Personal income tax is a general term for adjusting the legal norms of social relations between the tax authority and natural persons (residents, non-residents) in the process of collecting and managing personal income tax. After entering the modern society, countries generally began to collect personal income tax, which has become the largest tax category in many economically developed ones. China, since 1980, has begun to collect personal income tax, which developed rapidly despite its late beginning. With earned income one of the important parts of personal income, the deduction Criteria of it has a direct effect not only on the principle of tax equity, but also on the fundamental interests of the working class. From the angle of earned income deduction criteria in China, this paper proposes suggestions for China's earned income system, combined with its counterparts of other countries.
The paper mainly includes the following five parts:
Part 1: the introduction. It mainly elaborates the background, the research purpose, the research method and the composition of the paper.
Part 2: the analysis of the relevant theories of the earned income system. It elaborates the basic principles of China's tax laws and the meaning and content of the earned income deduction, and also includes a summary of the earned income system and existing research in Korea, the United States, the United Kingdom, India, and Brazil.
Part 3: the content and problems of China's earned income system. It elaborates the development of China's earned income deduction and the status quo and characteristics of the existing earned income system, with three problems pointed out to it.
Part 4: the suggestions of China's existing earned income system.
Part 5: the summary of this paper.