韓·中 個人所得課稅制度의 比較分析

A Comparative Analysis of the Individual Income Tax Systems of Korea and China

In terms of economic growth, the Chinese reforms appear to be a remarkable success. In the reform period of 1979~1995, real GNP grew by 9.9 percent. Particularly during 1992 and 1993, the rates of economic growth recorded over 13 percent per annum, thus surpassing the growth records of the "high performing" economies of East Asia. However, the Chinese economy still has a long way to go towards achieving a full transition to a market economy. Prominent on the agenda for further reforms, among others, is an overhaul of the tax system. This paper addresses the implications of the economic structural reforms for the tax system changes, especially individual income tax system. This paper is organized as follows. Section 1 provides a description of relevant aspects of the post-reform Chinese economy and of recent changes in the socialist market economic system. It also analyzes the trends in the public finance system in terms of broad aggregates : revenue, expenditure, and the budget deficit. Section 2 traces an evolutionary process of tax development which has taken place in China during the 15-year period of economic reforms. Section 3 assesses the role and current status of individual income taxation in the context of the China's overall tax regime. In Section 4 an attempt is made to undertake a comparative analysis of individual income tax systems of China and Korea. Section 5 ends with concluding remarks, where the author highlights analytical lessons and policy implications for the future improvement of individual income tax system in China. Many of these policy lessons are borne out by the Korea's extensive experiences in this specific area.