Thoughts on the Deduction of Individual Income Tax Expenses

Abstract

As a kind of direct taxation, personal income tax is closely related to the vital interests of the people. Since January 1, 2019, China has carried out a new round of tax reform. The type of tax system has changed, from the original classified income tax system to the combination of classification and synthesis of mixed income tax system, the cost deduction standard has been improved, the tax rate has also been adjusted. Everything is moving in a direction that is more beneficial to taxpayers. Here, we discuss the deduction standard of tax and fee in the individual income tax reform, in order to improve the personal income tax system.