Research On The Improvement Of The Legal System Of Income Tax On Personal Real Estate Transfer In China

Personal income tax is an important tax in China’s tax revenue and occupies a place in China’s tax system.Personal real estate transfer income tax is not a separate tax,but a taxable subject of personal income tax,which belongs to "income from property transfer" in China’s tax law system.The functions of individual income tax are remarkable,and the two most important functions are to raise national fiscal revenue and adjust national income distribution.In China,except for the epidemic or other reasons in individual years,the tax revenue of individual income tax is increasing year by year,and its function in raising national financial revenue has been highlighted.On the contrary,the role of individual income tax in regulating national income distribution has not been brought into full play,especially in regulating labor income and capital income.In order to achieve this function,the individual income tax law of the People’s Republic of China was revised for the seventh time in 2018,in which the biggest highlight is the implementation of a tax model combining classification and integration.Although great innovations have been made in the taxation mode,it is regrettable that the legal system of income tax on personal real estate transfer has not been modified.The current legal system still follows the provisions of the individual income tax law of 1994,which has been difficult to meet the needs of the development of market economy.In view of this,at the moment of deepening reform,it is particularly necessary to improve the legal system of income tax on personal real estate transfer in China.The existence of a system must have its theoretical basis,and the legal system of income tax on personal real estate transfer also has its theoretical basis.In terms of its theoretical basis,tax regulation theory and tax equity theory are the premise and foundation to improve the system.Through the study of its theoretical basis and combing the relevant legal norms and tax normative documents of personal real estate transfer income tax in China,this paper reveals six main problems existing in the legal system of personal real estate transfer income tax in China: the verification and collection violates the legal principle of tax;The level of individual comprehensive tax burden is not considered in classified collection;The tax rate design fails to highlight the principle of tax fairness;The design of tax preference is unreasonable;Duplicate deduction of loan interest;There is a contradiction between the housing donation policy and the transfer policy.To solve the deficiencies and problems of the legal system of income tax on personal real estate transfer,we need to improve it from the following six aspects on the basis of learning from foreign experience and combined with China’s specific national conditions.First,abolish the approved collection policy so that the actual collection policy can be implemented;Second,establish a tax model of "comprehensive income + capital income + investment and operation income",consolidate the capital income of taxpayers in a tax year,and determine the applicable tax rate according to the total capital income,which is conducive to solving the disadvantages of classified collection of capital income;Third,set progressive tax rates and adjust the tax rate structure.The current proportional tax rate adopts a one size fits all scheme for all taxpayers,which is difficult to reflect the principle of vertical fairness of taxation.When setting the specific tax rate,the progressive tax rate can be set according to the actual income level of the taxpayer to reflect the principle of tax according to capacity as much as possible;Fourth,revise the tax preference system and refine the specific measures of tax preference on the basis of the previous rough regulations,so as to give full play to the function of tax in-depth regulation;Fifth,establish the connection provisions for the deduction of loan interest to avoid the repeated deduction of loan interest of the first house;Sixth,revise the housing gift policy to make it consistent with the housing transfer policy,maintain the seriousness and unity of the tax law,and plug the loopholes in the tax law.