Individual Tax Is Expected To Become A New Breakthrough In Tax Reform.

The plan for personal tax reform has been preliminarily formed.

In November 26th, a person close to the Ministry of Finance told the media that the Ministry of Finance recently held several expert seminars on personal tax reform.

"Personal tax reform is advancing in accordance with the established timetable."

An official of the Ministry of finance also confirmed to our reporter that the Ministry did hold seminars to discuss the issue of tax reform. The direction of reform has been very clear, that is to set up a personal tax system combining comprehensive and taxonomy, but some specific problems are still being explored, such as what kind of income should be included in the comprehensive levy.

In addition to the establishment of a comprehensive tax system combined with classification, family oriented collection is also a direction of reform, but the current industry dispute is relatively large.

Wang Dongsheng, President of the tax network tax office, believes that after the comprehensive personal income tax system is fully established, it may be more reasonable to collect it according to the family unit.

As for the specific reform plan, the above Treasury officials said they had not seen it.

Those close to the Ministry of finance also said that even the experts who participated in the seminar had not seen the plan, but as far as he knew, the plan had already basically taken shape, and the possibility of reporting it to the State Council early next year is very great.

It is understood that at the expert meeting held by the Ministry of finance, although there was no public tax reform plan, some experts' suggestions on reform were heard.

According to the reporter, the Ministry of finance has been promoting the work of tax reform. This expert seminar has not only been held recently, but also has been held many times before.

In June 30th last year, the Central Political Bureau promulgated the general plan for deepening the reform of fiscal and taxation systems. The tax reform is an important part of the tax reform. But in the six taxes that need to be changed, the individual tax is at the end.

But at the moment, when the camp changes to close, the personal tax comes from behind, and surpasses consumption tax, resource tax, environmental protection tax and real estate tax as a new trend of tax reform.

In fact, as early as the 1996 Eighth National People's Congress four session of the "outline of the 95 national economic and social development plan", our country has clearly proposed to carry out the tax reform; however, until today, from "95" to "12th Five-Year", the personal tax reform has not been a big move. Only in 2006 to 2011, the NPC passed three laws to raise the deduction standard of wages and salaries, that is, raising the threshold of personal tax.

According to the insiders, raising the speed of personal tax reform is probably the increasing financial pressure at the moment.

In the 1-10 months of this year, the national general public revenue was 128848 billion yuan, but the budget expenditure was 134154 billion yuan. Its growth rate was 10 percentage points higher than that of the month of income growth.

In addition, the scale of tax cuts achieved by the increase of business tax has reached hundreds of billions, which undoubtedly worsened the already embarrassing financial situation.

At this time, the tax reform will help to make the tax system more fair and reduce the pressure on the average wage earners. On the other hand, it can also increase the personal tax paid by the high-income families, especially the rich families, which is of great benefit to make up for the financial gap.

"After the end of the camp reform, the central government will soon begin to push forward the tax reform after it has vacated its hands."

Shi Zhengwen, director of the tax and law research center of China University of Political Science and Law, said in an interview with our newspaper reporter.

Gao Peiyong, President of the financial and Strategic Research Institute of the Chinese Academy of Social Sciences, has also publicly stated that the tax reform that can really start under the current circumstances can only be a tax reform.

"All sectors of society are very concerned about the tax reform, but the Ministry of finance should proceed according to the original timetable, in accordance with the legislative plan of the NPC."

The officials of the Ministry of Finance appealed to all sectors of society to take a rational view of the tax reform.

As for the direction of personal tax reform, the above-mentioned officials of the Ministry of Finance stated that "this is what the central government has already stipulated in the document."

Specifically, from classification to integration.

Although the specific scope and tax rate remain to be discussed, there is no objection from the taxable tax system to the combination of classification and taxation.

In contrast, the industry is still debated whether family tax should be levied on the family.

When Lou Jiwei talked about the personal tax reform, he pointed out that "in the comprehensive taxation of some income items, the burden of taxpayers' families, such as the support of the population and mortgage loans, will be included in the deduction factor, and the tax equity will also be reflected."

"Family tax collection should also be a direction of reform."

Wang Dongsheng pointed out that taxation by family is an ideal state. After all, the basic unit of society is enterprise and family.

However, the difficulty of levying a personal income tax is also well known, especially when it comes to deductions.

Due to the complex support and maintenance relationship between Chinese traditional parents, children and siblings, how to define "family" has also become a major difficulty.

Wang Dongsheng believes that individual tax reform should be carried out step by step, and we should try to levy taxes on families on the basis of fully realized individual tax.

At this stage, it may not be appropriate to impose a family tax on families.

Liu Jianwen said that the collection of family is not to replace the individual as the main body of taxation by family, but the two tax entities coexist. Taxpayers can choose to pay taxes according to their families, or they can choose individuals to pay taxes separately.

For the widespread attention of the community to raise wages and salaries threshold, Liu Jianwen said, this is certainly not the direction of future reform.

The former Treasury officials also said that the purpose of individual tax reform is to make the tax system more scientific and reasonable.

However, in Wang Dongsheng's view, the tax threshold still has room for adjustment.

He pointed out that the right way to raise the tax threshold is the deduction standard or exemption amount of personal income tax expenses, in fact, it is necessary to deduct the cost necessary to maintain a person's survival.

Now that prices are rising and the cost of living is increasing, the tax threshold should be adjusted accordingly.

In fact, whether it is the outline of the 95 plan for national economic and social development in 1996, or the Central Committee of the Communist Party of China on the comprehensive deepening of the plan adopted in the third Plenary Session of the 18th CPC Central Committee 2013.

The decision of several major issues, or the general plan of deepening the reform of fiscal and taxation system issued by the Central Political Bureau in 2014, has repeatedly mentioned the establishment of a comprehensive tax system with classification.

Lou Jiwei, Minister of finance, also mentioned on many occasions that the next step in reforming the personal tax is to shift from the current classification tax system to a comprehensive and classified tax system.

The combination of integration and classification is actually a pition to a comprehensive levy. According to reporters, income tax should be collected comprehensively. For example, the enterprise income tax of our country is to integrate all kinds of income of enterprises together.

At first, the individual tax was classified as taxonomy, mainly for the convenience of expropriation, and now it is not realistic to change it to comprehensive levy in one step. Therefore, it is proposed to levy according to the principle of integration and classification.

Although the big principle is no longer controversial, the industry still has different views on some specific issues.

Under the current classification tax system in China, there are 11 types of personal taxable income stipulated by the tax law, namely, wages and salaries, income from production and operation of individual businesses and enterprises and institutions.

Income from remuneration, income from remuneration for remuneration, royalties, royalties, interest, dividends, dividends, income from lease of property, pfer of property, incidental income, and other income determined by the financial department of the State Council.

Since it is a combination of classification and classification, it means that some income will be included in the comprehensive levy, and some will remain classified.

Wang Dongsheng believes that some regular income should be included in the scope of comprehensive levy first, and some other incidental income should be classified.

Zhang Bin, a researcher at the Chinese Academy of Social Sciences's Financial Strategy Research Institute, has participated in the seminar held by the Ministry of finance.

He believes that the remuneration of remuneration for services, dividends and housing rent should be included in the scope of comprehensive levy. The more types of income incorporated into the comprehensive levy, the stronger the individual tax will be in regulating income distribution.

Liu Jianwen, President of the China finance and Taxation Law Research Association, also believes that income from wages, salaries, remuneration for labor services, pfer of property, contractual operation and contractual lease business may be included in the scope of comprehensive levy.

And in some

From taxonomy to comprehensive levy, the corresponding tax rate will also be adjusted.

For example, the current exemption of wages is 3500 yuan / month, the excess part is collected by 7 level progressive progressive tax rate, while dividend dividends are collected at 20% tax rate. If a personal tax is combined, then the tax rate will change.

However, how to define the tax rate and how to define the scope of the comprehensive levy is still uncertain. There seems to be no consensus in the seminar of the Ministry of finance.