Comparative Study On The Individual Income Tax System In Mongolia And China

The Individual Income Tax has been imposed by most countries in the world. What’s more, with the development of the economy, the Individual Income Tax has been more and more important and also been a must in the tax system in lots of developed countries, the Individual Income Tax has developed as one of the main taxes; and in the developing countries, it has been a key role in the economy and the society.Of course, the Individual Income Tax becomes more and more scientific and standardized and has its contributions and increasing revenue and adjusting income distribution in both China and Mongolia. However the Individual Income Tax does little in regulating personal income, narrowing the gap between the rich and the poor and achieving social fairness in both China and Mongolia. One of the reason can be the defects existing in the Individual Income Tax of China and Mongolia. In addition, tax collection and administration cannot be ignored either. This paper intends to explore how to perfect the Individual Income Tax and regulate personal income, narrow the gap between the rich and the poor and achieve social fairness in China and Mongolia.The full text is composed of six parts:Part A:Literature review discusses previous research on the function and system of individual income tax, and the direction of our country’s reform;Part B:This paper gives an introduction of the Individual Income Tax, including theoretical basis and elements of the Individual Income Tax;Part C:After an overview, the paper gives an introduction of the development of the Individual Income Tax and the present status in Mongolia.Part D:Then the paper gives an introduction of the development of the Individual Income Tax and the present status in China.Part E:After the introduction in Part C and Part D, this part compares the Individual Income Tax in China and Mongolia so that it can find the differences between the two countries and make preparation for latter part.Part F:After the five parts above, this part gives conclusions and suggestions, which focus in the defects of Mongolia’ Individual Income Tax and how to improve the Individual Income Tax in Mongolia.