Research On Improving The Special Expense Deduction Of Personal Income Tax In China

In recent years,the redistribution mechanism of national income has been highly valued by the Party Central Committee and the State Council.In the 14 th five year plan and the long-term goal of 2035,the Party Central Committee stressed that "we should improve the redistribution mechanism,strengthen the regulation and accuracy of Taxation,social security and transfer payment,reasonably regulate excessive income and ban illegal income." In 2020,Premier Li Keqiang pointed out in his government work report,"strive to improve the income of low-income groups and expand middle-income groups." China’s individual income tax plays an important role in the redistribution of national income.It not only reflects social equity,but also can further enhance people’s tax awareness and establish a good concept of obligation.The addition of special additional deduction of individual income tax in 2019 has greatly reduced the tax burden of low-income people in China.Today,with the strong expectation of the whole society for the reform of income distribution system,how to better improve the special additional deduction of individual income tax is a problem worthy of consideration.Based on the principles of tax fairness,tax efficiency and income redistribution theory,this thesis defines the relevant concepts of personal income tax,and introduces the evolution process of China’s special additional deduction policy of personal income tax and the current policies in China.Through the analysis of the implementation effect of the special additional deduction of personal income tax in China,it is found that the special additional deduction implements the decision-making and deployment of the CPC Central Committee and the State Council for tax reduction and fee reduction,and releases the dividends of tax reform.At the same time,the scope of special additional deduction is comprehensive,which fully reflects the fairness of tax,increases the deduction of education and medical treatment,and better meets the requirements of China’s high-quality development.Based on the tax work practice,the author conducted interviews with 120 taxpayers and tax personnel,investigated,counted and analyzed the cost and other relevant data involved in the special additional deduction,and found out the problems existing in the deduction scope,deduction standard,deduction mode and collection and management mode of the special additional deduction of personal income tax in China.Among them,the deduction scope is mainly reflected in that some expenses and special circumstances are not considered in place;The deduction standard is mainly due to the differences among regions,industries and individuals,which leads to the unified formulation of the national standard,which is contrary to the principle of tax fairness to a certain extent;Due to the single deduction mode,some people can not enjoy the policy dividend of special additional deduction;The lack of collection and management methods is difficult to avoid the occurrence of tax evasion and tax evasion cases.Stones from other mountains can attack jade.The author analyzes the special deduction policies of Canada,Singapore and the United States.In view of the problems existing in the special additional deduction of personal income tax in China,combined with theoretical knowledge,overseas experience and their own work practice,this thesis puts forward some suggestions to optimize the special additional deduction of personal income tax in China: 1.Optimize the existing special additional deduction.For example,for the special additional deduction of children’s education and infant care under the age of 3,it is suggested to set differentiated deduction standards according to regions and age groups,Give additional tax incentives to low-income or special families;2.Timely introduce the family declaration system and provide more declaration methods for taxpayers to choose freely;3.Endow local governments with independent power and better set deduction standards according to local conditions;4.Strengthen the intelligent construction of tax collection and management to prevent tax loss.