Research on the Improvement of China's Special Additional Deduction System for Children's Education of Individual Income Tax

Abstract

China has implemented the new individual income Tax law since January 1, 2019. In order to further promote the implementation of tax reduction and fee reduction policy and reduce the burden of taxpayers, special additional deduction items were set for the first time. Changed the previous one-size-fits-all deduction method, so that the tax more in line with the principle of taxation. However, there is still some room for improvement in China's current special additional deduction system for children's education, considering children's different education stages, family structure differences and deduction standard design. Some advanced practices in the three aspects of foreign countries can be used for reference, suggestions can be adopted: (1) according to the different education stage to develop differentiated deduction standards; (2) The system design should pay enough attention to the family structure; 3. Scientifically design deduction standards and gradually improve the system of special additional deductions for children's education.