Research On The Management Of Individual Income Tax On Executive Compensation Of Listed Companies In China

Under the background of rapid development of China's market economy and increasing executive compensation of listed companies year by year,the gap between executive compensation of listed companies and other interest groups is large,which causes public dissatisfaction.Meanwhile,the loss of personal income tax on executive compensation of listed companies is also serious,resulting in loss of total national tax revenue.Based on the most special components of executive compensation of listed companies,namely equity incentive,on-the-job consumption,and implicit welfare,this paper finds out the defects in the provisions of China's individual income tax law on executive compensation of listed companies,and finds out the problems in the collection and management of executive compensation by Chinese tax authorities.In the individual income tax law,it is proposed to limit the number of equity-inspired shares by three times the average annual salary of the top executives of listed companies for three consecutive years.To advocate the inclusion of capital gains tax in the individual income tax law can reduce the ways for executives of listed companies to avoid tax;It is suggested that the scope of on-the-job consumption should be defined in the individual income tax law and a reasonable evaluation method of on-the-job consumption level should be put forward,which can reduce the unreasonable on-the-job consumption of the executives of listed companies.By establishing the taxpayer credit rating and requiring the taxpayer to improve the integrity of personal information and family situation,it can effectively reduce the abuse of equity incentive deferred tax provisions by listed companies.In the actual collection,it is recommended that the tax authorities to special inspection,executives of listed companies to establish individual taxpayer files,providing personalized accurate tax payment service,tax,strengthening the appointment block chaintechnology application in the collection and management,can effectively increase the tax authorities to pay personal income tax collection and management of listed companies.There are three aspects in this paper:The first is to use data analysis,combined with the executive compensation situation of a-share listed companies in the past three years,it is found that the average annual salary of top executives of listed companies has been rising continuously for three consecutive years,and at the same time,the number of listed companies using equity incentive has increased.Second,the research content is novel,based on the individual income tax law,combined with the characteristics of the executive compensation structure model of listed companies,to find a gap in the tax law.Thirdly,on the basis of the current level of tax collection and management by tax authorities,effective and feasible countermeasures are put forward based on the characteristics of the group of executives of listed companies.