Research On The Special Additional Deduction Policy Of Current "Individual Income Tax Law Of The People's Republic Of China"

The legislation of individual income tax law of the People's Republic of China collection system originated from the "Individual Income Tax Law of the People's Republic of China" passed on September 10,1980.After 40 years of development,it has undergone six revisions.The 2018 individual income tax reform is the first Seven revisions,this revision includes the increase in the amount of income deductions,the change in tax rates,the establishment of a comprehensive annual income tax system for four types of income,and the setting of 6 special additional deductions,etc.Most of the highlights are the characteristics of this revision,and fee reduction and tax reduction as one of the important goals of the reform since then,have also been reflected,such as the reduction of the fee reduction standard from 3500 to 5000 yuan,and the establishment of a special additional deduction system It can objectively reduce the tax burden of individual taxpayers.With the increase of national income,the tax revenue of China's personal income tax is rising every year.The data of China Statistical Yearbook 2019 shows that among the tax revenues of all tax types in China in 2018,personal income tax ranked third with 1,387.197 billion yuan,while individuals Income tax has become China's third largest tax since 2000,and its proportion of total national tax revenue is also increasing.Compared with the data in 2017,domestic value-added tax,domestic consumption tax,corporate income tax,personal income tax,tariff The year-on-year growth rate was 9.1%,4%,10%,15.9%,and-5%.The growth rate of personal income tax is the highest among the five major tax types,which reflects the continuous improvement of China's residents' income level and living standard,and also reflects China's The tax burden of personal income tax is relatively heavy,and the"Individual Income Tax Law" before the amendment cannot adapt to today's national economy.Since the initiation of personal income tax,the proportion of personal income tax in China's overall taxation has continued to increase with the increase in the income of our residents.From the amount of taxation,personal income tax is currently the third largest tax in China,which is a few One of the important tax types,personal income tax,to a large extent,affects the per capita disposable income of our residents due to the nature of its direct tax,which has a very important impact on the daily lives of our residents.The heavier personal income tax laws will lead to problems such as low per capita disposable income of our residents and insufficient consumption capacity of residents,thus affecting the overall economic development of our country.Since the reform and opening up,the economic environment of our residents has undergone great changes.The living standards of more and more residents have gradually increased with the progress of reform and opening up,and consumer demand has also gradually increased.The result is a steady increase in per capita income.The "Individual Income Tax Law" under the current situation that the accumulated wealth of our residents is gradually increasing and speeding up,we also need to reform with the times.Only in this way can we better protect the lives of our residents and realize the renewal of personal income tax.Assign functionsOn June 19,2018,the Standing Committee of the National People's Congress began to review the "Amendment to the Individual Income Tax Law of the People's Republic of China(Draft)",and on June 29,2018,published the draft amendments and instructions,soliciting differences from the public opinion.This marks the official start of the seventh revision of China's "Individual Income Tax Law." In the end,the draft was adopted at the fifth meeting of the Standing Committee of the Thirteenth National People's Congress on August 31,2018,which means that China's "Individual Income Tax Law" has completed the seventh revision,according to the newly revised " The Individual Income Tax Law of the People's Republic of China(hereinafter referred to as the“Individual Income Tax Law")establishes a special additional deduction system for the first time in China.Article 6(1)of the“Individual Income Tax Law”stipulates that the comprehensive income of individual residents shall be based on the income of each tax year The amount after deducting the expenses of 60,000 yuan and the special deduction,special additional deduction and other deductions determined according to law is the taxable income.The fourth paragraph of this article stipulates that special additional deductions,including children's education,continuing education,serious medical care,housing loan interest or housing rent,and support for the elderly,etc.The specific scope,standards and implementation steps are determined by the State Council and reported to the National People's Congress Standing Committee for the record.It indicates that China's special additional deduction system with the above six special additional deduction items as its content has been established According to the "Individual Income Tax Law","Implementation Regulations of the Individual Income Tax Law" and "Interim Measures for Special Supplementary Deductions for Personal Income Tax",China's special supplementary deduction policy has been implemented since January 1,2019,and it has been more than a year since its implementation.appear,Personal income tax is an important tax worldwide,and its function of regulating the distribution of national income is one of its important functions.In view of the current gap between the rich and the poor in China,the Gini coefficient is still at a high level,and its income redistribution effect The good or bad is an important indicator to evaluate the policy,and the special additional deduction policy is essentially a system of deducting taxable income according to different situations of different taxpayers and corresponding situations,and also reflects the principle of tax equity in the tax law.It also has a certain degree of impact on the income redistribution effect,and evaluating the policy from this perspective has certain positive significance.In terms of fee reduction and tax reduction,the community generally believes that the current special additional deduction policy also has problems such as insufficient tax reduction and tax reduction,and a small scope of deductions.There is still much room for improvement.Explore the deduction standards and The rational setting of the deduction range has practical significance for the legislation and implementation of the policyThis article focuses on the design of the special additional deduction system for personal income tax,studies and analyzes the system design deficiencies of the special additional deduction policy,and studies the scope of deduction items and the setting of deduction standards.Recommended special supplementary deduction system provides reasonable suggestions.