Research On China’s Local Tax System

Local taxation system is a important portion of tax distribution。In 1994, our country built relatively standard tax distribution system. However, the system is a transitional system because of the special background of reform. Although our country repaired and improved this system after that, however, as the development of society, the systematical defect of tax distribution is more and more obvious. In addition, as the plan that BT reforms to VAT moves forward in recent years, business tax as the primary tax of local tax will be replaced by value added tax, therefore, the construction of local tax system is more urgent.this paper analyzes the problems and status quo of our local tax system from three perspective-the structure of local taxation, tax right of central and local government and divide of intergovernmetanl authority, on the basis of theory of local tax system theory. By drawing lessons some typical examples of counties, and combining our country’s particular situation, the paper puts forward some suggestions of improving our local tax system. This paper consists of five parts.Chapter 1 mainly discuss the background, the purpose and meaning of this paper, with the comparison of this theory in china and abroad.Chapter 2 demonstrates relative theory of local tax, besides relative concepts.Chapter 3, through an insight into china’s current local tax system, analyzes the defectsOf this system from three perspectives the structure of local taxation, tax right of central and local government and divide of intergovernmetanl authority.Chapter 4 demonstrates the counterpart of the US, France and Japan, and draws some lessons.Chapter 5, on the basis of analysis above, suggests some advices of improving our local tax system.