Personal Income Tax Expense Deduction Standards Discussed

When the new deduction standard was confirmed in 2005, the topic about the exemption became popular. On the base of the precedent research, analyzing the development of individual income tax, the transformation of the exemption and the disposal income and consuming expense per capita of the Chinese urban residents, the author calculates the deduction standard of China and Guangdong Province from 2006-2010. The author suggests that: firstly the deducted items should be publicized in detail; secondly the deduction should be adjusted dynamically as the lowest salary which is adjusted once every two years; thirdly on the base of the exemption of the whole nation, some certain provinces and areas are allowed to adjust the exemption in a certain extend.