said Confucius. That’s the point.