High Income Individual Income Tax Collection and Management Research

June30,2011, The twenty-first meeting of the Standing Committee of the Eleventh National People’s Congress passed the decision about modifying the individual income tax law of the People’s Republic of China, which would be enforced since September1,2011.The modification of the law adjust the wages and salaries income cost standard and the applicable tax rate levels.The modification aims to reduce the tax burden of the low-income people,to increase taxes on high earners appropriately,and to narrow the gaps in income distribution.This paper reviewed the history of China’s Individual income tax law,explained why we should strengthen the collection and management of the individual income tax on the high earners.Then the paper introduced the taxation work of the XX Local taxation bureau.Finally,this paper proposes suggestions to perfect the high income individual income tax collection and management based on above analysis.