Research On The Preferential Policies Of Individual Income Tax To Promote The Development Of Charity In China

With the development of society,the living standard of our people is constantly improving.However,problems such as the wide gap between the rich and the poor still exist.It is difficult to form a complete income distribution system only by the initial distribution and redistribution of the market and the government.At the Fifth Plenary Session of the 19 th Central Committee and the 10 th Central Financial and Economic Meeting,the important role of philanthropy in income distribution and other fields was emphasized.However,compared with other countries,there is still a big gap in the development of philanthropy and the corresponding preferential policies for personal income tax in China.Therefore,it is necessary for our country to improve the preferential tax policy of personal income tax to encourage charity,so as to promote the development of charity in our country.This paper sorts out and analyzes from the following aspects: Firstly,this paper summarizes the research results of preferential personal income tax policies formulated in China to encourage the development of charity;It also defines the concepts related to charity,and elaborates the third distribution theory,tax fairness theory and voluntary failure theory in detail.This paper summarizes the action mechanism of preferential income tax policies on individual donation behavior.Secondly,it combs the development status of personal charitable donation,voluntary service and related personal income tax preferential policies in China,and points out that there are some problems in tax preferential policies to encourage individuals to participate in charitable causes in China,such as low pre-tax deduction standard,complicated pre-tax deduction process and narrow pre-tax deduction range.Thirdly,from the aspects of tax support policies and pre-tax deduction to encourage individuals to participate in charity,it introduces the support policies of foreign developed countries for charity,and makes a comparative analysis.Finally,based on the above-mentioned situation,problems and foreign experience,from the perspective of tax system perfection,this paper puts forward some optimization suggestions,such as perfecting the pre-tax deduction standard of personal income tax preferential policies to encourage the development of charity,expanding the scope of pretax deduction,adopting diversified pre-tax deduction methods,and perfecting corresponding supporting measures.