State Administration Of Taxation: Strengthening The Tax Collection And Administration Of High Income Earners &Nbsp; Locking Five Key Projects

Jian Feng Hu

At present, the contradiction between the widening of personal income gap is increasingly prominent.

In order to strengthen tax collection and management and give full play to the role of Taxation in regulating income distribution, the State Administration of Taxation (hereinafter referred to as the "State Administration of Taxation") recently issued a circular calling for further strengthening the management of personal income tax collection for high-income earners, and locking out five categories of items focusing on strengthening collection and management.

Find out the law of income distribution in high income industries

The notice, entitled "further strengthening the management of the collection of personal income tax for high-income earners" (hereinafter referred to as the notice), calls for earnestly strengthening the collection and management of the main income items of high income earners: strengthening the collection and management of property pfer proceeds, strengthening the management of interest, dividends and dividends, and strengthening the collection and management of the production and business income of large scale individual proprietorship enterprises, partnership enterprises and individual industrial and commercial households, strengthening the collection and management of the remuneration of labor remuneration and the comparison management of wages and salaries, and strengthening the collection and management of foreign individuals' gains.

Zhang Peisen, a researcher at the head office of the State Administration of Taxation, told the first Financial Daily reporters that the key to the collection and management of personal income tax for high income earners lies in the collection and management of information collected by high-income earners.

Due to the implementation of the withholding system of personal income tax, wage earners, whose main source of wage income, is still the main source of personal income tax. According to the data released by the Ministry of finance, the proportion of personal income tax paid to individual income tax in recent years is about 50%.

The income source of the high-income class is more diversified, and the source of income is mainly not salary, most of the income can be implemented tax avoidance behavior.

Some scholars criticized that personal income tax not only played a role in regulating income distribution, but also widened the gap in income distribution.

The information collection of high-income people has also become one of the main contents of the notice.

The circular requires that all localities should conscientiously carry out the work of finding the source of personal income tax. Combined with the overall economic level of the region, the trend of industrial development and the characteristics of residents' income sources, we should focus on monitoring the relatively concentrated industries of high-income people and the relatively concentrated population of high-income people. We should find out the law of income distribution of the high income industries, grasp the main sources of income of the high-income group, establish the source information base of the high-income earners, improve the tax collection and management mechanism, and strengthen the management of personal income tax collection in a targeted way.

In addition, the circular requires all localities to strengthen the management of taxpayers' annual tax returns of more than 120 thousand yuan. This measure is considered to be one of the important measures to collect information on the income of high-income earners.

The circular requires that all localities should take measures to urge taxpayers to declare their various forms of income from all sources, improve the authenticity and integrity of the declared data, and strengthen collaboration and information sharing with departments such as industry and commerce, housing management, human resources and social security, and securities institutions.

The middle class should be prevented from "accidentally injure".

Some scholars have suggested that, while strengthening tax collection and administration, we should prevent the middle class from "injure".

Strengthening the income distribution effect of taxation is one of the purposes of the notice.

The analysis and prediction of the economic situation released in 2010 by the Academy of Social Sciences held that the main drawback of China's personal tax system is the tax burden of wage earners, and the other staff are light, strict in the collection and management of wage earners, and loose in other income groups.

Zhang Peisen said that according to the personal income tax law, the definition of high-income earners is more than 120 thousand yuan per year, but if we take into account the living costs of large and medium-sized cities, especially the eastern coastal cities, such as living expenses, housing supply, raising children and supporting the elderly, the annual income of 120 thousand yuan can only be considered as a middle-income class.

Many middle-income people do not think they belong to the "middle income group".

Experts believe that the reason for this contradiction is related to the current direction of individual income tax system in China.

For example, in the way of collection, the implementation of the sub levy, resulting in many sources of income and hidden, strong comprehensive income taxpayers do not pay taxes or less tax, and less income sources, relatively concentrated income taxpayers pay more taxes.