Individual income tax collection and reform in recent years

Summary. China's Individual Income Tax Reform Should Be Oriented to the Implementation of a Comprehensive Income Tax Model The formulation of a strict individual income tax is a comprehensive and systematic project. Reforming and improving the individual income tax system is of great political, economic and social significance.

Only by reforming and perfecting the individual income tax system can we better increase fiscal revenue, more effectively regulate social distribution, curb polarization, ease social contradictions, and maintain social stability, and at the same time, it will also be more conducive to promoting the process of reforming China's entire political and economic structure. The contents of the reform should include: the implementation of a tax rate system and the improvement of the withholding system; Set a more reasonable deduction standard for expenses; Strengthen the source pre-settlement of individual income tax, and settle the year-end final settlement; Strengthen the effectiveness and pertinence of individual income tax publicity.

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Individual income tax is a tax levied on various taxable income obtained by individuals, and it is a tax commonly levied by countries around the world. In developed countries in Europe and the United States, the revenue from this tax accounts for nearly half of the total tax revenue. The collection of individual income tax plays a very important role in realizing the fairness and distribution of income and raising financial funds.

China's Individual Income Tax Reform Should Be Oriented to the Implementation of a Comprehensive Income Tax Model The formulation of a strict individual income tax is a comprehensive and systematic project. Reforming and improving the individual income tax system is of great political, economic and social significance. Only by reforming and perfecting the individual income tax system can we better increase fiscal revenue, more effectively regulate social distribution, curb polarization, ease social contradictions, and maintain social stability, and at the same time, it will also be more conducive to promoting the process of reforming China's entire political and economic structure.

The contents of the reform should include: the implementation of a tax rate system and the improvement of the withholding system; Set a more reasonable deduction standard for expenses; Strengthen the source pre-settlement of individual income tax, and settle the year-end final settlement; Strengthen the effectiveness and pertinence of individual income tax publicity.

In 1950, the Government Council promulgated the programmatic document for the construction of the tax system in New China, the "Essentials for the Implementation of the National Tax Administration", which involved the taxation of personal income mainly on salary and remuneration income tax and deposit interest income tax, but due to various reasons, it has not been levied.

In September 1980, the Individual Income Tax Law was officially promulgated, which included Chinese citizens and foreigners in China, but due to the high exemption amount (800 yuan per month or each time) and the generally low salary income of domestic residents, the vast majority of domestic residents were not included in the scope of taxation. In order to effectively adjust the gap in the income level of members of society, in January 1986, the Provisional Regulations on Income Tax for Urban and Rural Individual Industrial and Commercial Households were promulgated, and in September of the same year, the Interim Regulations on the Adjustment Tax on Individual Income were promulgated, and the above provisions only apply to domestic residents.

In 1994, China promulgated and implemented a new individual income tax law, initially establishing a unified individual income tax system inside and outside. Subsequently, with the development and changes of the economic and social situation, the state made several major adjustments to the individual income tax system: in 1999, the individual income tax on interest income from savings deposits was resumed; In 2006 and 2008, the standard for deducting expenses from wages and salaries was raised twice; In 2007, the individual income tax rate on the interest earned on savings deposits was reduced from 20% to 5%; In 2008, the individual income tax on interest income from savings deposits was temporarily exempted; In 2010, individual income tax was levied on the income obtained from the transfer of restricted shares of listed companies.

With the development and improvement of China's individual income tax system, individual income tax plays an increasingly important role in organizing fiscal revenue and regulating income distribution.

The current individual income tax policy is still the standard formulated a few years ago, and after years of development, the current individual income tax policy does not conform to the actual situation, so it should be reformed. So, what is the content of the reform of personal income tax? For related issues, the network has made a detailed introduction, I hope it will be helpful to you.

What is the reform of individual income tax? Fairness and efficiency are intrinsically unified by studying the IIT reform plan, which is actually not news. As early as May this year, the Ministry of Finance not only came up with a timetable, the introduction of the individual income tax reform plan in 2015, and the individual income tax will be legislated in 2017, but also has drawn a roadmap:

The ultimate direction of individual income tax reform is to gradually establish a comprehensive and categorical individual income tax system. One of the main measures is to "reduce taxes for wages", that is, through the adjustment of individual income tax, ** further benefit the people, hide the wealth from the people, ** and the salarymen to share the "benefit cake", ** get a small head, and the salarymen get a big head. Since 1980, the threshold of the individual income tax code has been adjusted four times, increasing to 1,600 yuan in 2006, 2,000 yuan in 2008, and 3,500 yuan in 2011.

It's 5000. The future direction of reform is to formulate a collection plan in relative detail, comprehensively consider factors such as prices, the improvement of residents' living standards, regional circles and family differences, set coefficients respectively, and dynamically and flexibly adjust the individual income tax threshold! For now, the closest thing to a change will be to deduct large household expenses!

That is, the deduction of large expenses such as mortgages. 2.Implement a comprehensive income tax policy?

This equates to a 23% reduction in monthly payments. For example, merging some tax items, improving pre-tax deductions, introducing a household expenditure declaration system, and optimizing the tax rate structure; In layman's terms, it means that taxes are levied on an annual basis and on a family-by-family basis, and the transportation expenses, rent, mortgage and mortgage of individuals and families are included in the deduction amount, that is, the comprehensive income tax policy is implemented. Its fundamental purpose is to further reduce the tax burden on wage earners.

At the same time, we will intensify the collection and management of individual income tax for high-income groups to achieve a fair tax burden in the true sense. At present, the net income after excluding individual income tax is only 6,880 yuan, and after the individual income tax reform, the income will reach 9,255 yuan, which is equivalent to an additional 2,375 yuan of income. It is an effective way to eliminate the gap between the rich and the poor and maintain social fairness, and it is also an inevitable choice to increase the proportion of labor remuneration in GDP and improve the quality of life and happiness index of the public.

The above is the relevant knowledge for everyone, I believe that we have a general understanding of this through the above knowledge, if you still encounter any more complex legal issues, welcome to log in to the network for lawyer** consultation.

The reform process of China's individual income tax can be traced back to the early 80s of the 20th century, with the advancement of China's economic reform and the establishment of the market economy system, the individual income tax system has also undergone many adjustments and reforms. Here are some of the key milestones:

1.In the early 1980s, China initiated the establishment of an individual income tax system and implemented a temporary income tax system for individuals to tax their wages and salaries.

2.1994: China promulgated a new individual income tax law, clarifying the legal basis and tax rate framework for individual income tax. The Act provides for 7 different tax rates and introduces a number of pre-tax deductions.

3.2005: China undertook a large-scale individual income tax reform, simplifying the original seven tax rates to five, adjusting the tax rates, raising the individual threshold (i.e., exemptions), and reducing the tax burden on low- and middle-income earners.

4.2011: China readjusted its personal income tax rate structure again, adding two tax tiers, raising the tax rate for higher income earners, and implementing a surcharge for individuals with high annual incomes.

5.2018: China implemented the reform of the comprehensive calculation method of individual income tax, introduced the concept of comprehensive income, comprehensively calculated various types of personal income, and adopted a progressive tax rate system to achieve more accurate individual income tax collection.

It should be noted that the individual income tax reform is an ongoing process, and with the development of China's social economy and the needs of tax reform, corresponding adjustments and reforms may continue in the future. The specific individual income tax policy can be queried according to the latest regulations and regulations.

The reform measures of personal income tax include adjusting the threshold of personal income tax from 3,500 yuan to 5,000 yuan. The calculation method of the taxable income of individual income tax is: tax payable = taxable income applicable tax rate - quick deduction.

Article 2 of the Law on the Taxation of Individual Income shall pay individual income tax on the following personal income: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties; (5) Business income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from the transfer of property; (9) Incidental gains.

The reform of individual income tax is to adjust the threshold of personal income tax from 3,500 yuan to 5,000 yuan. The calculation method of individual income tax taxable income is: payable hand tax amount = taxable income applicable tax rate - quick deduction.

Article 2 of the Income Tax Law shall be subject to individual income tax for the following items: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties; (5) Business income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from the transfer of property; (9) Incidental gains.

Hello 1, year-end bonus tax method in September 2011 The newly revised individual income tax law has not made any adjustments to the tax calculation method of the annual one-time bonus, and the tax calculation method is divided into two situations: (1) the monthly salary exceeds 3500 yuan, and the annual one-time bonus is divided by 12 months, according to the amount obtained, the corresponding tax rate is found out, and then the full tax rate of the bonus is used to calculate the deduction, which is the final amount of tax that needs to be paid. (2) If the monthly salary of an individual is less than 3,500 yuan, it is necessary to add the salary and the annual one-time bonus, subtract 3,500 yuan, and then divide it by 12 months to find out the corresponding tax rate, and then use this amount of tax rate - quick deduction to get the amount of tax that needs to be paid.

Due to the change in the tax rate and sub-level of personal income tax, the tax amount that needs to be paid to calculate the year-end bonus this year will be changed compared with last year, especially for the salaried people who adapt to the first-level low-grade tax rate, and the year-end bonus will also be reduced. For example, the year-end bonus is 10,000 yuan, and the tax payable = 10,000 3%-0 = 300 yuan, while the same 10,000 yuan year-end bonus last year, the tax payable = 10,000 10%-25 = 975 yuan, and the tax reduction is 675 yuan. 2. The critical point of the tax rate leads to "giving more and taking less", because different tax rates correspond to different monthly taxable income, so just above the critical point of the two tax rates, the situation of "giving more and taking less" will occur.

The year-end bonus of 18,000 yuan is just the critical point of the newly revised first-class individual income tax rate, that is, more than 18,000 yuan will be taxed according to the second-level tax rate of 10%. For example, the year-end bonus of A is 18,000 yuan, and the year-end bonus of B is 18,001 yuan (assuming that the monthly salary of both is higher than 3,500 yuan). A's individual income tax payable is calculated as follows:

18000 12 = 1500 yuan, the corresponding tax rate and quick deduction are, tax payable = 18000 3%-0 = 540 yuan, after-tax income 17460 yuan. Look at B again, because 18001 12 is already greater than 1500 yuan, the corresponding tax rate and quick deduction are, tax payable = 18001 10%-105 = yuan, after-tax income yuan, but less than a income yuan. The most extreme situation is the year-end bonus of 960,000 yuan and 960001 yuan, because 960001 yuan means that it will correspond to the highest level of 45% tax rate, and 960,000 yuan corresponding to the tax rate is 35%, as a result, the difference of 1 yuan after tax income is reduced yuan.

3. Avoid the "shrinkage area" from 18,001 yuan to yuan, from 18,001 yuan to yuan, which are all year-end bonus shrinkage areas, because the multiple bonuses are less than or equal to the increased tax amount. And there is more than one shrinkage area like this, it is understood that there are six such ranges: [18,001 yuan, yuan]; [54,001 yuan, 6,018.]