Comparison of Tax System in China and the Czech Republic with Focus on Personal Income Tax

Abstract

Tax is very important for a country, and tax is closely related to all of us. Tax is the main source of government revenue. The objective of this thesis is to introduce and compare the basic structure of tax system in China and the Czech Republic, then figure out the difference by calculating the personal income tax liability in conditions of China and the Czech Republic on the model examples. This thesis is divided into 5 chapters, the first chapter is introduction. Chapter 2 is the tax theory and basic structure of tax system in China. Chapter 3 is the basic structure of tax system in the Czech Republic. Chapter 4 is calculation of personal income tax in China and the Czech Republic. Chapter 5 is conclusion. we summarized the differences from the aspects of history, classification method and compared the main taxes. We found that individual's tax burden in the Czech Republic is higher than the individual's tax burden in China. As for the calculation method, the main difference is that the advance payment of tax in China is calculated by the accumulated income. We can conclude that there are many differences but still have similarities between the tax systems of China and the Czech Republic, which are caused by different national systems.