The Legal System Of Deducting Individual Income Tax For Public Welfare Donations

With the realization of China’s first centenary goal,people’s enthusiasm for exploring the road to common prosperity is increasing with each passing day.The realization of common prosperity needs to be based on the sustainable development of economy,and pay attention to the fair distribution of income,so as to continuously narrow the gap between the rich and the poor.However,while the rapid economic development has gradually improved people’s living standards,the gap between the rich and the poor has been increasing.At this time,improving the distribution system and giving full play to the important supplementary role of the third distribution,such as public welfare donations,has become an inevitable requirement to promote the realization of common prosperity.At present,the imperfect tax deduction system of public welfare donation inhibits the public enthusiasm of donation and hinders the development of Chinese public welfare.Therefore,it is necessary to study the tax deduction system of individual income tax for public welfare donations.In particular,the current tax deduction system for public welfare donations has four deficiencies:first,the distribution of tax deduction system for public welfare donations is too scattered;Second,the scope of pre-tax deduction for public welfare donations is too limited;Third,the pre-tax deduction system of non-monetary property is too general;Fourth,the tax deduction system for small donations is not yet perfect.By summarizing the deficiency of the deduction system for public welfare donation of personal income tax,combining the practice of our country and foreign legislative experience,it is suggested to improve the following aspects: First,we improved the system of pre-tax deductions for public welfare donations of individual income tax,integrated the pre-tax deductions for public welfare donations of individual income tax,simplified some preferential tax policies,incorporated them into legislation,and raised the level of legislation.Secondly,scientifically define the scope of pre-tax deduction for public welfare donation,appropriately increase the proportion of pre-tax deduction for individual public welfare donation,establish the pre-tax deduction system for public welfare donation according to the specific situation of our country,widen the scope of qualified recipients,thus increasing individual public welfare donation channels.Third,improve the non-monetary property pre-tax deduction system,further clarify the relevant provisions on donations in kind,reshape the relevant provisions on equity donations,and establish a pre-tax deduction system for labor donations.Fourth,improve the pre-tax deduction system for small donations,conform to the trend of The Times and science and technology,accelerate the promotion of electronic bills for small donations,optimize the pre-tax deduction procedure for small donations,and stimulate people’s enthusiasm for public welfare donations.