From "divided" To "closed"

China's current tax framework was put in place after the tax reform in 1994 to meet the needs of the socialist market economy.Since the beginning of 21 st century,the Chinese government has made a series of adjustments of and improvements to the tax system,which have guaranteed the government's revenue stream and contributed to the country's rapid economic growth.Business Tax to VAT Reform was extended comprehensively to cover all goods and services in 2016.On June 15,2018,the new reform enforced which is about the current tax collection and management system and consolidated provincial and subordinate state and local tax institutions.At present,China's tax collection and management system is in the transition from the independent national and local tax institutions to their consolidation.This paper focuses on the reason about the reform for the consolidation of the state and local tax institutions.It aims to improve the tax collection and administration system and make the finance balance between the central government and the local government.There are fifth chapters in this paper.The introduction includes the background,significance,methods and possible innovation.Review of the domestic and foreign research achievements in this aspect.The first chapter gives the definition of the tax sharing system,Business Tax to VAT Reform and tax administration reform of state and local tax institutions.Review the background of tax administration reform of state and local tax institutions.From the second chapter to the forth chapter,introduce the tax administration system and characteristic of France and USA,and analyzes the theoretical basis and actual situation for studying the tax administration reform of state and local tax institutions.Then the article analyzes the achievements and difficulties in such reform by combining actual situation of Beijing municipal tax institution from organizational integration.The fifth chapter gives the advice about the specific measures for the next steps of the reform.The conclusion emphasizes the importance of the tax administration reform of state and local tax institutions.