China to step up income tax collection from high earners
(Xinhua)
Updated: 2006-09-21 19:26
BEIJING -- China's revenue officers are to strengthen the management of
income tax collection from people with annual incomes of more than 120,000 yuan
(15,000 U.S. dollars), said a senior official with the State Administration of
Taxation (SAT).
SAT deputy director Wang Li told a national conference on income tax
collection and management that a system should be established to encourage
high-income earners to declare personal income voluntarily.
The SAT would concentrate efforts from October and throughout next year on
strengthening management and reform of the income tax system and on building a
personal income information system to better monitor the actual status of
high-income earners.
"There are loopholes in collecting income taxes from this group of people as
their sources of income are diverse," said an official with SAT Information
Office, who asked to be anonymous.
Personal income tax files should be established and the management of
industries with higher revenues should also be highlighted, Wang said.
Meanwhile, he said China's corporate tax revenues rose to 431.6 billion yuan
in the first seven months, 29.7 percent or 98.9 billion yuan more than same
period last year.
Personal income tax revenues hit 168.4 billion yuan in the period, up 16.4
percent or 23.69 billion yuan, said Wang.
The growth in personal income taxes, introduced by China in 1980, was
achieved after the government lifted the personal income tax threshold from 800
to 1,600 yuan a month from January 1.
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