The Development and Challenges of China’s Individual Income Tax System

DOI

10.2991/978-2-38476-309-2_94How to use a DOI?

Keywords

personal income tax; tax reform; international tax comparisons; Tax administration technology

Abstract

Since its implementation in 1980, China’s individual income tax system has undergone a number of important reforms, including the 1994 tax reform, the 2011 tax point adjustment, and the 2018 IIT reform that combined comprehensive and categorical tax reforms. These changes are not only reflected in the tax threshold and tax rate adjustments, but also include the introduction of special additional deductions. The evolution of the personal tax system aims to promote social equity, optimize tax structure, and enhance the transparency and predictability of tax policies. However, the current personal tax system still faces challenges such as base erosion and transfer pricing. Compared with the individual tax systems of United States, Germany and Japan, China’s individual tax system shows the differences in international tax policies, especially in the application of information reporting and collection and management technology. In the future, China can draw on the direction of optimization from international experience, explore the improvement of the tax system of household taxpayers and foreigners, and strengthen tax collection and management and anti-tax avoidance legislation through information technology. At the same time, the research should pay attention to the trend of deepening the reform of individual income tax, the challenges of personal income identification and tax compliance, and the application of big data in tax risk prediction, so as to promote the construction of international tax cooperation and tax collection and management linkage mechanism.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haoran Jin
PY  - 2024
DA  - 2024/12/09
TI  - The Development and Challenges of China’s Individual Income Tax System
BT  - Proceedings of the 2024 9th International Conference on Modern Management, Education and Social Sciences (MMET 2024)
PB  - Atlantis Press
SP  - 776
EP  - 785
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-309-2_94
DO  - 10.2991/978-2-38476-309-2_94
ID  - Jin2024
ER  -