Research On Optimization Of Special Additional Deduction Policy For Individual Income Tax

As the fourth largest tax category in China,individual income tax plays an important role in the national tax system.The "14th Five Year Plan" clearly proposes to improve the direct tax system.As a direct tax,individual income tax has significant advantages to conduct three distributions as an important means,which is also useful to regulate the national economy and achieve fair income distribution.In recent years,the reform of individual income tax system in China has gradually improved.In October 2018,the new individual income tax law increased the basic deduction standard to 5000 yuan per month,more reflecting the characteristics of China’s taxation structure optimized with the times.In January 2019,the "Interim Measures for Special Additional Deductions of Individual Income Tax" was officially implemented,adding six new special additional deductions based on a combination of synthesis and classification,greatly reducing the tax burden on taxpayers and stimulating social consumption and economic growth.In March 2022,the "Notice of the State Council on the Establishment of a Special Additional Deduction for Individual Income Tax on the Care of Infants and Young Children under the Age of 3" added the special additional deduction for the care of infants and young children.This is the result of tax adapting to social development,reducing the cost of family support,helping to support the national policy of healthy pregnancy and scientific nurture,and achieving the long-term balanced development of China’s population.This study is based on individual income tax system in China,and focuses on further research on the special additional deduction policy of individual income tax.First,by sorting out the development process and income scale of individual income tax in China,it is found that the individual income tax system in China shows a gradual growth trend in the overall scale of tax revenue.Secondly,based on the analysis of the content of the special additional deduction policy for individual income tax in China,L university in the northwest region is selected as the key research object to analyze the implementation status of the special additional deduction policy for individual income tax for their 888 employees in school.Through the collection,collation,and analysis of first-hand data,this paper examines the implementation effect of the special additional deduction policy for individual income tax in L university.Thirdly,based on the relevant results of the above analysis,combined with the current situation of special additional deduction policies in China,this paper expounds the problems existing in current individual income tax special additional deduction policies in China from the perspective of the seven major deduction items and tax collection and management,and points out the optimization direction of current individual income tax special additional deduction policies in China by drawing on the design and arrangement of countries such as the United Kingdom and the United States.Finally,from the perspective of deduction items and tax governance,suggestions and countermeasures for improving the special additional deduction policy for individual income tax that are suitable for Chinese national conditions are proposed.Efforts are made to optimize the special additional deduction policy for individual income tax in China,achieve a healthy and effective development of the comprehensive tax system,enable individual income tax in China to fully play its functional role on the basis of taking into account the principles of fairness and efficiency,and help Chinese economy achieve higher quality development.