International Comparison and Reference on Corporate Income Tax Reform
[Abstract] After long-term exploration, corporate income tax in the United States, Japan and France has continued to advance. Through comparative analysis, many useful enlightenments can be obtained, which can serve as a reference for further improving my country's corporate income tax.
[Keywords] Corporate income tax; tax incentives; internationalization
Corporate income tax refers to the income tax levied on the production and operation income and other income obtained by companies and corporate legal persons. An income tax. Many countries in the world list corporate income as the subject of income tax and call this income tax corporate income tax. Enterprises include unincorporated enterprises (sole proprietorships, partnerships) and legal entities (companies). Our country implements corporate income tax, and the scope of taxpayers is wider than that of corporate income tax. This article discusses the corporate income tax reforms in the United States, Japan, and France to provide reference for the improvement of corporate income tax in my country.
1. Reform of corporate income tax in the United States
(1) Broadening the tax base and lowering tax rates
In 1986, the United States carried out the most extensive tax system development in its history , the tax reform with the largest adjustment, with "fairness, simplification and economic growth" as the policy goals and "broadening the tax base and lowering the tax rate" as the basic content. The basic tax rates of the U.S. corporate income tax are implemented in three categories: 15%, 25%, and 34%. The tax rate is progressive, with the highest tax rate reduced from 46% to 34%. While lowering the tax rate, the tax base is broadened by canceling some tax exemptions and exemptions. For example, the United States has canceled the discount on net capital income, the deduction of stock repurchase expenses, and the 10% exemption on equipment investment [1]. Make full use of the function and role of corporate income tax to organize revenue and regulate the economy, reduce corporate tax burdens, stimulate investment, and achieve the purpose of increasing supply and promoting economic development by standardizing, improving, and adjusting tax policies.
(2) Tax incentives for corporate investment
The United States provides accelerated depreciation for investment in new equipment, increases the deduction ratio of accelerated depreciation, and expands its 50% additional depreciation to For properties put into use in 2009, as well as certain transportation vehicles and properties with longer useful lives put into use during 2010, the depreciation calculation procedures are also simplified, and research and development expenses are deducted for growth. In 1981, the company's research and development expenses were stipulated to be higher than those in the previous three years. The average growth component was deducted from 25%, which was changed to 20% in 1996. In 2005, the United States promulgated the Homeland Investment Act, which gave American companies tax exemptions on income repatriated by overseas branches.
(3) Special preferential treatment for small and medium-sized enterprises
There are many small and medium-sized enterprises in the United States, which create nearly 50% of the GDP and provide more than 50% of employment opportunities. In order to support the development of small and medium-sized enterprises, the federal government has adopted a variety of measures: (1) The top corporate income tax rate has been reduced from 46% to 33%, and the minimum tax rate has been reduced to 15%; (2) Limited liability companies with less than 25 employees Realized profits can be taxed under the general corporate income tax law, or you can choose the "partnership enterprise" method to incorporate the profits into shareholders' income and pay personal income tax;
(3) Purchase new equipment with a useful life of less than 5 years For years and above, 10% of the purchase price can be deducted from the tax payable in that year; (4) Special science and technology tax incentives are implemented for small and medium-sized enterprises, and enterprises can deduct taxes according to the increase in scientific research funds; (5) Local governments
A certain percentage of local taxes will be reduced or reduced for emerging small and medium-sized high-tech enterprises. At the same time, due to the impact of the international financial crisis, many companies have experienced declining profits or even losses. To this end, the United States has increased the tax treatment of net operating losses. For small and medium-sized enterprises with total revenue of less than or equal to US$5 million, the carryforward period can be extended to 5 years.
(4) Preferences for agricultural production units
The U.S. tax law stipulates that three types of entities, namely individuals, partnerships and companies that meet special regulations, are exempted from taxation. Most agricultural production units in the United States are individuals or family partnerships, and naturally enjoy the benefits of tax exemption[2].
2. Reform of Japan’s corporate income tax
(1) Lowering tax rates
Since fiscal year 1998, Japan’s corporate income tax has undergone a series of reforms . On the one hand, the tax rate has dropped to a level comparable to that of other major developed countries: from 1998 to 1999, Japan’s actual corporate income tax rate (including corporate income tax levied by the central government and enterprise tax and resident tax levied by local governments) dropped from 49.98 % dropped to 40.87%, a decrease of 9 percentage points, and the corporate income tax reform bill reduced the tax rate from 37.5% to 35%. Japan carried out a thorough tax reform in the fiscal year 2007-2009, mainly reducing the corporate income tax rate, with the core of stimulating economic growth through low tax rates.
(1) Focus on tax reduction projects such as research and development projects and equipment investment projects
Enterprise R&D can drive technological innovation and technological progress in the whole society, but investment in high-tech R&D is very risky. , as the economy continues to decline, companies will significantly reduce R&D spending.
In order to promote enterprises to actively engage in R&D and innovation, Japan's science and technology investment is allowed to be deducted by 20%; research and development expenses are allowed to be deducted equivalent to 70% of the assets used for basic technology development. The maximum credit amount for certain R&D is from 30% of the total tax payable. % increased to 40%.
The tax deduction system stipulated in the original tax law once provided certain preferential measures for enterprises' increased experimental research expenses. The specific regulations are: based on the three-year average of the enterprise's highest experimental research expenses in the past five years, the amount exceeding 15% of this base can be deducted from the tax payable. This system has caused the investment in experimental research fees to soar from 3.9 trillion yen in 1965 to 9.7 trillion yen in 1988. The growth rate is astonishing. In recent years, corporate investment in experimental research expenses has been relatively stable. In order to encourage enterprises to increase investment in experimental research expenses, the Japanese government has introduced a tax deduction policy that allows enterprises to deduct experimental research expenses from the tax payable in a certain proportion. The deduction rate is 8% or 10% of the experimental research expenses, that is, The higher the proportion of experimental research expenses to the company's sales, the greater the rate that can be deducted. In addition, as a temporary measure, the Japanese government stipulates that in the first three years of the implementation of this policy, the proportion of experimental research expenses that can be deducted from the tax amount will be increased by 2%, that is, during these three years, enterprises can 10% or 12% of the fee is deducted from the tax payable. This measure is consistent with the original implementation of the increased experimental research tax system, which taxpayers can choose on their own. At the same time, it is stipulated that when enterprises carry out research and development projects in educational production fields, 12% of their test and development expenses can be deducted from the tax payable. This measure will be implemented for a long time to encourage enterprises to carry out educational research and development projects. . In addition, within 3 years from the date of implementation of this incentive measure, an additional 3% of research and test expenses will be added to the prescribed amount, that is, 15% of the expenses can be deducted from the tax payable.
According to relevant provisions of Japanese tax law, research expenses entrusted by enterprises to overseas institutions can also be deducted before income tax according to the prescribed proportion. In the field of commissioned research, tax reductions no longer apply only to domestic research and test expenses. From the perspective of technological renewal, in order to enable Japanese companies to keep up with the trend of technological progress, the government has decided to expand tax reductions to overseas commissioned research areas.
Tax reduction for equipment investment is also an important part of income tax policy adjustment. In order to increase corporate investment in the IT industry, the Japanese government has adopted corresponding tax reduction measures. When companies purchase IT-related equipment, they can choose from the following two tax methods. One is the amount of the equipment purchased. 50% can be used for special depreciation; the other is that 10% of the purchase price of equipment can be deducted from the tax payable. The reason why two optional tax systems are formulated is because loss-making enterprises do not need to pay taxes and will choose the special depreciation tax method. Equipment related to the IT industry refers to a wide range. Any machinery can be said to be equipment related to the IT industry. In this sense, newly invested equipment is included.
The measure to exempt Japanese overseas subsidiaries from corporate income tax on repatriated income is regarded as the Japanese version of the National Land Investment Act. Japan's tax cuts are expected to be permanent, as there is no time limit on preferential measures.
(3) Pay attention to small and medium-sized enterprises
Japan has reduced the tax rate for companies with income below 8 million yen from 22% to 18%. Tax reductions for equipment investment will be implemented for small and medium-sized enterprises whose experimental research expenses exceed 3% of sales and for small and medium-sized enterprises that have been in business for less than five years. Special depreciation is provided for machines and equipment of small and medium-sized enterprises. For industrial automatic machinery, CNC manufacturing machinery, etc., 7% of the purchase cost can be deducted from income tax (but the credit amount shall not exceed 20% of the tax payable for the year), or adopt Initial depreciation is 32%. Small and medium-sized enterprises are allowed to set up "structural improvement reserves", which will not be included in the taxable income of the year. According to the original tax law, the upper limit of communication expenses for small and medium-sized enterprises with a registered capital of less than 50 million yen is 4 million yen. 80% of pre-tax communication expenses can be expensed as corporate costs. This reform expanded the scope of application of communication expenses to enterprises with a registered capital of less than 100 million yen, and expanded the proportion of communication expenses that can be included as costs to 90%. Japan’s newly implemented net operating loss carryforward regulations only apply to losses of small and medium-sized enterprises.
(4) Tax support for agriculture
Japan classifies agricultural income as business income and has certain preferential policies for levying income tax on agricultural income. The main preferential measures include: various additional deductions and tax exemptions for agricultural income or income, as well as the implementation of preferential tax rates or special accounting treatment methods.
3. Reform of French corporate income tax
(1) Tax rate reduction
Corporate income tax is levied on the company’s net profit according to the statutory tax rate. The French income tax rate is After the war, it experienced a process from low (24% in 1948) to high (50% in 1958), then gradually fell back (35% in 1988), and finally tended to be relatively stable.
Since 1993, the basic tax rate has been stable at around 33%. During this period, the government has also made temporary adjustments to the tax rate, such as to enable France to meet the EU's requirement that the fiscal deficit cannot exceed gross domestic product before the implementation of the euro
< p>3% regulation, the tax rate was "temporarily" increased by 10% on the basis of 33% in 1995, which has continued to this day. Since 2000, France has reduced the actual corporate income tax rate, mainly by reducing the 10% additional corporate income tax rate. It was reduced to 6% in 2001, 3% in 2002, and was completely abolished in 2003. The actual corporate income tax rate in 2006 was 34.4%, the same as the EU average tax rate. French President Sarkozy has proposed reducing the corporate income tax from 34.4% to 25%.(2) Tax preferences for corporate investment
Although the French corporate income tax rate is relatively high, in the specific collection and management, the government has formulated a series of preferential policies to guide corporate investment. Promote the development of backward areas and increase labor employment.
In order to encourage the development of industrial and commercial enterprises, the French government granted new industrial, commercial and handicraft enterprises full tax exemption for the first two years from 1988 to 1995, and exempted them from tax exemptions in the third to fifth years respectively. Preferential measures for paying income tax of 75%, 50% and 25%.
In 1995, France introduced a preferential tax policy for "priority development areas", which provided tax exemptions for new enterprises in backward areas. Starting from 1998, 22% of the investment amount of new enterprises established in backward areas designated by the government can be deducted from corporate income tax within 10 years after the establishment of the enterprise.
In high-tech industries, R&D expenses are deducted to varying degrees. As stipulated in France, as of December 31, 2003, R&D expenses can be directly deducted before tax. France allows tax credits that allow losses to be carried forward to be refunded immediately. That is, when a company suffers a loss in 2009, it can ask the tax authorities to replace the usual tax credits with a refund; if the tax refund amount is significantly more than what is stated in the company's tax return The final amount filled in will be subject to penalties.
(3) Supporting small and medium-sized enterprises
Since 2001, France has implemented tax cuts for small and medium-sized enterprises. For small and medium-sized enterprises whose annual profits are less than 38,120 euros, the tax rate is 15%. For those whose annual profits exceed 38,120 euros, the tax rate is still 33.33%. Small and medium-sized enterprises reinvest part of their income, and this part of their income can be levied a corporate income tax at a reduced rate of 19%. For newly established small businesses that make unintentional mistakes in the first four years of operation, tax penalties can be reduced, and the payment time can be appropriately relaxed.
(4) Encourage energy-saving and environmentally friendly behaviors of enterprises
Fixed assets that are allowed to be accelerated depreciation include: equipment for purifying industrial water built before January 1, 2003. 100% depreciation is allowed in the first year; equipment and electric vehicles that are conducive to energy conservation, resource reuse, and environmental protection built before January 1, 2007 can be 100% depreciated in the first year of operation. Depreciation; software equipment is 100% depreciated in the first 12 months of use.
(5) Support agricultural-related enterprises
The agricultural and forestry income of public groups and other various groups will be taxed at a reduced tax rate of 24%. Corporate income tax is only levied on the profits realized by enterprises operating in France, while the income of Crédit Agricole, agricultural cooperatives and their associated organizations is exempt from corporate income tax.
4. Characteristics of corporate income tax changes in the United States, Japan and France
(1) The comprehensive corporate income tax rates in various countries have shown an obvious downward trend, and this downward trend will continue . Entering the 21st century, in order to attract foreign investment and promote their own economic growth, various countries have lowered the maximum marginal tax rate of corporate income tax. Corporate income tax rates in various countries have basically converged at a low level. In the past 30 years, nominal corporate income tax rates in the United States, Japan, and France have dropped significantly[3].
While generally reducing general corporate income tax rates, various countries have also reduced corporate income tax rates for small companies. Income tax rate. The development of small companies plays a decisive role in technological innovation, economic growth and full employment in developed countries. Based on this understanding, countries that have set separate tax rates for small companies have reduced their income tax rates in recent years. Especially in France, the tax cuts have exceeded 10 percentage points [4].
Reducing the general corporate income tax rate does not necessarily mean a reduction in corporate income tax revenue. A reduction in the marginal tax rate of corporate income tax does not necessarily lead to a reduction in tax revenue, because a reduction in the tax rate can reduce incentives for tax evasion on the one hand, and stimulate economic growth on the other, thereby expanding the tax base.
(2) Adjust the scope of corporate income tax preferences and increase tax incentives for technological innovation while cleaning the tax base. Broadening the tax base is also one of the basic features of worldwide tax reform since the 1980s. The main method of broadening the tax base is to narrow the scope of tax preferences. In the tax reform of the 20th century, specific methods for broadening the tax base were: making stricter regulations on the tax treatment of inventories, limiting increases in depreciation rates, reducing or canceling investment credits, etc.
By the mid-to-late 1990s, more and more countries had realized that the scope of tax incentives should be gradually narrowed. In the 21st century, we have begun to move from changing ideas to putting them into action. While cleaning up their tax bases, each country has also retained some important tax incentives in a targeted manner. A prominent manifestation in this regard is that in recent years, various countries have taken the initiative to increase the intensity of preferential science and technology tax policies, which include tax credits, super deductions, accelerated depreciation, and withdrawal of investment reserves for R&D activities and the application of scientific and technological achievements. and other preferential income tax policies [5].
(3) The convergence of tax burdens has eased international double taxation and weakened the tax avoidance motivation of multinational taxpayers to a certain extent. The tax rates in most countries and regions now range between 30% and 40%. This convergence reflects the interdependence and mutual integration of the economies of various countries. On the one hand, with the reform of corporate income tax systems in various countries, the tax burden borne by multinational taxpayers is reducing, and under the conditions that the tax treaty network continues to expand and countries generally adopt the credit system to solve the problem of international double taxation, due to the increase in the tax burden of each country The narrowing of differences has significantly reduced international double taxation; on the other hand, the difference in income tax burdens means differences in the benefits available. The greater the negative difference in income tax, the greater the difference in benefits obtained, and the greater the risk one is willing to take in order to obtain benefits. Under the circumstances of economic globalization, the disparity in the income tax burdens of various countries will induce multinational taxpayers to intensify their activities of tax evasion; and as the world's income tax burdens continue to converge, the differences in the benefits derived by multinational taxpayers from tax evasion will narrow. It can effectively inhibit their tax avoidance behavior, facilitate the normal flow of economic resources, and thereby promote the healthy development of the globalized economy.
(4) The convergence of tax systems and the reduction of preferential treatment reflect the principle of tax neutrality. As the market mechanism improves, the investment environment continues to improve, and the gap in economic development levels narrows, the convergence of tax systems will reduce the interference of tax policies in the market mechanism and facilitate the cross-border flow of production factors.
5. Inspiration for my country’s corporate income tax reform
(1) Prioritize expanding the tax base
There are 159 countries (regions) that implement corporate income tax in the world ) The average tax rate is 28.6%, and the average tax rate in the 18 countries (regions) surrounding my country is 26.7%. my country’s new corporate income tax rate is 25%, which is a moderately low level internationally. It not only reduces the tax burden on domestic-funded enterprises, but also Increasing the tax burden on foreign-invested enterprises as little as possible will help improve the competitiveness of enterprises and attract foreign investment, while also keeping fiscal revenue reductions within an affordable range.
Under a given tax rate, it is the expectation of many countries to effectively achieve the tax reform goals of increasing revenue, achieving efficiency and fairness by expanding the tax base. It turns out that this is an ideal and realistic choice. When increasing revenue is the main goal of tax reform, expanding the tax base is often more preferable than raising tax rates; when reducing economic distortion is the main purpose of tax reform and fiscal revenue cannot be reduced, it must be reduced by expanding the tax base. Distorted tax rates narrow tax differences between different sectors and different tax objects; expanding the tax base can also make the tax system more equitable. In addition, expanding the tax base by canceling tax exemptions and tax preferences will also help simplify tax administration[6].
(2) Standardizing tax preferences
Although corporate income tax revenue accounts for The proportion of income is not very large, but we should also pay attention to the regulatory role of corporate income tax on the macro economy, that is, determine the direction of incentives for preferential income tax policies based on national industrial policies.
In our country, tax preferential policies are numerous, complex and extremely irregular. There are industry preferential policies, regional preferential policies, preferential policies that distinguish economic nature, and there are also a large number of temporary exemptions and exemptions. Too many preferential tax policies undermine the principle of fair tax burden and affect the seriousness and authority of corporate income tax laws. Therefore, tax preferential policies should be determined in the form of law, and tax preferences should be standardized and unified at a higher legal level. However, the tax law should only stipulate the principles, key points and methods of preferential policies. As for the specific objects and content of preferential policies, the State Council should be authorized to determine in the implementation regulations based on the needs of national economic development and industrial policy and the principles and key points stipulated in the Enterprise Income Tax Law. .
1. The high-tech industry should be the focus of preferential treatment
The high-tech industry is a modern industry relying on high technology. It is an intensive industry that integrates technology, capital, and knowledge elements. Industry is also a leading industry with high investment, high risk and high return. The development of high-tech industries is the leading factor in improving the international competitiveness of our country's economy and the main way to transform our country's economic growth model. In light of my country's actual adjustment of tax preferential policies for the development of high-tech industries, tax incentives should be focused on the research, development, application and promotion of high-tech industries to avoid misleading high-tech industries from the direction of research and development. The tax preferential approach should focus on tax base reductions and exemptions, supplemented by tax reductions and exemptions. Tax base reductions and exemptions emphasize pre-tax benefits. As long as an enterprise implements scientific and technological research and development activities, it will become a target of tax benefits; tax reductions and exemptions emphasize ex-post benefits and focus on the direct transfer of benefits. A preferential tax method that combines tax base reduction and tax amount reduction has been established, which can induce and encourage enterprises to increase their investment in technological progress. Imported instruments, meters and other testing and testing equipment, reagents, materials and other technical materials used for research and development in high-tech industries are exempt from tariffs.
Establish an accelerated depreciation system. my country’s accelerated depreciation of fixed assets has not yet been truly established. We can learn from foreign successful experiences and increase the depreciation rate of equipment to accelerate the recovery of investment by high-tech enterprises, thereby improving the utilization rate of funds. This is for high-tech
The development of enterprises has a great impact on promoting industrial progress. In addition, the management and assessment of tax expenditures on high-tech industries should be strengthened to effectively prevent the abuse of tax preferences and the deviation of policy objectives.
2. Favor small and medium-sized enterprises
Corporate income tax should reduce the tax burden of small and medium-sized enterprises and fully reflect the tax support measures for them. Tax incentives for small and medium-sized enterprises should be industry-oriented, and the forms of incentives should be diversified, from a single direct tax exemption to a variety of preferential measures such as direct exemption, reduction of tax rates, accelerated depreciation, investment credits, and reinvestment tax rebates. . The following measures can be considered: continue to retain preferential tax policies for the resettlement of unemployed people, resettlement of laid-off workers, resettlement of disabled people, and high-tech enterprises; appropriately expand the scope of regular tax reduction and exemption for newly established enterprises to all newly established small and medium-sized enterprises. Provide regular tax reduction and exemption support; provide support for tax refunds at a certain percentage for small and medium-sized enterprises to reinvest after-tax profits; allow enterprises to deduct net asset losses from investment from taxable income.
3. Increase preferential treatment for private agricultural enterprises
The state exempts state-owned agricultural enterprises and key leading enterprises determined by the state from corporate income tax on income from planting, breeding, and primary processing of agricultural products. , and it is difficult for agricultural enterprises in rural areas to meet the above conditions. Therefore, it is recommended to exempt agricultural private enterprises from corporate income tax to balance the tax burden and promote their development. It is also conducive to the development of agricultural bases and nearby employment of farmers.
(3) Internationalization of corporate income tax
A major feature of today's world development is economic globalization, which is reflected in the convergence of rules at the institutional level. The internationalization trend of my country's corporate income tax is developing under this background. The WTO represents a set of legal mechanisms in line with international practice. Currently, corporate income tax in various countries around the world occupies an extremely important position in their legal systems. Corporate income tax is the main content stipulated in the constitutions or constitutional documents of these countries, forming the so-called international tax practice. To this end, the process of internationalization of my country's corporate income tax should make corporate income tax not only meet the needs of China's own economic development, but also be conducive to the reasonable flow and effective allocation of global resources. At present, according to my country's national conditions, the system that is not consistent with the WTO rules should be reformed, and strive to be connected with the WTO's prevailing tax system, so as to create a good taxation and legal environment for international economic exchanges under the multilateral trading system [7].
The openness of the market economy requires the establishment of a corporate income tax system that is in line with international standards and follows international taxation practices. Its essence is to act in accordance with the laws of the market economy. In order to make the corporate income tax system more efficient and internationally competitive, it is necessary to adapt the country's corporate income tax system to the environment of economic globalization through reform, so that the tax system can adapt to changes in economic development, be flexible and diverse, and reduce the distortion of production and investment by the tax system. nature, increase the enthusiasm of corporate taxpayers for production and investment, and promote economic development. For example, the new corporate income tax law should make relevant prevention and regulatory provisions for tax avoidance behaviors such as thin capitalization and tax havens that are not clearly stipulated in my country. In addition, we can also draw lessons from foreign general anti-tax avoidance provisions to make principled provisions on tax avoidance behavior. For example, it can stipulate that if an enterprise implements arrangements that do not have reasonable commercial purposes and reduces its taxable income or income, The tax authorities may make adjustments according to reasonable methods. In terms of anti-tax avoidance procedures, the new corporate income tax law should also supplement relevant provisions on verification procedures, advance pricing arrangements, tax arrears, late payment fees, etc., as well as the responsibilities of tax-paying enterprises in providing tax information. and related business transaction reporting forms, etc., thereby effectively strengthening anti-tax avoidance measures and systematizing anti-tax avoidance regulations, which not only guarantees the country’s tax rights and interests, but also enables domestic and foreign-funded enterprises to compete fairly on the same level. Survival of the fittest.
(4) Localization of corporate income tax
Under the premise of following internationalization, corporate income tax must proceed from China’s national conditions and China’s actual reform and development needs, and establish an effective A corporate income tax system with Chinese characteristics. Taxation has always been an important tool for the national (government) macroeconomic policy. The setting of the tax system is based on the economic development level, production mode and industrial structure of the country (region). It is unrealistic to pursue the internationalization and convergence of the tax system one-sidedly without these considerations. of. The reality in our country is: (1) Economic development is extremely unbalanced, and the level of GDP per capita is low; the developed east and the backward west coexist; advanced modern high-tech enterprises coexist with backward traditional enterprises; large enterprise groups coexist with many small and medium-sized enterprises; Cities with advanced productivity coexist with vast rural areas with low productivity, small production methods are common, and so on.
The tax system reform must proceed from this reality and must be conducive to the rationalization of the economic structure and its industrial structure, the coordinated development of the regional economy, the development of the rural economy and the improvement of farmers' living standards [8]. (2) Current tax system The structure is a tax system with turnover tax as the main body. Due to various reasons such as the level of economic development and government management capabilities, this pattern will still be maintained for a long historical period. It is impossible to immediately establish an income tax as the main body or income tax and turnover. The tax system has a dual-subject tax structure. The characteristics of this tax structure with turnover tax as the main body determines the limited role of tax as an "inherent stabilizer". Instead, it needs to rely more on the government to adopt discretionary tax policies to play the macro-regulatory role of tax. . (3) Under the financial crisis, my country's macroeconomic operation has entered a period of moderate and contractionary development. Insufficient effective demand has become the main contradiction of economic development. Unemployment problems and other related contradictions under specific demographic backgrounds have become more prominent. Economic reform must be conducive to expanding domestic demand, maintaining social stability, and making people's tax burden reasonable. Tax system reform can only be characterized by gradual and staged reforms.
(5) Improve the tax source monitoring system and reduce tax collection and administration loopholes
In foreign countries, the incidence rate of tax evasion by legal persons is relatively low, which is not only related to the strong awareness of citizens to pay taxes in accordance with the law, but also to the The tax administration department has established a relatively strict tax source monitoring system. Through measures such as withholding at source, implementing tax declarations, implementing tax code management, giving full play to the role of withholding agents, and fully implementing computer management, all-round monitoring of tax sources has been implemented. We should combine reality and selectively learn from: First, further improve the tax declaration system, refine the tax declaration process, strengthen tax declaration responsibilities, and further clarify the obligations of relevant government departments to provide taxpayer information to tax authorities through legal provisions Second, make full use of modern and information technology to further expand tax source monitoring channels and means, use computer networks to gradually improve data analysis and application capabilities, improve the scientificity and accuracy of data processing and analysis, firmly grasp the tax initiative, and reduce tax collection and administration. loopholes to reduce the incidence of tax evasion; third, we must thoroughly implement the tax administrator system, dynamically understand taxpayers' operating conditions, actively carry out scientific and effective tax assessments, and continuously improve and improve management methods; fourth, we must distinguish the characteristics of different taxpayers Adopt different collection and management methods. For non-state-owned economies with sound accounts, we must insist on "declaration" and "verification" for collection; for individual private enterprises with imperfect financial systems, we should implement a collection and management method that combines "verification" and "account checking"; for those in the same region, industry, and The tax amount for individual businesses of the same scale is determined based on actual conditions. By taking the above measures, we strive to put different levels of tax sources under strong supervision.
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