博彩交流:Proposed tax cut to ensure fairer income distribution

0 Comment(s)Print E-mail Xinhua, June 20, 2018
Adjust font size:

博彩公司 www.kilc.com.cn China's top legislature Tuesday began reviewing a draft amendment to the Individual Income Tax Law as part of efforts in the country to achieve fairer income distribution and common prosperity.

The draft amendment, submitted for the first reading at a bimonthly session of the National People's Congress (NPC) Standing Committee, raises the minimum threshold for personal income tax from 3,500 yuan (about US$544) to 5,000 yuan per month, or 60,000 yuan per year.

This standard will also be applicable to those who have no domestic residence but receive an income from wages in China, as well as those who live in China but receive an income from overseas wages.

Revisions for continuing reform

Entrusted by the State Council, Finance Minister Liu Kun told lawmakers at Tuesday's opening of the session that the revisions are aimed at implementing decisions by central authorities and ensuring a smooth individual income tax reform in accordance with the law.

"With this year marking the 40th anniversary of reform and opening up, the revisions focus on content that is no longer suitable for China's continuing reform," Liu said, adding that the changes have taken people's rising consumption expenses into account.

The draft amendment adds special expense deductions for items like children's education, continuing education, treatment for serious diseases, as well as housing loan interest and rent.

"This is the first time that special expense deductions have been introduced in China's individual income tax system," Liu said, adding that they adhere to the basic principles of individual income tax and are helpful for a fair taxation system.

The changes are conducive to reducing tax burdens for taxpayers, raising people's income and boosting consumption.

The amendment defines resident individuals and non-resident individuals as two types of taxpayers. In addition, the length of time used to distinguish between the two groups will be adjusted to 183 days from the previous 365.

"This will help establish tax jurisdictions and safeguard national tax rights and interests," Liu said.

The individual income tax was the third major contributor to China's total tax revenue, following value-added tax and enterprise income tax. In 2017, China collected individual income taxes worth nearly 1.2 trillion yuan, about 8.3 percent of the total tax revenue.

Changes for equity

The current law has undergone seven revisions since it was enacted in 1980, when the original threshold for individual income tax exemption was 800 yuan per month.

It was raised to 1,600 yuan in 2005 and 2,000 yuan in 2007. The current threshold is 3,500 yuan according to the revision made in 2011.

According to the draft amendment, the previous method of taxing monthly income will be replaced with a new calculation which focuses on taxing annual income.

"The new method will be fairer and more reasonable for those whose monthly salary varies," said Zhang Bin, an expert from the National Academy of Economic Strategy of the Chinese Academy of Social Sciences.

If the revisions are adopted, those whose monthly salary ranges from 5,000 yuan to 20,000 yuan will see their tax cut by over 50 percent and those whose monthly salary ranges from 20,000 to 80,000 will see their tax cut by 10 to 50 percent.

"The personal income tax reform is primarily a good news for middle to lower income groups as people with less income will see a larger tax reduction," said Li Wanfu, head of the institute of tax science of the State Administration of Taxation.

Flexible taxation prevents tax evasion

The draft amendment also adds an anti-tax avoidance clause, empowering tax authorities to adjust tax rates when individuals transfer property in violation of independent trading.

Individuals will also be subject to the clause when they evade taxes through overseas tax havens or obtain improper tax benefits by organizing unlawful commercial activities.

"The addition of the clause is meant to let taxpayers pay their taxes in accordance with the law, which is better for the society," Li said.

"Concerted efforts are needed to fix tax evasion loopholes and make taxation more open and transparent," Li added.

Follow www.kilc.com.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:    
    Racist, abusive and off-topic comments may be removed by the moderator.
  • 男女差别有多大?河北省首次公开发布分性别统计分析报告 2019-04-19
  • 湖南《当代商报》工作人员遇害案告破 警方通报:情杀 2019-04-19
  • 概括起来就是:人在任何时候都有神赐的田地生长粮棉等生物而足食丰衣。 2019-04-18
  • 中华人民共和国监察法 2019-04-18
  • 新时代 新作为 新篇章 2019-04-17
  • 四川乐山公交车爆炸案系人为 嫌疑人已被控制 2019-04-16
  • “男童在幼儿园噎食死亡”,信息渠道应当畅通无阻 2019-04-16
  • 荆楚网网络视听节目许可证 2019-04-10
  • 构建地区命运共同体的重要平台(望海楼) 2019-04-09
  • 十九大代表、海口市公安局琼山分局飞鹰大队大队长冯晖:把十九大精神讲清楚、讲明白 2019-04-04
  • 西藏首届科技创新创业大赛报名启动 2019-04-04
  • 调皮!野象强行冲关“出境游” 玩了两小时自己回家来 2019-04-02
  • 特不靠谱先生言而无信,翻云覆雨小人,王八吃秤砣铁了心要与我朝为敌了。[福尔摩斯] 2019-03-30
  • 你总是不怕风大扇了舌头。另外,你的帖子我仍然是根本就没看,我对你的这类帖子不感兴趣,因为这没有什么用处,只会挑起无谓的争论。因为你是在预测遥远的未来,遥远的未来 2019-03-28
  • 卡梅伦后悔举行公投:所有政治生命都以失败告终 2019-03-28
  • 9| 720| 897| 240| 358| 759| 928| 198| 111| 302|