Individual Income Tax Collection And Management Studies Under The Current Tax System In China

With the economic development and the continuous growth of personal income,the revenue of individual income tax keeps rising.As a result,the individual income tax is playing an increasingly important role in increasing fiscal revenues and bridging the income gap.However,with the revision of the law on individual income tax,China has initially established an individual income tax system based on a combination of adjusted gross income and specific types of income,exposing many weak links under the current individual income tax collection system.Therefore,it is quite important for the tax authorities to analyze the deficiencies in China's individual income tax collection and see how to improve and make the tax collection more aligned to the new individual income tax system.The current individual income tax collection in China is mainly a source-based withholding approach.The quality of self-declaration by taxpayers is not high,and the effect of year-end final settlement of individual income tax remains to be seen.Today,with the highly developed information technology,personal income is becoming more diversified and high-income groups are expanding.However,the tax authorities are still weak in their supervision over revenues,and the individual income tax collection model falls short of the tax authorities business needs.By analyzing the deficiencies in China's current individual income collection approach and drawing experience from foreign models,this paper tries to figure out ways to improve the individual income tax collection system in China.In the context of the individual income tax reform,this paper analyzes the problems existing in the collection and management of the new individual income tax system,and then puts forward suggestions and solutions.The paper is divided into five parts as follows:The first chapter is an introduction.This part mainly introduces the paper's background.At present,China is undergoing a series of major reforms.In 2018,the law on individual income tax was revised for the seventh time,changing the tax system.Based on that,it is necessary to explore how the collection system can match the new tax system.Next,I introduce some innovation highlights and shortcomings in the writing process.The second chapter is literature review.By searching a large number of research literatures on individual income tax systems and collection approaches at home and abroad,the author identifies the research strategy and methods.The third chapter is an introduction of theories of individual income tax.This part briefly introduces the development history of China's individual income tax,the three taxation modes,namely,the one based on adjusted gross income,the one based on specific types of income and the one based on a combination of adjusted gross income and specific types of income,as well as the three types of collection system,including the source-based withholding system,the taxpayers' self-declaration system and the reporting system that combines the source-based withholding and self-declaration.In addition,it also analyzes three theories that are closely related to individual income tax collection,namely the information asymmetry theory,the tax compliance theory and the game theory.The fourth chapter is an analysis of the status quot of China's individual income tax collection.This part first gives an overview of China's individual income tax and analyzes the changes and challenges brought by the newly revised law on individual income tax to the collection system.Then it analyzes the shortcomings of China's current tax collection model.By analyzing the collection system and its supporting mechanisms,it summarizes the shortcomings of the collection approaches under the current individual income tax system.In addition,it also analyzes a lack of a favorable tax environment throughout the society.The fifth chapter is international experience for reference for the individual income tax collection.Based on a comparative analysis method,it analyzes the collection system of countries with developed tax systems such as the UK,the United States,Japan,Australia,etc.On this basis,the advanced collection experience overseas is summed up so as to provide guidance for improving China's individual income tax collection system.The sixth chapter is to provide suggestions for tax collection under the current individual income tax system.This part puts forward some solutions and suggestions from three aspects: optimizing the tax system,reinforcing the construction of the collection system,and improving the supporting system for tax collection.In order to ensure the tax collection is well implemented under the current individual income tax system,the marginal tax rate of individual income tax should be reduced to a proper extent,and the pre-tax deduction policy should be improved.At the same time,the tax authorities should continue to optimize the information-based tax system,expand third-party information channels,and strengthen the supervision over tax sources.Tax workers are direct participants in tax collection and management,so it is important to build a high-quality tax collection team of larger scale.The taxation authorities must continuously improve their service,and tax intermediary agencies should be encouraged to be more involved in the individual income tax collection and management in a more regulated manner.Strict taxation punishment is an important measure to ensure taxpayers' compliance.The tax authorities should enhance tax inspection and the punishment of tax offenses.