Why tax reform is being carried out, the background of China s tax reform

1. The need for economic system adjustment.

2. The fine-tuning of the political system will also have a certain impact.

3. The needs of leadership.

4、"Innovation and excellence"of needs.

5. "International standards"of needs.

6. Some demands of the tax system itself.

7. The need for the game of interests between the first and the local first.

8. Occasionally, it is the need of decision-makers to pat their thighs after making difficult choices, which happens in places and is more obvious.

The implementation of the tax-sharing system is not only the need for the construction of a country's legal system and administrative management, but also the embodiment of a country's financial and taxation system construction with the idea of taxation under the rule of law, the embodiment of a country's fiscal policy and taxation policy in tax administration, and the embodiment of a country's financial management system in taxation.

The tax-sharing system is a far-reaching institutional change, which has had a huge impact on the relationship between the government and enterprises and the extra-budgetary revenue of the local government while centralizing fiscal revenues and strengthening transfer payments, which has largely reshaped the behavior of the local government in the past decade.

After the implementation of the tax-sharing system, the tax types and the tax revenues formed by each tax type are respectively in accordance with the legislation, management and use of the right to control, forming ** tax and local tax (** and local sharing tax). Wherein: **Tax refers to the legislation of the tax.

The right to tax, the right to tax and the right to use the tax belong to a class of taxation, and the local tax refers to the legislative power, the right to tax and the right to use the tax belong to the local government. Tax revenues are separately stored, disposed of, and managed separately in accordance with the management system. **Taxes are at the management and disposal of the local government, and local taxes are at the disposal of the local management.

In tax practice, the income of certain taxes does not necessarily belong completely to ** or local**, and is distributed between ** and local ** according to a certain proportion, and the income is shared, so that the sharing tax category appears. Generally speaking, sharing tax refers to a type of tax in which the legislative power of the tax belongs to the **** (or the superior locality), and the upper and lower levels are respectively collected and managed, and each enjoys a certain proportion of the right to use. The decisive criterion for the division of sharing tax is not the legislative power, nor the right to collect and manage, but the right to own (control) the tax, which is divided according to the tax attribution standard.

The real meaning of the tax-sharing system lies in the self-collection and self-expenditure of local finances, and the balance of self-procurement. In today's world, countries that practice a market economic system, especially developed countries, generally implement a tax-sharing system. The model of the tax-sharing system depends on three factors, namely, political history, economic system, and the economic theories that each one adheres to.

Although the tax-sharing system with Chinese characteristics that China is currently implementing is not thorough and perfect due to various reasons, changing the past fiscal management system of large-scale fiscal contracting to a tax-sharing system has not only initially straightened out the relationship between the state and the localities, but also readjusted the relationship between the state and taxpayers.

The first part is the background of China's tax reform. From 1978 to 1992 (the period of economic transition), China started with the establishment of a foreign-related tax system, and then implemented a comprehensive reform of the "profit tax reform" for state-owned enterprises and the industrial and commercial tax system. From 1992 to 2012 (the period of establishing a socialist market economic system), China gradually established a new tax system that met the needs of the socialist market economy system with the 1994 industrial and commercial tax reform as a breakthrough.

The second part is an overview of the tax reform since the beginning of the new era of socialism with Chinese characteristics (after 2012). Socialism with Chinese characteristics has entered a new era, comprehensively deepening the tax reform, and taking the VAT reform as a breakthrough point, with the goal of establishing a modern tax system that meets the requirements of the new era.

The third part is a preliminary outlook on the next step of tax reform. Mr. Liu Zuo pointed out that in the future, China's tax reform will continue to deepen, and new and significant progress has been made in further implementing the legal principles of taxation, rationally adjusting the macro tax burden, optimizing the tax structure, and improving the main tax types.

Hello, taxation plays a role in common prosperity as follows: use the taxes paid by the people who got rich first to help the people in difficulty to achieve common prosperity. From the perspective of distribution level, the distribution of national income and wealth includes three levels, primary distribution, redistribution and tertiary distribution.

Among them, the initial round distribution is the basis, which is the distribution of the new value created (income flow) of the year, which not only determines the scale of the distributable income of the year, but also lays the macro income distribution pattern of a country, which is not only the basis of the distribution relationship between enterprises, enterprises and individuals, but also determines the distribution gap between micro subjects to a certain extent. Early containment.

Redistribution is mainly the distribution of newly created value in the current year, but it will also involve the distribution of wealth stock, which is usually the optimization and improvement of the primary distribution pattern to promote the distribution pattern to be more fair and reasonable, which is a kind of adjustment distribution. The third distribution involves not only the distribution of income flow in the current year, but also the distribution of wealth stock, which is an improved distribution and plays a complementary role in the three distributions. In short, in the three distributions, the primary distribution is the basis of Lu Daxiao, the redistribution is the optimization and improvement, and the third distribution is the supplement.

The primary distribution emphasizes efficiency and makes the cake bigger, the redistribution emphasizes fairness and cuts the cake well, and the third distribution emphasizes the complementary role and the marginal improvement of the distribution structure.

Extended Information:1The participation of taxation in the whole process of the three distributions is the basic institutional arrangement that affects the relationship between the three distributions.

Promoting common prosperity is inseparable from high-quality economic and social development, and it is necessary to build basic institutional arrangements for the coordination of primary distribution, redistribution and tertiary distribution.

2.In the initial distribution, the tax participates in the distribution in the form of net production tax, which reflects the identity of the provider of the first factor of production. In the primary distribution, the ** sector participates in the distribution in the same capacity as other institutional departments, and the income is obtained in the form of net production tax.

3.In redistribution, the tax participates in the distribution in the form of transfer tax, which reflects the identity of the first manager. In the process of redistribution, the first department participates in the distribution as the main body of distribution, with fiscal revenue and expenditure as the distribution tool, and taxation is one of its main tools to regulate income distribution, and plays a positive role in regulating income by levying net transfer tax (income tax and property tax).

4.In the third distribution, the tax mainly participates in the distribution in the form of tax expenditure, which reflects the orientation of the development of public welfare.

There are several main reasons why the state is carrying out tax reform:

1.Promote economic development: Tax reform can adjust the tax structure, reduce the tax burden, encourage enterprise investment and innovation, and promote economic growth.

By reducing taxes and simplifying the tax system, the state can boost the competitiveness of businesses, attract foreign investment and boost domestic consumption, thereby boosting economic development.

2.Improving social equity: Tax reform can achieve a fairer distribution of taxes by adjusting tax rates and collection standards. By reducing the gap between rich and poor and class divisions, tax and fee reform can promote social equity and social stability.

3.Optimize resource allocation: The tax reform can guide a more rational allocation of resources through the adjustment of tax policies. Through tax incentives, funds can be cautiously flowed to areas with more development potential, and the optimization and upgrading of the economic structure can be promoted.

4.Simplifying the tax system and improving the efficiency of tax collection: The reform of taxes and fees can simplify the tax system, reduce the complexity and cost of tax collection and management, and improve the efficiency of tax collection. This can reduce the burden on businesses and the public, and improve the fairness and transparency of tax collection.

To sum up, the state's tax reform aims to promote economic development, improve social fairness, optimize resource allocation, simplify the tax system and improve collection efficiency. These initiatives contribute to sustainable development and social stability.

The reasons for the reform of the tax system are as follows:

1. All national taxes are ** taxes, and it is an obligation for citizens to pay taxes only because of hail. This is a typical manifestation of the "theory of national needs". This is actually a defect of taxation.

As for why the state should levy taxes, and why it needs to be taxed, no one is sophisticated, and the state will collect it if it wants. Although on the surface it is said that taxation is taken from the people and used by the people, there is no legal constraint on who will take it, who decides to take it, and who should take it;

2. Tax collection does not have the function of operating the legal system;

3. The current implementation of individual income tax is a nine-level progressive tax rate, and the current tax rate is relatively high, and the management system of the income of high-income people who are not working class is not sound enough, so that some people deliberately conceal their income in order to pay less personal income tax, so as to achieve the purpose of tax evasion, which eventually leads to the loss of national tax revenue;

4. The deduction standard of individual income tax is too low, and the per capita income is not considered, resulting in the tax collection of really high-income people, and the heavy tax burden of low- and middle-income people, so that there are many complaints, which further deepens the contradiction between the rich and the poor.

The principles of the reform of the tax system are as follows:

1. Governing taxes according to law. Guided by the rule of law, pay attention to the use of rule of law thinking and rule of law methods to promote reform, implement the statutory principles of taxation, improve the legal system of tax collection and management, and enhance the unity and standardization of tax law enforcement;

2. Facilitate taxation. Focusing on the filial piety of taxpayers, we will adhere to law enforcement for the people, strengthen cooperation between national taxation and local taxation, provide taxpayers with more high-quality and efficient services, continuously reduce the tax burden of taxpayers, effectively safeguard the legitimate rights and interests of taxpayers, and let taxpayers and the people have more sense of gain;

3. Scientific efficacy. Guided by the prevention of tax risks, relying on modern information technology, we will transform the way of tax collection and management, optimize the allocation of tax collection and management resources, accelerate the process of scientific, informatization and internationalization of tax collection and management, and improve the quality and efficiency of tax collection and management;

4. Collaborative co-governance. With the focus on creating a good tax working environment, we will coordinate the forces of the tax department and all parties involved in taxation, build a pattern of tax co-governance, and form a strong synergy of the whole society to cooperate in tax protection and comprehensive tax management.

5. Orderly progress. On the premise of strengthening the top-level design, it is matched with the process of deepening the reform of the fiscal and taxation system, actively responding to the concerns of taxpayers and all sectors of society, taking into account the overall consideration, and steadily implementing.

To sum up, in order to change the basic contradictions in society, the reform of the tax system has been carried out, and the principles followed by the reform of the tax system are to govern taxes according to law and advance in an orderly manner.

Legal basis]:

Article 1 of the Tax Administration Law of the People's Republic of China.

This Law is enacted in order to strengthen the administration of tax collection, safeguard state tax revenue, and protect the legitimate rights and interests of taxpayers.

Article 2. This Law shall apply to the collection and administration of all kinds of taxes levied by the tax authorities in accordance with the law.

Legal analysis: The basic feature of China's current tax structure is the "dual-subject" structure that attaches equal importance to direct taxes and indirect taxes. Judging from the trend of China's economic and social development, the future tax reform needs to adjust the tax structure for the consumer society, and change from the current tax structure with indirect taxes as the main body to equal emphasis on indirect taxes and direct taxes.

Judging from the current reform trend, the increase in personal income tax and the introduction of property tax represented by real estate tax will become an important direction of tax structure reform in the future.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 28 The taxation authorities shall levy taxes in accordance with the provisions of laws and administrative regulations, and shall not levy, suspend, overcollect, underleviate, collect in advance, postpone collection or apportionment of taxes in violation of the provisions of laws and administrative regulations. The amount of agricultural tax payable shall be determined in accordance with the provisions of laws and administrative regulations.

Article 29 No unit or individual shall carry out tax collection activities except for the tax authorities, tax personnel and units and personnel entrusted by the tax authorities in accordance with laws and administrative regulations.

Article 30 Withholding agents shall perform the obligation of withholding and collecting taxes in accordance with the provisions of laws and administrative regulations. The tax authorities shall not require entities and individuals that are not required by laws and administrative regulations to perform their obligations of withholding or collecting taxes. When the withholding agent fulfills the obligation of withholding or collecting tax in accordance with the law, the taxpayer shall not refuse.

If the taxpayer refuses, the withholding agent shall report to the tax authorities in a timely manner. The tax authorities shall pay the withholding agent the handling fee for withholding and collection in accordance with the regulations.

For taxpayers established before March 31, 2019, the proportion of sales is calculated based on the cumulative sales between April 2018 and March 2019. If the actual business period is less than 12 months, it shall be calculated according to the cumulative sales of the actual business period. For taxpayers established after April 1, 2019, the proportion of sales shall be calculated according to the cumulative sales volume of the three months from the date of establishment.

Legal basis]:

Article 2 of the Administrative Measures for the Registration of General VAT Taxpayers? If a VAT taxpayer (hereinafter referred to as a "taxpayer") whose annual taxable sales amount exceeds the standard for small-scale taxpayers prescribed by the Ministry of Finance and the State Administration of Taxation (hereinafter referred to as the "prescribed standard"), in addition to the provisions of Article 4 of these Measures, it shall register as a general taxpayer with the in-charge tax authorities. The annual taxable sales amount mentioned in these measures refers to the cumulative sales amount of VAT payable by taxpayers during the business period of no more than 12 consecutive months or four quarters, including the sales amount of tax declarations, the sales volume of audit and inspection records, and the sales amount of tax assessment and malassessment adjustment.

For taxpayers who have deductible items for the sale of services, intangible assets or immovable property (hereinafter referred to as "taxable activities"), the annual taxable sales amount of their taxable activities shall be calculated according to the sales amount before deduction. The sales amount of intangible assets and transfer of immovable property incidentally incurred by taxpayers shall not be included in the annual taxable sales amount of taxable acts.