(1) Direct taxes are the mainstay, supplemented by indirect taxes.
The British tax system consists of personal income tax, corporate income tax, capital gains tax, petroleum tax, capital transfer tax, stamp duty, land development tax, as well as value-added tax, customs duty and consumption tax. Income tax occupies a dominant position, accounting for more than 60% of all taxes. 199 1 year, the direct tax revenue including income tax accounts for 67.3% of the total tax revenue.
Indirect tax is in an auxiliary position in the British tax system and accounts for a low proportion in all taxes. 199 1 year, British indirect tax revenue accounted for 32.7% of the total tax revenue in that year, which was lower than the proportion of direct tax.
(2) Tax revenue and authority are highly concentrated.
Britain is a centralized country, and taxes and authority are highly concentrated in the central government. British tax is divided into national tax and local tax. National tax is controlled by the central government, accounting for about 90% of the national tax revenue, and is the main source of central finance. Local taxes are the responsibility of local governments, accounting for about 10% of the national tax revenue, which is an important source of local finance, but not the main source. The main source of local finance is the financial subsidy from the central government to local governments.
Consistent with the division of tax revenue, Britain's tax power is also highly concentrated in the central government. The national tax legislative power is in the hands of the central government, and local governments only enjoy the right to collect local taxes and the right to adjust and reduce the tax rate appropriately. However, these powers are also restricted by the central authorities, such as the local tax cap law promulgated by Britain in the 1980s.
? Second, the British tax system structure
The British tax system consists of direct tax and indirect tax.
1. Direct taxes mainly include income tax, capital gains tax and corporate tax. Individuals, partnerships and trust companies are required to pay income tax and pay capital gains tax for the capital gains from their asset disposal. The company pays corporate tax on its profits and capital gains. In addition, Britain also collects inheritance tax and gift tax.
2. Indirect taxes. It mainly includes value-added tax, customs duties, consumption tax and stamp duty.
? Third, the manifestations of British tax law
Britain has no independent tax law. When there are too many laws and regulations in a certain field, a unified bill will be prepared. In addition, there are the following major tax laws:
Stamp duty act of xxxx
Xxxx tax collection and management law
Xxxx petroleum tax law
Xxxx annual value-added tax law
Xxxx inheritance tax law
Xxxx company income tax law
Capital discount method in xxxx year
In addition to the above laws, court decisions (case law) also play a supplementary role, but they are only explanatory rather than legislative, and court decisions are based on previous precedents of higher courts.
Where the provisions of the tax law are not clear enough or in doubt, special explanations or explanations formed in practice can be used for guidance. Although it has no legal effect, it can generally be used unless the judgment of the legislature leads to abuse of power.
? Fourth, British tax management.
Responsible for tax management is the internal revenue service and the customs. The latter is mainly responsible for the collection and management of value-added tax, customs duties and consumption tax, while the former is responsible for other taxes.
1. tax return. Corporate tax is declared and paid according to the tax rate stipulated in each fiscal year (1 April to March1March). For individuals, their income tax and capital gains tax are declared according to the tax year (April 6 to April 5 of the following year).
Tax collection is generally based on the tax return filled out by taxpayers. The company shall attach the annual accounting statement to the declaration form. If the company fails to provide enough information in time for tax officials to evaluate tax before the normal tax payment period (within 9 months after the end of the financial settlement period), the tax authorities may impose a penalty interest on it.
Individuals should fill in the income, profits, expenses, allowances and discounts in detail in the tax return. Independent individual workers must also attach a business statement when declaring their taxable business or professional income. If employees earn RMB investment income, they can withhold tax from their employers (for such taxpayers, the tax authorities usually require them to fill out tax returns every few years). Taxpayers are generally required to fill in the report within 30 days after receiving it.
2. Collection method. Britain has different regulations on companies and individuals, and the direct collection system or withholding system is applicable.
3. Method of payment. Companies usually pay taxes within 9 months after the end of the fiscal year.
For individuals, if the tax withholding system cannot be implemented, the tax authorities will adopt a direct collection system-employees will pay in advance quarterly according to their estimated income, and then make adjustments after the actual figures are calculated.
Individuals should pay taxes on their business income, professional income, etc. Twice a year, June 1 day and July 1 day. Non-professional income is paid according to the current year's income of June 65438+ 10/. Capital gains and other income with higher tax rate (such as interest) shall be paid before 65438+February 1 of the following year.