Research On Income Tax Planning In Personal Finance

In personal finance, tax planning is an integral part of the income distribution. Withthe development of China’s socialist market economy and the improvement of people’sincome level, tax planning has become more and more attention by people. Everyone isforced to finance in recent years, why? This paper choose the personal income tax as thebreakthrough point, for three reasons:(1) As one of the most typical tax, personal income tax is the most well known, mostof people understanding of tax law and the study is the first through to the individualincome tax started;(2) the number of individual income tax collection of the most widely,pay the most, is also relatively complex tax;(3) The individual income tax in1799,pioneered by the UK, since countries introduced successively, at present the personalincome tax has been adopted by more than140countries and regions all over the world,holds an important place in the world, and became the leading main tax of the developedcountries. Though the proportion of in our country is relatively low, but the growthpotential is huge.This article through consulting a large number of relevant literature, to our countrypersonal income tax planning process is reviewed, in combination with the actual situationin our country, defined the connotation of personal income tax planning; Then, through theanalysis of the carding domestic and foreign relevant theories and combined with theactual situation of tax planning in China market, analyzes the taxpayer through legal means,to reduce their tax costs; Core part is by analyzing the principle and method of personalincome tax planning, the design provides easy and feasible to taxpayers tax plan; Finallyaimed at the problems from the macroscopic and the microscopic two aspects, a series ofSuggestions were put forward, and the future research direction of outlook.