Research On Tax Incentives For Small-scale Individual Industrial And Commercial Households In Beijing

The proportion of tax sources of individual businesses is small,which leads to long-term neglect of taxation collection and management and only a few studies of individual businesses in China.However,individual businesses are the economic entities with huge social benefits that are highly related to people's livelihood.Also,a large number of general taxpayer companies have grown from individual businesses.Recently,the tax system in China has changed remarkably.Provincial and sub-provincial state tax bureaus and local tax bureaus have remerged after 24 years of separation,the tax identification standard of small-scale taxpayers has been increased to annual sales of 5 million RMB and the tax exclusion for individual businesses has risen from 30000 RMB to 100000 RMB.In the new circumstances,the establishment of tax incentive mechanism under asymmetric information for individual businesses is of great importance of improving tax compliance,reducing the loss of state revenue and laying a solid tax concept for the development into general taxpayer companies.This paper studies some current problems of the tax compliance of individual businesses in Beijing through the analysis of four aspects which are tax registration rate,tax declaration rate,accuracy rate of declaration and tax deposit rate.In addition,taking expected revenues of small businesses and tax authorities into the game model to calculate and analyze the cause of low tax compliance of small businesses ? Furthermore,several incentive mechanisms are established to solve the above cause,including positive incentives of economic rewards and credit levels,negative incentives of economic penalties and constraints,and internal incentive mechanisms of sense of identity and obligation.At the end,the paper proposes some suggestions of improving tax compliance in individual businesses,which are the improvement of the minimum threshold and tax allowance,the coexistence of the regular ration and audit collection,changing the audit concept and strengthening democratic construction.