Research On Pre-tax Deduction Rule Of Personal Income Tax Law

With the continuous deepening of the personal income tax reform process,it has come to a stage where specific reform proposals for various systems are required.Based on the background of personal income tax reform,this article discusses the current preferential tax deduction system,analyzes and examines the tax deduction system of current tax in our country briefly,Found that the main existence of the amount of exemptions and deductions confused,deducting the item is not clear and not subject to adjustment standards perennial adjustment.After reflection,it is found that due to the relatively short implementation time of the personal income tax law in our country and the low compliance with the basic principles,For a long time,the fiscal role of the individual income tax law has been given more attention and has been well achieved.However,the role of redistribution and the mediation of the gap between the rich and poor has been neglected,resulting in a substantial tax unfairness.Based on the above reasons,this article intends to introduce one of the sub-principles under the principle of quantity and energy taxation,namely the principle of subjective net income.The principle is that the tax base should be calculated by subtracting the balance of taxpayers 'capital necessary for their own survival and their families' livelihood,that is,on the basis of the free disposal of taxpayers.The main purpose is to protect the taxpayers' basic living rights and basic property rights from tax infringement and realize the substantive equity of personal income tax.In order to make the principle of subjective net income better play a role in the tax law of our country,this article draws on the system design of pre-tax deduction rules in Taiwan and proposes the reform of pre-tax deduction system according to the principle of subjective net income.The first part introduces the current situation of China's personal income tax pre-tax deduction system,and divides the current deduction system into three parts: livelihood deduction,cost deduction and franchise deduction,The next review of the current deduction system,proposed exemption amount and deduction confusion,deducting the item is not clear and not subject to adjustment of the standard perennial adjustment,finally leads to the principle of net income in charge.The second part introduces the principle of subjective net income in detail,clarifies its basic concept as follows: "The calculation of the tax base should be made out of the taxpayers' property necessary for the survival of themselves and their families,that is,free-disposal income available to taxpayers." Then,I enumerate the embodiment of the principle of deducting the subjective net income from the pre-tax deduction system in the comprehensive income tax in Taiwan(corresponding to the personal income tax of our country).Finally,this principle and similar principles are analyzed in order to make the reader's understanding of this principle more thorough and thorough.The third part focuses on the introduction of the principle of meaning that is the embodiment of the constitutional spirit of our country,can achieve substantive tax equality,safeguard the taxpayer's right to life and property rights and to promote the amount of taxable principle in our tax law.Then,taking the principle of subjective net income as the standard,we should consider the range that should be considered before tax deduction,including the basic needs of taxpayers,the basic living needs of relatives with taxpayers' obligation to support,the living expenses usually increased,and Abnormal living burden.And what parts of the deduction system should follow that principle.The last part puts forward concrete suggestions on the setting of pre-tax deduction rules of personal income tax in China according to the principle.First,a clear distinction should be made between exemptions and deductions so that taxpayers' basic survival rights are guaranteed;Secondly,the detailed deduction of pre-tax costs should be deducted so as to prevent taxpayers from being overvalued;Finally,the exemption amount will be adjusted exponentially to avoid the ineffectiveness of the exemption adjustment caused by price changes.