With the rapid development of the Chinese market economy system,income tax as an economic lever has become more and more prominent in regulating the economy.Since the beginning of the accounting reform,the Ministry of...With the rapid development of the Chinese market economy system,income tax as an economic lever has become more and more prominent in regulating the economy.Since the beginning of the accounting reform,the Ministry of Finance has promulgated the accounting standards for income tax and put forward the corresponding procedures and methods,which is a leap forward in the development process of domestic income tax accounting.The relationship between income tax and accounting,the nature of income tax,and the basic characteristics and the apportionment of income tax accounting are expounded in this paper.Payable tax with impact accounting regulations,deferred with debt regulations,and balance sheet debt with income statement debt regulations are compared given the existing problems in the accounting treatment of domestic income tax,and the choice of applicable treatment methods are discussed.Finally,the accounting treatment of important income tax such as consolidated accounting statements,construction enterprises,tax losses,and discount of income tax liabilities are analyzed,and the treatment methods and corresponding countermeasures are put forward to improve the domestic income tax accounting problems.展开更多
For individuals who are contemplating relocating, how their income will be taxed might be an important factor when deciding whether or not to take up residence in another country. Two income approaches are commonly us...For individuals who are contemplating relocating, how their income will be taxed might be an important factor when deciding whether or not to take up residence in another country. Two income approaches are commonly used around the globe. Worldwide income approach （also known as a global tax system） taxes income from whatever source derived. Territorial income approach taxes only income earned within the country＇s borders. Using information collected from PricewaterhouseCoopers＇ website1 that provides information on tax systems used in countries around the world, this paper examines which countries apply worldwide or global income approach and which employ territorial approach to determine the legitimate source of taxable income. The research focuses on countries within： （1） Americas; （2） Asia/Pacific Basin; （3） Europe; and （4） Africa/Middle and Near East. Based on the information collected and presented in this paper, the worldwide approach is much more prevalent （104 countries） than the territorial approach （30 countries）. This paper also investigates any specific rules that a particular country has in relation to income to be taxed and residency versus non-residency status of the taxpayers. There appears to be an abundant spectrum of rules relating to residency and domicile for tax purposes among the countries.展开更多
In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a refor...In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a reform in the tax system to build a uniform enterprise income tax. This is a significant reform in China＇s tax system, so every decision about this have to count the cost and the benefit carefully. The author has introduced the Computable General Equilibrium （CGE） to simulate this new tax system and value its benefit and cost. There are two different models in the paper; they are of different assumptions and for different purposes. Model I is a static CGE model and model II is a Ramsey Dynamic model. The static model is mainly used for comparative static approach to examine how the tax reform will change the endogenous variables. According to the results of the model, more goods will be produced by both of the DFEs and FIEs after the tax reform in the medium and low tax effective tax rate situations. If the nominal tax rates decrease 24.24% （from 33% to 25%）, the enterprise income tax will only reduce 19.36% and the total tax revenue will only reduce 1.911%. The dynamic model will concentrate on the costs and benefits during the transition. From the results of the model, a lower tax rate will increase the level of investment, capital stock, capital prices, wage rate and also the growth rates through transition. If the capital tax rates are changed gradually, the fluctuating of transition will be smoothed a little.展开更多
Capital structure denotes enterprises＇ form and proportion relation of various long-term funds source. The capital structure is the combination problem of the long-term funds about enterprise development and it is th...Capital structure denotes enterprises＇ form and proportion relation of various long-term funds source. The capital structure is the combination problem of the long-term funds about enterprise development and it is the quantity and proportion between every fund form. This paper analyzes the various factors which affect capital structural decision-making, and introduces capital structural optimization theory of the shelter benefit of tax revenue and bankruptcy cost balance. It studies the method and the evaluation criterion of capital structural optimization. And it constructs capital structural optimization model of coexistence condition of company＇s income tax and individual income tax. This will be very helpful for the rationality of enterprise capital structure.展开更多
Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined pa...Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger＇ merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.展开更多
*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the f...*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the following three years. A choice between the two may be decided by the said enterprises. **Service industry, those enterprises with a foreign capital of more than US$5 million shall be exempt from the tax展开更多
BEIJING’S revenue from personal income tax in 2001 was 8 billion yuan, an increase of 42 percent, and the amount of tax received from high-income earners increased 2.6 fold. From September to November 2001, high-inco...BEIJING’S revenue from personal income tax in 2001 was 8 billion yuan, an increase of 42 percent, and the amount of tax received from high-income earners increased 2.6 fold. From September to November 2001, high-income earners paid taxes of 60 million yuan they had previously evaded. In the first half of 2002, Beijing defined its key taxpayers, that is, those with an annual income exceeding 100,000 yuan. According to this definition, the tax-paying situation of at least 30,000 people is under control. Revisions to the Individual Income展开更多
Presentation of the reports on the reformation of personal income taxation that have been prepared with a development plan for the Greek economy,that discuss the issue of taxation and point out its important features....Presentation of the reports on the reformation of personal income taxation that have been prepared with a development plan for the Greek economy,that discuss the issue of taxation and point out its important features.The goal is the complete modernization of the tax system,so that it responds more fully to the principles of social justice,contributes to the economic development of the country and is governed by simple and modern procedures,which apply to all tax objects.The purpose of the study is to deepen the proposals for tax reform based on the peculiarities of the Greek economy,the international trends in this field and the weaknesses of the tax system.The effects of a tax reformation are analyzed and how it should take the form of the reform,which,however,requires a new legislation,which will bring about radical and deep cuts,which respond to the new conditions and the internationalization of the economy.Proposals for a set of structural measures,which are necessary for the country’s adaptation to the wider European environment and the elimination of the weaknesses that increase its distance from the other member countries.Citation of the common points of the reports on the reformation of personal income taxation and their adoption by the tax leadership.展开更多
China’s top legislature has received more than 230,000 public submissions in just over a month on a draft amendment to increase the minimum threshold for personal income tax from 2,000 yuan($308) per month to 3,000 y...China’s top legislature has received more than 230,000 public submissions in just over a month on a draft amendment to increase the minimum threshold for personal income tax from 2,000 yuan($308) per month to 3,000 yuan($462). The draft also proposes a reduction in the number of income tax brackets from the current nine to seven.Thrown open for public opinion on April 25,2011,the provision seeks to amend China’s Personal Income Tax Law that was first introduced in 1980.展开更多
Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.Th...Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.This article looks at how foreign investors are taxed in the People’s Republic of Chin(PRC)under the enterprise income tax(EIT),regardless of whether the investor is operating as a wholly foreign-owned展开更多
China has a late start in personal income tax, and for many years through six times of revision, it still fails to really achieve the purpose of narrowing the gap between the rich and the poor and adjusting income dis...China has a late start in personal income tax, and for many years through six times of revision, it still fails to really achieve the purpose of narrowing the gap between the rich and the poor and adjusting income distribution. What follows is an analysis of personal adjustment tax income from the proportion of Gini coefficient, Engels coefficient and salaried class of personal income tax, and an explanation of problems and countermeasures of salaried class expense deduction standard, tax rate design, high-income crowd tax regulation.展开更多
In the process of economic and social development, the reform of the social system has driven the innovation and development of enterprises. After the implementation of the new income criteria, the requirements of ent...In the process of economic and social development, the reform of the social system has driven the innovation and development of enterprises. After the implementation of the new income criteria, the requirements of enterprise operation and management have been gradually improved, and more standardized management methods have been put forward for the economic activities of enterprises. If an enterprise wants to gain more advantages in market competition, it needs to clarify the impact of the new income standard on the adjustment of enterprise income tax and accounting treatment according to the current regulations of the state. Relevant responsible persons should do a good job in the relevant transactions of the enterprise, as well as income recognition and measurement and other related work. For enterprises, in order to further expand their competitive advantages, they should actively respond to policies and promote accounting transformation and upgrading. In order to further enhance the internal core competitiveness of enterprises, promote accounting standards and tax reform system to keep consistent.展开更多
As an innovative economic model,the sharing economy has seen rapid growth globally in recent years.It has not only brought a profound impact on traditional economies but also injected new vitality and momentum into th...As an innovative economic model,the sharing economy has seen rapid growth globally in recent years.It has not only brought a profound impact on traditional economies but also injected new vitality and momentum into the sustainable development of the social economy.However,for the sharing economy,the process of collecting personal income tax is facing several issues,such as the ambiguity of tax policies regarding personal income,challenges in identifying taxpayers,and difficulties in defining income.To achieve the fairness and efficiency of personal income tax collection in the sharing economy,this study proposes optimized regulatory mechanisms and conducts in-depth discussions on the adjustment of personal income tax policies,innovation in tax management technology,and improvement in the quality of personal income tax services.展开更多
Doing business in China, while lucrative, can be a mine-field to the uninitiated. This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.
In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect...In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect China＇s future tax system, it is supposed to combine the two income tax systems within domestic and foreign enterprises.展开更多
China increases its income tax exemption threshold to reduce tax burdens on low-wage earners As a company clerk, 32-year-old Ren Jun doesn’t make a lot of money.Of his meager paycheck, he needs to pay about 250 yuan ...China increases its income tax exemption threshold to reduce tax burdens on low-wage earners As a company clerk, 32-year-old Ren Jun doesn’t make a lot of money.Of his meager paycheck, he needs to pay about 250 yuan ($39) in taxes each month. From September,展开更多
In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of poli...In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of political,social,cultural,and legal differences,tax regulations,import and export re-strictions,foreign exchange regulations,control on the transfer of f unds,and various other restrictions imposed by host countries to protect their nation-al interests.The challenge for multinationals is to design a transfer strategywhich appropriately rewards the management of the subsidiaries overseas andalso copes with the various poli tical,legal,cultural,and economic restric-tions of the host countries.展开更多
The Chinese Government’s recent economic stimulus measures are attracting much attention because of its plan to increase people’s incomes and alleviate enterprises and residents’ economic burden.
Reasonable income distribution and eradication of rural poverty are vital for building a moderately prosperous society in all respects in China.This paper primarily examines the income distribution and poverty reducti...Reasonable income distribution and eradication of rural poverty are vital for building a moderately prosperous society in all respects in China.This paper primarily examines the income distribution and poverty reduction effects of social security spending.Market income and redistribution policies are two determinants of income gaps.Based on CHIP2018 household survey data,we find that inadequate income redistribution policies have contributed to yawning income gaps,and that social security spending is more redistributive than personal income tax and social security contributions.After estimating the redistribution effects of social security spending and itemized incomes,we find that pension payments have contributed the most to household income gaps,and that subsistence protection and rural pension payments help improve income distribution.With respect to the poverty reduction effects of social security spending,we have estimated China’s current poverty incidence and the poverty reduction effects of pension payments,healthcare,and educational allowances with CHIP2018 data,and discover that an increase in social security spending may effectively reduce rural poverty.In building a moderately prosperous society in all respects,China should increase social security spending,focusing on specific target groups,and promote the role of social security spending in regulating income distribution and offering social protection to rural residents.展开更多
文摘With the rapid development of the Chinese market economy system,income tax as an economic lever has become more and more prominent in regulating the economy.Since the beginning of the accounting reform,the Ministry of Finance has promulgated the accounting standards for income tax and put forward the corresponding procedures and methods,which is a leap forward in the development process of domestic income tax accounting.The relationship between income tax and accounting,the nature of income tax,and the basic characteristics and the apportionment of income tax accounting are expounded in this paper.Payable tax with impact accounting regulations,deferred with debt regulations,and balance sheet debt with income statement debt regulations are compared given the existing problems in the accounting treatment of domestic income tax,and the choice of applicable treatment methods are discussed.Finally,the accounting treatment of important income tax such as consolidated accounting statements,construction enterprises,tax losses,and discount of income tax liabilities are analyzed,and the treatment methods and corresponding countermeasures are put forward to improve the domestic income tax accounting problems.
文摘For individuals who are contemplating relocating, how their income will be taxed might be an important factor when deciding whether or not to take up residence in another country. Two income approaches are commonly used around the globe. Worldwide income approach （also known as a global tax system） taxes income from whatever source derived. Territorial income approach taxes only income earned within the country＇s borders. Using information collected from PricewaterhouseCoopers＇ website1 that provides information on tax systems used in countries around the world, this paper examines which countries apply worldwide or global income approach and which employ territorial approach to determine the legitimate source of taxable income. The research focuses on countries within： （1） Americas; （2） Asia/Pacific Basin; （3） Europe; and （4） Africa/Middle and Near East. Based on the information collected and presented in this paper, the worldwide approach is much more prevalent （104 countries） than the territorial approach （30 countries）. This paper also investigates any specific rules that a particular country has in relation to income to be taxed and residency versus non-residency status of the taxpayers. There appears to be an abundant spectrum of rules relating to residency and domicile for tax purposes among the countries.
文摘In China, the income tax of enterprise is very different between foreign funded enterprises and other domestic enterprises. It is believed that this discrimination is harmful to the entire economy. So there is a reform in the tax system to build a uniform enterprise income tax. This is a significant reform in China＇s tax system, so every decision about this have to count the cost and the benefit carefully. The author has introduced the Computable General Equilibrium （CGE） to simulate this new tax system and value its benefit and cost. There are two different models in the paper; they are of different assumptions and for different purposes. Model I is a static CGE model and model II is a Ramsey Dynamic model. The static model is mainly used for comparative static approach to examine how the tax reform will change the endogenous variables. According to the results of the model, more goods will be produced by both of the DFEs and FIEs after the tax reform in the medium and low tax effective tax rate situations. If the nominal tax rates decrease 24.24% （from 33% to 25%）, the enterprise income tax will only reduce 19.36% and the total tax revenue will only reduce 1.911%. The dynamic model will concentrate on the costs and benefits during the transition. From the results of the model, a lower tax rate will increase the level of investment, capital stock, capital prices, wage rate and also the growth rates through transition. If the capital tax rates are changed gradually, the fluctuating of transition will be smoothed a little.
文摘Capital structure denotes enterprises＇ form and proportion relation of various long-term funds source. The capital structure is the combination problem of the long-term funds about enterprise development and it is the quantity and proportion between every fund form. This paper analyzes the various factors which affect capital structural decision-making, and introduces capital structural optimization theory of the shelter benefit of tax revenue and bankruptcy cost balance. It studies the method and the evaluation criterion of capital structural optimization. And it constructs capital structural optimization model of coexistence condition of company＇s income tax and individual income tax. This will be very helpful for the rationality of enterprise capital structure.
文摘Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger＇ merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.
文摘*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the following three years. A choice between the two may be decided by the said enterprises. **Service industry, those enterprises with a foreign capital of more than US$5 million shall be exempt from the tax
文摘BEIJING’S revenue from personal income tax in 2001 was 8 billion yuan, an increase of 42 percent, and the amount of tax received from high-income earners increased 2.6 fold. From September to November 2001, high-income earners paid taxes of 60 million yuan they had previously evaded. In the first half of 2002, Beijing defined its key taxpayers, that is, those with an annual income exceeding 100,000 yuan. According to this definition, the tax-paying situation of at least 30,000 people is under control. Revisions to the Individual Income
文摘Presentation of the reports on the reformation of personal income taxation that have been prepared with a development plan for the Greek economy,that discuss the issue of taxation and point out its important features.The goal is the complete modernization of the tax system,so that it responds more fully to the principles of social justice,contributes to the economic development of the country and is governed by simple and modern procedures,which apply to all tax objects.The purpose of the study is to deepen the proposals for tax reform based on the peculiarities of the Greek economy,the international trends in this field and the weaknesses of the tax system.The effects of a tax reformation are analyzed and how it should take the form of the reform,which,however,requires a new legislation,which will bring about radical and deep cuts,which respond to the new conditions and the internationalization of the economy.Proposals for a set of structural measures,which are necessary for the country’s adaptation to the wider European environment and the elimination of the weaknesses that increase its distance from the other member countries.Citation of the common points of the reports on the reformation of personal income taxation and their adoption by the tax leadership.
文摘China’s top legislature has received more than 230,000 public submissions in just over a month on a draft amendment to increase the minimum threshold for personal income tax from 2,000 yuan($308) per month to 3,000 yuan($462). The draft also proposes a reduction in the number of income tax brackets from the current nine to seven.Thrown open for public opinion on April 25,2011,the provision seeks to amend China’s Personal Income Tax Law that was first introduced in 1980.
文摘Doing business in China,while lucrative,can be a mine-field to the uninitiated.This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.This article looks at how foreign investors are taxed in the People’s Republic of Chin(PRC)under the enterprise income tax(EIT),regardless of whether the investor is operating as a wholly foreign-owned
文摘China has a late start in personal income tax, and for many years through six times of revision, it still fails to really achieve the purpose of narrowing the gap between the rich and the poor and adjusting income distribution. What follows is an analysis of personal adjustment tax income from the proportion of Gini coefficient, Engels coefficient and salaried class of personal income tax, and an explanation of problems and countermeasures of salaried class expense deduction standard, tax rate design, high-income crowd tax regulation.
文摘In the process of economic and social development, the reform of the social system has driven the innovation and development of enterprises. After the implementation of the new income criteria, the requirements of enterprise operation and management have been gradually improved, and more standardized management methods have been put forward for the economic activities of enterprises. If an enterprise wants to gain more advantages in market competition, it needs to clarify the impact of the new income standard on the adjustment of enterprise income tax and accounting treatment according to the current regulations of the state. Relevant responsible persons should do a good job in the relevant transactions of the enterprise, as well as income recognition and measurement and other related work. For enterprises, in order to further expand their competitive advantages, they should actively respond to policies and promote accounting transformation and upgrading. In order to further enhance the internal core competitiveness of enterprises, promote accounting standards and tax reform system to keep consistent.
文摘As an innovative economic model,the sharing economy has seen rapid growth globally in recent years.It has not only brought a profound impact on traditional economies but also injected new vitality and momentum into the sustainable development of the social economy.However,for the sharing economy,the process of collecting personal income tax is facing several issues,such as the ambiguity of tax policies regarding personal income,challenges in identifying taxpayers,and difficulties in defining income.To achieve the fairness and efficiency of personal income tax collection in the sharing economy,this study proposes optimized regulatory mechanisms and conducts in-depth discussions on the adjustment of personal income tax policies,innovation in tax management technology,and improvement in the quality of personal income tax services.
文摘Doing business in China, while lucrative, can be a mine-field to the uninitiated. This regular column by Deloitte will provide specific information to give businesspeople the tools they need to facilitate this process.
文摘In terms of policies to Chinese enterprises income tax system, especially nowadays two income tax systems within domestic and foreign enterprises, their weakness is becoming more and more apparent. In order to perfect China＇s future tax system, it is supposed to combine the two income tax systems within domestic and foreign enterprises.
文摘China increases its income tax exemption threshold to reduce tax burdens on low-wage earners As a company clerk, 32-year-old Ren Jun doesn’t make a lot of money.Of his meager paycheck, he needs to pay about 250 yuan ($39) in taxes each month. From September,
文摘In order to successfully compete in the global market,many multinationalcompanies use control and evaluation systems for monitoring the performanceof their subsidiaries abroad,which are faced with complexities of political,social,cultural,and legal differences,tax regulations,import and export re-strictions,foreign exchange regulations,control on the transfer of f unds,and various other restrictions imposed by host countries to protect their nation-al interests.The challenge for multinationals is to design a transfer strategywhich appropriately rewards the management of the subsidiaries overseas andalso copes with the various poli tical,legal,cultural,and economic restric-tions of the host countries.
文摘The Chinese Government’s recent economic stimulus measures are attracting much attention because of its plan to increase people’s incomes and alleviate enterprises and residents’ economic burden.
文摘Reasonable income distribution and eradication of rural poverty are vital for building a moderately prosperous society in all respects in China.This paper primarily examines the income distribution and poverty reduction effects of social security spending.Market income and redistribution policies are two determinants of income gaps.Based on CHIP2018 household survey data,we find that inadequate income redistribution policies have contributed to yawning income gaps,and that social security spending is more redistributive than personal income tax and social security contributions.After estimating the redistribution effects of social security spending and itemized incomes,we find that pension payments have contributed the most to household income gaps,and that subsistence protection and rural pension payments help improve income distribution.With respect to the poverty reduction effects of social security spending,we have estimated China’s current poverty incidence and the poverty reduction effects of pension payments,healthcare,and educational allowances with CHIP2018 data,and discover that an increase in social security spending may effectively reduce rural poverty.In building a moderately prosperous society in all respects,China should increase social security spending,focusing on specific target groups,and promote the role of social security spending in regulating income distribution and offering social protection to rural residents.
