Worldwide or Territorial Approach for Individual Income Tax, Which is More Prevalent？

For individuals who are contemplating relocating, how their income will be taxed might be an important factor when deciding whether or not to take up residence in another country. Two income approaches are commonly used around the globe. Worldwide income approach （also known as a global tax system） taxes income from whatever source derived. Territorial income approach taxes only income earned within the country＇s borders. Using information collected from PricewaterhouseCoopers＇ website1 that provides information on tax systems used in countries around the world, this paper examines which countries apply worldwide or global income approach and which employ territorial approach to determine the legitimate source of taxable income. The research focuses on countries within： （1） Americas; （2） Asia/Pacific Basin; （3） Europe; and （4） Africa/Middle and Near East. Based on the information collected and presented in this paper, the worldwide approach is much more prevalent （104 countries） than the territorial approach （30 countries）. This paper also investigates any specific rules that a particular country has in relation to income to be taxed and residency versus non-residency status of the taxpayers. There appears to be an abundant spectrum of rules relating to residency and domicile for tax purposes among the countries.

Noncompliance Opportunities and Tax Compliance Behavior in Nigeria： The Moderating Effect of Taxpayers＇ Financial Condition and Risk Preference

In Nigeria, like some other developing countries, income tax administration is characterized by noncompliance problem and this has been hindering tax revenue performance. Although a number of factors may be responsible for such phenomenon, the literature has suggested that the relationship between tax compliance behavior and its determinants may be moderated by other factors. In order to account for situational and environmental peculiarity of Nigeria, this study extends tax compliance model to incorporate moderating effects of taxpayers＇ financial condition and risk preference. However, the study investigates the moderating effects of financial condition and risk preference on the relationship between noncompliance opportunity and tax compliance behavior. The study was conducted through a survey of individual taxpayers＇ opinions and the data collected were statistically treated using multiple regression technique. The study reveals among others that the effects of financial condition and risk preference significantly moderated the influences of taxpayers＇ source of income and occupation on tax compliance behavior. These findings pose some theoretical and policy implications.

Asymptotic Marginal Tax Rate of Individual Income Tax in China

This paper examines the asymptotic marginal rate of individual income tax which maximizes China's social welfare through numerical simulation based on the elasticity of China's labor supply, income distribution and the social objectives of redistribution in accordance with the optimal direct taxation theory. Taking advantage of the optimal direct taxation model with consideration of the income effect, it comes to the conclusion that combined with China's reality, the asymptotic marginal rate of individual labor income tax in China should be between 35% and 40%.

What Are the Most Effective Adjustments To Ease Individual Income Tax Burdens?

The Chinese Government’s recent economic stimulus measures are attracting much attention because of its plan to increase people’s incomes and alleviate enterprises and residents’ economic burden.

China's Tax Reforms in Facilitating Globalization and the Belt and Road Initiative

Since the proposal of the Belt and Road Initiative(BRI)in 2013,the economic and trade cooperation between China and related BRI economies has flourished over the past eight years.The Chinese government has given top priority to improving its doing-business environment to implement the national initiative of"bringing in"and"going abroad",which echoes the BRI economic activities.Being a core part of the doing-business environment,tax reforms and the building of a more growth-friendly tax environment serve as one of the key drivers to further attract foreign investment and encourage domestic enterprises to go abroad.This article starts with the background of China’s tax reforms,followed by an in-depth analysis of the corporate income tax and individual income tax reforms,and finally discusses the impacts of China’s tax reforms on cross-border investment and trade.

A Comparative Study on the Annual Reconciliation of IIT Between China and Some Other Jurisdictions

On 30 June 2021,China successfully completed its second annual reconciliation of individual income tax(IIT).The successful implementation of the annual IIT reconciliations in the past two years,with hundreds of millions of natural person taxpayers involved marks a significant milestone in China’s ongoing reform of the IIT system,especially regarding the tax collection and administration system for natural persons.Assessing the achievements of China’s annual IIT reconciliation requires a comprehensive analysis from various aspects,including concepts for IIT governance,system design and implementation effects.This report with the national reconciliation data as the sample uses descriptive statistics to analyze the effectiveness of China’s annual IIT reconciliation practice and the issues.The repo rt also compares the IIT filing data of six jurisdictions,including the United States and Canada,with those of China,to evaluate the effectiveness of China’s annual IIT reconciliation from an international perspective.Finally,the report offers several suggestions for further improving the IIT annual reconciliation system in China.