The Personal Income Tax System Status and Reform in China

Abstract

In 2011, the cost of the personal income tax deduction and tax class times of personal income tax law have been adjusted, but this is only the start of the tax reform, most of China’s personal income tax systems are not perfect, and they need further reformed. This paper introduces the conception and functions of the personal income tax, and point out the shortcomings of the current personal income tax system, drawing the tax system of United States and Japan, it puts forward reasonable proposals to promote the reform of the tax system.