Among the recently released “bills” for tax reductions and fee reductions in 2023, there is one item that is closely related to individuals, and that is the new tax reduction policy that increases the standard policy for special additional deductions for personal income taxes. Statistics show that the scale of this tax reduction reaches 39.18 billion yuan, reflecting the substantial dividends generated by the increase in three special additional deduction standards implemented last year.
Special additional deductions come from the new personal income tax law that was implemented in 2019, and many taxpayers have benefited from it. What is concerning is that this reform continues to advance. After the new deduction item for care of infants and young children under 3 years old was established in 2022, starting from January 1, 2023, the deduction items for infant and young child care under 3 years old, children's education and Three special additional deduction standards for supporting the elderly. This policy, which directly benefits the "old and young" groups, further reduces residents' burden of childbirth, childcare and maintenance, and fully reflects the accuracy and effectiveness of tax reduction.
In fact, the personal income tax reduction policy implemented last year is not just a deduction policy for "one old and one small". For example, preferential policies such as separate tax calculation for annual one-time bonuses, personal income tax refunds for housing purchases, and exemption from the final settlement of comprehensive personal income tax for annual settlements and tax repayments not exceeding 400 yuan will continue to be implemented. These policies are directly related to a series of people's livelihood issues, effectively reducing residents' tax burden and enhancing residents' consumption power. In addition, at the collection and management level, individual tax remittances are given priority to ensure that taxpayers with a heavy medical burden can quickly receive tax refund dividends, benefiting more than 33 million people.
Personal income tax is the tax most closely related to the majority of residents. A series of individual tax reform measures last year sent a clear signal, that is, the individual tax reform is gradually advancing and deepening, and will continue to benefit people's livelihood. The Central Economic Work Conference proposed “planning a new round of fiscal and taxation system reform.” It is worth looking forward to how personal income tax can be further optimized and improved in the new round of fiscal and taxation system reform.
From a direction perspective, the reform mainly focuses on two aspects, namely optimizing the scope of comprehensive income collection of personal income tax and improving special additional deduction items and standards. The personal tax reform implemented in 2019 has initially established a comprehensive and classified personal tax model, which is a milestone in the history of tax reform. Among them, the comprehensive income includes wages and salaries, labor remuneration, author remuneration, and royalties, which are collected and collected together. In addition, taxable income also includes operating income, interest, dividends, bonus income, income from property leasing, income from property transfer, incidental income and other income, and is levied on a classified basis. Next, rationally expanding the scope of comprehensive income collection will help promote a more fair, reasonable and scientific tax system.
Since the implementation of special additional deductions, items have been added once and standards raised once. By appropriately increasing special additional deduction items and raising deduction standards, we can further reduce the burden of people's livelihood expenditures, better reflect the principle of affordable taxation, allow the results of reform and development to benefit all people more and more equitably, and further improve and protect people's livelihood. Therefore, it is necessary to timely adjust the scope and standards of special additional deductions based on economic and social development and changes in people's livelihood expenditures, so that the people can have a greater sense of gain.
In addition to optimizing and improving the system, the benefits of personal tax reform are also inseparable from residents' handling of taxes in accordance with the law, of which annual comprehensive income tax settlement and settlement is an important part. From March 1st to June 30th every year, taxpayers need to summarize the four comprehensive incomes of the previous year, including wages and salaries, labor remuneration, author remuneration, and royalties, to calculate taxes together, handle the accounting with the tax authorities, and settle the refundable income. Or taxes should be paid. Through standardized and accurate settlement and settlement, the annual personal tax payment is finally completed, and special additional deductions and other preferential treatment for some individuals are also realized at this stage. Since the implementation of the new personal income tax law, 4 settlements have been carried out, maintaining a smooth and orderly manner. At the same time, there are also cases where a small number of people report income or deductions falsely or incorrectly to achieve the purpose of over-refunding or under-paying taxes. Various irregular and even illegal practices affect the smooth implementation of the personal tax system, and individuals will also face adverse consequences.
Personal tax is closely related to people's lives, and it is also related to the modernization of national governance. As the personal tax system becomes more complete, the reform dividends will benefit more low- and middle-income groups, the income adjustment function will be further exerted, and the role of personal tax in national governance will become more prominent.
Zeng Jinhua
Zeng Jinhua