Research On Natural Person Tax Collection And Management By The Individual Income Tax Reform

On the Third Plenary Session of the 18 th CPC Central Committee,the government made a major deployment to deepen the reform of the fiscal and taxation system and proposed reform of individual income tax.In the report of the 19 th National Congress,General Secretary Xi emphasized “deepening reform of the tax system,improve the local tax system”.On August 31 in 2018,the Fifth Session of the Standing Committee of the 13 th National People's Congress voted on the decision to amend the Individual Income Tax Law.The comprehensive and classification combination models of the individual income tax has realized.The personal income tax reform and tax system reform has taken an important step.Subsequently,the State Administration of Taxation issued Announcement Nos.56,59,60,and 61 of 2018,and made supplementary provisions on natural person tax identification number,personal income tax self-declaration,special deduction,and withholding declaration.That regulated personal income tax collection and management.After the implementation of the new Individual Income Tax Law,income from wages and salaries,remuneration for services,contributions and royalties shall be taxed comprehensively.Taxpayers prepay taxes in advance every month.Everyone needs to file declaration of income oneself at the end of the year.At the same time,six special additional deductions have been added to the total income,which can be deducted when calculating the taxable amount.This reduces the tax burden of taxpayers to a large extent.This can make income redistribution fair and reasonable,and reduce the gap between rich and poor.In the future,the proportion of China's direct tax in tax revenue will increase.And more and more natural persons will have to declare and pay taxes by themselves.Implementing tax system needs perfect tax collection and management as guarantee.However,China's current individual income tax collection and control system is not perfect.And the tax collection and management system of natural persons is not perfect enough either.This may cause difficulties in the implementation of the tax system and increase the cost of tax collection and management.At the same time,the perfection of the tax collection and control system of natural persons may have a certain positive effect on perfecting the tax collection and management system,optimizing the tax structure,increase the proportion of direct taxes and improving tax compliance and so on.In the mean time,the establishment of a natural person tax collection system has an important practical significance for revision the Tax Administration Law.At this stage,some provinces in China have begun to explore the construction of tax collection and control system for natural people in order to implement the reform requirements.For example,Guangdong Provincial Tax Bureau promulgated the Regulations on Natural Person Tax Administration of Guangdong Provincial Tax Bureau.The procedures of tax collection and Administration for registration,declaration and information management of natural persons are clearly defined in the policy.Jiangsu Provincial Tax Bureau speeds up the construction of information taxation to facilitate the online declaration and taxation of natural persons.Yunnan Provincial Tax Bureau strengthens the tax supervision of natural taxpayers through strict risk monitoring and management measures.Successful exploration and practice in these areas provide ideas and references for the improvement of tax collection and management mechanism of natural persons in China.Firstly,this paper uses literature research method.Through reading articles and books on tax collection and management of natural persons at home and abroad,we have learned the relevant theories of tax collection and management.This paper understands the current research status of tax collection and management of natural persons at home and abroad,and summarizes the theoretical framework constructed by experts and scholars.Secondly,This paper analyses the characteristics of natural taxpayers and the impact of personal income tax reform on tax collection and management of natural persons.And combining with the actual situation of our country,this paper summarizes the existing problems of natural person tax collection and management.Thirdly,this paper studies and draws lessons from advanced experience and practices at home and abroad.On the one hand,this paper investigates and summarizes the exploration of natural person tax collection and management in some provinces in China and analyzes the advancement of regional practice and the feasibility of comprehensive promotion.On the other hand,this paper learns from the comparatively perfect natural person tax collection and control system formed in developed countries for a long time and use for reference.Finally,on the basis of analyzing domestic problems and learning from domestic and foreign experience,this paper puts forward some suggestions on improving the tax collection and management mechanism of natural persons in China from the aspects of system design and supporting measures.