China's Personal Income Tax Reform Study

Since personal income tax was levied in China, with its proportion in total tax income growing year by year, it has become the fourth largest tax as well as one important source of fiscal revenue. However, at present personal income tax in China only played its financial role, far from its function of income distribution adjustment. Confronted with the unfair income distribution and the deterioration of the situation, personal income tax began to draw people's attention on the function of income distribution adjustment. Though being amended many times, the system of personal income tax in China has not been designed perfectly, so that it can not meet the need of the recent and future economic and social development. Therefore, it has been a trend to consider seriously the further reform of personal income tax in China.In this paper, the first chapter analyzes the background and meaning of choosing the topic, and summarizes the foreign theories on the optimal personal income tax as well as the ideas of domestic scholars on China's personal income tax reform ; the second chapter introduces the definition, history, types, functions, and modes of personal income tax; the third chapter presents the personal income tax systems in some typical countries like England, Germany and Singapore, and digs up the significance to the personal income tax reform of China; the fourth chapter introduces the evolution, characteristics and content of personal income tax in China, and demonstrates detailed the situation and problems in the function arrangement, ingredients design and tax collection of personal income tax in China; the fifth chapter analyzes the difficulties in the personal income tax reform in China, and further puts forward with the methods and countermeasures to accelerate the reform.Conclusion, the existent personal income tax system has been unable to meet the need of the further economic and social development, so it is necessary to reform and perfect the personal income tax system in China.