The Research Of The Expense Deduction Of The Personal Income Tax Law

Personal Income Tax is the third largest source of tax revenue in China.The main role of it is to help the country increase fiscal revenue and promote national economic development and construction;reduce the gap between the rich and the poor,and regulate income redistribution to achieve tax fairness.The Personal Income Tax Law has undergone the seventh revision in 2018,which changed the previous taxation model from classified taxation to a taxation model that combines classification and integration.In accordance with the increase of the consumption level of residents,the deduction amount for expenses has been increased to 5,000 yuan every month,helping residents reduce their tax burden is a new step in the direction of Personal Income Tax reform.The new bright spot of the Personal Income Tax reform is to increase the special additional deductions,respectively from the aspects of health care,pension,housing and education for six specific deductions,such deduction is introduced to combined with the actual needs of the residents,reduce the pressure of taxpayers to pay taxes,reduce the gap between rich and poor,effectively promoting the fair distribution of income,on the basis of balancing the taxpayers get affordable,has reached to improve people’s livelihood,benefiting the people and promote social development,promote the purpose of fairness.Based on the research of predecessors and related data inquiries,this paper follows the method of combining comparative research and empirical research,and through the description of the Personal Income Tax Law expense deduction and special additional deduction items,combined with the actual situation in China,discover and summarize the Personal Income Tax expense deduction and the problems of special additional deductions,combined with the study of relevant foreign research results,find out solutions to problems and improve relevant legal content.It is proposed to establish a taxation model based on households,to adjust the deduction standards indexedly,to expand the deduction standards for special additional deductions,to adopt diversified deduction limits,to improve supporting measures and other aspects to scientifically improve the Personal Income Tax expense deduction system and increase the tax collection and management capabilities of the taxation department promote the positive development of our country.