This cartoon shows that China will raise the minimum threshold for personal income tax from 3,500 yuan (about 544 U.S. dollars) to 5,000 yuan per month, or 60,000 yuan per year, as proposed by China's top legislature in a draft amendment to the Individual Income Tax Law on Tuesday. (Xinhua/Chen Congying/Zhu Huiqing)
FLEXIBLE TAXATION PREVENTS TAX EVASION
The draft amendment also adds an anti-tax avoidance clause, empowering tax authorities to adjust tax rates when individuals transfer property in violation of independent trading.
Individuals will also be subject to the clause when they evade taxes through overseas tax havens or obtain improper tax benefits by organizing unlawful commercial activities.
"The addition of the clause is meant to let taxpayers pay their taxes in accordance with the law, which is better for the society," Li said.
"Concerted efforts are needed to fix tax evasion loopholes and make taxation more open and transparent," Li added.
