The Study Of Tax Planning For Individual Income Tax

It is universally known that Individual Income Tax is being one of the.most important taxes which is significantly related with all the citizens in the society. Therefore, the study and practice of tax planning for individual income tax is closely relevant to the common taxpayers. Based on referring lots of books and literature, this paper put forward that all the taxpaying behavior fall into two categories, namely, tax reducing behavior without penalty and tax reducing behavior with penalty. All the tax reducing behavior without penalty is the research field of tax planning. In the aspect of the tax collecting bureau, the concepts of tax-saving and tax avoidance are put forward, without relationship of taxpayers. Meanwhile, the paper adopts the theoretical analysis method to study the motivation of tax planning for individual income tax. Based on the economic man and game theory, the paper researches the internal motivation, while the paper analyzes the objective motivation from the view of the tax structure and the status quo of tax collecting and administration. When reading the relevant books and journals, the author finds that the former research of tax planning for individual income tax is lack of one clear mainline, so this paper will get breakthrough in this aspect. According to the special and common individual income tax, the paper will study the relation of tax base, tax rate and payable tax amount and bring forward two ideas of tax planning of tax base and tax planning of tax rate. Meanwhile, the tax planning for tax base is to realize the timing and the minimum of tax base. Moreover, the tax planning for tax rate consists of the conversion of the nature of income and the tax planning of critical point. Combined with lots of cases, the paper proves these two trains of thoughts and abstracts from the cases to form some common strategies of tax planning for individual income tax. As a result, the paper provides some practices and reference of tax planning for the taxpayers, withholding agents and tax intermediary organizations.