English And American Reference To The Reform Of Deduction Standard Of Personal Income Tax In China

Personal income tax has been an important source of revenue in the most countries, China——as a developing country, for our country, personal income tax also has been fundamental significance. Since September1,2011, China began to implement the new bill of personal income tax, it increased the amount of standard deduction for wages and salaries and self-employed and commercial households, but it did not show that it can improve the tax burden of secondary or low-income people and self-employed. After enacting the new bill, there are many represents to propose that it should increase the deduction standard, because it still can not meet the needs of individuals now. It is clear that the standard deduction of personal income tax was still facing to many problems in China, after enacting the new bill, for example, when it set the standard deduction, it did not consider inflation as well as the differences of regions, urban or rural and individual; when estimated, the range of standard deduction is narrow; the standard deduction of itemized deduction and the treatment of special staff was not reasonable.This paper is aimed at the background of enacting Personal Income Tax Reform Act in China, currently, research English and American mature standard deduction sysiem of personal income tax, for example, the deduction of the elderly, maintenance costs, donation costs, the self-employed, medical costs, transportation costs, housing costs, accidental loss, the cost of education promotions and marred couples’filing jointly system. With many ways——normative and data analysis and summary, it analyzed to problems of deduction in China. And on this basis, we can draw on its system, in order to adjust the standard deduction of personal income tax in China, so as to solve the problems of our deduction standards. Based on the above research, recommend to the tips of the standard deduction of personal income tax, for example, from all aspects——inflation, regions, urban and rural and so on took account of real life; expand the range of the standard deduction; implement the mixed income tax system and family joint declaration; add to some reasonable standard deductions.