China's Current Problems And Countermeasures In The Personal Income Tax

Individual income tax,is a kind of tax which levies all kinds of tax Payables from the individuals (natural Person)obtaining within Chinese borders. It Plays a Positive role in maintaining national rights and interests, regulating Personal income, alleviating the infamies of social distribution and increasing government revenue. It is a general levying of tax categories in various countries in the world, especially in developed countries. Individual income tax Plays a very important role in the whole taxation, having the functions of gathering wealth and regulating the distribution of income, so it is called" economic stable appliance".With the development of the economy and adjustment of economic structure, the Income level of resident is improving constantly. Therefore, the Individual income Tax System has not already been fit for situation now. The Present situation that we are Facing some Problems in the area of individual income tax system has severely. Restricted the function and full development of itself and is incompatible with the Economic growth. It makes the society appeal to the Individual Income Tax reform. having been Promulgated since 1980, it has been revised three times in 1993, 1995 and 2005. Though the adaptable ability has Promote more greatly than last years, it is still a law that is loose, laek of oPerating and unfit socialism market economy. Thus it is an important measure of ensuring social economy developing under macroscopically control of our country that how to Perfect the individual income tax legal system.On the base of the wholly introduction on individual income tax systems and reform of the foreign countries among the USA, the Great Britain, the Japan,the Australia and such other countries, The dissertation analyses the existing Problems of the Chinese individual income tax system. Availlable suggestions are to be made about the current individual income tax system based on experience we learn from other countries.The main method of this thesis is theoretical analysis. First,on the basis of the theory of faimess and efficiency in tax, expense deducting is analyzed referring to the juristic principle, which provides theoretical basis and reference for the adjustment inexpense deducting system. Seeond , by the method of inductionandcomParin , the authoranalyzes and introduces the expense deducting system in other countries orregions. Third, defects Which exist in current expense deducting system of individual income tax are demonstrated. At last, connected to the reform of Patterns of individual income tax, relative suggestions. The dissertation is Presented as five chapters on the research ofreforming and Perfecting the law system of individual income tax inChina.In Chapter 1, method of studyIn Chapter 2, Individual income tax general ideaIn Chapter 3, Individual income tax historical developmentIn Chapter 4, Individual income tax comparative analysisIn Chapter 5,suggestionsFinally, I hope this paper do help to consummate the law system of the individual income tax in China.