Legal Regulations On The Collection And Payment Of Individual Income Tax For High Income Earners In China

Over the past four decades of reform and opening up,China’s socialist economy has developed rapidly,which is reflected in the overall income of Chinese residents.The income of Chinese residents has increased substantially,followed by the emergence of high-income groups and the increasing gap between the rich and the poor.According to relevant data shows that at present our country residents income distribution gap is more and more big,compared with those of other earners high earners have more wealth,the reason is that the income of high earners form is not well known,has a wide source of income,in addition,high earners is limited by conditions of individual income tax to pay,they will suffer the heavy tax evasion.At present,the policy of individual income tax payment in China is not perfect.As a result of the reform and opening up,China’s economic structure has changed,and the economic environment is different from the past,so the income of high-income people is more hidden and from a wider range of sources.Residents’ awareness of paying tax is not high.In this environment,personal income tax does not adjust the distribution gap as expected,which may further widen the gap between the rich and the poor,forming the Matthew effect and intensifying social contradictions.In the imperfect tax institutions,the tax rate structure complex and taxpayers are certain defects in the insufficient active tax consciousness,so you need from the tax system to solve the problem,from the perspective of tax collection authority set high earners specialized management department,strengthen the inspection and punishment of for high earners,adjust the expense deduction standard,optimize the tax structure;For high earners,it is necessary to strengthen publicity and improve the tax agency salary;At the same time,it is necessary to establish a tax credit system for high-income people and other relevant supporting systems.Let individual income tax achieve the purpose of adjusting income distribution and narrowing the gap between the rich and the poor.Through these measures,we propose to narrow the gap between the rich and the poor,promote the fairness of individual income tax,and ultimately provide financial support and development impetus for China’s economic development and social progress.