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    The Standing Committee Will Consider The Draft Tax Adjustment Next Week.

    2011/4/14 11:07:00 37

    Exemption From Personal Tax Adjustment

    The draft amendment to the personal income tax law will be accepted by the Standing Committee of the National People's Congress next week.


    Wu Bangguo, chairman of the Standing Committee of the National People's Congress, presided over the sixty-first chairmen's meeting of the Standing Committee of the eleven National People's Congress on 13 April. The meeting decided that the twentieth session of the eleven NPC Standing Committee was held in Beijing in from April 20th to 22nd.


    The chairman's meeting recommended that the twentieth session of the eleven NPC Standing Committee continue to consider the draft law on administrative compulsion, and consider the draft decision on Revising the specific provisions of the coal law and the building law, and the draft amendment to the road traffic safety act. Individual income tax method correct Draft case.


    On the eve of the national two sessions, the State Council decided to amend the personal income tax law, raise the standard of deduction of wages and salaries, adjust the secondary distance between salaries and salaries, but did not announce the specific content of the adjustment.


       Treasury Department Minister Xie Xuren said at the press conference of the two sessions that the deduction of wages for wages has increased from 800 yuan to 1600 yuan and 2000 yuan in the past few years. This time we need to make some improvements.


    Also during the two sessions, Li Fei, deputy director of the National People's Congress Law Committee and the Standing Committee of the Standing Committee of the National People's Congress, said to the media that the personal income tax is now less than 2000 yuan. In addition, the "three gold" is now applied to employees, and another 500 yuan is deducted from social insurance. In fact, personal income is less than 2500 yuan, and the individual income tax can not be paid according to the present regulations. It is surely higher than the number to raise the threshold.


    Li Fei said at that time that because the draft had not mentioned the Standing Committee of the National People's Congress, it was not possible to answer the questions of the media accurately.


    According to the current law, the standard of personal income tax exemption should be implemented in accordance with the provisions of the individual income tax law, and the amount of personal income tax exemption should be adjusted.


    China formally passed the personal income tax law in 1980. The exemption of personal income tax is 800 yuan. In 2005, the NPC Standing Committee's decision to amend the personal income tax law increased the exemption amount to 1600 yuan. In 2007, the Standing Committee of the National People's Congress decided again to increase the exemption amount to 2000 yuan.


    Earlier, the reporter learned from the sources that this personal tax reform may be a comprehensive reform, not only including the increase of individual tax exemption, but also including the reform of individual tax level and interval.


    A person who participated in the policy consultation told reporters that the exemption of personal tax is expected to increase from the current 2000 yuan to 3000 yuan. At the same time, the 9 level progressive progressive tax rate is expected to be reduced to 5.


    It is worth noting that the Ministry of Finance pointed out in the text of the "personal income tax system and management" that raising the cost deduction standard is often more beneficial to the high income earners, and that the middle income earners are less tax deductible, and that most of the low income earners of the wage earners do not benefit from paying taxes. The high income earners have more tax cuts because of excessive progressive levying of personal income tax on wage income items, and there is also a regressive effect in reducing taxes. For example, the cost deduction standard will be raised from 2000 yuan / month to 3000 yuan / month, and the taxpayer's monthly tax payment of 5000 yuan will be reduced by 100 yuan / month, and the monthly taxpayer's tax payment of 10 thousand yuan will be reduced by 200 yuan / month. Tax cuts are higher for those with higher monthly wages.


    This issue has been taken into consideration in decision-making. In addition to simply increasing the exemption amount, according to the decision of the State Council, the secondary level of tax rate has also been included in the adjustment range.


    During the two sessions, Li Yong, Vice Minister of finance, said that after considering the opinions of all parties, the increase of the tax threshold would fully take into account the interests of the middle and low income groups.


    Xie Xuren also stressed that personal income tax is an important tax adjustment for income distribution. It is designed according to the principle of "high income earners pay more taxes, low income persons pay less taxes or do not pay taxes".
     

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