Research On The Improvement Of China’s Special Additional Deduction System For Individual Income Tax

For over four years,China has implemented the system of special additional deductions for personal income tax.The implementation of it highlights the integration of China’s personal income tax system with its national conditions and the global community.On the one hand,it can better regulate income distribution and promote common prosperity.On the other hand,it demonstrates the principle of taxation by capacity under the tax law,providing taxpayers with greater fairness and justice.Therefore,the study of China’s system of special additional deductions for personal income tax has significant theoretical and practical significance.However,with the development of society and the implementation of new national policies,several issues with the system have emerged,which includes a lack of specific deduction items,unreasonable deduction scope,unscientific design for deduction standards,and unsound distribution methods for deduction objects.The paper adopts a "problem-oriented" approach,comparing foreign systems’ design experiences to suggest specific ways to improve China’s system of special additional deductions for personal income tax.In addition to the introduction and conclusion,this paper mainly includes the following four parts:The first part analyzes the evolution of the system for special additional deductions for personal income tax and its theoretical basis,providing a basic understanding of the system’s design principles.The second part examines the current problems with the system from four perspectives: deduction items,deduction scope,deduction standards,and apportionment methods.It also proposes suggestions for improvement and direction for drawing on foreign experience.The third part investigates the more advanced experiences of the special additional deduction system for personal income tax in the United Kingdom,Japan,the United States,and France,and explores how these experiences can be adapted to China’s national conditions.Finally,based on the experiences of foreign countries,the paper proposes specific suggestions for improving China’s special additional deduction system for personal income tax,including expanding the types of deduction items,appropriately adjusting the deduction scope,scientifically designing deduction standards,and optimizing the apportionment methods for deduction objects.