Circular of the State Council on Issuing the Plan for Reform of Income Tax Revenue Sharing
Circular of the State Council on Issuing the Plan for Reform of Income Tax Revenue Sharing
Circular of the State Council on Issuing the Plan for Reform of Income Tax Revenue Sharing
Guo Fa [2001] No. 37
December 31, 2001
With a view to promoting the sound development of the socialist market economy, further standardizing the distribution relationship between the central and local governments, establishing a reasonable distribution mechanism, preventing repeated construction, slowing down the widening of the financial gap between regions, supporting the large-scale development of China's western region, and gradually achieving common prosperity,the State Council has decided to implement the reform of income tax revenue sharing from January 1, 2002. The Plan for the Reform of Income Tax Revenue Sharing is hereby issued to you for your earnest implementation.
Appendix: Plan for the Reform of Income Tax Revenue Sharing
The State Council has decided to reform the existing method of dividing income tax revenue based on the affiliation of enterprises, and to adopt the proportional sharing of the revenues from enterprise income tax and individual income tax between the central and local governments.
The guiding thoughts, basic principles, and main contents of the reform plan are given as follows:
I. Necessity of the reform
With the development of the socialist market economy, the disadvantages in the existing practice of dividing the central and local income tax revenues based on the affiliation of enterprises become increasingly prominent.It mainly hinders the gradual deepening of the reform of state-owned enterprises and the building of a modern enterprise system, objectively helps spur repeated construction and regional blockade, and hampers the fair market competition and the formation of a unified national market; it is neither conducive to promoting coordinated regional economic development and achieving common prosperity, nor to strengthening tax collection, management and monitoring.
As the reform of government institutions advances in an all-round way, and with the smooth implementation of the new financial system for enterprises and the stable operation of the tax-sharing fiscal system, the necessary conditions for the reform of income tax revenue sharing have been basically met.The implementation of this reform will not only help eliminate the negative impact brought by the unscientific division method of income tax revenues at present on national economic development, but also narrow the development gap between regions, promote social stability and national unity, and achieve long-term stability for the whole country.
II.
......
Guo Fa [2001] No. 37
December 31, 2001
With a view to promoting the sound development of the socialist market economy, further standardizing the distribution relationship between the central and local governments, establishing a reasonable distribution mechanism, preventing repeated construction, slowing down the widening of the financial gap between regions, supporting the large-scale development of China's western region, and gradually achieving common prosperity,the State Council has decided to implement the reform of income tax revenue sharing from January 1, 2002. The Plan for the Reform of Income Tax Revenue Sharing is hereby issued to you for your earnest implementation.
Appendix: Plan for the Reform of Income Tax Revenue Sharing
The State Council has decided to reform the existing method of dividing income tax revenue based on the affiliation of enterprises, and to adopt the proportional sharing of the revenues from enterprise income tax and individual income tax between the central and local governments.
The guiding thoughts, basic principles, and main contents of the reform plan are given as follows:
I. Necessity of the reform
With the development of the socialist market economy, the disadvantages in the existing practice of dividing the central and local income tax revenues based on the affiliation of enterprises become increasingly prominent.It mainly hinders the gradual deepening of the reform of state-owned enterprises and the building of a modern enterprise system, objectively helps spur repeated construction and regional blockade, and hampers the fair market competition and the formation of a unified national market; it is neither conducive to promoting coordinated regional economic development and achieving common prosperity, nor to strengthening tax collection, management and monitoring.
As the reform of government institutions advances in an all-round way, and with the smooth implementation of the new financial system for enterprises and the stable operation of the tax-sharing fiscal system, the necessary conditions for the reform of income tax revenue sharing have been basically met.The implementation of this reform will not only help eliminate the negative impact brought by the unscientific division method of income tax revenues at present on national economic development, but also narrow the development gap between regions, promote social stability and national unity, and achieve long-term stability for the whole country.
II.
......