The First Amendment Of The Personal Tax Amendment Has Exceeded 90% Taxpayers' Tax Burden This Week.

The draft amendment to the personal income tax law will be first examined in the twenty session of the eleven Standing Committee of the National People's Congress from 20 to 22 April.

If passed smoothly, the second instance will be held at the end of June, and the second instance will be passed in the second half of the year.

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In order to lighten the tax burden of the middle and low income persons and appropriately raise the tax burden of the high income persons, the decision-making departments have made many plans, and the first trial plan of the April 20th meeting is considered to be a set of schemes that take all sides into consideration.

Dynamic adjustment

If the personal income tax deduction standard is adjusted from 2000 yuan to 3000 yuan, the tax will be third times.

The internal and external personal income tax system of China's unification in 1994 was 800 yuan at the time, the first time it was raised to 1600 yuan in 2006 and 2000 yuan in 2008.

This is the third time in five years to raise the deduction standard of payroll.

Some scholars believe that throughout the past five years of personal tax reform, China's personal income tax has actually entered a dynamic adjustment mechanism.

Renmin University of China professor and Changan Institute of Taxation, vice president of the tax society, said that the "deduction of expenses" is actually a "living deduction", which is a deduction standard to ensure residents' basic livelihood.

An Tifu made detailed calculations based on data from Beijing, Shanghai and Guangzhou in 2008.

In 2008, the average household population of Beijing was 2.8, and the average household employed population was 1.5.

Per capita consumption expenditure is 16460 yuan a year, monthly expenditure per capita is 1371.7 yuan, household consumption expenditure per month is 3841 yuan, divided by the average household employment population of 1.5 people, the cost deduction in 2008 should be 2560 yuan, but that year only 2000 yuan deduction.

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Taking into account the factors such as inflation after 2008, and the improvement of income level, he believes that the cost deduction should be raised to at least 3000 yuan for this individual tax reform. Otherwise, some urban residents will not be able to meet their normal household consumption expenditure.

An Tifu said that according to the level of per capita consumption expenditure in cities such as Beijing and Shanghai, the national standard should be set.

How much can it be reduced?

When expenses were deducted at 2000 yuan, 28% of urban workers were paid personal taxes.

Some experts estimate that about half of those deducted will be exempt from individual tax.

At present, the personal income tax is about 480000000000 yuan, accounting for 6.3% of the total tax revenue, which is the fifth largest tax category in China.

Personal income tax accounts for more than 50% of the tax revenue in developed countries, and more than 20% in developing countries.

The reform of the tax rate sub level adjustment of wage earners, the decision-making departments have calculated a number of programs, eventually reduced from 9 level progressive progressive tax rate to 7 levels, and the 7 level considered the smooth pition of taxpayers' tax rates.

At present, China's personal income tax has a progressive tax rate of 9, with a minimum of 5% and a maximum of 45%.

On the basis of maintaining a minimum tax rate of 5% and a maximum of 45%, the reform will appropriately expand the taxable income gap applicable to the 5% tax rate and reduce the taxable income standard corresponding to the 45% tax rate.

Reform has enabled most working-class families to apply the lowest level one or two tax rates.

After deducting the exemption amount of 3000 yuan, if the income is less than 1500 yuan, the 5% tax rate will apply.

This shows that after deducting the monthly income of 4500 yuan, the employees will receive a 5% tax rate and a monthly tax of 75 yuan.

According to the current tax law, if the monthly income is 4500 yuan after deducting insurance, the tax rate of 15% will be applied, and the monthly tax will be 250 yuan.

The new scheme will reduce taxes by 175 yuan.

It is reported that there are two plans for the reform of personal income tax in the near future and in the medium and long term.

The medium and long term plan is a comprehensive and classified income tax reform.

However, due to various technologies, systems and objective reasons, the medium and long-term plans can not be implemented in the short term.

The revision of the personal income tax law is a recent reform.