On April 20th, the twentieth session of the Eleventh NPC Standing Committee was held in the Great Hall of the people in Beijing. Xie Xuren, Minister of finance, made the State Council's request for consideration of People's Republic of China. Individual income tax The motion statement of the amendment (Draft).

22, reporters learned from the NPC that the twentieth session of the eleven NPC Standing Committee concluded in the afternoon of April 22nd will not vote on the draft amendment to the personal income tax law submitted by the State Council. After revising the relevant opinions, the draft will enter the second instance and may even be considered for the third time.

The Draft Tax amendment bill submitted by the State Council will Wages and salaries The cost reduction standard (i.e. exemption) increased from 2000 yuan per month to 3000 yuan per month. This increase is relatively low. Prior to this, many academic experts suggested that the exemption should be increased to at least 5000 yuan per month.

The method of determining the exemption amount of individual tax in China, which takes into account the individual livelihood expenses, consumer prices and maintenance numbers, is a standard for deducting the average deduction regardless of taxpayers' differences. This practice is very convenient for collection and management, but it seriously underestimates the consumption expenditure of urban employees. Conservatively estimated that the deduction standard of 3000 yuan will be exceeded by consumption expenditure for two years at most.

In addition, the draft will introduce the 9 level of the current wage income. Excess progressive tax rate Revised to 7 levels, abolition of the 15% and 40% two stall rates, the extension of 5% and 10% two two low tax rates, and the extension of the maximum tax rate 45% coverage, the current 40% tax rate applicable to the amount of taxable income into the 45% tax rate.

After adjustment, the tax burden of the middle and low wage earners is reduced, but the tax burden of the high wage earners is improved. It is estimated that the monthly salary of gross income is 21 thousand and 500 yuan (not deducting "three risks and one gold"), which is the critical point for the increase or decrease of personal tax burden.

With regard to the excessive progressive tax rate of wage earners, many experts suggested that the 9 level should be reduced to 5 grades, and those with lower workable income, that is, the monthly taxable income below 5000 yuan, should be applied at a low tax rate of 1% or 5%, and 10% or 15% tax rates should be applied to those with medium wage earners, that is, 20 thousand yuan of taxable income per month.

Such a way of thinking reflects the low tax burden on the middle and low wage earners and the goal of cultivating the middle-income class.