Personal Income Tax Planning For Hong Kong People Who Under Employ Or Running Small Business In The Mainland China

Owing to the development of market economic in the Mainland China and the change in the economic situation in Hong Kong, so many Hong Kong people come to the Mainland China to find the opportunity in employment or doing business. Since the tax system in the Mainland China and Hong Kong is completely different, the Hong Kong people who work or doing business in the Mainland China become concern their tax obligation. Tax planning is paid more attention to by them.Actually, tax planning is not only for corporation. Any independent person also face tax problem. Therefore, we try to explore the tax planning problem in individuals. We discuss the possibility of tax planning in individuals and the effects of the personal tax planning to the tax system and economic development in the Mainland China and Hong Kong.Firstly, we discuss the basic theory of tax planning. We then explore the necessity and the possibility of tax planning in individuals. In the essay, we would discuss the personal tax rule of the Mainland China and Hong Kong and hence suggest some tax planning methods related to the personal tax. We also discuss the effect of the personal tax planning to the tax system and economic development of the Mainland China and Hong Kong. We find that tax planning also had positive effect to the society but not only serve to the individual benefit.