The relevant person in charge of the Ministry of Finance and State Taxation Administration of The People's Republic of China pointed out that the draft plans to raise the fee deduction standard to 3,000 yuan/month. According to the individual income tax law, the taxable income is the balance of individual wages and salaries after deducting certain expenses from monthly income.
The purpose of deducting expenses from wage income is to embody the principle that residents' basic living expenses are not taxed. When the expenses required by residents to maintain their basic living have changed greatly, the standards for deducting expenses should also be adjusted accordingly.
According to the statistics of the National Bureau of Statistics, the per capita consumption expenditure of urban residents in China was 1 123 yuan/month in 20 10, and the per capita consumption expenditure of urban employees was 2 167 yuan/month. 20 1 1 year, based on the average growth of consumption expenditure per capita of urban employees 10%, the monthly consumption expenditure per capita of urban employees is about 2384 yuan.
China's personal income tax law has taken into account the family burden of taxpayers when determining the standard of deducting expenses from wage income. For example, the adjustment of the expense deduction standard is to calculate the average expense level borne by employees according to the number of employees who support 1.93.
National unified fee reduction standard
The relevant person in charge of the Ministry of Finance and State Taxation Administration of The People's Republic of China said that the main reason for implementing a unified fee reduction standard nationwide is that the standard is determined according to the average social consumption expenditure, which generally reflects the economic development and income level of residents in various regions of the country.
As far as some rich areas are concerned, the price index may be higher, but the income level of residents is also higher and their affordability is relatively strong; Implementing a unified standard is conducive to embodying the principle of tax affordability. At the same time, the implementation of unified standards between the central and western regions and the eastern region is also conducive to guiding the flow of outstanding talents to the central and western regions to some extent, avoiding the abnormal transfer of tax sources between regions and promoting the economic development of the central and western regions.
It is also an international common practice to adopt a unified national standard for fee reduction.
Give play to the role of tax adjustment
After the adjustment of the tax rate structure, taxpayers whose taxable income is subject to the tax rate below 10% account for 94% of the taxpayers with wage income, of which about 70% are subject to the tax rate of 5%, which is 17 percentage points higher than the current 9-level tax rate, further reducing the tax burden of taxpayers with middle and low wage income.
Through the above adjustments, while simplifying and perfecting the tax system, the vast majority of wage earners can enjoy the double tax benefits brought about by raising the standard of fee deduction and adjusting the tax rate structure, so that high-income earners can appropriately increase some tax burdens, thus further reducing the tax burden of low-and middle-income earners and increasing the adjustment of high-income earners.
Support wholly-owned enterprises and partnership enterprises
"The level of individual income tax paid by individual industrial and commercial households has not been revised this time, and it is still level 5." Liu Jianwen introduced, but compared with the past, there is a big improvement in the grade gap. For example, in the past, the tax rate for paying taxes below 5,000 yuan was 5%, and this time it will be raised to15,000 yuan, which is 5%. The income applicable to tax rates at all levels has increased by two to three times compared with the previous ones. This is mainly to consider the special situation of individual industrial and commercial households. In 2007, China enacted a unified enterprise income tax law, which reduced the corporate tax from 35% to 25%. Correspondingly, the tax rate of individual industrial and commercial households should also be adjusted. The individual income tax law is applicable to sole proprietorships and partnerships. Generally speaking, the tax rate of sole proprietorship and partnership enterprises is lower than that of corporate enterprises. If the tax rate of corporate enterprises is reduced, the tax rate of sole proprietorship and partnership enterprises should be reduced by amending the individual income tax law. This also reflects the state's concern and support for these two enterprises.
The traditional concept in our country is to compare the tax payment of individual industrial and commercial households with that of enterprises, and think that they should be consistent.
"This view is incorrect." Cui Wei believes that the income of individual industrial and commercial households should be compared with wage income, and most countries adopt similar tax rates. This revision of the individual income tax law is based on this correct concept and is expected to help correct the traditional concept. While adjusting the tax payment of the working class, in order to achieve consistency, the tax payment of individual industrial and commercial households has also been adjusted.
Jin Dongsheng believes that individual industrial and commercial households have the closest relationship with the income of the working class, so this time, while adjusting the personal income tax, the tax burden of individual industrial and commercial households should also be adjusted accordingly. Although the tax burden of individual industrial and commercial households has not been adjusted much, it has also reduced their burden accordingly. At the same time, the two can be alleviated, which can achieve the balance and coordination of all levels.
There are only two changes in the draft amendment to the individual income tax law, which was first considered by the highest legislature in China: raising the tax threshold from 800 yuan to 1500 yuan to reduce the tax burden of middle and low wage earners; Require high-income earners to declare their own taxes and conduct cross-audit of their taxes. Authorities pointed out that the two revisions of "one loosening and one tightening" are aimed at alleviating the current gap between the rich and the poor. 65% of the national tax comes from Shi Yaowei, director of the tax department of the working-class Ministry of Finance, told reporters that personal income tax can best adjust the income distribution gap among all taxes. In recent ten years, the gap in personal income distribution has been increasing, and the Gini coefficient has reached 0.447. According to international practice, the Gini coefficient has reached or exceeded 0.4, indicating that the wealth gap is too large. Statistics show that the working class is the main taxpayer of personal income tax in China. In 2004, China's personal income tax revenue was170 billion yuan, of which 65% came from the working class, which was contrary to the original intention of personal income tax to promote social equity and adjust the gap between the rich and the poor. Liu Huan, a tax expert, said, "At present, the low-income class, especially the working class, is the group with the heaviest tax burden." The working class has the largest number of taxpayers, about 300 million yuan, and the final tax rate is the highest because of the single source of income and the withholding system. High-income earners enjoy multi-source deduction due to multi-source income, and there are many tax evasion and tax evasion. Since 1993, 800 yuan has been deducted from wages and salary income every month. However, by 2003, the ratio of consumer price index to 1993 had increased by 60%, and the consumption expenditure had obviously increased, which exceeded the monthly expense deduction standard of 800 yuan stipulated by the individual income tax law, resulting in that the employee's consumption expenditure could not be completely deducted before tax, and the tax burden was obviously aggravated. The draft raises the standard of deduction of wages and salaries from the current 800 yuan to 1500 yuan per month, which is higher than the per capita consumption expenditure level of urban workers, so that middle-and low-wage earners do not pay personal income tax or have a lighter tax burden. "The number of threshold 1500 yuan is calculated according to the current per capita consumption level and per capita income level, and it is also a more reasonable choice between the national financial affordability and public expectations." Shi Yaowei said. An official of Beijing Local Taxation Bureau told reporters that, in fact, Beijing, Nanjing and other cities have been experimenting with the individual income tax detailed declaration system. When withholding and paying personal income tax, the unit reports the personal information and income status of each employee to the tax bureau, so that the local tax bureau can establish a "personal tax repository" and use the ID number as an index to find out who has multiple tax sources. According to authoritative experts, this amendment to the individual income tax law is only a fine-tuning. In the future, all employees will gradually declare their own taxes in full, and a comprehensive and classified taxation model will be implemented to distribute social wealth more reasonably. 700 yuan can pay less tax per person per month up to 3 15 yuan's national tax will be reduced by more than 20 billion yuan each year. The draft amendment to the personal income tax law intends to raise the personal income tax threshold from 800 yuan to 1500 yuan. If 1500 yuan is taken as the tax threshold and implemented, how much will we pay less each month? According to the tax rate table, each person will pay a maximum of 3 15 yuan per month. According to the calculation of relevant experts, the national fiscal revenue will be reduced by more than 20 billion yuan a year. According to the current provisions of the draft amendment to the individual income tax law, it is only intended to adjust the threshold of individual tax, but not the tax rate. If the Standing Committee of the National People's Congress deliberates and passes the personal income tax amendment, according to this tax rate, the change of personal tax payment can be calculated: those who pay monthly income 1000 yuan, the original tax payment 10 yuan, will not need to pay tax, and pay less tax than before 10 yuan; If the monthly income is 1500 yuan, the original tax will be paid in 45 yuan, and the tax will be paid less in 45 yuan than before; If the monthly income is 10000 yuan, the original tax will be 1465 yuan, and the tax will be 1325 yuan, less than before 140 yuan; If the monthly income is 50,000 yuan, the original tax will be 1 1385 yuan, and the tax will be1175 yuan, which is 2 10 yuan less than before; If the monthly income is 80,000 yuan, the original tax will be 2 1345 yuan, and the tax will be 2 1 100 yuan, which is 245 yuan less than before; If the monthly income is 100000 yuan, the original tax will be 29305 yuan, and the tax will be 29025 yuan, which is less than the previous tax in 280 yuan; Those whose monthly income is above 10 1500 yuan will pay 3 15 yuan less than before. Strengthening the tax collection and management of high-income earners, tax evasion may be sentenced. The draft amendment to the Individual Income Tax Law stipulates that high-income earners whose personal income exceeds a certain amount shall file their own tax returns. Those who fail to declare or declare falsely will be punished according to the Tax Administration Law. Jin Renqing, Minister of Finance, explained to the 10th the National People's Congress Standing Committee (NPCSC)17th meeting that the current individual income tax law stipulates that only taxpayers who have earned wages and salaries in more than two places and have no withholding agent must declare on their own, while other taxpayers, including high-income earners, only apply for withholding declaration by their withholding agents, and taxpayers do not have to declare on their own. However, when the withholding agent fails to withhold or fails to withhold, according to the provisions of the Tax Administration Law, the withholding agent can only be fined, and the taxpayer's legal responsibility cannot be investigated, which affects the collection and management of high-income earners. Jin Renqing said that requiring high-income earners whose personal income exceeds a certain amount to declare by themselves is only a pilot project, and there is not much experience. Therefore, it is better to gradually expand the scope of self-declaration and finally realize universal declaration. In other words, the standard of personal income that must be declared by oneself needs to be constantly adjusted. Therefore, the draft amends Article 8 of the current individual income tax law to read: "Individual income tax takes the income as the taxpayer and the unit or individual who pays the income as the withholding agent. If the personal income exceeds the amount stipulated by the State Council, or if the income from wages and salaries is obtained from two or more places and there is no withholding agent, and there are other circumstances stipulated by the State Council, the taxpayer shall file tax returns in accordance with state regulations. The withholding agent shall handle the full withholding declaration of all employees in accordance with state regulations. " Jin Renqing said that taxpayers whose personal income exceeds the amount stipulated by the State Council must declare it by themselves, and the tax authorities can impose a fine of more than 50% and less than 5 times on taxpayers who fail to declare or declare falsely in accordance with the provisions of the Tax Administration Law; If a crime is constituted, criminal responsibility shall be investigated according to law. At the same time, the draft stipulates that withholding agents must apply for full withholding declaration, which forms a supervision system of double declaration and cross-audit for high-income people, which is conducive to strengthening tax collection and management of high-income people and plugging loopholes in tax collection and management. This time, the revision of the personal income tax law and the linkage between raising the standard of deduction of expenses for wage income and adjusting the tax rate structure of wage income are mainly to enable the vast majority of wage earners to enjoy the double tax benefits brought about by raising the standard of deduction of expenses and adjusting the tax rate structure, in addition to simplifying and improving the tax system.
When answering questions about the draft, the relevant officials of the Ministry of Finance and State Taxation Administration of The People's Republic of China disclosed that after the adjustment of the tax rate structure of wage and salary income, the proportion of taxpayers with taxable income below 10% accounted for 94%, of which the proportion of taxpayers with 5% tax rate was about 70%, which increased by/kloc compared with the proportion of taxpayers with current 9-level tax rate below 10%.