Comparative Analysis Of Chinese And Canadian Personal Income Tax

The personal income tax system of China has begun in the1980s, it evolved into today’model after several reform. The revenue of personal income tax has increased from7.267billion Yuan in1994to5820billion Yuan in2012, an increase of more than80times. Although, compared with the beginning of the establishment of the personal income tax, the current personal income tax system has made great progress, but it is still lower than then universal standard and only occupying5.25percentages in all the tax. Consecutive years of the "two sessions", the deputies have raised the proposal to modify the personal income tax exemption amount. September2011, the3,500Yuan exemption amount has finally replaced the$2000standard. In fact, the existing problems in China’s personal income tax system are not only in the exemption amount and even tax system and tax rate.. We should learn Canadian tax system and accelerate the perfecting of the personal income tax system in China.This paper is divided into six parts. It is based on the comparison between China and Canada to analyze the problems of China’s personal income tax and solutions. The first section describes the background and topics of significance related to domestic and international literature review and research methods, and ideas; the second part describes the development of the personal income tax and the income scale status quo in Canada and China; the third section analysis the personal tax income from tax model, levy way to pay, rate design and cost of the standard deduction and rebate system; the fourth section analysis the gap between China and Canada’s personal income tax through two specific examples; according to the comparative results analyzed before, the fifth section pointed out the important issues in China’s personal income tax system; the last section illustrates Solutions about to build comprehensive income tax in china.This paper is based on the personal income tax system, and uses the manner of comparative analysis and provides examples to the analyze of the personal income tax system in China and Canada, pointed out the existing problems of China’s personal income tax system and propose some solutions.