Study On Chinese Local Tax Management System

In the countries with ripe market economy, the tax sharing system is generally implemented as part of the finance management system, drawing a clear line between the central management authority of taxation and the local management authority of taxation and has produced good results in reality. In 1994, China carried out the reform of the tax sharing system. According to the principle of financial power being accord with affair power, we carried out the moderation tax sharing system. In this system, the central government exerts the centralized legislative authority, and the categories of tax are divided into the central tax, the sharing tax and the local tax, which are separately imposed and supervised by the two tax organizations of the national tax institution and the local tax institution. It confirmed the local tax management system's frame. After 15 years'developments, the local tax management system's primary contents have little change. The local tax management system does not adapt with the development of the current market economy, and cried for reform and consummation.This paper has five parts. Part one includes theories on local tax management system, as the theoretical basis for the following analysis. In part two, the author introduces the contents of Chinese present local tax management system, including the local tax's structure, the definition of the legislative authority of local taxation and the definition of the management authority of local taxation. In part three, the author analyzes the flaws of our present local tax management system from three aspects, including the local tax's structure, the definition of the legislative authority of local taxation and the definition of the imposition authority of local taxation. In part four, the author introduces the local tax management system's contents and the three patents in the developed countries, like American, Japan, Germany and France. Part five is about the suggestions on consummating our local tax management system.The research conclusion is that the local tax management system of our country should be changed to a somehow centralized and comparatively de-centralized model from centralized model. That is to say, on the basis of defining the local tax's structure, the central government holds the important legislative authorities of local taxation, and at the same time the local governments hold the other legislative authorities of local taxation. And the management authorities of local taxation should be given to provincial governments and the other local governments.In the paper writing process, the author insists the theory contracting with the reality, and borrows ideas from the developed countries'advanced experience on local tax construction. With a view to the newest reform and developments of the local tax management system, the author has referred to the newest tax revenue laws and regulations and the recent data information, so as to survey and consummate our local tax management system from a brand-new angle. He brings forward some innovative viewpoints as following.First, although there are few researches about the local tax management system, the author systematically researches the local tax management system, and brings forward a new viewpoint that our the local tax management system should be changed to a somehow centralized and comparatively de-centralized model from centralized model.Second the author points out that we should manage the local tax legally. The taxes authentically belong to the local tax such as business tax, the town maintenance and construction tax, should be defined in the basic code of taxation. For the taxes need to be shared between the central government and the local government such as the personal income tax, we should prescribe the structure of the sharing proportion in the law. The concert sharing proportion can be negotiated by the central government and the local government according to their financial conditions.