First, the current personal income tax system (before the reform) has the following problems:

Since the implementation of the current individual income tax law from 65438 to 0980, it has played an active role in organizing fiscal revenue and adjusting income distribution. However, with the development and changes of the economic and social situation, some problems are gradually exposed in China's individual income tax system.

(1), it is difficult for the current classified tax system model to fully reflect the principle of fairness and reasonableness. According to the classification of income items, personal income tax is levied on a monthly basis, and the main income items of taxpayers throughout the year are not comprehensively taxed, so it is difficult to fully reflect the principle of fair tax burden and reasonable burden.

(2) The tax rate structure is complex and there are too many wage and salary tax rates. Tax rates include excessive progressive tax rates and proportional tax rates, and there are different forms of excessive progressive tax rates; There are many problems in the current nine-level excessive progressive tax rate of wages and salaries, such as too many tax rates and too short low-level tax rates, which leads to a rapid increase in the tax burden of low-and middle-income people.

(3) The scope and standards of individual tax reduction and exemption at home and abroad are not uniform. First, the items of deduction, tax reduction and exemption for individuals at home and abroad are not uniform, which violates the principle of tax fairness. Second, there is a lack of operational rules for the specific deduction caliber of tax reduction and exemption items for foreigners, which provides a way for foreigners to avoid taxes.

(4) The means of tax collection and management and supporting social conditions can not meet the needs of tax system development, and there are some factors that restrict tax collection and management. Therefore, we should vigorously promote the construction of the following aspects: ① comprehensively establish a third-party tax-related information reporting (or * * * sharing) system; (2) Amend the tax collection and management law and improve the collection and punishment measures for natural persons; (3) Establish a single taxpayer account system; (4) Full implementation of networking of tax and financial institutions; ⑤ Vigorously promote personal non-cash settlement; ⑥ Establish a personal property registration real-name registration system.

Second, the main background and necessity of the revision of the individual income tax law:

In recent years, with the development and change of social and economic situation, residents' income has increased, people's living standards have been continuously improved, and people's consumption expenditure level has also improved. The current personal income tax system has gradually exposed some outstanding problems, such as the complex structure of wage and salary tax rate and the short range of low-grade wage and salary tax rate, which has caused the tax burden of low-and middle-income people to progressive too fast; The low deduction standard of wages and salaries has a certain impact on the basic life of residents; The tax rate of income from production and operation is relatively short in all intervals, and the tax burden is heavier than wages and salaries. In accordance with the requirements of the central government on further strengthening the adjustment of tax on income distribution, this reform focuses on solving the outstanding problems existing in the current classified tax system, effectively reducing the tax burden of low-and middle-income people, and appropriately increasing the tax adjustment of high-income people.

I hope it works for you!