Personal Income Tax System Reform Research In China

Personal income tax system was first founded in1799, Britain. After200years of development, more than140countries have established this system now, including China. It is based on personal various taxable incomes as the plan impose objects to the collection of a tax. Most is to point to the people in a certain period of time, through various sources or way of interests. Whether such interests is accidental or temporary, is money, securities or physical, all have to be the taxable incomes.Personal income tax is the most complicated one of the categories of taxes in the world, because of it’s an important method of national macro control and has very strong policy. Therefore also need to have higher collection and management level and perfect supporting conditions. It is not only an important source of national revenue, but also is the powerful tool of social income redistribution and the gap between rich and poor regulation. So it plays a decisive role in our tax system. China’s personal income tax system was founded in1980, during the20years, it has made some achievements after six times reforms. In order to complete the purpose of narrowing the income gap and realizing the social justice.With the development of China’s socialist market economy, the social and economic situation has changed a lot. Especially in recent years, China’s accession to the world trade organization, the international competition, and the world economic crisis influence. China’s current personal income tax system can’t adapt to the environment and requirements. The exposed problems lead the social, economic and political aspects localization of target has failed to fully achieve, especially in redistributing income and the realization of social justice. Bring some negative influence to individual citizens and the whole country. So we should clearly know the defects in our country’s personal income tax system and the disparity between our country and the developed countries. Based on this, review and thinking of the individual income tax system in our country. Learn the advanced experiences of the personal income tax reform from international, and combining with the condition of our country used in China’s individual income tax reform process.