A Study On The Causes And Effects Of Limited Deductions For Personal Income Tax Expenses

In theory,income tax should be a tax on pure income,that is,the expense deduction of income tax is a "real deduction" according to the actual cost and expense.Enterprise income tax(corporate)main taxpayers for the company,with its income minus the related,the reasonable expenses(including costs and expenses,taxes and other expenses)the difference of taxable income.However,the personal income tax mainly takes the individual(family)as the taxpayer.In essence,it adopts the "limited deduction" method with lower management cost.The two reasons,first,the individual and family this traditional economic organizations,and enterprises,the company is different,this kind of modern economic organization lack of strict financial management,accounting and other modern management system.Therefore,personal income tax does not have the basic conditions of income tax accounting in most cases.In the second place,from the deep sense,the personal income tax deducted from qualified on the way from system to ensure that the amount of legal basis,to ensure the personal income tax has plenty of tax revenue,safeguard the country's "tax creditor's rights" of "creditors" interests.The first chapter is introduction.The second chapter mainly elaborated the income tax theory and the income tax standard expense deduction way,explained the company is to adopt the standard expense deduction way.In contrast,individual income tax is subject to a limited deduction.The third chapter through the comparison with the company,from individual(family)lack of standardized financial accounting system,management system and shall be borne by the company limited liability and the cause of the individual(family)bear unlimited liability launched individual(family)to the state "tax creditor" brings huge risk,explain the reason of the qualified individual income tax deduction;The fourth chapter discusses the individual businesses in China,for enterprises to contract the lessee,the sole individual proprietorship enterprises and partnership enterprises with characteristics of natural person "middle taxpayers" forms of organization and its special rules on expense deduction,tax in financial accounting and financial management have certain basis and the premise of approval by the tax authority,fees should be provide as far as possible;The fifth chapter analyzes the foreign individual income tax expense deduction system,indicating that the foreign expense deduction system also adopts the method of limited deduction,and tries to make the actual deduction as much as possible.The sixth chapter combines foreign advanced experience to put forward the suggestion to our country individual income tax expense deduction system.There are three innovations in this paper.First,it has carried out in-depth theoretical research on the issue of personal income tax expense deduction.Second,the research perspective is innovative.Through the analysis of the limited liability of the company and the unlimited liability of the family,it is concluded that the individual income tax is subject to the limited deduction while the company is subject to the actual deduction.Thirdly,the personal income tax and enterprise income tax,both of which are income tax,are studied in the same framework.The disadvantage of this paper is that it involves many disciplines such as accounting,lawand taxation,which are limited by interdisciplinary knowledge.The perspective of this paper is relatively limited,and it is difficult to fully explain the problem.