Study On Partnership Income Tax In China

As one of three main enterprise organization forms, the partnership plays an important role in the development of market economy in our country. Compared with the company, the partnership has several advantages. And an important one of the advantages is about income tax. In China, different from the double taxation of income tax mode of the company, the partnership is simply taxed on its partners separately. However, due to the underdevelopment of partnership and inadequacy academic research, the partnership income tax law system has a sort of defects in China. Specifically, the range of partnership is indefinite; the sources of law is scattered and legal validity is inferior; pattern of tax collection and administration is unreasonable; levy object is partial; rules of anti-tax avoidance is absent; relationship between partnership income tax law and personal income tax or that and corporate income tax is not smooth, etc. In contrast, the United States has the world most mature system of income tax, and the partnership income tax law is systematic, concrete, logical. Referring to the partnership income tax legal system in the United States would bring us light upon the related legal system in China. I would like to draw an outline of the disadvantages of related legal system in China, based on the basic theory and development of partnership income tax law system; put forward some plans in order to probably contribute to the development of Chinese relevant systems relying on American related law systems.