Research On The Special Additional Deduction System Of Individual Income Tax For Supporting The Elderly

Under the background of the reform of the modern fiscal and taxation system,the prospect of perfecting the direct tax system was clearly put forward during the14 th Five-Year Plan.As an important direct tax,the reform of individual income tax constantly broke through difficulties and contributed to the modernization of the tax governance capacity and governance system.The reform of the Individual Income Tax Law in 2018 added special additional deductions,reflecting the pursuit of tax fairness and attention to the development of people’s livelihood.With the reform of the tax system,the process of aging population in our country is accelerating,many families are facing the problem of old-age support,the taxpayer’s support pressure is greater,and the living condition of the elderly is threatened.Among them,the system of special additional deduction for supporting the elderly,as a positive response of individual income tax to the pension problem,has important practical value and reflects the humanistic care of the tax law.The special additional deduction system for supporting the elderly reduces the amount of tax paid by the taxpayer in the form of pre-tax deduction,which can motivate the taxpayer to timely fulfill the duty of support,provide better living conditions for the elderly and protect the survival rights and interests of the elderly.At present,the special additional deduction system for supporting the elderly adopts the national unified deduction rules,stipulating the basic deduction conditions,deduction standards and deduction methods.While this system has achieved results,there are also some problems.The deduction system was established for the first time,the implementation time is short,the lack of practical experience,and there are still some disputes on the specific deduction elements.First of all,the special additional deduction system for the support of the elderly is based on the support of the elderly,with the characteristics of policy,pertinence and autonomy,and the principle of net income taxation,the principle of subsistence protection,and the principle of tax fairness as the basic principles.Secondly,by analyzing the current situation of the special additional deduction system for supporting the elderly,it is found that there are some problems in the entity rules and collection and management measures of the system.In terms of entity rules,the deduction conditions are too strict,the deduction standard is not flexible enough,and the deduction method is unreasonable.In terms of collection and management measures,it is reflected in the taxpayer’s self-declaration and credit management is not sound,the deduction information sharing and protection are not sufficient,and the tax informatization construction is slow.Thirdly,the individual income tax systems of three countries in the United States,Japan and Singapore are compared to support the old.Combined with the actual conditions of our country,this thesis provides some suggestions for the subsequent system improvement.Finally,the thesis puts forward specific strategies to improve the system of special additional deduction for supporting the elderly,which mainly includes three aspects: First,clarify the value orientation of special additional deduction for supporting the elderly,balance personal interests and national tax interests,promote the unification of legal order for the elderly,implement the legalization of deduction elements,and coordinate various special additional deduction systems.Second,we will optimize the entity rules of special additional deduction for supporting the elderly,expand the scope of deduction,flexibly set deduction standards,and change the method of deduction.Third,improve the collection and management measures of the special additional deduction system for supporting the elderly,mainly from the aspects of taxpayers’ self-declaration and credit management,deduction information sharing and protection,tax information construction.