From 65438 to 0994, China formally implemented the tax-sharing reform system. The milestone and historic contribution of the tax-sharing reform lies in fundamentally changing the system of organizing fiscal revenue according to the administrative subordination of enterprises, bidding farewell to the old "administrative decentralization" of unified revenue and expenditure, and moving towards "economic decentralization" that is more in line with the market economy. The tax-sharing financial management system has also played an important and positive role in rationalizing the distribution relationship between the central and local governments, mobilizing the enthusiasm of the central and local governments, strengthening national tax collection and management, ensuring fiscal revenue, and enhancing macro-control capabilities. On August 3, 2065438, the decision on amending the individual income tax law was passed. The threshold is 5,000 yuan per month, and the latest threshold and tax rate will be implemented from June 20 18 to June 20 1 9 to June 20 1 year.

The characteristics of the tax-sharing system are as follows:

1, the tax-sharing system divides the scope of central and local fiscal revenues and expenditures according to the principle of combining administrative power with financial power, which is reasonable and stable;

2. The tax-sharing method is more scientific. On the basis of tax classification, we should change the method of dividing tax revenue according to the administrative affiliation of enterprises, and divide tax sources according to the characteristics, benefits and convenience of taxes. In the method of tax source division, the tax source is mainly divided, which changes the method of total amount sharing;

3. The central tax authorities are responsible for the collection and management of the central tax and the central and local taxes, and the local tax authorities are responsible for the collection and management, which is conducive to improving the efficiency of collection and management and preventing the central tax and the local tax from being arbitrarily reduced or exempted for local interests;

4. The central government makes formulaic transfer payments to local governments according to the factor method, rather than subsidizing them according to the base method or quota, which is more standardized and transparent;

5. A perfect tax-sharing system must have a complete set of laws, so the tax-sharing system is a financial management system with high transparency and stability.

legal ground

Individual Income Tax Law of the People's Republic of China

Article 1 Individuals who have domicile or no domicile in China but have resided in China for a total of 183 days in a tax year are individual residents. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China. Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law. The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.

"Decision of the State Council on Implementing the Financial Management System of Tax Sharing" People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions and institutions directly under the the State Council:

According to the decision of the Third Plenary Session of the 14th CPC Central Committee, in order to further straighten out the distribution relationship between central and local finance, give full play to the functional role of national finance, enhance the macro-control ability of the central government, and promote the establishment of the socialist market economic system and the sustained, rapid and healthy development of the national economy, the State Council decided to reform the current local financial contracting system from 1994 1.