The Research On China's Royalty In Personal Income Tax Law

In the new period of China's personal income tax law reform,as the vigorous growth of market economy and multimedia computer technology,the tertiary industry in the country's support is under a vigorous development trend,more and more people joined the production of the tertiary industry,royalty has become one of the important income sources of cultural and creative industry practitioners.As a part of personal income tax for a long period,its importance has increased greatly.Compared with the wages and salaries,China's royalty personal income tax system law has no changes since last 80 s,the influence by more than 30 years of inflation and the gradual improvement of people's living standards and other factors result in the current royalty personal income tax system has been far behind the development of times,even become a survival bottleneck of the cultural and creative practitioners,and thus became the main reason why the writers' representatives spoke it several times since the National two sessions of 2014.For a variety of reasons,our scholars on the personal income tax system research has always focused on wages and salaries,and it is rare for people who specialize in the proceeds of royalties from the point of view of tax law.Royalty is a part of labor income,it naturally has the value for us to research.With the increasing of the number of professional writers in China and the rising of the original literature website online,the number of online writers has greatly bombed,and the research value of royalty is worth paying more attention.The long-standing question of the exemption of royalties for writers' representatives is only one of the many problems that exist in the system,and it is not possible to improve the creative environment of such people simply by raising the exemption.This article will use the three practical cases as the starting point,in the form of case analysis by historical analysis,comparative analysis and other comprehensive research methods,combined with the transformation of the domestic personal income tax law reform,focusing on the problems of current royalty in personal income tax system and putting forward some advice.The paper has been divided into three parts:The first part is the case analysis of the online royalties.First,I point out a case of the royalties of an original literature website,then I analyze the problems which are reflected in the case.The main problems are the vacancy of regulations on online royalty and the attribution of it.Finally,I put forward the inherent requirement which is based on the principle of taxation on the scope of royalty in the personal income tax law.The second part is the case study of the levying method of royalty in personal income tax.By a case of comic company which was suspected of tax evasion submit the levying method of royalty in personal income tax has a vague scope and the sub-levy has an inherent drawback.And then I put forward a proposal to incorporate the royalty into the labor income.The third part is the case analysis on the unfairness and the management of the royalty in personal income tax.First,I introduce the case of a professional writer who owed his personal income tax,the case reflects the unfairness between wages and and royalties in personal income tax as well as the serious loss of tax revenue.Based on the principle of tax fairness,it is necessary to add the deduction and income averaging mechanism as well as improve the regulations of personal income tax relief of literature award.Improving the tax management system is also necessary.The significance of this paper is to discuss the shortcomings of the personal income tax system of royalties from a practical point of view,and taking the overall orientation of tax reform as the research background.From the change of the concept of royalty to the reform of tax management system,focusing on the professionals,by searching for foreign regulations,compared foreign relevant royalty provisions with us,then learned from their excellent experience,putting forward the income averaging method and the suggestions of perfecting the royalty in personal income tax system that aim to further improve the living environment of the creators.