Study On Perfecting The Legal System Of Special Additional Deduction Of Individual Income Tax In China

More than two years after it came into effect on January 1,2019,the latest revision to the Individual Income Tax Law of the People’s Republic of China has been unprecedented.The revision changes the traditional classified tax system,raises the tax threshold and adds some anti-tax avoi dance provisions.However,the most fundamental reform lies in the new legal system of special additional deduction of personal income tax,which takes into account the individual differences of different taxpayers to some extent and reflects the principle of tax fairness.At the same time,the prov isions of the system respond to the public’s social call for the deduct ion of personal expenses,focusing on the middle and low-income groups,which also reflects that the role of the personal income tax is not limited to adjusting income distribution,but to pay more attention to the livelihood of the society.The increase of this system also reflects the situation that C hina’s individual income tax law is in line with The Times and in ha rmony with the national conditions.It is conducive to better regulating inc ome distribution and reducing tax burden,so that every taxpayer can feel f airness and justice in the process of paying individual income tax.From a deeper perspective,this system is not only a problem in the field of taxatio n,but also reflects the construction of the rule of law and other national co nstruction issues,which is conducive to promoting the modernization of C hina’s tax governance system and governance capacity.However,there is no perfect system in the world.Due to the vague i mplementation regulations of the system and the lack of practical experien ce of relevant departments,some problems have also been exposed in the i mplementation process of the system.According to the practical situation of the system in the past two years,the basic principles of tax law--the pr inciple of tax legality,the principle of tax fairness and the principle of tax quantity and energy taxation,and the basic theory of the economic field--the theory of income distribution as the theoretical basis,In the six items o f children’s education,continuing education,medical treatment for s erious diseases,supporting the elderly,housing loan interest and housing r ent,this paper summarizes the problems existing in the deductible items,d eductible scope,deductible standard and deductible object of the system.T he existing problems mainly include that the deduction of some special ite ms is not included,the limitation of the scope of deduction of multiple ite ms is not suitable for China’s national conditions,the "one size fits all" method of deduction standard does not take into account the particular ity,and there are contradictions in the setting of the allocation method of d eduction objects.If this goes on in the long run,it will go against the indiv idual income tax in promoting social equity and alleviating the gap betwee n the rich and the poor.Although the system is still in its initial stage in China,it has formed a relatively complete system in many other countries.Therefore,it can pro vide inspiration for China to improve the system by drawing on the succes sful experience accumulated in other countries.Focus on the analysis of th e UK,Japan,the United States of the three successful experience,accordin g to the national conditions of China summed up the place that can be used for reference,deductible items,deductible range and adjustment mechanis m to improve.According to the existing problems of the system and the su ccessful experience of foreign countries for reference,this paper provides suggestions for improving the system: to increase the deduction items for s ome special groups,accidents and commercial insurance;Appropriately i mprove the scope of deductions for items such as children’s educati on and the support of the elderly;Introducing regional particularity regulat ion and dynamic adjustment mechanism on deduction standard,and indivi dualized design according to the particularity of each item;According to t he division mechanism of "big family" and "small family" structure,a mor e flexible way of apportioning deductible objects is set up.