Research On Legal Issues Of Taxing Fringe Benefits

At present, along with the desiring for the distributive justice of the public and thenational legislation orientation,the question that whether non-cash fringe benefits should betaxed or not caused a heated discussion.The fiscal and taxation system,especially direct tax isa breakthrough of the reform of income distribution system. Income taxes are the core ofdirect tax, but unfortunately, neither of them nor their enforcement regulations concludes theofficial legal status of taxing the fringe benefits, that means there’s lack of standardization ofthe enforcement of taxing the fringe benefits.Staffs avoiding tax through fringe benefits is quite common, and this is likely to bringabout the unfairness of tax burden, for who received more fringe benefits in fact enjoyed alighter tax burden. Many developed countries have formed mature legal system of taxingfringe benefits, used the foreign legislations for reference, put fringe benefits into the taxationscope, broadening the tax base is beneficial to the tax equity and national financial revenue.In this paper, including the introduction, is divided into five parts.The introductionintroduced the current discussions of the fringe benefit tax at home and abroad; mostdeveloped countries have a mature legal system of taxing fringe benefits already, anddomestic researchers generally believe that China should tax on fringe benefits, and proposedtwo modes of taxation.The first part is a overview of the fringe benefits tax, pointed out the concept of fringebenefits, the method of defining and classifying fringe benefits; fringe benefits have becomean important part of the diversification of the wage structure, and has a wide range ofimbalances, the paper discussed the theoretical basis and institutional origins of fringebenefits, noting that levying tax on fringe benefits improves our tax system and will bebeneficial to deepen the reform of income distribution as well as achieving tax fairness.The second part analyzes the existing laws and regulations that relevant to fringe benefitstax, noting that although our individual tax has fringe benefits into it’s tax base already, butthere’s no Relevant implementation rules.The third part, inspected foreign fringe benefits tax systems and analyzed the advantagesand disadvantages, put forward the factors we can draw on.The fourth part proposed the macro-vision of subsuming fringe benefits tax in the systemof Personal Income Tax. Discussed taxation mode, the taxpayer, scope of taxation, tax calculation basis, tax rate, tax liability occurred time and assessable period.The fifth part is a summary of the view this paper held. Pointed out that Fringe benefitstax not only to allow taxpayers a necessary precondition for a fair tax system, but also aneffective way to protect taxpayers’ rights, it’s a part that can not be ignored to improve China’spersonal income tax system.