Study On The Efficiency Of Individual Income Tax Collection And Management In China

Since the first Individual Income Tax Law was promulgated and implemented in 1980,individual income tax revenue has maintained rapid growth.However,in China,its share of tax revenue is still relatively low,and there is a clear regional imbalance.For example,in 2018,the proportion of individual income tax revenue in the whole tax revenue was only 8.9%,and in 2017,the contribution of 10 eastern provinces to the national individual income tax revenue reached 74%.The efficiency of individual income tax collection and management is an important factor related to the revenue of individual income tax.With the increasing diversification of personal income,the incomplete monitoring system of tax sources and the weak awareness of tax compliance of Chinese people,all regions in China have been facing serious individual income tax evasion problems,which are more prominent in underdeveloped areas and need to be solved urgently by improving the efficiency of individual income tax collection and management.At the same time,the new Individual Income Tax Law establishes a taxation system combining classification and synthesis,improves the basic cost deduction standard of comprehensive income,enlarges the low-grade tax rate of comprehensive income,and adds six special additional deductions.In general,the implementation of the new Individual Income Tax Law reduces the comprehensive tax rate of individual income tax,making the design of tax system more complex.Because low tax rate with strict collection and management are fairer tax system arrangements,and when the tax system design is more complex,if the collection and management cannot keep pace,it may cause tax loopholes,which is not conducive to ensuring revenue,but also impair fairness.Therefore,in order to adapt to the implementation of the new Individual Income Tax Law,we should objectively improve the efficiency of individual income tax collection and management.Firstly,this paper defines the connotation of individual income tax collection and management efficiency,puts forward the tax system factors,collection and management factors and economic factors that affect individual income tax collection and management efficiency,then makes a normative analysis of individual income tax collection and management efficiency in China,combs the history,current situation and problems of individual income tax collection and management from the perspective of efficiency,and finds out the countermeasures to improve individual income tax collection and management efficiency from the problems.The efficiency of individual income tax collection and management in 31 provinces in China from 2003 to 2014 is estimated by empirical analysis.Then the correlation between the influencing factors and the efficiency of individual income tax collection and management is empirically estimated,and the methods to improve the efficiency of individual income tax collection and management are found from the empirical estimation.This paper argues that there are some problems in the current individual income tax collection and management in China,such as imperfect legal system,imperfect new tax collection and control system,imperfect collection and management information system,and imperfect matching system of individual income tax collection and management.The results of this paper show that the overall efficiency of individual income tax collection and management in China is gradually improving from 2003 to 2014,and the problem of inter-provincial differences is serious;the efficiency of individual income tax collection and management in the eastern region is leading,while other regions are relatively backward and close to each other;the internal differences of individual income tax collection and management efficiency in the eastern region are large,and the situation has not been improved;and the difference of individual income tax collection and management efficiency in the northeast region is not big and is gradually narrowing;The efficiency difference of individual income tax collection and management in the ministry region is very small and very stable;the efficiency difference of individual income tax collection and management in the western region is small,and it has been gradually enlarged since 2011.The empirical results show that the proportion of individual income tax revenue from wages and salaries is positively correlated with the efficiency of individual income tax collection and management,and that the proportion of individual income tax revenue from tax departments,the proportion of inspectors from tax departments,average wages of public administration and social organizations and computer ownership per 100 households are positively correlated with the efficiency of individual income tax collection and management.Dependence on Foreign Trade is positively correlated with individual income tax collection and management efficiency.Based on the above conclusions,this paper puts forward specific policy recommendations on improving the efficiency of individual income tax collection and management,which includes improving the individual income tax collection and management legal system,improving individual income tax collection and management system,improving individual income tax collection and management information system,improving individual income tax collection and management matching system,paying more attention to individual income tax collection and management,further expanding the proportion of inspectors,optimizing the incentive and restraint mechanism of tax personnel and enhancing the level of regional openness.